Thursday, 4 Mar 2021

Carrefour Reports FY 2020 Core Profits Gain, Sets New Savings Goals

PARIS – Carrefour revealed new targets for additional annual cost savings by 2023 after the grocery giant reached its 2020 target of 3 billion euros in cost cuts.

Carrefour posted recurring operating income of 2.17 billion euros, representing a 16.4 percent rise versus the same prior-year period on a constant-currency basis.

Group sales reached 78.61 billion euros, up 7.8 percent in like-for-like terms. Carrefour said that it registered its best sales performance in the past two decades, spurred in part by strong momentum in markets such as France, Brazil and Spain.

Carrefour in a press release Thursday said that it’s aiming for 2.4 billion euros in additional cost savings per year by 2023, on top of the 3 billion euros it has already achieved since the start of its plan, and a net free cash flow level of more than 1 billion euros annually starting this year.

Carrefour is in the midst of a restructuring plan that includes annual cost reductions, real estate asset disposals, and an increase of organic food sales and business online.

Alexandre Bompard, chairman and chief executive officer of Carrefour, called 2020 a “decisive year for Carrefour.”

“In a crisis which is accelerating changes underway, our group reached a watershed. Three years ago, the Carrefour 2022 plan marked a first turning point for our group,” he said in a statement. “Three years of flawless rollout of our transformation have established a growth model that is based on customer satisfaction and new consumer trends. Today, this model ensures the sustainable dynamism of our sales and the profitability of our group, and allows us to generate significant financing capacity to continue our development. Our 2020 results are evidence of this.

“We are confident for the future and translate this confidence into new operational and financial commitments,” he added.

Last month, the French government opposed a possible takeover of Carrefour by Canada’s Alimentation Couche-Tard.

For more, see:

Carrefour, Couche-Tard End Acquisition Talks and Mull Partnerships

Majid Al Futtaim Opens Carrefour in Uzbekistan

Carrefour to Buy Supersol Stores in Spain

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