• FY net profit up 0.1%
  • Sales down 1%
  • To invest EUR2.4-2.5bn in 2014
Carrefours shares rose in early trading in Paris

Carrefour's shares rose in early trading in Paris

Carrefour, the world's second-largest retailer, today (5 March) reported higher 2013 profits as investment helped boost sales in France - with the company pledging to up capital expenditure this year.

The company said its recurring operating income rose 5.3% to EUR2.24bn (US$3.08bn), slightly higher than the consensus forecast of analysts.

On a reported basis, Carrefour's turnover was down 1% at EUR74.89bn, although sales in France were up 0.3% at EUR35.44bn. Like-for-like sales grew across all formats in France, Carrefour said.

On an organic basis, Carrefour's net sales grew 2.3%, with a 1% rise in France contributing to the growth in the top line. Organic sales in the rest of Europe fell 0.3% but rose 2.2% in Asia and by 12.3% in Latin America.

Carrefour said recurring operating income from its French business jumped 30%. The retailer pointed to improved margins thanks to "an improved balance between everyday low prices, promotions and loyalty programs and lower shrinkage".

Reported net income was up 0.1% at EUR1.26bn.

Net income from recurring operations jumped from EUR150m in 2012 to EUR949m in 2013. Financial expenses were lower year-on-year due to a drop in interest expense and lower exceptional items. Income from discontinued operations was also lower.

The company plans to invest EUR2.4-2.5bn in 2014, compared to EUR2.2bn last year.

Carrefour said it would "intensify" its store remodelling programme. It plans to "accelerate" its roll-out of multi-channel operations.

Shares in Carrefour were up 1.11% at EUR26.92 at 09:55 CET.