CARREFOUR 2006 profit boosted by disposals
Boosted by disposals, Carrefour has this morning reported a 58% increase in net profit for 2006 to EUR2.268 billion (USD2.8 billion). Excluding the effect of divestments, principally the sale of assets in South Korea, net profit increased by just 3.3% to EUR1.98 billion (USD2.48 billion). Operating profit for the calendar year 2006 rose 3.4% to EUR3.26 billion (USD4 billion).
Amid continued price competition, Carrefour said it expected current operating profit to grow by less than sales in 2007 before catching up with them next year. It predicted sales growth would at least match the 6.6% achieved last year and rise to 10% in 2008 if the group conducted a number of targeted acquisitions. "For both years, meeting these targets assumes that we make the expected level of tactical acquisitions," according to chief executive José Luis Duran. He also said he expected to sign a partnership agreement with an Indian partner in the coming months.
Carrefour also said it aimed to open new outlets totalling 1.5 million square metres in 2007, with about two thirds in "growth markets" outside France, Italy, Belgium and Spain. "We are preparing to develop new engines for growth in countries with strong growth potential such as Russia and India."
Amid continued price competition, Carrefour said it expected current operating profit to grow by less than sales in 2007 before catching up with them next year. It predicted sales growth would at least match the 6.6% achieved last year and rise to 10% in 2008 if the group conducted a number of targeted acquisitions. "For both years, meeting these targets assumes that we make the expected level of tactical acquisitions," according to chief executive José Luis Duran. He also said he expected to sign a partnership agreement with an Indian partner in the coming months.
Carrefour also said it aimed to open new outlets totalling 1.5 million square metres in 2007, with about two thirds in "growth markets" outside France, Italy, Belgium and Spain. "We are preparing to develop new engines for growth in countries with strong growth potential such as Russia and India."
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