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Retail

Emerging Markets Boost Carrefour Performance

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Emerging Markets Boost Carrefour Performance

French retail giant Carrefour posted its results for full-year 2012 on Thursday (7 March), posting sales growth of 0.9 per cent €76,789 million, which it said was driven by emerging markets.

EBITDA was down 1.6 per cent to €3,688 million, while operating income dropped 2.6 per cent to €2,140 million. The group's divestment activities boosted net income to €1.23 billion, more than three times the €371 million figure generated in 2011.

Sales in France rose 0.5 per cent while operating income was up 3.5 per cent to €929 million. The retailer's home market accounts for over 40 per cent of group profits. Investment in Carrfour's French store network will amount to €1 billion in 2013, according to LSA, to be halved between store openings and store renovations, including the revamp of 50 hypermarkets.

The group's other European operations suffered with sales dropping 2.7 per cent to €20.87 billion (including petrol) at constant exchange rates, "reflecting the decline in consumption". Oerating income sank 20.6 per cent to €509 million, mostly due to economic difficulties in Spain and Italy. Conversely, the retailer said "record growing sales" were achieved in Belgium.

Latin America "remained strong" with 12.1 per cent sales growth recorded at constant exchange rates and "solid" like-for-like sales in Brazil and Argentina.

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Sales in China and Taiwan grew by 0.5 per cent at constant exchange rates but operating income was down by 10.3 per cent to €168 million. The retailer said its productivity gains in Asia were curtailed by wage inflation and expansion in China. The objective for 2013 is to develop its multichannel model, with the roll-out of Drive in France and continued expansion in Latin America and Asia. (7 March)

© 2013 - ESM: European Supermarket Magazine by Kevin Kelly

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