French supermarket giant profits slump, sees difficult 2009
Friday, 13 March 2009
PARIS, Mar 12, (AFP): French supermarket giant Carrefour, ranked world number two, said today its 2008 net profit slumped nearly 45 per cent as second half demand fell away in face of the global economic downturn.
Net profit fell 44.7 per cent to 1.27 billion euros ((1.60 billion dollars) while earnings before interest and tax (EBIT) were down 16.8 per cent at 2.77 billion euros, much worse than analyst forecasts for a 3.2 per cent drop.
Last year was "marked by food price inflation and a clear slowdown in the second half," Carrefour said.
The company said the first two months of this year had seen a pick up in sales but overall, conditions had not improved and 2009 promised to be difficult.
"We expect a difficult environment in 2009," finance director Eric Reiss said.
"Consumption trends have not improved compared with 2008," he said, adding, however, that in France, which accounts for 40 per cent of its sales, all its outlets were holding up relatively well.
Carrefour said in an earnings statement that it planned to keep capital spending this year at not more than 2.5 billion euros, focused on sales promotion while keeping costs under control.
Net profit fell 44.7 per cent to 1.27 billion euros ((1.60 billion dollars) while earnings before interest and tax (EBIT) were down 16.8 per cent at 2.77 billion euros, much worse than analyst forecasts for a 3.2 per cent drop.
Last year was "marked by food price inflation and a clear slowdown in the second half," Carrefour said.
The company said the first two months of this year had seen a pick up in sales but overall, conditions had not improved and 2009 promised to be difficult.
"We expect a difficult environment in 2009," finance director Eric Reiss said.
"Consumption trends have not improved compared with 2008," he said, adding, however, that in France, which accounts for 40 per cent of its sales, all its outlets were holding up relatively well.
Carrefour said in an earnings statement that it planned to keep capital spending this year at not more than 2.5 billion euros, focused on sales promotion while keeping costs under control.