Colruyt soars after in-line FY results, upbeat outlook

Colruyt NV

14/06/2023 08:49

** Shares in Colruyt  COLR.BR  jump more than 9% after the
Belgian supermarket chain posted FY results in line with
estimates and forecast growing profits for the current year
    ** Colrut on Tuesday said its annual profit fell 30.4% to
201 million euros ($217 million), hit by inflation and
substantial cost increases
    ** The group, which under its "lower price" model only
passes on higher costs if all its competitors have raised
prices, had in May improved its FY profit outlook saying it
would fall less than previously anticipated
    ** Colruyt also forecast a significant increase in operating
profit and net profit in the current FY 2023/24
    ** "The full year more than confirms our view that the
earnings trend definitely  turned around, with more to come in
FY23/24," Degroof Petercam's analyst Fernand de Boer says
    ** KBC interprets Colruyt's outlook as an increase of around
12-20% in current FY results, in line with its own estimate of
+15%
    ** Results are "not as bad as feared", HSBC analyst
Emmanuelle Vigneron says
    ** "We have highlighted several times the limits of
Colruyt's business model, it is a discounter with the cost
structure of a hypermarket," Vigneron adds, however

 (Reporting by Diana Mandiá)
 ((diana.mandiaalvarez@thomsonreuters.com))