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 Plus de graphiques de la Bourse Carrefour
Carrefour (EU:CA)
Graphique Historique de l'Action
De Mar 2023 à Mar 2024 Plus de graphiques de la Bourse Carrefour