Carrefour cautious after FY growth slows | Progresiv
Carrefour has offered a cautious forecast for 2018, after reporting a slowdown in growth for its last fiscal year. However, shares in the group have fallen by more than 6% this morning, after it also reported a net loss. 
For 2017, net sales rose by 2.9% to 78.9 billion euros (+2.6% constant-currency basis), with LFL sales up 1.6% (excl. fuel, calendar-adjusted). It however also reported a net loss of 531 million euros, compared to a profit of 746 million euros the previous year, while recurring operating profit fell by 14.7% to 2 billion euros, hurt by one-off charges related to impairments in Italy.
Sales in France were down 0.1% to 35.9 billion euros, which the group said “demonstrated momentum” despite tough market conditions. In the rest of Europe, sales grew by 5.1% to 21.1 billion euros, helped largely by improvements in the northern part of the continent. In Latin America, sales were up 10.6% to 16 billion euros (+8.3% constant-currency), a strong result given weak consumer spending in Argentina and reduced food price inflation in Brazil. However, sales in Asia were down 4.4% to 5.9 billion euros (-3.2% constant-currency), as its Chinese operations continued to suffer.
The results prompted Carrefour to lower its annual dividend by 34%, with CFO Matthieu Malige warning that it expects further headwinds this year. Carrefour noted that results in 2018 will be “closely linked to the evolution of foreign exchange rates, in particular the Brazilian Real.”
CEO Alexandre Bompard added: “The 2017 results we are presenting today demonstrate the necessity of implementing without delay Carrefour’s transformation plan … With this plan, whose ambition is to make Carrefour the leader of the food transition and build an omnichannel universe of reference, Carrefour is back on the offensive and is investing to resume growth”. (www.kamcity.com)
