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The second largest retailer in the world Carrefour pledged to increase sales by 3-5% this year and further increase its free cash flow at a time when reducing investments in renovating its stores. The company said that it is ready to make an initial public offering of its property division Carmila and its Brazilian business this year, if market conditions allow.

Carrefour maintained its dividend in 2016 unchanged at 0.70 EUR per share after operating profit fell by 3.8% to 2.351 billion EUR, which is below the average estimate of the analysts for 2.37 billion EUR.

The retailer reported that the operating profit in France, which is largest market for the group, fell by 13.4% to 1.031 billion EUR margins fell by 40 basis points to 2.9%. This reflects the costs linked to the integration of more discount stores Dia, which are at a loss, and increased promotions in the French hypermarkets amid strong competition in the sector.

Elsewhere in Europe, however, the operating profit increased mainly due to the continued recovery in Spain and improved profitability in Italy. In Latin America presentation in Brazil is strong despite difficult market conditions, and in China, which contributes to 5% of sales still account for a loss.

Carrefour said that in 2017 it will invest 2.4 billion EUR in renovation and expansion of its stores, which is below the sum of 2.5 billion EUR last year.

