Carrefour signage at The Hub Karen Mall where it is the anchor tenant. PHOTO | KARI MUTU | NMG
Shares in Carrefour plunged by more than
12 per cent on the Paris stock exchange on Thursday after the French
supermarket group's first-half results came in lower than expected and
it warned that full-year profits would fall by around 12 per cent.
At around 0725 GMT, Carrefour's shares were showing a loss of 12.3 per cent at €17.10 (about Sh2,103.3), while the overall market was higher.
The
plunge in Carrefour's share price dragged down the rest of the retail
sector, with shares in rival group Casino down by more than 5.0 per
cent.
Late on Wednesday, Carrefour, the world's
second-largest retailer, had warned that 2017 operating profit would
fall by around 12 per cent and cut its sales growth target.
That was after the group posted a steeper-than-expected fall in first-half earnings.
"Our
2017 results will be impacted by our first-half performance and an
operating environment that will remain difficult in the second half in
some countries," said Carrefour's new chief executive Alexandre Bompard.
In the six months to June, Carrefour booked a bottom-line net profit of €78 million (about Sh9.6 billion), down 39.5 per cent on the year, and underlying or operating profit fell by 12.5 per cent to €621 million (about Sh76.4 billion).
First-half sales, by contrast, grew by 6.2 per cent to €43.05 billion (about Sh5.3 trillion).
The French retail giant has two outlets in Kenya, one at The Hub Mall and the other at the Two Rivers Mall.
The country's formal retail market is dominated by Nakumatt, Tuskys, Choppies, Uchumi
and Naivas.
Key CBK Indicative Exchange Rates Used: €1 =Sh123
No comments :
Post a Comment