French supermarket giant Carrefour’s recurring operating income (ROI) in Asia plunged 87.6 percent to EUR13 million in 2015 from EUR97m in 2014 despite growth in sales, according to its 2015 full-year results released on Thursday.
Net sales in Asia rose 5.9 percent to EUR6.66b in 2015 from EUR6.29b in 2014 at constant exchange rates. Sales returned to growth for the first time in over two years in Taiwan, driven by the roll-out of its multi-format model and the modernization of some hypermarkets.
Net sales in all regions rose 4.1 percent from EUR74.71 billion in 2014 to EUR76.95b in 2015 at constant exchange rates. However, net income dropped 17.8 percent to EUR1.12b. Recurring Operating Income (ROI) grew 7 percent to EUR2.45b at constant currencies.
The world’s second largest retailer invested EUR2.4b in the modernization of its store network and multi-format expansion in 2015. It opened 1,123 stores last year, including 850 convenience stores.
Carrefour said it will invest between EUR2.5b-EUR2.6b this year on renovating and expanding stores. The group will continue opening stores in its different formats at a sustained pace, especially convenience stores.
The repositioning of its model in China will be one of its priorities in 2016, the French retailer said in a statement.