In an interim trading statement the world's third largest retailer posted a year-end sales rise of 4.2 per cent, equating to €55.7 billion - up from 2004's €53.5bn.

This was in line with expectations, following the November reduction in its sales forecast from 5-6 per cent to accommodate a drop in domestic vending.

A second-rate Christmas retail performance in Germany saw sales decline by 3.9 per cent, or 2.2 per cent for the whole year, reflecting cautious consumer behaviour in a competitive market.

But the international sales share continued to soar, lessening the impact of the ailing domestic sector. International sales saw a dynamic growth of 10.5 per cent to €29.8bn, representing 53.4 per cent of total sales.

"The development in the fourth quarter was in line with our expectations as revised in November 2005," said CEO Hans-Joachim Korber.

"The Christmas business in Germany was as expected by and large without impulse. Again, our international business delivered double-digit sales growth. Within our strategy of profitable growth this is where we will keep our investment focus," he added.

Metro opened 25 new Cash and Carry supermarkets and 27 Media Markt and Saturn stores outside Germany in Q4, strengthening international sales.

The group now operates throughout Europe, China, Russia and Vietnam with planned expansion in 2006 of its Metro Cash and Carry, Media Markt and Saturn divisions as its domestic sales continues to fall.