French retailer Carrefour has announced that it is launching a share buyback for a maximum amount of €500 million, the first time in a decade it has bought back shares.
The company had initially announced its plans for the buyback in April, citing its solid cash position following a strong performance during the COVID-19 pandemic in its main market, France.
Capital Allocation Policy
It said it was announcing the buyback in line with its 'capital allocation policy, [aimed] at achieving an efficient balance between capex, acquisitions and return to shareholders'.
Carrefour said on Thursday it will hold the shares it buys back with a view to eventually cancelling them. It said the buyback period will start on May 7 and end not later than November 26.
'This operation falls within the framework of Carrefour’s share buyback program, as authorised by the General Meeting of shareholders of 29 May 2020 and valid until 28 November 2021, and if applicable, subject to the approval of the 20th resolution put to the shareholders’ vote at the General Meeting to be held on 21 May 2021," Carrefour said in a statement.
In April, Carrefour said that first quarter sales reached €18.56 billion, marking like-for-like growth of 4.2% and reflecting robust food sales in key markets of Brazil, France and Spain.
In France alone, sales growth was 3.5%, outperforming the market in hypermarkets, supermarkets, convenience, delivery and the Drive click and collect business.
"France made huge efforts to come back into the game. I am confident we can increase the satisfaction level," Carrefour chief executive Alexander Bompard said at the time.