Axfood - AXFO

I samband med de aviserade planerna lyfte analytiker skepsis kring om affären skulle gå igenom. Kritiker har också vädrat oro kring minskad konkurrens och vad det kan innebära för matpriserna.

We think that well-managed, large food retailers are better than average businesses.

They provide a vital service to society and generate attractive returns on capital and consistent cash flow because of their favourable working capital dynamics. Under the current management team, Carrefour has doubled cash from operations over the past five years and trades on eight times expected earnings.

Perhaps Carrefour’s most striking valuation credential is that free cash flow over the next 12 months is forecast to be equivalent to about 15pc of the company’s entire market value.

The balance sheet looks solid, too, boosted by last year’s €1.0bn (£852m) sale of Carrefour’s Taiwanese business. Ignoring borrowings associated with the company’s lending business and €4.9bn of lease liabilities, net debt was €2.6bn at the end of 2023. This is allowing Carrefour to return heaps of cash to shareholders.

France’s finance ministry has asked a court to fine retailer Carrefour a recommended $215 million.
It said the penalty is over contracts with franchise stores that the ministry says were unbalanced in Carrefour’s favor.

It also demanded that the company immediately amend around 10 clauses in the franchise contracts. With a penalty of 50,000 euros per day if it fails to take action. Carrefour shares hit their lowest price since 2020 in early trading.