FRANCE: Carrefour cuts costs after flat FY profit
Posting flat operating profit for fiscal 2008, French supermarket retailer Carrefour said today (12 March) that it plans to cut operating costs and increase price promotions in a bid to boost profitability and kick-start sales.
In its full-year trading update, Carrefour said operating profit increased by 0.3%, rising to EUR3.3bn (US$4.21bn) from EUR3.29bn last year.
Net income plunged 45% to EUR1.27bn, dragged down by one-time impairment costs of EUR396m, mainly in Italy.
Total sales rose 5.9% to EUR87bn. However, in the retailer's home market sales were up barely 1% as the group was forced to offer price discounts at its lacklustre hypermarket business to fend off competition. France accounts for about 40% of Carrefour's total sales.
Looking to the coming year, chief executive Lars Olofsson said: "In a trading environment that remains challenging, we will focus on boosting our sales dynamics while improving our organisation and reducing our costs."
Olofsson, who joined Carrefour from food giant Nestlé earlier this year, said the retailer would improve both its rate of organic growth and its profit margins during the coming 12-months.
The company said that it would invest EUR600m to improve its competitiveness. Carrefour also predicted that it would be able to make cost savings of EUR500m.
Carrefour shares gained 1.2% on the news, rising to EUR24.89 at 10.23 am (GMT).
French clothing and footwear group Aigle International has announced the appointment of François Le Joncour as director of operations....
French retailer Carrefour today (28 August) stuck to its forecast of an up to 18% fall in annual profits after seeing half-year earnings slump....
Carrefour CEO Lars Olofsson said yesterday (16 July) that the French retail giant's moves to revitalise the company were yielding "encouraging results" despite a 1.2% fall in second-quarter sales....
Ex-Carrefour chief José Luis Duran is to head French textile firm Devanlay, a subsidiary of Swiss group Maus Freres and the manufacturer of Lacoste branded apparel....
- Will new Vietnam wage hinder competitiveness?
- Under Armour Lighthouse will disrupt production
- Digitisation to drive new apparel-making models
- How TAL Apparel is staying ahead of the game
- Ethiopia violence undermines sourcing strategies
- Marks & Spencer top for modern slavery reporting
- Bangladesh garment workers rally for higher wages
- MAS Holdings shares commitment to sustainability
- Gap to shutter all UK Banana Republic stores
- H&M CEO named sustainability leader
- Africa-Med strategic sourcing review – comparing East Africa, North Africa and Turkey
- REPORT BUNDLE: Africa-Med, Southeast Asia and Central America strategic sourcing pack
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Apparel (GLOBAL) - Industry Report
- Global Sports and Fitness Wear Market 2016-2020