Carrefour sees greater growth potential with acquisitions of Cora and Match Author: Reuters

By Nathan Vifflin

(Reuters) – Europe’s largest food retailer Carrefour (EPA:) said Monday it expects to see greater financial benefits from its acquisition of the Cora and Match chains of convenience stores than before, despite higher-than-expected costs.

WHY IS IT IMPORTANT

Carrefour said the growth was due to improved store performance as well as cost optimization, despite higher-than-expected integration costs. The group plans to bring Cora hypermarkets under the Carrefour banner before the end of 2024, while Carrefour products will be available in both Cora and Match from September 2024.

Key Quotes

“With the acquisition of the Cora and Match brands, Carrefour is implementing its largest operation in France in over twenty years and is consolidating its leadership position in food distribution in the domestic market,” Alexandre Bompard, chairman and CEO of Carrefour, said in a statement.

“With this operation, Carrefour strengthens its position in the food distribution market in France, with 60 Cora hypermarkets and 115 Match supermarkets, located mainly in the Grand East and Northern regions of France, where Carrefour has historically had a small presence.”

IN NUMBERS

Carrefour said it is forecasting an additional contribution to earnings before interest, taxes, depreciation and amortization (EBITDA) of 130 million euros ($139.4 million) on an annual basis through 2027, up from an initial 110 million euros.

The group said integration costs, mainly spread over 2024-2025, will now amount to €250 million, rather than the €200 million originally expected.

CONTEXT

Almost a year ago, Carrefour announced it would buy French retailers Cora and Match from rival Louis Delhaize for cash. The transaction was valued at €1.05 billion and included the purchase of 55 hypermarkets and 77 supermarkets.

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