A review of Carrefour’s business in Brazil has led the world’s second-largest retailer to lower its profit forecast for 2010.
The French retail giant said today (14 October) that it now expects its “activity contribution” to reach “around EUR3bn (US$4.22bn)” this year – down from an earlier forecast of EUR3.1bn.
Go deeper with GlobalData
“Further one-off charges related to Brazil, resulting from the ongoing audit we have ordered, now lead us to estimate our 2010 activity contribution at around EUR3bn,” CEO Lars Olofsson.
The move came as Olofsson reported “solid” sales from Carrefour during the third quarter of the year.
Carrefour posted a 0.1% rise in like-for-like sales, excluding fuel, for the third quarter. The retailer booked a 1.1% fall in the same metric during the second quarter of the year.
Carrefour’s total sales were up 6.7% at EUR25.6bn. At constant exchange rates and excluding petrol, sales increased 1.9%.
“Carrefour turned in a solid sales performance in the third quarter in spite of a trading environment that remains challenging in a number of key markets,” Olofsson said. “We are particularly satisfied by our strong sales in emerging markets, such as China and Latin America, and by encouraging signs of recovery in such markets as Belgium, Poland and Taiwan.”
Click here for the full sales statement from Carrefour.
