By Ruth Bender And Nadya Masidlover
PARIS--French retailer Carrefour SA said Thursday that it
continued to gain ground in its efforts to kick-start growth
despite difficult business conditions in Europe as it reported an
increase in full-year operating profit.
The company said operating profit rose 6.7% to EUR2.57 billion
($2.84 billion) as the company cut costs as part of a three-year
turnaround plan.
Net profit fell slightly to EUR1.25 billion from EUR1.26 billion
a year earlier, when the company booked a gain from the sale of its
Indonesian business. Sales fell 0.5% to EUR76.32 billion as growth
in Latin America couldn't offset still lackluster growth in Europe
and France.
The release highlights Carrefour's attempted recovery since the
arrival of Chief Executive Georges Plassat in 2012, in line with
his pledge to get the company back on track within three years.
"Our plan and our good cost control are bearing fruits," said
Chief Financial Officer Pierre-Jean Sivignon.
Mr. Plassat was brought in to head the retailer's turnaround
after several years of declining sales and strategic missteps by
his predecessors. In his first year, the boss slashed the company's
global footprint, pulling out of a number of markets.
At home in France, Mr. Plassat concentrated efforts on the
company's price image, cutting back on promotions and focusing on
everyday low prices. Meanwhile, the retailer continued to invest in
revamping stores in Europe and opening stores in emerging
markets.
Carrefour said in 2015 it will continue to focus on implementing
its different action plans with total investments to reach between
EUR2.5 billion and EUR2.6 billion.
The company said it would pay a dividend of EUR0.68 per share,
up from EUR0.62 last year.
Write to Ruth Bender at Ruth.Bender@wsj.com and Nadya Masidlover
at nadya.masidlover@wsj.com
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