Metro is reducing the dividends it pays out.
Metro is reducing the dividends it pays out.
Metro, the retail supplier, is in the red. As a result, investors won't be getting a profit distribution. This marks the third time in four years that shareholders have missed out on a dividend.
The company, headquartered in Düsseldorf, announced a hefty loss of 125 million euros for the recent business year. This translated to a loss of 33 cents per share, a substantial figure that impacted their dividend payout decision, as announced. "There's no proposal for a dividend payout during the 2023/24 fiscal year," the company declared.
Last year, Metro's CEO, Steffen Greubel, surprised shareholders, including the Czech billionaire Daniel Kretinsky, with a dividend just in time for Christmas. The company's sale of its Indian subsidiary and real estate packages, along with a profit of 55 cents per share, allowed for this payout in the 2022/23 fiscal year. However, it's important to note that Metro still managed to earn a substantial 439 million euros overall.
Prior to this, Metro had halted dividend payments for two consecutive years due to a significant post-tax and net loss.
During the past year, Metro managed to boost its local currency sales by 4.2 percent, reaching a total of 31 billion euros. Despite this growth, the adjusted operating profit (EBITDA) dipped to slightly under 1.1 billion euros. For the upcoming 2024/25 fiscal year, Metro is forecasting a currency-adjusted increase in sales of between 3 to 7 percent. However, for the struggling German division, growth below this range is expected. The company anticipates a minor increase in their adjusted operating income.
Greubel confirmed his growth targets for 2030. He's planning to focus the company's wide-reaching business on the wholesale sector, from internet distribution channels to delivery services. Greubel is relying on the restaurant and hotel business, strengthening distribution and delivery to customers, and increasing the market share of their own branded products. Metro is active in more than 30 countries, including Russia. Last year's sales in Russia alone amounted to around 2.4 billion euros.
The company cited its substantial loss as the reason for not proposing a dividend payout during the 2023/24 fiscal year, as mentioned in their quarterly figures. This continuing trend of losses, including two consecutive years of halting dividend payments, has led to a lack of profit distribution for shareholders.