Carrefour surprises with positive French results

Carrefour surprises with positive French results

French supermarket chain Carrefour managed a 4.9% profit increase to 766 million euro over the first six months of 2013. Encouraging were the results in home country France and the upcoming markets.

Exchange rates limits turnover

The first half of 2013 gave Carrefour a global turnover of 36.464 billion euro, 0.8 % lower than the same period last year. Less favourable exchange rates were the main cause of the slight setback, because if they had remained stable, Carrefour would have pushed forward 1.4 %. 

 

France, responsible for 40 % of Carrefour’s turnover, ‘only’ fell back 0.3 % as CEO Georges Plassat managed to get the French activities back on track, despite only becoming CEO in May 2012. 

 

Modernizing the ageing infrastructure, simplifying the array of products andcreating competitive pricing improved Carrefour’s impression with consumers. He also cut costs, resulting in a 75 % increase of the current company profits for the French market, from 275 million euro to 482 million euro.

 

Plummeting turnover in southern Europe

The results got a very positive reaction from analysts keeping a close eye on the share, who are hoping that the chain can reproduce those results in southern Europe, a region where the economic crisis isn’t sparing Carrefour.

 

For now Carrefour had to take a 4.5 % hit in the rest of Europe, with Spain and Italy weighing heavy on the numbers. The turnover dropped to 9.176 billion euro, while current company profits plummeted 76.4 % to 36 million euro.

 

Excellent performance in upcoming markets

Carrefour performed well commercially in the upcoming markets, but the exchange rates once again set back the numbers. The turnover in Latin America grew 1.1 %, to 6.953 billion euro, a number which would have shown a 13.3 % increase with stable exchange rates. The Asian turnover grew 2.7 % to 3.388 billion euro.

 

The first half of 2013 resulted in a net profit of 902 million euro, a huge increase compared to last year when only three million euro could be chalked up as profit. The recurrent company profit went up 4.9 %, reaching 766 million euro. In the latter half of 2013, Plassat is continuing his local approach for store management and reigning in the costs.

 

By the end of June 2013, Carrefour had 10,102 stores, 3,418 of which were in France, its home territory.

Questions or comments? Please feel free to contact the editors


Slower growth for Primark

18/01/2018

Irish fashion chain Primark’s first quarter turnover grew 7 % at level exchange rates and 9 % taking the fluctuations into account. Analysts had forecast higher numbers however.

Zalando's profit is slightly below expectations

17/01/2018

German fashion web shop Zalando has grown nearly a quarter in the past fiscal year and its company profit also nearly grew 5 %, although the latter was slightly below its own expectations.

Record turnover for Yoox Net-a-Porter in 2017

16/01/2018

Online retailer Yoox Net-a-Porter (YNAP) achieved a record turnover in 2017, surpassing two billion euro. That is a growth of more than 10 % compared to the year before, when it just missed that milestone.

Hugo Boss reaches growth targets for 2017

16/01/2018

German fashion brand Hugo Boss has managed to reach its targets for 2017, partially thanks to strong fourth quarter growth. For its full fiscal year, turnover grew 3 % (excluding exchange rate fluctuations).

C&A owners consider sale to Chinese investors

15/01/2018

The Dutch Brenninkmeijer family is considering to sell clothing chain C&A according to German magazine Der Spiegel. One option is to sell to Chinese buyers.

Gucci opens restaurant and museum in Florence

12/01/2018

Fashion brand Gucci has opened a museum and a restaurant for fifty people in Florence. Three-star chef Massimo Bottura will serve high-quality meals there. A dish will cost between 20 and 30 euro.

Back to top