(Reuters) – Carrefour confirmed its outlook for 2024 on Wednesday, saying it was approaching the second half with confidence, with its French and Brazilian markets driving profit growth in the first half.
The current operating profit of Europe’s largest food distributor increased by 6.2% to 743 million euros between January and June, on a turnover of 44.86 billion euros, representing growth of 12.1% in comparable data.
In France, its main market, where the group has accelerated price cuts to regain market share against competitors such as Leclerc, Carrefour has been able, thanks to cost savings, to protect and even improve its profitability.
In France, current operating profit (ROC) increased by 6.2% to 286 million euros, with the margin increasing by 14 basis points to 1.6% of turnover, in a market where volumes remained slightly negative, the group indicated.
In Brazil, the distributor’s second largest market, ROC increased by 45.7% to 366 million euros, driven by the rise in converted stores, the commercial momentum of the discount brand Atacadão and the synergies from the integration of Grupo BIG, which were higher than expected.
“In a contrasting economic context, Carrefour is performing very well in its two key countries,” said Alexandre Bompard, the group’s chairman and CEO, in a press release.
Carrefour also confirmed its financial objectives for 2024, including growth in EBITDA and current operating income, as well as net free cash flow in line with the trajectory of its “Carrefour 2026” plan.
(Written by Diana Mandiá and Augustin Turpin, with Dominique Vidalon, edited by Kate Entringer)
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