PARIS, Oct 26 (Reuters) – Carrefour raised its net free cash flow target on Wednesday after accelerating sales growth in the third quarter, particularly in the French market.
Carrefour’s hypermarkets have benefited from their “attractive” low-cost offers as shoppers are hit with the consequences of inflation, the company said.
The leading European distributor now expects net free cash flow generation of well over one billion euros in 2022, compared to one billion euros previously. The chain of stores had already raised this objective in July.
Third-quarter sales reached 23.50 billion euros, representing like-for-like growth of 11.3%, a marked acceleration from the 7.3% growth in the second quarter of 2022, Carrefour said, adding that it still expected to make cost savings of €1 billion this year.
The company is showing “agility, as consumers increasingly adapt their purchasing behavior to the new inflationary environment,” said Chairman and CEO Alexandre Bompard in a statement.
On the French market, sales increased by 6.6% on a like-for-like basis during the third quarter alone, hypermarket sales having increased by 5%, benefiting from their “discount” profile, said Carrefour.
Alexandre Bompard, whom Carrefour reappointed in May 2021 for an additional three years, is working on a new strategic plan and carrying out an asset review as part of this process.
The new strategy, which should be unveiled on November 8, will notably allow the French distributor to accelerate its digital expansion and to be more resilient in an increasingly uncertain environment. (Report by Dominique Vidalon in Paris, with Augustin Turpin in Gdansk)