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Carrefour cuts FY'17 dividend by 34%

Grocery store operator Carrefour SA said its dividend for its 2017 fiscal year would be 34% lower than in 2016 as the company reported higher distribution costs in some of its markets and greater competition in others.

The company, based in the Paris suburb Boulogne-Billancourt, said it will pay a dividend of 46 cents per share, down from the 70 cents per share that Carrefour paid for its 2016 fiscal year, according to a summary of its yearly results released Feb. 28.

Recurring operating income for the year totaled €2.01 billion, 14.7% below the 2016 figure using current foreign exchange rates.

In discussing its 2017 results, Carrefour pointed to strong competition in several of its markets, including China, southern Europe and France, as well as higher distribution costs in Spain and continued food deflation in Brazil.

The company said it is focusing on cutting €2 billion in costs by 2020, which is one component of a turnaround plan for the business that the company has dubbed "Carrefour 2022."

As part of the plan, the company is streamlining its digital presence, opening 2,000 convenience stores, closing existing stores that do not make a profit and laying off workers.