(Alliance News) - Carrefour SA on Thursday announced the sale of its Italian business amid a pick up in sales growth in the second quarter of 2025.

The Massy, France-based owner of a chain of hypermarkets, grocery stores and convenience stores said sales increased by 3.8% to EUR46.56 billion in the second quarter from EUR44.86 billion a year prior.

Earnings before interest, tax, depreciation and amortisation edged up 1.0% to EUR1.94 billion from EUR1.92 billion a year ago.

Adjusted net income totalled EUR210 million, down 33% from EUR313 million last year, with adjusted earnings per share falling 30% to EUR0.32 from EUR0.46.

"Carrefour’s business saw a clear acceleration in the first half of 2025, driven by the momentum in its three core countries: France, Spain, and Brazil. This semester was marked by a more supportive environment in Europe, ending a long period of pressure on volumes," said Chair & Chief Executive Alexandre Bompard.

"Carrefour is approaching the second half with confidence and confirms all of its financial targets

for 2025," Bompard added.

The firm expects slight growth in Ebitda, recurring operating income and net free cash flow.

In 2024, Carrefour reported Ebitda of EUR4.64 billion, recurring operating income of EUR2.21 billion and net free cash flow of EUR1.46 billion.

Sales growth accelerated to 4.4% on a like-for-like basis in the second quarter from 2.9% in the first.

In France, Carrefour reported LFL sales growth of 2.1% in the second quarter compared to a fall of 1.7% in the first. In Spain, LFL sales growth was 2.9% compared to 1.4% in the first quarter. Sales growth did slow in Brazil to 4.4% in the second quarter from 5.4% in the first, reflecting a tough comparative.

In addition, Carrefour said it has entered into exclusive negotiations with NewPrinces Group regarding the sale of its operations in Italy.

After a recovery period from 2020 to 2022, Carrefour Italy recorded a decline in sales in 2024, along with negative recurring operating income of EUR67 million and net free cash flow of minus EUR180 million, in a "particularly challenging economic and competitive environment."

This will allow Carrefour to refocus on its key markets in Europe and Latin America, the firm said.

The transaction could be completed before the end of financial 2025, with an estimated impact on the group's treasury of minus EUR240 million.

Shares in Carrefour closed down 0.1% at EUR12.29 in Paris on Thursday.

By Jeremy Cutler, Alliance News reporter

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