French retailer Carrefour has posted solid results for its financial year 2024, driven by profitability in core countries.
Carrefour reported full-year sales growth of 9.9% on a like-for-like basis to €94.6 billion, while adjusted EBITDA grew by 1.7% to €4.6 billion.
Alexandre Bompard, chair and CEO, stated, “The group today presents solid financial results and indicators confirming the strong progress of its strategic plan.
“The shift towards franchising continues, private label and e-commerce sales are growing, and the group has achieved 111% of its CSR index target."
The company has proposed a 6% increase in ordinary dividend, reaching €0.92 per share, along with a special dividend of €150 million, subject to shareholder approval at the next Annual General Meeting.
2024: A 'Pivotal Year'
The retailer described 2024 as a 'pivotal year' that marked the end of the inflationary peak that began in 2022 in Europe.”
However, it noted that the accumulated inflation put strong pressure on consumers' purchasing power, leading to changes in purchasing behaviour which translated into a decline in volumes, fragmentation of purchases into smaller baskets, and increased 'trading-down' trends.
Carrefour implemented price investments in 2024 to cater to consumer demands, accelerate digital transformation and expand Carrefour-branded products, develop the European purchasing platform Eureca, and execute accretive acquisitions.
These investments had a tangible impact on customer satisfaction and on market share dynamics, particularly in France, Spain, and Brazil.
It helped the company execute its cost savings plan, achieving €1.24 billion in savings over the year.
French Market
Carrefour France delivered a strong performance amid a challenging environment as it regained its market share momentum over the year with consistent volume market share growth at constant scope since the third quarter.
Its recurring operating income increased by 5.5% to €1.04 billion, while operating margin increased by five basis points to 2.6%.
In 2024, the retailer also completed the acquisition of Cora and Match banners in France.
It also opened 454 new convenience stores during the year, and set a new record for the division in convenience store openings in the franchise segment.
Other Markets
The European market remained challenging in the second half of the year, with intense price competition and price investments made by Carrefour, significantly impacting its regional profitability.
Positive business trends observed at the end of the summer continued into the fourth quarter, driven by price investments.
Most European countries reported a sequential improvement in sales trends in the fourth quarter.
In Spain, Carrefour’s market share went back to positive at the end of the year, while business in Latin America remained strong, with significant sales growth, increased ROI, and improved operating margin in Brazil.
In Argentina, the group delivered record ROI despite a challenging economic environment, the company noted.
Outlook 2025
Carrefour Group plans to continue investing in prices in 2025 to sustain and accelerate the market share gains achieved in 2024.
The grocery chain aims to execute its plans by scaling up strategic initiatives and a new €1.2-billion cost savings plan.
The company added that it remains committed to its Carrefour 2026 strategic roadmap.
The group expects slight growth in EBITDA, recurring operating income (ROI), and net free cash flow.
