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Carrefour Posts Net Loss In FY18; Lifts Cost Reduction Plan

French grocery retailer Carrefour Group (CRERF, CRRFY,0NPH.L) reported a net loss in its fiscal 2018. The company also issued upwards revision of several targets of the Carrefour 2022 plan.

For fiscal 2018, net loss, Group share, on a post-IAS 29 basis stood at 561 million euros, while net loss was 582 million euros on pre-IAS 29 basis.

Adjusted net income was 802 million euros, compared to 773 million euros in 2017.

Recurring operating income or ROI was 1.905 billion euros. Prior to application of the IAS 29 norm, ROI was 1.938 billion euros, up 4.6 percent from last year at constant exchange rates.

Group EBITDA stood at 3.47 billion euros, representing a 4.6% margin, stable vs last year.

Gross margin represented 22.5% of net sales, down from last year's 23.1%, as a result of the evolution of the integrated/franchise mix, and commercial investments in competitive markets.

Group sales including VAT, on pre-IAS 29 basis, amounted to 85.16 billion euros, up 2.5% at constant exchange rates. On a like-for-like basis, sales increased 1.4%.

Post-application of the IAS 29 norm, the Group's sales including VAT stood at 84.92 billion euros.

Further, the company said its proposed dividend for the 2018 financial year amounts to 0.46 euro per share, stable compared to the 2017 financial year.

This dividend will be proposed in cash or in shares, at the shareholder's choice, and will be submitted to the approval of the Annual General Meeting on June 14.

With deepening of the initiatives underway in 2019, the company announced upwards revision of several targets of Carrefour 2022 plan.

Cost reduction plan has been raised to 2.8 billion euros on an annual basis by 2020, compared to initial target of 2 billion euros.

Further, the company projects 5 billion euros of food e-commerce sales in 2022, and 5 billion euros in sales of organic products in 2022.

The company expects disposal of non-strategic real estate assets for 500 million euros by 2020.

Alexandre Bompard, Chairman and Chief Executive Officer, said, "For Carrefour, 2019 will be a year in which we will deepen the initiatives of the 2022 plan, to better serve our customers."

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