Carrefour sees more upside from Cora and Match acquisition
Sees additional EBITDA contribution of 130 million euros annually by 2027
Integration costs expected at 250 million euros, up from 200 million euros initially
Adds higher costs in paragraph 1, reason for upgrade in paragraph 2, quotes in paragraph 3, numbers on Ebitda and costs in paragraph 4, context in paragraph 5
By Nathan Vifflin
July 1 (Reuters) -Europe's biggest food retailer Carrefour CARR.PA said on Monday it was expecting greater financial benefits from the acquisition of the Cora and Match retailers than previously, despite higher costs than anticipated.
WHY IT’S IMPORTANT
Carrefour said the upside comes from better performance in stores, as well as cost optimizations, despite higher than anticipated integration costs. The group plans to put Cora hypermarkets under the Carrefour banner before the end of 2024, while Carrefour products will be available at both Cora and Match from September 2024.
KEY QUOTES
"With the acquisition of the Cora and Match banners, Carrefour is carrying out its largest operation in France in more than twenty years and is consolidating its leadership in food distribution on its domestic market", Alexandre Bompard, chairman and CEO of Carrefour, said in a statement.
"This operation consolidates Carrefour's position in the food distribution market in France, with 60 Cora hypermarkets and 115 Match supermarkets, mainly located in the Grand East and Northern regions of France, where Carrefour has historically had little presence."
BY THE NUMBERS
Carrefour said it sees an additional contribution to earnings before interest, tax, depreciation and amortisation (EBITDA) of 130 million euros ($139.4 million) at an annualized rate by 2027, against 110 million euros originally.
The group said the integration costs, mainly distributed between 2024 and 2025, are now expected at 250 million euros instead of 200 million euros initially anticipated.
CONTEXT
Nearly a year ago, Carrefour said it would buy, in cash, the French stores of Cora and Match from rival Louis Delhaize. The enterprise value of the operation was estimated at 1.05 billion euros, and included the purchase of 55 hypermarkets and 77 supermarkets.
($1 = 0.9326 euro)
Reporting by Nathan Vifflin; Editing by Jan Harvey and Jonathan Oatis
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
