Carrefour could be hit with €200m fine after franchisees complain about obligation to source from group companies


Singular Bank: The French supermarket multinational fell 4.8% today after falling nearly 10%. The French finance minister has recommended that the company be fined €200m in the course of a lawsuit by its franchisees. The franchisees denounce practices such as forcing them to source their supplies from companies in the group, thus preventing them from having access to more competitive prices. The company has denied any irregular practices and hopes that the fine will not be imposed in the end.

Carrefour has recently been penalised by Q1 results that still do not reflect the recovery of margins, although the company expects to achieve this during the year due to moderating inflation. It trades at a 2025E P/E of 6.2x with a dividend yield of 6.8%.

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