Makro claims to be on recovery path food sales increase by 4.1%
November 2009
According to accounts filed at Companies House, Makro Cash & Carry’s pre-tax losses increased from £19.4m to £26.7m in the year to December 2008, while turnover reduced 2.6% to £899m.
Makro said its Non-food sales were down 16%, although food sales rose 4.1%. Its total number of customers was stated to have fallen 12.4% on the year before.
Makro UK MD Hannes Floto claimed that the results were in line with expectations.
“The most significant indication of these results is that we have achieved our goal in stopping the sales decline of previous years,” he said. “We’re satisfied with the progress we’re making and feel we accomplished a great deal in 2008 with our ongoing turnaround programme.”
According to Floto the wholesaler’s increased focus on ‘ultra-fresh’ food and double-digit sales in Makro’s core hotel, restaurant and catering business was the reason of increase in food sales. The wholesaler also gained from the cost-reduction part of its turnaround programme, which witnesses the closure of three depots in May this year and revamp of many stores.
“Transforming this business is by no means a quick win,” Floto stated. “We’re in it for the long haul, with the full support of Metro Group. Our efforts are now really beginning to pay off with early signs that 2009 performance is looking to be as we expected.”
Metro disclosed this week that its Metro Cash & Carry division had stumped up special items of 53m (£47.3m) for “optimisation measures” in the UK and Germany in the nine months to September.
Michelle Williams from Artemis Solutions Group who specialise in recruiting for the Food and Beverages Sector comments “Aggressive cost-cutting and concentrating on ‘ultra-fresh’ food has held back Makro’s decline and there is a good chance that they will bounce back to growth soon.”
