Carrefour has today (30 Aug) reported a drop in profits for the first half of the year, with recurring operating income shrinking by 8.2 per cent, coming in at €769 million. However, a more dramatic decline was anticipated by analysts and shares in Carrefour have risen as a result.
Sales in the first six months of the year showed a marginal increase of 0.9 per cent, to €43.7 billion, driven by growth in emerging markets, particularly in Latin America, where sales rose by 5.3 per cent. Sales in the second quarter decreased slighly by 0.3 per cent to €21.7 billion.
Second quarter sales were down 2.1 per cent in France due to weak non-food sales and the group's other European operations had a sales dip of 3.5 per cent. Recurring operating income from the retailer's operations in Europe, excluding France, was down 32 per cent. Sales in Asia saw a rise of 14 per cent, driven by expansion and sales growth in China.
The 2011 figures were given on a pro-forma basis to take into account the group's recent sale of its stake in its joint Greek venture to Marinopoulos, and its planned exit from Singapore, and both Greece and Sinapore were reclassified as discontinued operations.
Later today it is expected that Groupe Carrefour chief executive, Georges Plassat, will announce a plan to turn around the business. (30 Aug)
© 2012 - ESM: European Supermarket