Carrefour climbs, annual results and share buyback praised – 02/21/2024 at 10:15

Carrefour CARR.PA prances at the top of the CAC 40 .FCHI on Wednesday after the publication of annual results well received by investors, who also welcome the launch of a new share buyback program.

At 10:10 a.m., the distribution group’s action rose 3.85% to 16.31 euros, its biggest increase in session since last October, when the CAC 40 gained 0.07% at the same time.

Carrefour reported current operating profit of 2.264 billion euros in 2023, below its forecast and that of analysts, but investors are reassured by the strong growth in net free cash flow, which reached 1.622 billion euros. euros, well beyond expectations.

“Management has reaffirmed its policy in favor of shareholders,” Stifel analysts also underline in a note.

Carrefour has increased its dividend paid for 2023 by 55% and confirmed its objective of annual dividend growth of at least 5%.

The distributor also announced a new share buyback program for 700 million euros in 2024 “which reflects management’s confidence in the group’s operational performance, its free cash flow generation and its prospects”.

In total, Carrefour will return 1.3 billion euros to its shareholders in 2024, or more than 11% of its market capitalization, calculate Stifel analysts.

Those at JPMorgan are less enthusiastic about Carrefour’s publication, regretting in particular a forecast of an increase in recurring operating profit in 2024 that is too “vague”.

(Written by Blandine Hénault, edited by Kate Entringer)

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