Carrefour, the world's second largest retailer, has reported a 1.4% increase in full-year net profit to E2.3bn (£1.7bn) on sales up 6.8% at E82.1bn (£63bn).

Sales in its home country of France rose just 1.1% to E37.6bn (£28.9bn), while sales in Latin America jumped 38.5% to E8.2bn (£6.3bn) and 11.6% to E5.5bn (£4.2bn) in Asia.

“We achieved our objectives in 2007 in a fierce competitive environment in Europe and against the backdrop of deflation in France in the first three quarters of 2007,” the retailer said.