Latest news with #Malige
Reuters
6 days ago
- Business
- Reuters
Carrefour to sell Italy business, reports improving sales growth
LONDON, July 24 (Reuters) - Carrefour ( opens new tab, Europe's biggest food retailer, has agreed to sell its loss-making business in Italy to food and drinks manufacturer NewPrinces Group ( opens new tab as part of a strategic review kicked off earlier this year. The sale of Carrefour Italy, which operates 1,188 stores but made a 67 million euro ($78.85 million) operating loss last year, will help boost Carrefour's growth, profitability and cash generation, the French-based retailer said in a statement. The deal gives Carrefour Italy an enterprise value of around 1 billion euros, Italy-based NewPrinces Group said in a separate statement, and should close by the end of the third quarter subject to regulatory approval. Carrefour also reported stronger second-quarter sales as price cuts helped to attract more inflation-weary shoppers particularly in France, its biggest market. Overall, Carrefour's second-quarter sales grew 4.4% on a like-for-like basis from a year earlier, building on 2.9% growth in the first quarter. In France, like-for-like sales returned to growth for the first time since 2023, up 2.1% compared to a year ago. "Volumes declined at a historic rate after the wave of hyperinflation in 2022 and 2023, but we are seeing a gradual recovery in purchasing power, which is evidenced by volumes increasing [in the second quarter]," Chief Financial Officer Matthieu Malige told journalists on a call. Carrefour plans to keep lowering prices in the second half as it tries to keep improving its competitive position, Malige added. The group's first-half sales totalled 46.559 billion euros, up from 44.863 billion euros a year earlier. "Carrefour's business saw a clear acceleration in the first half of 2025, driven by the momentum in its three core countries: France, Spain, and Brazil," Carrefour CEO Alexandre Bompard said in a statement. However, Carrefour's profitability remained under pressure, with its first-half operating margin falling to 1.6% from 1.8% a year ago. ($1 = 0.8498 euros)
Reuters
20-02-2025
- Business
- Reuters
Carrefour plans more price cuts this year as it gains ground in France
PARIS, Feb 19 (Reuters) - Carrefour ( opens new tab, Europe's largest food retailer, said on Wednesday it would keep lowering prices this year as it reported a higher operating profit for its core French market and strong cash flow of 1.46 billion euros ($1.52 billion) for 2024. The solid results allowed Carrefour to hand investors a 6% dividend hike, to 0.92 euros per share, along with a special dividend of 150 million euros or 0.23 euros per share. However, Chief Financial Officer Matthieu Malige sounded a note of caution about consumer demand in 2025, particularly in France where Carrefour has been battling to win back market share from rivals like privately held Leclerc. Carrefour's sales in France fell 2.1% in the fourth quarter due to what it called a "sluggish" market, though this was an improvement from the 3% drop in the previous quarter. Carrefour said its French market share hit a 10-year high in 2024. Carrefour will lower prices this year, Malige told reporters on a call, as consumers are still pressured by inflation, are highly price-sensitive and will switch between retailers and brands as they search for the best deals. "We don't see any significant improvement in the short-term. That's why we are cautious on 2025 for France and more broadly for Europe," he added. Carrefour's operating profit in France rose 5.5% to 1.04 billion euros for 2024, while the margin increased by 5 basis points to 2.6% of sales. Carrefour, which last week announced it would take private its Brazilian unit Atacadao SA ( opens new tab, also known as Carrefour Brasil, said it had launched a review of its asset portfolio. For 2025, Carrefour said it expected slightly higher earnings before interest, taxes, depreciation and amortisation (EBITDA), recurring operating income (ROI) and net free cash flow. The retailer's group recurring operating income was 2.21 billion euros for the year, a 1.4% rise at constant exchange rates. This compared with an estimated 2.26 billion euros in a poll of 18 analysts, based on LSEG data. As in 2024, Carrefour's price-cutting efforts will be partly funded by a new cost savings plan of 1.2 billion euros. The retailer's cost savings reached 1.24 billion euros last year. Carrefour opted for a special dividend instead of a share buyback, partly due to a recently introduced new French tax on share buybacks, Malige said on the call. ($1 = 0.9606 euros)
