Praktiker reduces deficit

The Metrogroup reports a clear improvement in earnings before interest and tax (EBIT) for Praktiker in the 2003 financial year. After - € 41.6 mio in the year 2002, this figure amounted to - € 13.8 mio last year. According to the annual report, the elements underlying this development are “the consistent application of the repositioning programme and particularly eye-catching marketing campaigns”. Criticism that was at times fierce came from the industry after several price-cutting rounds.
The group puts a figure of € 2.811 bn on Praktiker’s net sales. This corresponds to overall growth of 8.8 per cent (9.8 per cent currency-adjusted), and 9.3 per cent in like-for-like terms. The German number two increased sales in its international stores to € 628 mio, which is an increase of 8.6 per cent over the previous year. The international share amounted to 22.3 per cent overall, with sales in eastern Europe accounting for approximately 20 per cent of total sales.