Carrefour, Europe’s biggest retailer, is confident in its 2023 outlook after reporting on Tuesday a record free cash flow of 1.26 billion euros and continued growth in annual operating profit despite high inflation, Reuters reported.
The French group Carrefour is forecasting new growth this year in its three main indicators – earnings before taxes, interest, depreciation and amortization (EBITDA), operating income and net available cash flow
CEO Alexandre Bompard told analysts that Carrefour expects further reductions in consumer spending in the first half of 2023 due to high inflation.
But the group believes it is well-positioned to respond with its own brand of products, advertising and loyalty campaigns, accelerating the expansion of discount stores and cutting costs.
“We look to the future with confidence,” Bompard said, reiterating the goal of generating available cash flow of more than 1.7 billion euros by 2026.
The good results and strong profits allowed Carrefour to increase the dividend to investors by 8% to 0.56 euros per share and to launch a share buyback program worth 800 million euros, after 750 million euros from 2022 and 700 million euros from 2021.
The company also posted a 4.6% rise in operating income in 2022 to 2.377 billion euros at constant exchange rates, beating analysts’ estimates of 2.34 billion euros.
The figures reflect a reduction in costs of one billion euros and an increase in sales in stores open more than a year of 8.5% to 90.81 billion euros, with increased market share in all key countries.
Shares of the French group are still 26% below the level of July 2017, when Alexandre Bompard headed Carrefour.
In November, Carrefour announced that it wants to cut costs by four billion euros by 2026. This strategy will allow Carrefour to pay a cash dividend and increase it by at least 5% per year, while it continues its share buyback policy and analyzes acquisition opportunities.
To help consumers hit by the rising cost of living, the company will increase the share of branded products in food sales to 40% in 2026 from 33% in 2022, and will accelerate the expansion of discounters in its key markets in France. and Brazil.
As a result, Carrefour raised its annual investment target to two billion euros from the previously announced level of 1.7 billion euros. (Agerpress)
Source: Hot News
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.