French retailer Auchan has filed a set of mixed financial results for 2011, with net earnings and revenue up but underlying profits under pressure from higher costs.
Auchan, which runs 1,375 supermarkets and hypermarkets in 12 countries, today (13 March) reported net profit from continuing operations of EUR857m (US$1.12bn), an increase of 15.5% on the year.
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However, excluding one-off items in 2010 and 2011, net profit would have fallen 9%, Auchan said.
Operating profit increased 8.5% to EUR1.45bn but Auchan said the figure included gains from the restructuring and IPO of its venture in China, Sun Art Retail Group.
The retailer said its operating profit from continuing operations was up 0.3% at EUR1.34bn. Auchan pointed to a 5.5% fall in EBITDA to EUR2.38bn, which it said was due to pressure on margins and higher costs, particularly in the eurozone.
However, revenue increased 4.4% to EUR44.4bn. Expansion contributed 3.3 percentage points of the increase. Like-for-like sales were up 0.9%.
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By GlobalDataExcluding the now lower share of Sun Art Retail Group, foreign exchange and fuel sales, revenue, including tax, increased 4.2%.
Sales in France increased 2.4% but fell 1.3% in other eurozone markets. Revenue from Auchan’s operations in Central and Eastern Europe and Asia was up 13.6%.
