Carrefour reported a record cash flow of €1.62 billion for 2023 on Tuesday, adding that it is confident about the coming year.
Europe’s largest retailer also reported that its operating profit was up 18.5% in its core French market amid high inflation.
These results allowed the retailer to hand investors a 55% dividend increase to €0.87 per share.
It also launched a new share buyback scheme worth €700 million.
2024 Plans
The chief financial officer of the group Matthieu Malige told reporters that in 2024 the retailer should see an improved market environment in Europe.
Malige added that Carrefour aims to grow its earnings in 2024. He added that food inflation in France will likely come down to a low single-digit level.
In 2023, Carrefour’s recurring operating income was €2.26 billion, up 9.8% at constant exchange rates.
However, the retailer’s operating margin fell from 5.7% in 2022 to 5.5% in 2023.
Malige addressed the Red Sea crisis, which is driving transport costs up and causing delays of one to two weeks on shipments.
Carrefour plans to absorb these costs, Malige said, instead of passing them on to shoppers through price hikes.
Lowering Prices
In a closely-examined French market where Carrefour has been losing market share, operating profit grew 18.5% to €988 million in 2023.
This profit growth is thanks to cut costs and increased sales of private label products.
Like-for-like sales in France were up just 1% in the fourth quarter, weighed by a slowdown in non-food sales as shoppers cut back on non-essential purchases.
Carrefour has been lowering prices recently in France as it tries to compete against market leader E.Leclerc.
“We kicked off a process of reinforcing our competitiveness in France in the fourth quarter by lowering prices on 2,000 products,” said Malige.
He added that the retailer would keep lowering prices this year, in France and in other markets.
In Brazil, Carrefour’s second-largest market, operating profit fell 26.9%.
The integration of Grupo BIG and losses at converted stores in the month following their reopening contributed to the fall.
Carrefour’s revenue has not been affected by its ongoing price dispute with PepsiCo, which it pulled from its shelves after a dispute about price increases from the American company.
“Negotiations are still not finished,” Malige told Reuters.
Read More: PepsiCo Reports Rare Sales Decline Amid Price Hikes
