Germany-based wholesaler Metro Cash and Carry’s division in India, according to the company, has turned a profit for the first time in 15 years.
2.8% decrease in sales
Metro Cash & Carry reported a decrease in sales of 2.8% from €798m in 2016-17 to €776m in 2017-18. The company’s country-specific profit figures remain unknown. However, it has been reported that sales in local currency (INR) increased by 11% to INR61.4bn.
Commenting on the results, Metro’s CEO Olaf Koch said, “Five years down the line, the Indian arm should generate significantly more than €1bn in turnover and should continue to grow in profitability… If you look at the sheer potential of the markets we are serving, I cannot see the Cash & Carry model becoming redundant, not even in the most advanced economies”.
Discussing the company’s private label, Koch said, “Metro India could learn about private labels from other markets. The contribution from our private labels here is in high single digits but it should be in high double digits, specifically in wholesale”.
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