Retail giant Carrefour has upheld its end-year profit and cashflow targets, saying it looked to the second half of the year with confidence as its French and Brazilian markets drove profit growth in the first six months of 2024.
Group recurring operating income grew by 6.2% to €743 million ($806.53 million) in the first half of the year on sales that reached €44.86 billion, a like-for-like growth rate of 12.1%, Europe's largest food retailer said.
In its core French market, where Carrefour has been accelerating price cuts to win back market share from rivals such as unlisted Leclerc, the group was able, thanks to cost savings, to protect and even improve profitability.
Performance Highlights
In France, operating profit rose 6.2% to €286 million, with the margin increasing by 14 basis points to 1.6% of sales in a market where volumes remained slightly negative, the group said.
In Brazil, the group's second-largest market, operating profit rose 45.7% to €366 million, driven by the commercial momentum of the Atacadão cash and carry stores and efficiencies from the integration of the Grupo BIG stores.
In June of this year, the retailer opened its first Atacadão outlet in France, offering a 'radically different' shopping experience for consumers, according to Carrefour chief executive Alexandre Bompard.
Outlook
Carrefour confirmed its 2024 financial objectives for growth in earnings before interest, taxes, depreciation and amortisation (EBITDA) and recurring operating income (ROI) and net free cash flow in line with its 2026 plan trajectory.
Alexandre Bompard, chair and CEO, added, “The group is accelerating the implementation of the Carrefour 2026 plan, with the growth of e-commerce, retail media, and its private label. This performance is the result of the unwavering commitment of the teams and our franchised partners.”
News by Reuters, additional reporting by ESM.
