Carrefour Reports Net Profit of 298 Million Euros

The Tip Desk · April 29, 2021 · 2 min read

The retailer saw its international revenue share rise to 53.1% at constant exchange rates.

The retailer reported a net profit of 298 million euros for the first half of 2021, compared to a loss of (25) million euros in the first half of 2020 retraité. This result followed a net profit from continuing operations of 275 million euros, an improvement of 304 million euros over the same period in the previous year.

Revenue for the period reached 34,462 million euros, representing a 5.1% increase at constant exchange rates. The company said the share of revenue generated internationally continued to grow, reaching 53.1% at constant exchange rates, up from 52.3% in the first half of 2020.

In France, revenue rose 3.2%. The company reported that this growth was supported by hypermarkets, which saw comparable growth of 3.3% in the first quarter and 4.3% in the second quarter, and supermarkets, which grew 7.0% in both quarters. The current operating result for France reached 187 million euros, a 45.1% increase compared to the first half of 2020 retraité.

Performance in other regions was mixed. The current operating result for Europe excluding France rose 13.0% at constant exchange rates to 225 million euros. In Latin America, the current operating result was 309 million euros, which the company described as quasi-stable. However, the retailer noted a decline of (20) million euros at constant exchange rates for its operations in Brazil.

Group current operating result stood at 740 million euros, an increase of 14 million euros. The company attributed the growth in France to distribution activity dynamics and a continued reduction in costs.

Financial charges for the first half of 2021 were (187) million euros, with an effective tax rate of 34%. The company said this rate reflected a reduction in the CVAE rate in France and tax rates on capital gains from the sale of Market Pay in France and the exchange of assets of Pinheiros in Brazil. This was partially offset by an increase in the Argentine tax rate to 35% from 30%.

Cash flow from operations was impacted by a net free cash flow of (1,990) million euros. The company said it expects its net free cash flow to be above 1 billion euros per year starting in 2021.

Looking forward, the company confirmed its strategic goals for 2022, including 4.2 billion euros of e-commerce food GMV and 4.8 billion euros of revenue from organic products. The retailer also aims to achieve 2.4 billion euros in additional cost savings by 2023 in a full year.