Currency Turbulence Dampens Carrefour Sales - Profit Rises Despite Sale in Taiwan

The financial results of the French retail chain Carrefour for the past year reflect challenges posed by international currency fluctuations. While total sales increased by only 2.3 percent to 83.3 billion euros, Carrefour could have reported a 12 percent growth in sales if not for the negative exchange rate effects, particularly due to the Argentine peso. This indicates that the company's actual economic performance is more robust than it appears at first glance. However, with an operating profit of 2.26 billion euros, the retail chain had to absorb a decline of 4.7 percent, which was slightly below the forecasts of market analysts. The devaluation of the peso and the expenses for the integration of Grupo Big into the Brazilian business are considered the main reasons for this development. The free cash flow, on the other hand, was visibly positive, even surpassing the median analyst expectations. A stricter inventory management, characterized by faster stock turnover, as well as the disposal of the company's stakes in Taiwan, contributed significantly to this development. Although the day-to-day business faced some obstacles, Carrefour managed to increase its net profit by nearly 25 percent to 1.66 billion euros, which stands in stark contrast to the operational earnings trend. On the Tradegate trading platform, the ambivalence of the annual results was reflected in a share price increase for Carrefour, which rose by over 3 percent in after-hours trading compared to the last Euronext closing price.