You are here

Metro buys Singapore-based food service group for US$290m

[LONDON] 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.

Earnings before interest and taxation (EBIT) before special items fell 17 per cent to 209 million euros (S$315.6 million) on sales down 1.4 per cent to 14 billion euros, both roughly in line with average analyst consensus.

Europe's fourth-biggest retailer said like-for-like sales fell 0.4 per cent after a rise of 2.5 percent in the previous quarter, which it said was mainly due to Easter falling earlier this year.

Metro reiterated its forecast for the full 2014/15 financial year for a "slight rise" in sales "despite the persistently challenging economic environment" and for EBIT before special items slightly above last year's 1.531 billion euros.

REUTERS

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes