Carrefour sees net profit drop due to reorganisation costs

10th March 2016, Comments 0 comments

French supermarket group Carrefour saw a 21.5-percent fall in net profit to 980 million euros last year due to reorganisation costs, despite a growth in sales and operating profit, the company said Thursday.

One-off expenses linked to the reorganisation amounted to 257 million euros ($282 million).

Taking into account the creation of shopping mall division Carmila in 2014 and the costs of integrating the low-cost Dia supermarket chain, the adjusted net profit was up 7.1 percent to 1.11 billion euros.

Carrefour financial director Pierre-Jean Sivignon said 2015 marked "the fourth consecutive year of growth" for the company.

Operating profit was up 2.4 percent in 2015 to 2.44 billion euros, boosted by growth in Spain and Italy.

Net sales in 2015 rose by 4.1 percent at constant exchange rates.

The company also experienced strong growth in Latin America, with a 23.5-percent increase in operating profit.

In China, the company said it was repositioning itself in terms of shop size and logistics amid an economic slowdown.

"In Taiwan, sales returned to growth for the first time in over two years, driven by the roll-out of our multi-format model and the modernisation of some hypermarkets," Carrefour said in a statement.

Carrefour proposed a dividend of 0.70 euros per share, up 2.9 percent.

Shares fell 0.8 percent to 25.14 euros in early Paris trading.

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© 2016 AFP

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