Leading French retailer Carrefour has revealed solid year-on-year growth in both sales and operating income for 2010, despite what it described as 'mixed results' across its different markets.
According to the group, total sales grew 5.5 per cent to €90.1bn, driven by growth markets such as Latin America and Asia, while current operating income came in at €2.97bn, up 9.3 per cent and boosted by the effects of Carrefour's Transformation Plan.
'Carrefour achieved solid sales and operating profits in 2010 despite significant one-off charges, notably in Brazil,' said Carrefour CEO Lars Olofsson. 'Current operating income, while slightly below our target, grew faster than sales, reflecting Carrefour's success in reducing its operating costs and achieving purchasing gains, two key pillars of our Transformation Plan.'
In France, sales were flat excluding petrol, with the market share of stores under the Carrefour banner rising 50bp having been boosted by Carrefour Market's strong performance, while operating income increased 18.5 per cent to €1.3bn.
European markets endured a difficult year, the group noted, with sales down 3.4 per cent on the back of a difficult economic environment and price deflation, with European operating income standing at €726m, a drop of 9.8 per cent.
There was more positive news in Latin America, where sales growth stood firm at 14.2 per cent on continued expansion through the region, leading to an operating income increase of 1.9 per cent to €441m.
Sales in Asia, meanwhile, climbed 8.9 per cent at constant exchange rates, driven by a sustained pace of expansion, the group noted. Operating income jumped 27.5 per cent to €289m, boosted by a strong performance in China and signs of recovery in Taiwan.
Looking ahead, Mr Olofsson noted that Carrefour would continue to execute its Transformation Plan, while accelerating the development of the Carrefour brand and rolling out Carrefour Planet hypermarkets in five European countries.
'We will also propose to our shareholders to spin off 100 per cent of Dia and 25 per cent of Carrefour property,' he added. 'This will allow us to concentrate on the Carrefour brand and crystallise the embedded value of our real estate portfolio.
'Carrefour is well on its way to completing its transformation, becoming the preferred retailer and maximising value creation for its shareholders.'
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