French retailer Carrefour has revealed that it endured a difficult 12-month period through 2009, with year-on-year group profit falling by 70 per cent to €385m from over €1.2bn in 2008.
According to the group, net income was impacted by non-recurring charges and restructuring costs that totalled just over €1bn.
Total group sales for the period fell 1.2 per cent at actual exchange rates, down to €86bn, although this represented growth of 1.2 per cent at constant exchange rates.
In the French market, sales dropped by 0.9 per cent excluding petrol, although market share increased by 20 base points.
European sales (excluding France) fell by 2.8 per cent, or 5.4 per cent at actual exchange rates, with sales affected by the economic environment and, in particular, deflation in Spain.
There was better news for the group in Latin America and Asia, however, where sales increased by 11.9 per cent and 8.4 per cent respectively at actual exchange rates.
“With the successful launch of the 'En Avant'’ Transformation Plan and fully mobilized teams, Carrefour has gained new momentum,' said group CEO Lars Olofsson. 'The past year has allowed us to register major advances: market share gains in France; a redynamised Carrefour brand; the success of Carrefour Discount products; accelerated banner conversion and the roll-out of new concepts.
'Our 2009 objectives were achieved and the foundations for Carrefour’s future have been laid,' Mr Olofsson noted. 'In 2010, in an environment that is likely to remain challenging, we will consolidate these gains through flawless execution of the transformation plan and strengthened sales dynamics in our key markets. Carrefour, with a renewed and leaner organisation and new management, will continue to implement its strategy to attain its ambition: become the preferred retailer.'
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