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(Sharecast News) - French retailer Carrefour reported its fourth quarter earnings on Wednesday as it set out a new strategic plan, targeting 1bn in annual cost savings as chief executive Alexandre Bompard looks to lift profitability and sharpen the group's focus on its core markets of France, Spain and Brazil.
Carrefour reported fourthquarter sales of 24.3bn, with likeforlike revenues up 1.6%, and recurring operating income coming in at 2.16bn, equivalent to a 2.6% margin.
In France, Carrefour lifted its market share to 22%, the highest level since 2015, while domestic operating margins reached 3%. In Spain, profitability improved sharply, rising 13.5% in 2025 with a 445basispoint increase in margin. In Brazil, recurring operating income totalled 709m, representing a 4% margin.
Adjusted net income group share was 190m, translating to adjusted earnings per share of 1.60 each, and Carrefour also proposed an ordinary dividend of 0.97 per share alongside a 150m special dividend.
Looking ahead, Carrefour expects that recent price cuts would be offset by efficiencies from accelerating its franchise model in France and greater use of artificial intelligence, data and broader technology across the business.
The Massy-based firm said it aims to lift its operating margins from 2.6% in 2025 to 3.2% in 2028 and 3.5% by 2030, and stated it was now targeting cumulative net free cash flow of 5bn over 2026-28.
Bompard said Carrefour was adopting an "ambitious" roadmap centred on growth and improved profitability as he continues to face tough conditions in France's highly competitive grocery market and subdued consumer both at home and Brazil.
For 2026, Carrefour was now targeting more than 25 basis points of operatingmargin expansion versus 2025, while annual capital expenditure was expected to start at 1.8bn in 2026, rising to 2bn by 2030, with investment focused on store modernisation, expansion in Brazil and innovation in AI, tech and data.
Under the new plan, Carrefour was targeting a 25% market share in France and 20% in Brazil by 2030, while aiming to strengthen its numbertwo position in Spain.
As of 0930 GMT, Carrefour shares were down 4.25% at 14.74 each.
Reporting by Iain Gilbert at Sharecast.com