By Dominique Vidalon and Helen Reid
PARIS (Reuters) -Carrefour, Europe’s largest food retailer, said on Wednesday it would keep lowering prices this year as it reported a higher operating profit for its core French market and strong cash flow of 1.46 billion euros ($1.52 billion) for 2024.
The solid results allowed Carrefour to hand investors a 6% dividend hike, to 0.92 euros per share, along with a special dividend of 150 million euros or 0.23 euros per share.
However, Chief Financial Officer Matthieu Malige sounded a note of caution about consumer demand in 2025, particularly in France where Carrefour has been battling to win back market share from rivals like privately held Leclerc.
Carrefour’s sales in France fell 2.1% in the fourth quarter due to what it called a “sluggish” market, though this was an improvement from the 3% drop in the previous quarter. Carrefour said its French market share hit a 10-year high in 2024.
Carrefour will lower prices this year, Malige told reporters on a call, as consumers are still pressured by inflation, are highly price-sensitive and will switch between retailers and brands as they search for the best deals.
“We don’t see any significant improvement in the short-term. That’s why we are cautious on 2025 for France and more broadly for Europe,” he added.
Carrefour’s operating profit in France rose 5.5% to 1.04 billion euros for 2024, while the margin increased by 5 basis points to 2.6% of sales.
Carrefour, which last week announced it would take private its Brazilian unit Atacadao SA, also known as Carrefour Brasil, said it had launched a review of its asset portfolio.
For 2025, Carrefour said it expected slightly higher earnings before interest, taxes, depreciation and amortisation (EBITDA), recurring operating income (ROI) and net free cash flow.
The retailer’s group recurring operating income was 2.21 billion euros for the year, a 1.4% rise at constant exchange rates. This compared with an estimated 2.26 billion euros in a poll of 18 analysts, based on LSEG data.
As in 2024, Carrefour’s price-cutting efforts will be partly funded by a new cost savings plan of 1.2 billion euros. The retailer’s cost savings reached 1.24 billion euros last year.
Carrefour opted for a special dividend instead of a share buyback, partly due to a recently introduced new French tax on share buybacks, Malige said on the call.
($1 = 0.9606 euros)
(Reporting by Dominique Vidalon; Editing by Benoit Van Overstraeten and Richard Chang)
