Profits rocket 58%
The world's second largest retailer Carrefour, from which chairman Luc Vandevelde resigned after a boardroom spat last night, revealed net profit rocketed 58 per cent to Eu2.27 billion (£1.54 billion) last year, as the company disposed of operations in South Korea.

Not counting this one-off gain, net profit was Eu1.86 billion (£1.27 billion), compared with Eu1.8 billion (£1.23 billion) the year before. Overall performance was modest, because of weakness in Carrefour's home market. Operating profit rose 3.4 per cent to Eu3.26 billion (£2.22 billion), from Eu3.15 billion (£2.14 billion) in 2005.

The results were roughly in line with analysts' expectations, which were low already after a 1.5 percent drop in like-for-like sales during last year's fourth quarter.

Carrefour chief executive Jose Juis Duran ruled out strategy changes, despite the departure of the chairman, as well as stakebuilding by new investors Groupe Arnault and Colony Capital - which acquired almost 10 per cent of the group earlier this week - and continued weakness in its home market.

Duran said he would continue to reduce prices in France, a market that 'remains difficult' after eight years of discounting.

Duran plans to open about 25 superstores in China this year and expects the first Russian stores to open in 2008. Full-year profit from operations in Latin America rose 22 per cent and 5 per cent in Asia.

The company said it expects sales growth in 2007 to be at least as strong as last year.

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