Carrefour Reports Drop in Net Income Amid Strategic Moves

Carrefour's net income sees a decline to 723 million euros in the latest report. Despite challenges, the company highlights solid strategic advancements and competitive positioning for 2024.

Date: 19-02-2025

AI Rating: 4

Net Income: Carrefour's reported net income, group share, has significantly decreased to 723 million euros, down from 1.659 billion euros last year. This decline indicates a 56% drop in profitability, which could raise concerns among investors regarding the company's operational efficiency.

Adjusted Net Income: When adjusted for exceptional items, net income stands at 1.081 billion euros or 1.61 euros per share, which is lower than the previous year's adjusted figures of 1.221 billion euros or 1.71 euros per share. This suggests an overall decline in profitability, which may impact investor sentiment negatively.

Revenue Growth: Net sales for the latest quarter reached 85.445 billion euros, a slight increase from 83.270 billion euros the previous year. Total revenues also increased to 87.270 billion euros, compared to 84.908 billion euros last year. While the growth in sales indicates a positive trend, the overall declining net income can overshadow this aspect.

Strategic Moves: Carrefour's Chairman highlighted initiatives such as strengthening competitiveness and enhancing e-commerce and private label sales. The company's shift towards acquiring full ownership of Carrefour Brazil and investing in France demonstrates proactive measures to position itself favorably in a competitive market amid inflationary pressures.

In conclusion, while there are positive aspects in terms of revenue growth and strategic initiatives, the significant drop in net income is likely to weigh heavily on investor perception. The current strategies may take time to reflect positively in financial performance.

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