French retailer Carrefour announced last week that it was taking a €550m charge and would restate its results for 2009 after an audit of the group's Brazilian businesses revealed losses far greater than previously stated, according to Sify News.
Carrefour previously estimated one-off charges including depreciation and inventory adjustments, provisions for labour and tax litigation, non-recoverable supplier rebates and depreciation of tangible assets, at approximately €180m.
The Brazilian charges will reportedly lead to a €30m hit on Carrefour's underlying operating profit in 2010, as well as stripping €52m off its 2009 'activity contribution'.
