Carrefour's market cap, dividends, sales and earnings in 2020

  •   DEHOUI Lionel

Unlike many other companies, the Carrefour group had an excellent year in 2020. Its business grew strongly during the year. This is illustrated in particular by the strong sales momentum. Also, the French food retail giant recorded a record sales performance in 2020. Find out here what you need to know about the group's annual results.

72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. This is an advert for trading CFDs on Plus500
Carrefour's market cap, dividends, sales and earnings in 2020
Image copyright: Mike Knell - Flickr

Sales growth in 2020

In 2020, the Carrefour group recorded its best sales performance in 20 years. In fact, over the whole of the twelve months of this year, its turnover (TCC) reached 78.6 billion euros. 78.6 billion. It reported an increase of 7.8% on a comparable basis. This development was driven in particular by the good commercial dynamics observed in Brazil.

In this country, the company's sales grew strongly in 2020. In fact, consumers chose the option of eating out in the evenings. On the other hand, the restrictive measures put in place to counter the Covid-19 pandemic have favoured the growth of large-scale distribution.

In addition, with the closure of food service outlets for much of the year, the company's sales grew strongly in France and Spain. In addition, excluding taxes, the group's turnover amounted to 70.7 billion euros in 2020. This was below market estimates of €71.3 billion to €71.6 billion.

 

Performance of other financial indicators in 2020

For the 2020 financial year, the Carrefour group recorded a current operating income (ROC) of €2.173 billion, compared with €2.099 billion in 2019. It increased by 16.4% at constant exchange rates. The current operating margin increased by 17 basis points to 3.1%, compared with 2.9% a year earlier.

1.686 billion in 2020, up from 1.071 billion, an increase of 57.4%. For the year as a whole, the non-current result amounted to 474 million euros, compared to 1.030 billion euros for the previous year.

1.030 billion in the previous year. The net result, group share, reached 641 million euros in 2020. 641 million in 2020. Adjusted net profit attributable to the group rose by 17.9% to €1.011 billion in 2020. A year earlier, it had been €858 million.

The company posted an Ebitda of EUR 4.465 billion for the 2020 financial year, compared with EUR 4.417 billion in 2019. It therefore grew by 9.0% at constant exchange rates. The Ebitda margin improved by 27 basis points to 6.3%, compared to 6.1% a year earlier.

 

Cash flow and debt at 31 December 2020

Carrefour recorded a strong increase in cash generation in fiscal year 2020. At the end of December, the group posted a net free cash flow of €1.056 billion, up €732 million on the previous year when it reported €324 million.

This solid performance was driven by the good commercial dynamics, combined with the company's financial rigour. Adjusted net free cash flow (from exceptional items and discontinued operations) amounted to €1.594 billion in 2020, compared to €1.045 billion a year earlier. It thus increased by €549 million compared to 2019.

At 31 December 2020, the company's net financial debt is estimated at €2.616 billion. 288 million at constant exchange rates. At the end of this year, shareholders' equity (group share) reached €9.795 billion, compared to €9.937 billion at the end of December 2019.

 

Solid balance sheet and strengthened liquidity

For more than two years, Carrefour has shown great discipline in its finances. This has enabled it to strengthen its balance sheet and liquidity in the 2020 financial year. In fact, the company has one of the strongest balance sheets in the industry. This represents a major asset for the company in the current difficult context.

This is a major asset for the company in the current difficult environment, which is marked in particular by the coronavirus health crisis and by the rapid changes in food distribution. In addition, the strengthening of the group's liquidity during 2020 was supported by the bond issue carried out in April. 1 billion, maturing in December 2027.

This operation was a great success at the time. This illustrates the great confidence of investors in the Carrefour signature. In addition, in April 2020, the company repaid a bond loan estimated at 802 million euros.

 

Dividend and market capitalisation of Carrefour in 2020

The Carrefour group is one of the companies that distribute a coupon to shareholders. For about ten years, it has chosen the scrip dividend option. However, the company has decided to standardize its dividend policy. From now on, the dividend will be paid in full in cash.

Thus, at the General Meeting held on 21 May 2021, the company's Board of Directors decided to pay a dividend of €0.48 per share for the 2020 financial year. Furthermore, Carrefour is one of the most popular shares on the stock market for investors.

The company is listed on the Paris Stock Exchange. It is one of the companies that make up the CAC 40 stock market index. In 2020 (end of December), its market capitalisation was estimated at approximately €11.5 billion.

 

About the Carrefour Group

Founded in 1958, Carrefour is a French company specialising in mass retailing. The group is recognised as the number one in this sector in Europe. It is the second largest retailer in the world. In 1963, the company developed the hypermarket concept.

The company's main mission is to offer its customers quality services, products and food accessible to all. In addition, the group operates in more than 30 countries. It has a workforce of more than 321,000 employees worldwide.

72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. This is an advert for trading CFDs on Plus500