Latest news with #MatthieuMalige
Reuters
24-07-2025
- 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 shares fall as retailer's 2025 outlook disappoints
LONDON, Feb 20 (Reuters) - Carrefour shares ( opens new tab fell sharply on Thursday after the French retailer sounded a note of caution on consumer demand and said it expects only "slight" growth in free cash flow and earnings before interest and tax in 2025. Carrefour shares were down 7% by 0904 GMT after its fourth-quarter results late on Wednesday showed comparable sales in France, its biggest market, fell again, with chief financial officer Matthieu Malige saying he does not see demand improving significantly in the short term. Carrefour's overall profit margin for the second half also missed expectations, hit by the retailer's push to lower prices, which it said it would continue this year as it competes against rivals like Leclerc, France's biggest supermarket retailer. Analysts said investors were also disappointed by the lack of a share buyback, which Carrefour's finance chief said was due to France recently implementing a tax on share buybacks. The retailer instead announced a special dividend.
Yahoo
20-02-2025
- Business
- Yahoo
Carrefour shares fall as retailer's 2025 outlook disappoints
LONDON (Reuters) - Carrefour shares fell sharply on Thursday after the French retailer sounded a note of caution on consumer demand and said it expects only "slight" growth in free cash flow and earnings before interest and tax in 2025. Carrefour shares were down 7% by 0904 GMT after its fourth-quarter results late on Wednesday showed comparable sales in France, its biggest market, fell again, with chief financial officer Matthieu Malige saying he does not see demand improving significantly in the short term. Carrefour's overall profit margin for the second half also missed expectations, hit by the retailer's push to lower prices, which it said it would continue this year as it competes against rivals like Leclerc, France's biggest supermarket retailer. Analysts said investors were also disappointed by the lack of a share buyback, which Carrefour's finance chief said was due to France recently implementing a tax on share buybacks. The retailer instead announced a special dividend. Sign in to access your portfolio
Yahoo
20-02-2025
- Business
- Yahoo
Carrefour (CRERF) Q4 2024 Earnings Call Highlights: Strong Growth in Key Markets Amidst ...
Total Sales (Q4): EUR25.7 billion, up 2.6% at current currency. Group Like-for-Like Sales (Q4): Up 7.1%. Recurring Operating Income: EUR2.213 billion, up 1.4% excluding currency effects. EBITDA Growth: 1.7% increase. Net Free Cash Flow: EUR1,450 million. France Recurring Operating Income: Increased by 5.5%, surpassing EUR1 billion. Brazil Recurring Operating Income Growth: Close to 25% in local currency. Argentina Recurring Operating Income: EUR115 million, a record level. Cost Savings: EUR1.240 billion achieved in 2024. E-commerce GMV: EUR6 billion, up 18%. Dividend Increase: Ordinary dividend up 6% to EUR0.92 per share, plus a special dividend of EUR0.23 per share. New Store Openings (France): Over 450 new convenience stores. Net Debt Increase: EUR1.220 billion, primarily due to M&A activities. Warning! GuruFocus has detected 5 Warning Signs with CRERF. Release Date: February 19, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Carrefour (CRERF) achieved growth in recurring operating income, EBITDA, and net free cash flow, aligning with multiyear expectations. Carrefour France saw a significant increase in market share and recurring operating income, reaching its highest level in over a decade. Brazil's recurring operating income grew by nearly 25% in local currency, with Atacadao outperforming the market. Carrefour's e-commerce segment experienced substantial growth, with GMV increasing by 18%, reinforcing its leadership in home delivery. The company achieved a 111% score in its Corporate Social Responsibility Index, meeting emissions reduction goals ahead of schedule. The European market remained challenging, with weak consumption and competitive pressures impacting profitability. Foreign exchange had a strong negative impact, particularly due to the depreciation of the Brazilian real and Argentine peso. Recurring operating income in Europe was down, affected by competitive markets and low volume growth. Net financial charges increased significantly, largely driven by the situation in Argentina. The company faces limited visibility on the timing of volume recovery in Europe, impacting future growth projections. Q: Can you provide more details on the strategic review of your activities and organizational models? Are you considering disposals, acquisitions, or changes in headcount and markets? A: Alexandre Bompard, Chairman and CEO, explained that the strategic review is comprehensive, with no limits on topics or entities. It includes all activities, formats, operating models, and the real estate portfolio. The goal is to ensure the right market positioning and operating model in a changed competitive landscape. Q: How much CapEx are you planning to invest in France, and what areas will it focus on? A: Matthieu Malige, CFO, stated that the CapEx budget for France will increase by 20% compared to 2024, focusing on improving customer experience through store revamps, logistics enhancements, and ensuring product availability, which is crucial for customer satisfaction and market share dynamics. Q: What was the impact of M&A on the French EBIT, and how does it affect the underlying margin? A: Matthieu Malige noted that the impact of M&A on French EBIT was fairly neutral in 2024, with the consolidation of profits from Cora & Match and the costs associated with synergy implementation balancing each other out. Q: Why are you opting for a special dividend instead of share buybacks, and how does this align with your capital allocation strategy? A: Matthieu Malige explained that due to a new 8% tax on share buybacks in France, Carrefour chose to issue a special dividend instead. The capital allocation strategy balances shareholder returns, M&A opportunities, and maintaining a strong balance sheet. Q: What factors contributed to the decline in European margins, and do you expect this trend to continue? A: Alexandre Bompard highlighted that the decline was due to competitive markets and low volume growth. The focus remains on strategic initiatives like price investments and private labels to drive future performance, but visibility on volume recovery remains limited. Q: How do you view the competitive environment in France, and is there potential for further consolidation? A: Alexandre Bompard noted that the competitive landscape has changed significantly, leading to market polarization. Carrefour has benefited from consolidation through strategic acquisitions like Cora & Match, and will continue to be selective in M&A to ensure accretive deals that do not compromise profitability. Q: Can you clarify the guidance for slight EBIT growth and how it varies by region? A: Matthieu Malige stated that the guidance for slight growth considers the lack of visibility on volume recovery and ongoing price investments. The growth is expected to be driven by France and Brazil, with Spain showing positive trends, while Europe remains challenging. Q: What is your outlook on free cash flow and the role of disposals and working capital gains in achieving your 2026 target? A: Matthieu Malige indicated that while working capital gains may not be as strong in 2025, disposals, particularly sale and leasebacks, will continue to contribute. The company remains confident in reaching the EUR1.7 billion free cash flow target by 2026. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
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)
