PARIS: Europe’s largest food retailer Carrefour is confident on its 2023 outlook after reporting record free cash flow of 1.26 billion euros ($1.35 billion) and another rise in full-year operating profit despite high inflation.
Carrefour predicted further growth this year across its main three indicators - earnings before interest, taxes, depreciation and amortisation (EBITDA), recurring operating income and net free cash flow.
Chairman and CEO Alexandre Bompard told analysts that Carrefour expected cash-strapped shoppers to continue trading down amid high inflation in the first half of the year.
But the group believes it is well placed to respond with its private label products, promotional and loyalty programmes, accelerated expansion into discount stores and cost savings.
“We look at the future with confidence,” Bompard said as he reiterated a goal to generate free cash flow of more than 1.7 billion euros by 2026.
Good results and strong cash generation allowed Carrefour to hand investors an 8% dividend increase to 0.56 euros per share and launch an 800 million euro share buyback scheme after one of 750 million euros in 2022 and 700 million euros in 2021.
The company also reported 2022 recurring operating income up 4.6% at 2.377 billion euros ($2.55 billion) at constant exchange rates, slightly above the 2.34 billion euro analyst consensus compiled by Refinitiv.
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