Carrefour Brasil expanding hybrid wholesale, eyes real estate carve-out
Reuters
Published Nov 08, 2022 07:53AM ET
Updated Nov 08, 2022 09:41AM ET
SAO PAULO (Reuters) -Grupo Carrefour (EPA:CARR) Brasil said on Tuesday it will accelerate the expansion of its hybrid wholesale stores in coming years while looking into a carve-out of its real estate business.
Splitting off its real estate assets could create one of Latin America's largest retail-focused property firms.
Shares in the company, formally called Atacadao SA, jumped as much as 5% after the announcement, making it one of the top gainers on Brazil's Bovespa stock index, which was nearly flat in morning trading.
The local unit of French retailer Carrefour SA (OTC:CRRFY) said in a securities filing that the potential real estate business carve-out could be followed by the sale of a minority stake to a strategic investor.
Carrefour Real Estate currently includes more than 450 assets and as a separate company it would have more than 1.5 billion reais ($287 million) of net operating income, it added.
The move comes "in line with the group's strategy to unlock the value of its assets and to accelerate the development of its real estate," Carrefour Brasil said.
In a separate filing, the company said it expects to have a portfolio of 470 hybrid wholesale stores ("cash-and-carry") by 2026, accelerating openings to an average of more than 25 units a year from a pace of about 20 a year since 2018.
The decision follows plans for an expansion in its core businesses, the firm said.
The news came after Atacadao SA's French parent company, Europe's largest food retailer, earlier in the day disclosed its turnaround strategy amid soaring inflation, planning to open more discount stores and cut costs.
Analysts at JPMorgan (NYSE:JPM) said the group's strategic plan is positive for Carrefour Brasil, noting that its hybrid wholesale format has had the best performance in the industry and been a driver of growth for the Brazilian firm.
($1 = 5.2249 reais)
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.