The two rates of PPRAll roads lead to Rome

The road is difficult, the map must be legible. José Luis Duran, the President of Carrefour, has made the choice to sacrifice its margins, especially in France, to regain market share, and then find a sales growth which alone can restore margins, before, finally, to leverage on the benefits. The semi-annual data illustrate the first phase, the most critical of this sequence supposedly virtuous: operating income advanced twice less quickly than sales, while stable net profit reflected the revival of investment in square metres, increasing debts and fresh financial. Carrefour is only to half of the path which should theoretically lead, end of 2007, and especially from 2008, its goal of 10 of annual growth in sales and profits. But the market seems to believe in the road map. After doubt following the installation of the successor of Daniel Bernard in early 2005, the crossroads title has made this year one of the best of the CAC 40. Over the past year, the ratio of capitalisation of profits expected year-end won 3 points. Above all, the course resists much better that previously beaten to the market gloom, as that of last spring, sign that, even before to confirm, Carrefour return to profitable growth is the assumption.

The two rates of PPR

All roads lead to Rome. Since it is diverse in luxury, PPR displayed a hybrid and unbalanced character that upset some investors. They would like to see the group more clearly turn the page of the distribution to strengthen its pole luxury, much more cost effective. The opportunistic strategy conducted by François - Henri Pinault is, however, to continue to play on the two tables. Fact remains that the stunning luxury health promotes a rebalancing that goes in the direction of investors without signs that the CEO wants to keep. While the distribution represents 80 of the turnover, the brilliant performance of Gucci ( 40) and Bottega Veneta ( 762) enabled the two stars of the luxury to do so, for the first time, playing at the level of the operational benefit. Sorrows minds note however that this rebalancing is also explained by the modest performance of the distribution, which the result grows by 5.1, penalized by the weakness of the first contributor, Redcats. As, despite its improvement, the pole luxury, with a margin of 11.4, is still far from LVMH and Gucci and Bottega are still far from Louis Vuitton, PPR has the resource to improve its appearance without affecting its perimeter. But progress would be faster if the Group officiating a few out of breath of the distribution for the benefit of new stars of luxury.

A perfect son-in-law

Better be good and rich than poor and sick. A few years after touching the bottom of the abyss, Suez displays a glowing health. With a turnover semi-annual increase of 10 and net profit off of 40, the group led by Gérard Mestrallet reached a net margin of 10. Surfing on a carrier conditions whose impact is strengthened by the cure of rigour and strategic inflections of the past years, Suez even identified all its annual objectives of growth and profitability. At the time when French MPs have the frown face the prospect of marrying GDF Suez, the fiancé therefore appears to the best of its form and energy champion gestating lack assets or attractions. Italian Enel who also presented its results yesterday weighing 90 of Suez, emitting the same profitability but realizing more than 90 of its turnover in the peninsula, it is clear that any negative signal of the French Parliament could restore the envy of his project of transalpine marriage. About GDF, which will publish its results next week, there hard to prove that they justify the modest parity for one offered, for the moment, to the shareholders of Suez.