Carrefour shows signs of recovery

Higher net profits due to downsizing

Last year overall sales of the world’s second largest
distribution group rose by 0.9% to 76.8 billion euro, mainly
thanks to emerging markets. Net profits also rose significantly: Carrefour made a yearly net profit of 1.24 billion euro, compared to only 371 million euro in
2011. Operational profit did drop by 2.6 percent, but that was still better
than the 2.07 billion euro expected by analysts.

Carrefour’s rise in profits came mainly because
of the sale of company parts that didn’t fit in the new
strategy of focussing on a few core markets. In that respect the distribution
giant sold its activities in Colombia, Malaysia and Indonesia.

Recovery in France, Belgium mainstay in Europe

Carrefour also showed some signs of recovery on
the home front: sales in France rose by 0.5 percent, while operational profit
jumped by 3.5 percent to 929 million euro. According to the retailer, the lower
prices in France only had a small impact on profit margins, due to an improved
mix of daily prices, promotions and customer fidelity.

In Belgium the company also showed some
positive figures: profitability as well as sales continue to rise at France’s northern neighbours.
Belgium is an exception in Europe however, as sales in the Europe minus France region went down by 2.7 percent, marked by a declining consumption in
Southern Europe.

Analysts are carefully optimistic about the
road Carrefour has taken and are starting to believe that a turnaround for the
retail giant could be possible. Since the first public appearance of Plassat last June, the share price of Carrefour has risen by about 50%.