(Reuters) – Carrefour reported an increase in its annual turnover on Tuesday and expressed confidence for 2024, after recording record cash flow of 1.62 billion euros in 2023 and a profit of operations up 18.5% in France, its main market, in a context of high inflation.
These good results and robust cash flow allowed Carrefour to increase its dividend by 55%, or 0.87 euros per share, and to launch a new share buyback plan of 700 million euros.
In 2024, the group should benefit from a more favorable market environment in Europe with the continued recovery of consumer purchasing power, the group’s financial director, Matthieu Malige, told journalists, adding that Carrefour planned to continue to lower its prices this year in France to be more competitive.
In France, where the company faces stiff competition, notably from Leclerc, which is not listed on the stock exchange, operating profit stood at 988 million euros, an increase of 18.5%.
Considering the current rate of inflation, this result reflects good commercial performance, strong cost discipline and a pronounced development of private labels, the group said.
In Brazil, Carrefour’s second market, operating profit fell by 26.9%, however, weighed down by exceptional costs linked to the integration of Grupo BIG and the transition of stores to franchise and rental management.
The distributor reported a 9.8% increase in its current operating profit to 2.26 billion euros at constant exchange rates.
The group’s annual turnover stood at 94.13 billion euros, an increase of 10.4% on a comparable basis.
(Report by Dominique Vidalon; French version Lina Golovnya, edited by Sophie Louet)
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