French retail giant Carrefour has welcomed an “unprecedented transformation” in 2018 and revised its savings targets upwards (LOIC VENANCE)

Paris (AFP) – French supermarket giant Carrefour’s said Thursday its net losses deepened in 2018 largely due to the closure of its struggling Dia stores, but increased its cost savings target for this year by 40 percent.

Europe’s leading retailer, which is in the middle of a major reorganisation plan, posted a net loss of 561 million euros ($638 million) compared to 531 million in 2017, it said in a statement.

Some 301 million of the fall came from “discontinued operations” — mainly from having to close most of 273 former stores of the low-cost Dia supermarket chain, it added.

Adjusted for such exceptional items, Carrefour’s net profit actually rose 3.75 percent to 802 million euros, beating analyst forecasts which expected the figure to be between 749 and 752 million euros.

Recurring operating profit was 1.9 billion euros, dropping in France where the company said the “yellow vest” protests that have rocked the country “mainly affected hypermarkets and non-food” sectors over the last three months of the year.

CEO Alexandre Bompard hailed the company’s “unprecedented transformation” in 2018 as part of a reorganisation plan announced last year. 

“Our encouraging results now allow us to revise upwards a number of 2022 targets,” he said in the statement.

The group raised its cost savings goal to 2.8 billion euros by 2020, up from two billion.

Carrefour shares were up 1.57 percent to 17.83 euros in morning trading in Paris.

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