PARIS (Reuters) -Carrefour said it was confident about 2024 as it kept its targets for higher profits and cash after sales growth accelerated in the first quarter, driven by improving sales in Brazil and hyperinflation in Argentina.
In the core French market however, sales turned slightly negative in the first three months of the year, reflecting slower inflation and continued weak consumer demand.
Europe's largest food retailer vowed to accelerate price reductions in France and Europe this year.
"We have decided to double down on price cuts over the coming months and into the end of this year," finance chief Matthieu Malige told reporters on a call.
Carrefour also increased its planned cost cutting for 2024 by 200 million euros ($214 million) to 1.2 billion euros, and Malige said the extra savings would be used to invest in price cuts.
Sales reached 22.156 billion euros ($23.7 billion), marking like-for-like growth of 13.5% and an acceleration from 10.2% growth in the fourth quarter of 2023.
In France, where Carrefour faces tough competition from unlisted rival Leclerc, hypermarket sales were down 1.7% in the first quarter of 2024 compared with a 0.3% rise in the fourth quarter of 2023.
In Brazil, the group's second-largest market, sales rose 1.3% in the quarter, helped by the continuing ramp-up of the Grupo BIG stores following their conversion and good performance at the Atacadao cash and carry stores.
($1 = 0.9360 euros)
(Reporting by Dominique Vidalon; Editing by Benoit Van Overstraeten and Emelia Sithole-Matarise)
By Dominique Vidalon and Helen Reid
