FRANCE: Investment lifts Carrefour profits, to up 2014 spending
Carrefour's shares rose in early trading in Paris
Carrefour, the world's second-largest retailer, today (5 March) reported higher 2013 profits as investment helped boost sales in France - with the company pledging to up capital expenditure this year.
The company said its recurring operating income rose 5.3% to EUR2.24bn (US$3.08bn), slightly higher than the consensus forecast of analysts.
On a reported basis, Carrefour's turnover was down 1% at EUR74.89bn, although sales in France were up 0.3% at EUR35.44bn. Like-for-like sales grew across all formats in France, Carrefour said.
On an organic basis, Carrefour's net sales grew 2.3%, with a 1% rise in France contributing to the growth in the top line. Organic sales in the rest of Europe fell 0.3% but rose 2.2% in Asia and by 12.3% in Latin America.
Carrefour said recurring operating income from its French business jumped 30%. The retailer pointed to improved margins thanks to "an improved balance between everyday low prices, promotions and loyalty programs and lower shrinkage".
Reported net income was up 0.1% at EUR1.26bn.
Net income from recurring operations jumped from EUR150m in 2012 to EUR949m in 2013. Financial expenses were lower year-on-year due to a drop in interest expense and lower exceptional items. Income from discontinued operations was also lower.
Carrefour said it would "intensify" its store remodelling programme. It plans to "accelerate" its roll-out of multi-channel operations.
Shares in Carrefour were up 1.11% at EUR26.92 at 09:55 CET.
Click here for a round-up of analyst views on the results.
For the full results statement from Carrefour, click here.
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