Carrefour to Launch New Buyback Program, Increase Dividend -- Update

Dow Jones02-21

By Andrea Figueras

Carrefour said it intends to launch a new share buyback program and raised its dividend for 2023.

Subject to market conditions, the French grocer said Tuesday that the new share buyback program--expected to take place in the course of 2024--will be for a total amount of 700 million euros ($754.6 million).

"This new buyback reflects management's confidence in the group's operating performance, its free cash flow generation and its business outlook," the company said.

The grocer launched a buyback program of EUR800 million in the prior year.

The company also proposed an increase in its ordinary dividend for 2023 to EUR0.87 a share, from EUR0.56 in the prior year, and confirmed its target of at least 5% growth in dividend each year, with this enhanced level as the baseline.

Carrefour booked net sales for 2023 as a whole of EUR83.27 billion, up 12% at constant exchange rates compared with the year-ago period.

Analysts had expected full-year sales of EUR84.51 billion, according to a FactSet-compiled poll of estimates.

Recurring operating income fell to EUR2.26 billion from EUR2.38 billion previously, while operating income was EUR1.75 billion, down from EUR2.46 billion in 2022.

Net profit for the period jumped to EUR1.66 billion from EUR1.35 billion in 2022, beating analysts' expectations of EUR1.18 billion, according to FactSet data.

The group reached the vast majority of its operating objectives and slightly surpassed its target of EUR1 billion in savings.

However, the company added that the year was marked by high inflation in Europe and in Argentina, as well as continued strong pressure on customer purchasing power.

Looking ahead at 2024, the group aims to continue with the implementation of its 2026 plan and the transformation of its model, contributing to a positive financial performance, it said.

"Carrefour enters this new year with confidence and continues its trajectory towards the objectives set for 2026," Chairman and Chief Executive Alexandre Bompard said.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

February 20, 2024 12:54 ET (17:54 GMT)

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Carrefour to Launch New Buyback Program, Increase Dividend -- Update

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