Carrefour strengthens global expansion with Brazil takeover and cost efficiency push

Overview

Carrefour reported solid FY2024 results, with total sales reaching €94.6bn, driven by strong growth in Latin America and private-label expansion. Despite challenges in the European market, particularly in Italy and Belgium, the company maintained operational efficiency, achieving €1.24bn in cost savings. Recurring operating income declined slightly with -2.2% YoY, but remained positive, supported by resilient performance in France and double-digit growth in Latin America. Carrefour also raised its dividend by 6% to €0.92 per share and announced a €150m special dividend, signaling confidence in its financial stability.

Alexandre Bompard, Chairman and CEO, declared: “In 2024, in a market environment still impacted by the period of inflation, Carrefour strengthened its competitiveness, commercial momentum, and profitability in its core countries. The Group today presents solid financial results and indicators confirming the strong progress of its strategic plan. The shift towards franchising continues, private label and e-commerce sales are growing, and the Group has achieved 111% of its CSR index target. Reaching these milestones reflects the outstanding commitment of our employees, and I would like to thank them, as well as all our franchise partners.”

Q4 2024 vs. Q4 2023:

Group sales rose to €25.7bn (+7.1% YoY), with e-commerce GMV up 15%.
France sales were down -2.1% YoY, impacted by lower non-food demand (-7.9%), but Carrefour-branded product expansion supported margins.
Europe (ex-France) sales up +0.6% YoY, with Spain leading at +1.8% due to price investments. Italy (-0.6%) and Belgium (-0.3%) showed stable trends.
Latin America had strong +25.6% YoY growth, led by Brazil (+6.0% YoY) and Argentina (+111.0% YoY) despite economic volatility.
The company achieved €1.24bn in cost savings, in line with 2024 targets.

Full-Year 2024 highlights:

Total sales increased to €94.6bn (+9.9% YoY), driven by private label expansion and strong Latin America growth (+38.1% vs. 2023).
- Sales in France declined by -2.3%, driven by investments in competitiveness, in an environment marked by negative volumes. Over the year, food sales decreased by -1.6% YoY, and non-food sales were down -8.1% YoY.
EBITDA grew slightly to €4.64bn (+1.7% YoY), supported by cost savings and operational efficiency.
Recurring operating income (ROI) declined to a value of €2.21bn (-2.2% YoY, but +1.4% at constant FX).
- In France, the company had +5.5% growth in ROI to €1.04bn, benefiting from market share gains and Cora/Match integration.
- In Europe (ex-France), ROI declined -34.2% to €397m, affected by price investments in highly competitive markets.
- In Latin America the company had strong performance with +15.2% ROI growth, driven by commercial momentum in Brazil and resilience in Argentina.
Adjusted net income recorded a value of €1.08bn (-11% YoY), with adjusted EPS of €1.61 (compared to €1.71 in 2023).
Net free cash flow recorded a value of €1.46bn (-10% YoY), but supporting Carrefour’s long-term financial stability.

Carrefour expects continued growth in 2025, focusing on strategic investments and efficiency improvements to enhance competitiveness. The company plans a slight increase in EBITDA, recurring operating income, and free cash flow, supported by a new €1.2bn cost savings plan aimed at maintaining price leadership. Private-label expansion remains a key priority, with a target of 40% of food sales coming from Carrefour-branded products. Additionally, Carrefour will accelerate e-commerce, cash & carry, and retail media investments to strengthen its digital footprint. In Brazil, the company is moving forward with the full acquisition of Carrefour Brazil, reinforcing its market leadership. As Carrefour reaches the midway point of its Carrefour 2026 strategy, a comprehensive business portfolio review is underway to ensure long-term growth and profitability.

Despite its strong expansion outside Europe, Carrefour didn’t present surprising results at the European level, so after the publication of the results, CA shares experienced a price decrease of almost -10% by the end of the trading week. Moreover, the company’s share price has been in a continuous decline over the past year, falling by approximately -24%.