By Carrefour recently announced its plans to launch a new share buyback program and raise its dividend for 2023, showcasing the company’s confidence in its performance and outlook.
New Share Buyback Program
The French grocer disclosed that the new share buyback program, set to occur during 2024, will amount to a total of €700 million ($754.6 million), demonstrating management’s belief in the group’s operating performance and cash flow generation.
In the previous year, Carrefour initiated a buyback program of €800 million, further highlighting its commitment to maximizing shareholder value.
Increased Dividend for 2023
Carrefour proposed an increase in its ordinary dividend for 2023 to €0.87 per share, a significant rise from €0.56 in the previous year. The company also confirmed its goal of achieving at least 5% dividend growth annually, with the enhanced level as the new standard.
Financial Performance Highlights
For the fiscal year 2023, Carrefour reported net sales of €83.27 billion, a 12% increase at constant exchange rates compared to the previous year. Despite this growth, recurring operating income slightly declined to €2.26 billion from €2.38 billion, while operating income fell to €1.75 billion from €2.46 billion in 2022.
Net profit for the period surged to €1.66 billion, surpassing analysts’ expectations of €1.18 billion, and marking a significant rise from €1.35 billion in 2022. The company successfully met the majority of its operational targets and exceeded its savings goal of €1 billion.
Future Outlook
Despite facing challenges such as inflation in Europe and Argentina and pressure on customer purchasing power, Carrefour remains optimistic about the future. The company aims to continue implementing its 2026 plan and transforming its business model to drive positive financial results in 2024.
As Chairman and Chief Executive Alexandre Bompard stated, “Carrefour enters this new year with confidence and continues its trajectory towards the objectives set for 2026.”
The company’s strategic initiatives and financial resilience position it well for future growth and success in the competitive retail landscape.
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