Carrefour has reported underlying operating profit of EUR3.4bn (US$5.2bn) for 2007, a rise of 3.3% on the year.
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The world’s second-largest retailer saw underlying net profit rise 0.7% to EUR1.9bn on sales up 6.8% at EUR82.2bn.
The results came as Carrefour predicted a “breakthrough” year for the company in 2008.
The retailer said it had achieved its objectives in 2007 in spite of a “fierce competitive environment” in Europe and against the backdrop of deflation in France in the first three quarters of the year.
All regions contributed to sales growth, the company reported, while the overall sales growth of 6.8% – 7.0% at constant exchange rates – represented the third consecutive year of accelerating rates of sales growth, the company said.
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By GlobalDataSales in France rose by 1.1% to EUR37.6bn, while sales in the rest of Europe increased by 6.9% to EUR30.8bn.
Growth markets also contributed strongly to group revenue growth, Carrefour stated, with Latin American sales rising by 38.5% to EUR8.2bn, and Asia growing by 11.6% to EUR5.5bn.
“We have reinforced the main elements of group strategy, focusing on customer satisfaction and profitable growth,” Carrefour said. “Our growth markets confirmed their role as a main engine for growth within the group.”
Operating profit from France fell by 5.7% to EUR1.6bn, while the rest of Europe saw a 1.2% rise in operating profit to EUR1.2bn. Operating profit grew strongly in both Latin America and Asia. Latin America saw a rise of 86.5% to EUR301m, while operating profit from Asia grew by 27.6% to EUR218m.
Looking ahead, the retailer said 2008 would be a “breakthrough year”. “In 2008 we are ready for a breakthrough year during which faster sales growth will translate into even faster profits growth together with a corresponding increase in return on capital employed,” the company said.
Carrefour added that it was expecting sales growth of 6% to 8% – excluding acquisitions – in 2008.
