French retailer Carrefour has reported lower profits as it struggles in China and in its home market.

The Carrefour China business model will be revamped as the company tries to turn around a €58 million loss last year, compared to a profit of €13 million the previous year.

While Carrefour’s performance improved in the rest of Europe and Latin America last year, it was not enough to prevent net profit tumbling 24 per cent to €746 million (US$785 million).

One-off tax changes were to blame for much of the fall, but stripped of exceptional items net earnings were still down 7.4 per cent, says the retailer. Net profit on ordinary business fell 3.8 per cent.

Despite the year’s mixed picture, the retailer says it has emerged “a stronger company” and expects to expand this year, both with stores and online.