Carrefour First-Half Profit Rises as Spain Leads Europe Gain

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Carrefour SA, France’s largest retailer, reported higher first-half profit as revenue strengthened in Europe, with sales in its home market rising for the third consecutive year.

First-half recurring operating income rose 1.3 percent to 726 million euros ($795 million), Boulogne-Billancourt-based Carrefour said Friday in a statement.

Carrefour is modernizing stores and adding collection points for online orders in France as Chief Executive Officer Georges Plassat seeks to turn round the business. All domestic store formats boosted sales on a like-for-like basis in the second quarter, while growth accelerated in Spain and Brazil advanced 7.1 percent. Europe accounted for about 70 percent of Carrefour’s revenue and about 60 percent of profit.

“Carrefour is largely delivering on its strategy,” Bruno Monteyne, an analyst at Sanford C. Bernstein, said in a note. First-half profit was about 1 percent above the average estimate, he said.

The shares were little changed at 31.01 euros as of 9:08 a.m. in the French capital.

While profit fell in France as Carrefour began integrating Dia discount stores it bought back last year, recurring operating income more than tripled in the rest of Europe, led by Spain. Latin American earnings also gained on sales growth in Brazil and Argentina.

The grocer left its guidance unchanged. It said this month that the 2.51 billion-euro to 2.53 billion-euro consensus range for full-year recurring operating income was reasonable.

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