Carrefour: Solid Sales Growth in Q3 2016

+3.2% like-for-like in Q3 and +3.0% over nine months 2016

Third quarter 2016 sales: €21.8bn, +3.6% ex petrol and +3.2% like-for-like

  • International: strong sales growth, +4.5% like-for-like
    • Good sales momentum in Europe
    • Continued excellent growth in Latin America
    • Sequential improvement in Asia
  • France: good like-for-like growth, at +1.2%
    • Better momentum in hypermarkets
    • Very good performance in supermarkets and convenience

Nine-month 2016 sales: €62.3bn, +3.2% ex petrol and +3.0% like-for-like

PARIS--()--Regulatory News:

Carrefour (Paris:CA):

Consolidated third-quarter and nine-month 2016 sales inc. VAT

The Group posted sales of €21,781m in Q3 2016. In the quarter, currencies and petrol prices had unfavorable impacts of 1.7% and 0.8% respectively. The calendar effect was +0.1%.

Over the first nine months of 2016, the Group posted sales of €62,333m. Over the period, currencies and petrol prices had unfavorable impacts of 4.6% and 1.0% respectively. The calendar effect was +0.2%.

    Third quarter 2016     Nine-months 2016
  Sales inc. VAT (€m)  

LFL ex petrol

and ex

calendar

 

Total growth ex

petrol at

constant exch.

rates

Sales inc. VAT (€m)

 

LFL ex petrol

and ex

calendar

 

Total growth ex

petrol at

constant exch.

rates

International 11,612   +4.5%   +6.5% 32,968   +5.0%   +6.2%
France 10,169   +1.2%   -0.1% 29,365   +0.1%   -0.6%
Group 21,781   +3.2%   +3.6% 62,333   +3.0%   +3.2%
 

Total sales under banners including petrol stood at €26.2bn in Q3 and at €75.8bn over the first nine months of 2016, up respectively by 1.4% and 1.6% at constant exchange rates.

THIRD QUARTER 2016 SALES INC. VAT

    Sales inc. VAT (€m)      

LFL ex petrol

and ex

calendar

 

Total growth

ex petrol at

constant

exch. rates

   
France   10,169 +1.2%   -0.1%
International   11,612 +4.5%   +6.5%
Other European countries 5,625 +1.0% +2.4%
Latin America 4,233 +14.2% +17.2%
Asia   1,754 -5.0%   -2.9%
 

In the third quarter, France posted good like-for-like sales in a persistently difficult environment. Total sales were broadly stable ex petrol on the back of strong comparables in Q3 2015 (+5.6%). Food sales were up in the third quarter. The evolution of petrol prices had an unfavorable impact of 0.9% this quarter.

Sales on a comparable basis at hypermarkets are down 1.0% this quarter, a sharp improvement over Q2.

Supermarkets posted a good performance, with like-for-like sales up +3.7% on the back of strong comparables of +2.5%. This constitutes the eighth consecutive quarter of sales growth.

Like-for-like sales in convenience and other formats were up +3.2%.

The transformation of stores acquired from Dia continues: 123 stores were reopened in the third quarter of 2016, bringing the total number of stores converted to Carrefour banners since the start of the plan to 535. The transformation plan will be completed, as announced, at end-2016.

Sales in International activities rose by +4.5% on a like-for-like basis and by +6.5% ex-petrol at constant exchange rates.

In Other European countries, like-for-like sales were up by +1.0%:

  • In Spain, like-for-like sales continued to grow, rising by +1.0% in the quarter.
  • Trends also continued in Italy, where like-for-like sales were up +2.2%.
  • In Belgium, like-for-like sales were stable.
  • Like-for-like sales were up in Romania and slightly down in Poland.

In Latin America, like-for-like sales were up by +14.2% (+17.0% on an organic basis). The currency effect was -7.2%:

  • In Brazil, like-for-like sales grew by +12.4% (+16.2% on an organic basis).
  • Like-for-like sales in Argentina grew by +18.0%.

In Asia, like-for-like sales were down 5.0%:

  • China posted a sequential improvement with like-for-like sales down by 7.8%.
  • In Taiwan, trends remained the same and sales grew for the seventh consecutive quarter, rising by +3.3% on a like-for-like basis.

NINE-MONTH 2016 SALES INC. VAT

    Sales inc. VAT (€m)    

LFL ex petrol and

ex calendar

 

Total growth

ex petrol at

constant

exch. rates

   
France   29,365 +0.1%   -0.6%
International   32,968 +5.0%   +6.2%
Other European countries 16,143 +1.8% +1.7%
Latin America 11,466 +14.4% +17.6%
Asia   5,359 -5.2%   -4.6%
 

Over the first nine months of 2016, France posted like-for-like sales growth of +0.1%.

Like-for-like sales in International activities were up by +5.0% over nine months. They are up +1.8% in Other European countries. Latin America continued to post strong like-for-like growth, at +14.4%. In Asia, like-for-like sales were down 5.2%.

Variation of third quarter 2016 sales inc. VAT

    Total sales inc. VAT (€m)    

Change at

current

exchange

rates inc.

petrol

 

Change at

constant

exchange

rates inc.

petrol

 

LFL inc.
petrol

 

LFL ex petrol

ex calendar

 

Organic growth
ex petrol
ex calendar

France   10,169 -0.9%   -0.9%   +0.6%   +1.2%   -0.3%
Hypermarkets   5,199 -2.4%   -2.4%   -1.8%   -1.0%   -1.5%
Supermarkets 3,278 -0.6% -0.6% +0.8% +3.7% +0.5%
Convenience/Other formats 1,692 +2.9% +2.9% +8.7% +3.2% +1.9%
                       
International   11,612 +3.0%   +6.3%   +4.5%   +4.5%   +5.8%
                       
Other European countries   5,625 +1.6%   +2.0%   +0.7%   +1.0%   +1.2%
Spain 2,307 +0.6% +0.6% +0.2% +1.0% +1.3%
Italy 1,341 -1.3% -1.3% +1.9% +2.2% +0.8%
Belgium 1,064 +0.6% +0.6% +0.2% +0.0% +0.4%
                       
Latin America   4,233 +9.7%   +16.9%   +14.1%   +14.2%   +17.0%
Brazil 3,388 +25.1% +15.8% +12.1% +12.4% +16.2%
                       
Asia   1,754 -6.9%   -2.9%   -4.3%   -5.0%   -3.6%
China 1,245 -11.3% -5.7% -7.0% -7.8% -6.6%
                       
Group total   21,781 +1.1%   +2.8%   +2.7%   +3.2%   +3.1%
 

Variation of nine-month 2016 sales inc. VAT

 

Total

sales

inc.

VAT

(€m)

 

Change at

current

exchange

rates inc.

petrol

 

Change at

constant

exchange

rates inc.

petrol

 

LFL inc. petrol

 

LFL ex petrol
ex calendar

 

Organic growth
ex petrol
ex calendar

France 29,365 -1.9%   -1.9%   -0.8%   +0.1%   -1.1%
Hypermarkets 15,056 -3.1%   -3.1%   -2.8%   -1.6%   -1.9%
Supermarkets 9,544 -1.8% -1.8% -0.5% +2.3% -0.5%
Convenience/Other formats 4,765 +1.6% +1.6% +7.0% +1.4% +0.5%
                     
International 32,968 -2.8%   +5.9%   +4.9%   +5.0%   +6.0%
                     
Other European countries 16,143 +0.6%   +1.1%   +1.3%   +1.8%   +1.4%
Spain 6,436 +0.4% +0.4% +0.4% +1.6% +1.5%
Italy 4,007 -0.8% -0.8% +2.2% +2.7% +1.6%
Belgium 3,197 +0.4% +0.4% +0.5% +0.2% +0.1%
                     
Latin America 11,466 -4.6%   +17.6%   +14.3%   +14.4%   +17.6%
Brazil 9,007 +3.1% +16.0% +11.9% +11.8% +16.0%
                     
Asia 5,359 -8.5%   -4.6%   -5.1%   -5.2%   -4.7%
China 3,953 -12.3% -8.0% -8.2% -8.5% -8.2%
                     
Group total 62,333 -2.4%   +2.3%   +2.3%   +3.0%   +2.9%
 

EXPANSION UNDER BANNERS – Third quarter 2016

Thousands of sq. m.   Dec. 31,
2015
  June 30,
2016
 

Openings/
Store

enlargements

  Acquisitions  

Closures/

Store

reductions

 

Total Q3

2016

change

  Sept. 30,
2016
France   5,668   5,700   11     -9   2   5,702
Europe (ex France) 6,039 5,344 42 83 -33 93 5,436
Latin America 2,258 2,278 8 8 2,286
Asia 2,734 2,728 36 36 2,764
Others1   828   887   13       -3   10   897
Group   17,526   16,936   110   83   -45   149   17,085
 

STORE NETWORK UNDER BANNERS – Third quarter 2016

No. of stores   Dec. 31,
2015
  June 30,
2016
  Openings   Acquisitions  

Closures/

Disposals

  Transfers  

Total Q3

2016 change

  Sept. 30,
2016
Hypermarkets   1,481   1,442   7       -2       5   1,447
France   242   242             242
Europe (ex France) 489 435 2 -2 435
Latin America 304 307 1 1 308
Asia 369 372 3 3 375

Others1

  77   86   1               1   87
Supermarkets   3,462   3,156   22   86   -29   8   87   3,243
France 1,003 1,036 8 8 1,044
Europe (ex France) 2,096 1,745 17 86 -28 75 1,820
Latin America 168 168 168
Asia 29 32 1 1 33
Others1   166   175   4       -1       3   178
Convenience   7,181   6,921   133       -95   -8   30   6,951
France 4,263 4,247 30 -43 -8 -21 4,226
Europe (ex France) 2,464 2,196 86 -50 36 2,232
Latin America 404 422 12 -1 11 433
Asia 8 13 5 5 18
Others1   42   43           -1       -1   42
Cash & carry   172   168   3               3   171
France 142 143 143
Europe (ex France) 18 13 13
Asia 0 0 2 2 2
Others1   12   12   1               1   13
Group   12,296   11,687   165   86   -126       125   11,812
France 5,650 5,668 30 -43 -13 5,655
Europe (ex France) 5,067 4,389 105 86 -80 111 4,500
Latin America 876 897 13 -1 12 909
Asia 406 417 11 11 428
Others1   297   316   6       -2       4   320

1 Africa, Middle East and Dominican Republic.

DEFINITIONS

LFL sales growth: Sales generated by stores opened for at least twelve months, excluding temporary store closures, at constant exchange rates.

Organic growth: LFL sales plus net openings over the past twelve months, including temporary store closures, at constant exchange rates.

Sales under banners: Total sales under banners, including sales by franchisees and international partnerships.

Contacts

Investor Relations: Mathilde Rodié, Anne-Sophie Lanaute
Tel : +33 (0)1 41 04 28 83
or
Shareholder Relations
Tel : +33 (0)805 902 902 (toll-free in France)
or
Group Communication
Tel : +33 (0)1 41 04 26 17

Contacts

Investor Relations: Mathilde Rodié, Anne-Sophie Lanaute
Tel : +33 (0)1 41 04 28 83
or
Shareholder Relations
Tel : +33 (0)805 902 902 (toll-free in France)
or
Group Communication
Tel : +33 (0)1 41 04 26 17