Aug 6, 2015
Metro earnings drop 17% in third quarter, announces new acquisition
Aug 6, 2015
German retailer Metro AG has bought Singapore-based restaurant supplier Classic Fine Foods Group from private equity group EQT for $290 million, it said on Thursday as it reported a slowdown in same-store sales due to a shift in Easter.
Metro, which is emerging from several years of restructuring and disposals of non-core businesses including the recent sale of the Kaufhof department stores, has said it expects to become more active in acquisitions in future, starting small but potentially building up to "sizeable" deals.
It has said it is keen to expand in the food delivery business, which it said rose 14.5 percent in its third quarter to the end of June, while online sales jumped 26 percent.
It said the purchase of Classic Fine Foods (CFF), which supplies upmarket hotels and restaurants with high-quality products like dairy, meat and seafood, would help its cash and carry business expand in high-growth Asian markets.
Reuters reported in May that Metro was among suitors for CFF including China' state-owned Bright Food Group Co and Switzerland's DKSH.
Meanwhile, Metro reported on Thursday that third-quarter earnings before interest and taxation (EBIT) before special items fell 17 percent to 209 million euros ($228 million) on sales down 1.4 percent to 14 billion euros, both roughly in line with average analyst consensus.
© Thomson Reuters 2022 All rights reserved.