(Adds details, CFO comments)
By Dominique Vidalon
PARIS, March 10 (Reuters) - Carrefour CARR.PA , the world's
second-largest retailer, said on Thursday it would step up
investments to renovate and open stores this year to cement its
turnaround in Europe and revive weak sales in China.
The French company, which scored its fourth straight year of
revenue and earnings growth, also said it was waiting for the
right time to float its Carmila property unit on the stock
exchange.
Europe's biggest retailer proposed raising its 2015 dividend
by 2.9 percent to 0.70 euros a share after operating profit rose
2.4 percent to 2.45 billion euros ($2.68 bln), in line with a
Thomson Reuters poll forecast.
"In 2016 the group will continue opening stores in its
different formats, notably in convenience, at a sustained pace,"
the company said in a statement.
Carrefour said it would invest between 2.5 billion euros and
2.6 billion euros in 2016 on renovating and expanding stores, up
from 2.4 billion last year.
Carrefour, the world's second-largest retailer after
Wal-Mart (NYSE:WMT) WMT.N , has suffered from its reliance on the
hypermarket format, which it pioneered, as customers shift to
local and online shopping.
In response the company, which makes about three-quarters of
its sales in Europe, has cut prices and costs, accelerated
expansion into convenience stores, refreshed stores and given
greater autonomy to managers, beginning in France.
Operating profit rose 33.4 percent in Europe, excluding
France, driven by recovery in Spain and Italy.
Latin America was boosted by a strong sales performance in
Argentina and in Brazil, its No.2 market, accounting for about
14 percent of sales, where Carrefour, unlike French rival Casino
CASP.PA , is proving resilient to an economic downturn.
ID:L5N16H3AC
This countered an operating profit decline of 6.4 percent in
its biggest market of France, which reflected the integration of
recently acquired Dia stores and a rise in taxes on larger
commercial spaces. Excluding these factors profit rose 1.8
percent in France.
China, which makes 5 percent of sales, remained a weak spot
amid slowing consumption and Carrefour said the repositioning of
its model in China was one of its priorities. Carrefour is
pursuing a plan there to expand in e-commerce and convenience
stores and open logistics centres to cut costs.
Asked about future plans to float real-estate division
Carmila, which has shopping malls in France, Spain and Italy,
Sivignon said: "Nothing new. It's part of the scenario. We are
waiting for the right moment".
Carrefour has a 42 percent stake in Carmila. Several
analysts estimate Carmila is worth at least 4 billion euros.
($1 = 0.9109 euros)
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