Retailer Carrefour eyes more savings as 2020 core profits rise

Reuters2021-02-18

PARIS, Feb 18 (Reuters) - Carrefour unveiled newcost savings and cash flow targets, which it said reflected itsconfidence in the future after Europe's largest retailerdelivered on its goal to achieve 3 billion euros ($3.6 billion)in cost cuts by 2020.

The French food retailer, whose possible takeover byCanada's Alimentation Couche-Tard unravelled lastmonth after opposition from the French government, also reporteda 16.7% rise in 2020 recurring operating profit to 2.173 billioneuros at constant exchange rates.

Its 2020 sales grew 7.8% on a like-for-like basis to 78.609billion euros, Carrefour's best performance in at least 20years.

This reflected strong sales in the key markets of Brazil andFrance, with food retailers across the world also benefitingfrom stronger demand as more consumers stay at home during theCOVID-19 crisis.

Carrefour said it now targeted 2.4 billion euros inadditional cost savings on an annual basis by 2023 and net freecash flow generation above 1 billion euros per year from 2021.

Carrefour is in the midst of a five-year plan to cut costsand jobs, and boost E-commerce investment in an effort to liftprofits and sales and tackle the competition from E-commercegiant Amazon.

($1 = 0.8302 euros)(Reporting by Dominique Vidalon;Editing by Sudip Kar-Gupta)

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