French retail giant Carrefour recorded its first profit in Malaysia last year after first starting operations in 1994, a report said today.

Sales dipped to RM811 million, however, from RM824.87 million in 2001, Carrefour Malaysia's managing director Jean-Luc Montembault was quoted as saying by the New Straits Times .

He declined to reveal the profit figures.

The newspaper said Carrefour Malaysia's holding company, Magnificent Diagraph Sdn Bhd, logged a loss of RM69.91 million in 2001.

Paris-based Carrefour, the world's second-largest retailer after US-based Wal-Mart Stores, has been hit by a prolonged economic slowdown in Malaysia and the region, it said.

Only retail business

Montembault attributed Carrefour's profitability to a move to exit the wholesale business last year to concentrate solely o­n retail.

The Star

quoted Montembault as saying that competition in the retail sector was stiff but Carrefour would continue to grow at its own pace, opening o­ne or two new outlets a year.

The French retailer, which has invested more than US$500 million in Malaysia, will open its seventh outlet in a suburb outside Kuala Lumpur in the next few months, the daily said.

It will open another store in the government administrative capital of Putrajaya in June 2004.

At present it has outlets in Mid Valley, Sri Petaling, Subang Jaya, Wangsa Maju (all in the Klang Valley), Johor Baru (Johor) and Seberang Jaya (Penang).

Asked if business has been affected by the Severe Acute Respiratory Syndrome (Sars) outbreak, he said: "We started the year quite well but if Sars continues to spread, we fear that there will be a setback in the economy. We cannot foresee the impact that it would cause." AFP