PARIS (Reuters) - Carrefour (EPA:CARR) shares rose over 5% in early session trading oin Wednesday as investors cheered news that Europe's largest food retailer would hand them an 8% dividend hike and launch a new share buyback scheme this year thanks to record cash flow and higher 2022 profits.
Carrefour also predicted further growth this year across its main three indicators - earnings before interest, taxes, depreciation and amortisation (EBITDA), recurring operating income and net free cash flow despite high inflation.
"Notwithstanding an inline print, we think the progression of the buyback and dividend will be supportive to the shares," Citi analysts said in a note.
"Carrefour is taking volume market share in its lead markets...We think its own label-led strategy leaves it well placed to deliver ‘growth in its main aggregates' of EBITDA, EBIT and FCF," they added.
Carrefour shares were up 5.5% by 0805 GMT.