Carrefour shares soar

January 11, 2002 Posted: 1053 GMT

LONDON (Reuters) -- French retailer giant Carrefour saw its shares jump almost 6 percent in Paris on Friday after it confirmed profit growth for 2001.

Europe's biggest supermarket group said on Thursday its still expects last year's earnings before interest and tax to show a slight gain, adding that net pre-exceptional earnings should be up around 15 percent.

Carrefour also said sales rose 7 percent to 78 billion ($69.70 billion) in 2001, slightly below its target.

"As forecast, Carrefour should register a slight rise in operating profit (EBIT), while the net current result should increase by around 15 percent," the company said in a statement.

Stripping out the effect of currency fluctuations, annual sales rose by 8.6 percent in 2001, it added.

Carrefour said it did not expect the currency devaluation in Argentina to lead to a provision in its accounts, as debts remaining in U.S. dollars are linked to the international sourcing of Argentina and are fully hedged by financial

assets.

"The balance sheet structure and indebtedness of the group in that country do not justify any particular provision linked to the devaluation of the currency in January," Carrefour said.

The company, which generates half its turnover in France and a third in the rest of Europe, posted only a 0.9 percent rise in French sales in 2001, but sales elsewhere in Europe soared 29.8 percent as the group gained market share in most European countries.

Asian sales rose 10.7 percent, but turnover in the Americas fell by 12.1 percent, Carrefour said, citing economic woes in Argentina and Brazil.

Carrefour said a decline in gasoline prices had hit turnover at its French hypermarkets, but aggressive pricing towards the end of the year had enabled its hypermarkets to glean market share from competing stores.

Hypermarket sales were particularly strong in December, up 5.1 percent excluding gasoline, compared with a 0.9 percent rise for the French retailers' federation (FCD) excluding Carrefour.