Metro will write off 450 million EUR from its balance sheet
The German retailer Metro will write off 450 million EUR from its balance sheet. It comes to the value of goodwill arising from acquisitions completed 17 years ago, as part of the repositioning of the hypermarket chain Real. The assets write off will not affect the company’s forecast for annual earnings before interest and taxes. […]
The German retailer Metro will write off 450 million EUR from its balance sheet. It comes to the value of goodwill arising from acquisitions completed 17 years ago, as part of the repositioning of the hypermarket chain Real. The assets write off will not affect the company’s forecast for annual earnings before interest and taxes. The company planned growth of the financial result over 1.727 billion EUR, as Metro won in the previous financial year.
“Our financial results were already seriously affected by changes in the structure of the pay scale in Germany and increased investment to competitiveness”, says CEO of Metro AG Olaf Koch in an official statement. “Against this decline and to preserve freedom of action needed to overcome this effect, now that goodwill write-offs and so removed the tension of the balance sheet”, finished he.
Since Metro seeks sustainable repositioning of Real, the company intends to continue to invest in hypermarkets in the coming years.
