Paris, France, September 1-- Carrefour, the world's second-largest retailer, said its net profit rose 5.3% in the first half, and said it is on track to report double-digit earnings growth for the full year and to cut its debt.
The company said first-half net profit rose to ?537 million ($647.2 million) from ?510 million in the year-earlier period. Revenue rose 2.9% to ?34.55 billion from ?33.59 billion.
The company said a robust performance in its international operations and lower finance costs helped offset weakness in its core French hypermarket business.
Second in size only to Wal-Mart, Carrefour said its profit before exceptional items increased 11% in the latest six months to ?531 million from ?472 million.
Carrefour said it still expects double-digit growth in earnings per share for the full year, as a major price-cut drive brings in more customers and helps it regain lost market share in its hypermarkets at home.
In July, the company cut its full-year revenue forecast to growth of about 5% on a comparable basis including stable exchange rates, as revenue from its French hypermarkets slipped 3.5% in an increasingly competitive marketplace. The company originally forecast a 6% revenue increase.
The retailer also said it expects to cut debt by about ?500 million this year. It also said it will cut total net debt by 20% by 2006, compared with 2003 debt levels.
Carrefour said although it has seen signs of progress in its French hypermarket business in the first half, there was still work to be done to regain lost market share.
The retailer said it will invest ?200 million in hypermarkets pricing campaigns in the second half, having already invested ?135 million in the first half.
The retailer also unveiled plans to increase its dividend payouts. Carrefour said in the next 12 months it will raise its dividend payout rate to 40% of earnings compared with 33% previously. Carrefour will buy back and then cancel between 3% and 5% of its shares during the next 24 months.
Carrefour operates more than 10,000 stores in 29 countries.
