Carrefour - 2017 Annual Report

C A R R E F O U R — 4 7 Adjusted net income, Group share The period ended with a net loss, Group share of €531 million, mainly comprising a significant accounting charge for asset impairment. Adjusted net income, Group share, stood at €773 million, compared with €1,031 million in 2016. Net debt Net debt amounted to €3,743 million at the reporting date (compared with €4,531 million at December 31, 2016). The Group’s financial structure at December 31, 2017 remained healthy, with a net debt/ EBITDA ratio of 1.0 x (1.2 x in 2016). The cost of net financial debt was €317 million, down by €60 million. Investments Operational investments to maintain assets and expand the network amounted to €2.1 billion (excluding Cargo Property), compared with €2.5 billion in 2016. This decrease reflects the change in the Group’s investment strategy and the control measures implemented in the second semester. Adjusted net income, Group share (in €m) Net debt (in €m) Investments (in €m) 2016 2016 2016 2017 2017 2017 1,031 4,531 2,492 773 Recurring operating income (in €m) 2016 2,351 2017 2,006 3,743 2,145 Recurring operating income Recurring operating income came in at €2,006 million, down 14.7% at current exchange rates, primarily reflecting strong competitive pressure (particularly in France), higher distribution costs in the Group’s main markets, increased depreciation after a period of significant investment and a more difficult situation in Argentina. The operating margin was therefore 2.5%, compared with 3.1% in 2016. Although profitability in France and southern Europe was affected by strong competitive pressure, the operating margin in northern Europe held well, and Brazil recorded a solid operating performance despite sharp food deflation, driven by the Atacadão format. In Asia, recurring operating income came in at €4 million, compared with an operating loss of €58 million in 2016, mainly reflecting the action plans implemented in China and the continuing success of the business in Taiwan. France 692 Europe (excl. France) 677 Asia 4 Global functions –83 Latin America 715 2017 recurring operating income by geographic region (in €m)