Cost-cutting begins to bear fruit at Carrefour
PARIS (AP) - French big box store Carrefour posted a significant improvement in profit in the first half of the year, hailing it as a sign that its turnaround plan is beginning to bear fruit.
Europe's largest retailer by sales said on Thursday that its net income rose to 902 million euros (S$1.5 billion), compared to a loss of 31 million euros the same time last year.
But much of that boost - about 380 million euros - was from operations the company is discontinuing, raising questions about whether the company can stay profitable.
Still, investors were cheered as the results far out-stripped the consensus estimate of 250 million euros in profit. Shares shot up 4.2 per cent in early trading on the Paris bourse.