Otto Group posts red numbers due to high inflation and slump in consumption.

Status: 05/24/2023 2:41 p.m

The high inflation and the slump in consumption after the Russian attack on the Ukraine pushed the Otto Group from Hamburg into the red.

In Germany, the trading and service group posted a sharp drop in sales. In the 2022/23 financial year, it fell by nine percent to nine billion euros. At the same time, since business abroad picked up sharply, Otto was able to keep total sales almost stable at 16.2 billion euros. The operating result (EBIT) before taxes nevertheless collapsed to 22 million euros. In the previous year, an increase of 677 million euros was recorded here. The bottom line is that the group even wrote deep red numbers.

CEO Birken not satisfied

“The figures show that we were not able to escape the market trend either. The very turbulent and moving times against the background of the horrible war in Ukraine, the energy crisis, inflation and the associated slump in consumption are also reflected in our business,” said CEO Alexander Birken. One cannot be satisfied with the financial year.

inflation and reluctance to buy

CFO Petra Scharner-Wolff explained: “Our customers have reacted very clearly to the inflation and have shown a greater reluctance to consume – especially when it comes to more expensive purchases such as our furniture.” Although the number of customers rose slightly to 54 million, fewer were bought. At Otto, large stocks were piling up that had to be sold.

Better prospects

According to the information, the business is now stabilizing. For the current 2023/24 financial year, Scharner-Wolff expects sales at the previous year’s level and earnings before interest and taxes in the low three-digit million range. Among other things, also because of new business areas – such as doctor treatments via video switch. “We have acquired a company in Switzerland that is the largest telemedicine center in Europe,” said Scharner-Wolff.

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NDR 90.3 | NDR 90.3 Current | 05/24/2023 | 13:00 ‘O clock

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2023-05-24 23:08:29
#Hamburger #Otto #Group #slips #red

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