METRO returns to profitability after two years of losses - what does that mean for shareholders?

METRO returns to profitability after two years of losses - what does that mean for shareholders?

According to a report by www.finanzen.net, the wholesaler METRO is reporting profits again after two years of losses and is planning to pay a dividend. Despite the positive result, CEO Steffen Greubel warns of bottom line results in the next financial year. The METRO share recovers from a record low and gains 4.89 percent, but remains significantly in the red in the long term.

The group's business figures have disappointed analysts as the target for adjusted operating profit is lower than expected. The planned dividend is also met with criticism as much of it is based on one-off profits from the sale of the India business.
In the last financial year, the trading group made a profit of 439 million euros, after high depreciation and currency losses had led to losses in previous years. The planned dividend of 55 cents per share represents a reduction compared to the previous year.

The forecast for the next financial year is inconsistent, as sales growth is expected to increase by three to seven percent after adjusting for currency effects. However, the board expects a decline in operating profit of up to 100 million euros. The investments in digitalization and the expansion of the delivery business are intended to drive the group's growth, with the goal of achieving sales of over 40 billion euros by 2030.

These latest developments indicate that METRO is facing challenges, particularly with regard to the forecasts for the next financial year and analysts' criticism of the business figures and dividend policy. The investments in digitalization and the delivery business could have a positive impact on business development in the long term, but in the short term the uncertainties in the market could continue to weigh on METRO shares.