Carrefour Says Core Profit Down for First Time in Three Years
09 Mars 2017 - 12:48PM
Dow Jones News
By Nick Kostov
PARIS-- Carrefour SA reported a drop in core profit for the
first time in three years, pressured by a "difficult competitive
environment" in its home market of France.
Recurring operating profit at group level dropped 3.2% to 2.4
billion euros ($2.5 billion) as revenue declined slightly to
EUR78.77 billion, the supermarket operator said. Net profit dropped
24% to EUR746 million over the period.
In France, Carrefour's largest market, recurring operating
profit was down 13.4% to EUR1.03 billion as the company continued
to integrate the loss-making Dia stores. That also bought margins
down for Carrefour in the country by 40 basis points to 2.9%.
A confluence of difficulties, from tough competition in France
to a restructuring in China and difficult economic conditions in
Brazil, have hurt Carrefour in recent months, with its shares
declining 12% in the past year ahead of the earnings.
"Overall, today's set of numbers and announcements are unlikely
to create excitement despite the attractive valuation," Barclays
analysts say in a note.
Carrefour said it would keep its dividend steady at EUR0.70,
marking the first time it has not raised it since 2012.
For this year, Carrefour is targeting sales growth of 3% to 5%
at constant exchange rates. It is also planning initial public
offerings of its Brazilian business and its shopping mall property
unit Carmila, market conditions permitting.
The company's shares dropped 4.5% to EUR21.69 in morning trading
in Paris.
Write to Nick Kostov at Nick.Kostov@wsj.com
(END) Dow Jones Newswires
March 09, 2017 06:33 ET (11:33 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Carrefour (EU:CA)
Graphique Historique de l'Action
De Fév 2024 à Mar 2024
Carrefour (EU:CA)
Graphique Historique de l'Action
De Mar 2023 à Mar 2024