Carrefour Brasil has returned to profitability in the second quarter, driven by cost-cutting measures and the ongoing integration of the Grupo Big supermarket chain, acquired in 2021.
Net profit reached R$330 million (€54 million), reversing the R$249 million (€41 million) loss in the second quarter of 2023.
EBIT also improved to R$594 million (€98 million) from a loss of R$9 million (€1.5 million) in the corresponding period of the previous year.
The company has accelerated its synergy plan with Grupo Big, setting a new target of R$3 billion (€495 million) in annual savings, up from the previous goal of R$2 billion (€330 million).
While Carrefour Brasil's consolidated net revenue grew by 7.8% to R$29.6 billion (€4.9 million), food sales in the retail arm (excluding new stores) continued to decline, although at a slower pace.
To consolidate its position, Carrefour is converting eight supermarkets into the Atacadão format, its rapidly expanding wholesale chain. This has led to an increased wholesale conversion target for the year.
Quarterly Highlights
The company's adjusted EBITDA margin improved by 0.6 percentage points to 5.7%, driven by growth across all units, including Atacadão (+7.4%), Carrefour retail (+2.3%), and Sam's Club (+2.5%).
Despite these positive results, Carrefour continues to close underperforming supermarkets, leaving only 90 stores in operation after 117 closures over the past 12 months. This process is nearing completion.
Carrefour has also revised its Atacadão store opening plan for 2024, increasing it to 20 new stores, including the conversion of 12 hypermarkets and eight supermarkets. Additionally, it plans to open seven to nine Sam's Club stores.
Elsewhere, the group ended its partnership to operate 15 Super Nosso supermarkets in Minas Gerais in the second quarter of 2024.
