French retail giant 2014 Carrefour has posted a 3.9% rise in full-year sales as conditions improve in its home market and trading has ”stabilised” across Europe.
The hypermarket group posted full year revenues (excluding VAT) of €74.7bn during 2014, representing organic growth of 3.9%. This helped recurring operating income rise by 10.6% during the year to €2.4bn, while net income from continuing operationswas up 24.6% to €1.2bn.
The improved profitability was driven by better trading in France. Organic growth in France of 1.2% was driven by all its retail formats posting growth for the second consecutive year. Recurring operating income was up by 6.1% in the country.
Other European countries saw a rise in profitability for the third consecutive half in the second half of the year after a ”significant improvement in sales trends in 2014”. Its European operations recorded growth in recurring operating income of 9.6%, which “attests to the continuing recovery, notably in Spain”.
Emerging markets saw recurring operating income up 14.9%, driven by strong performance in Brazil and Argentina.
International organic growth was 5.9%. Sales in Europe were broadly stable, but the group saw an increase of 18.1% in Latin America, with Brazil recording an organic sales rise of 11.9%. In Asia, organic sales fell by 1.8%.
Carrefour said that in the third year of its strategic turnaround plan it would “stay the course in an environment that remains uncertain”.
In 2015 it said it will focus on ”implementing action plans aiming at continuous improvement of our offer and price image to enhance our customers’ shopping experience in all countries”. Other priorities include accelerating its multi‐format expansion and targeted expansion in key international markets.
Total investments, including spending on integrating the DIA France chain, will be between €2.5bn and €2.6bn this year.
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