Carrefour SA reported Thursday a swing to net profit for 2019 despite booking a slightly lower revenue, and raised its transformation targets due by 2022.
The French grocer CA, +1.55% made a net profit of 1.13 billion euros ($1.23 billion) for the year compared with a loss of EUR561 million in 2018. Revenue fell to EUR80.67 billion from EUR80.77 billion a year earlier. Analysts in a FactSet poll had estimated a net profit of EUR433.2 million.
The company said reported recurring operating income–the difference between gross margin and sales, general and administrative expenses, depreciation and amortization and provisions–was EUR2.09 billion.
This compares with EUR1.94 billion the previous year and comes in line with the guidance Carrefour gave last month, when it had forecast a 7.4% increase at constant exchange rates to EUR2.09 billion.
Carrefour said growth was driven by a solid performance in Latin America and France. It raised its “Carrefour 2022” transformation plan targets, including an enhanced cost-cutting plan and an expanded disposal strategy.
The board declared an annual dividend of 46 European cents, unchanged from 2018.
“The pace of expansion of our growth formats is accelerating, organic and Carrefour-branded products are gaining ground,” Chief Executive Alexandre Bompard said.