Carrefour Brazil estimates that the conditions that boosted food retail and e-commerce last year will continue in 2021.
The company reported a 35% growth in net income for the Q4 compared to the previous year, driven by its wholesale and retail division and changes in habits caused by the COVID-19 pandemic. Given these results, company executives are optimistic about performance in 2021, despite the impacts of social isolation measures.
The positive result in the Q4 came despite the reduction in emergency aid payments by the federal government. For this reason, Carrefour Brazil believes that the end of the aid will not harm the group’s performance this year.
“At the beginning of 2021, we cannot see a slowdown in this trend. The decrease in emergency aid will impact other businesses more. The impact on sales will not be noticeable in the coming months,” said the Vice Presidente of Finance Sébastien Durchon.
The company believes that changes in consumer habits as a result of the pandemic, such as eating meals at home instead of going out to eat, benefited supermarket sales and online food retail far more than the payment of emergency aid. These new habits are expected to be maintained in 2021.
Given this perspective, Carrefour Brazil now invests in online products and services, such as opening digital accounts for wholesale customers. Also, the company is completing the process to accept payments and transfers via PIX.
In addition, the group ended 2020 with a cash flow of BRL 5.6 billion, which opens up opportunities for mergers and acquisitions this year and the next, said Chief Executive Noël Prioux.
Translated by LABS.