PARIS--(BUSINESS WIRE)--Regulatory News:
Sharp increase in sales in the first quarter of 2017, reflecting
the relevance of Carrefour’s multiformat model and balanced country
- Robust growth of +6.2% at current exchange rates
- Continued progression in food sales: up +2.2% like-for-like and +5.9% on a reported basis
- Significant increase of Group Gross Merchandise Value: +34%
Solid growth in international operations (+10.9% at current
- Good sales performance on the back of strong comparables
- Continued growth in Latin America amid a slowdown in inflation
Further sales growth in France (+0.8%)
- Continued roll-out of omnichannel strategy
- Good performance in convenience and growing momentum of ex-DIA stores converted to Carrefour banners for more than 12 months
- Target of 3% to 5% full-year 2017 sales growth at constant exchange rates confirmed
Sales inc. VAT
LFL ex petrol
This quarter, currencies and petrol both had a favorable impact of +3.9% and +1.3% respectively. The calendar effect was particularly strong at -1.6%, notably due to the fact that Easter is in the second quarter this year and there was one less trading day in Q1 2017 as 2016 was a leap year.
Total sales under banners including petrol stood at €25.7bn in the first quarter of 2017, up +4.7% at current exchange rates.
FIRST QUARTER 2017 SALES INC. VAT
Sales inc. VAT
LFL ex petrol
|Other European countries||5,384||+0.9%||+3.6%|
Carrefour posted solid growth in the first quarter of 2017, with sales of €21.3bn, up 6.2%. This performance once again underscores the relevance of Carrefour’s multiformat model and the good balance of its country portfolio. Food sales showed solid growth, rising by 5.9% in the quarter. Carrefour’s omnichannel approach continued to gain momentum with a significant increase of +34% in Group Gross Merchandise Value this quarter.
This quarter was marked by a particularly strong calendar effect of -1.6%, due to the fact that Easter is in the second quarter this year and there was one less trading day in Q1 2017 as 2016 was a leap year. Carrefour benefited this quarter from a favorable currency effect of +3.9%, due to the appreciation of the Brazilian Real. The petrol effect was also favorable, at +1.3%.
Sales in international activities were up +10.9% in the first quarter of 2017. This performance takes into account a negative calendar effect of -1.8% and a positive currency effect of +7.3%. Like-for-like sales growth was solid, at +2.1%, driven by a +2.8% increase in food sales.
In Latin America, like-for-like sales were up +7.8% (+11.7% on an organic basis), a solid performance. The currency effect was +22.1%.
In Brazil, the roll-out of Carrefour’s multiformat model continues to bear fruit in an environment marked by high unemployment and a slowdown in inflation in Q1. In this context, Carrefour posted a good performance, with like-for-like sales up +5.6% (+10.5% on an organic basis). Carrefour’s success in the country reflects the continued progression of Atacadão and hypermarkets as well as further openings of convenience stores under the Express banner. Like-for-like sales in Argentina were up +14.6% in a difficult economic environment.
Asia posted another sequential improvement in sales, which were down -4.0% in the first quarter of 2017 (-2.3% on an organic basis). China recorded a like-for-like sales drop of -5.5% and sales in Taiwan rose for the ninth consecutive quarter, up +0.3% on a like-for-like basis on the back of strong comparables.
In Other European countries, sales rose again in the quarter (+3.6% in total) on a challenging comparable base in several countries. On a like-for-like basis, sales were up +0.9% in the quarter.
- In Spain, like-for-like sales were up +0.3% in the quarter on the back of strong comparables in the same period last year (+3.4%);
- Positive momentum continued in Italy, where like-for-like sales were up +1.6%, on the back of strong comparables in Q1 2016 (+4.5%) ;
- Like-for-like sales remained very dynamic in Poland and in Romania.
In a first quarter marked by an unfavorable calendar effect and a very competitive environment, France showed good resilience and posted sales growth (+0.8% in total). For the fifth year in succession, food sales were up in the first quarter, with a like-for-like increase of +1.3%.
Total sales at hypermarkets were down -0.8% (-1.6% LFL) in an environment that remained highly promotional throughout the quarter. Other formats continued to perform well, with total supermarket sales up +1.1% (+2.2% LFL) and total sales in convenience and other formats continuing to be particularly solid at +5.5% (+4.4% LFL), benefiting from the growth of e-commerce and the positive momentum of ex-DIA stores converted to Carrefour banners for more than 12 months.
VARIATION OF FIRST QUARTER 2017 SALES INC. VAT
|LFL inc. petrol||
LFL ex petrol
|Convenience /other formats||1,505||+5.5%||+5.5%||+8.6%||+4.4%||+2.5%|
Other European countries
EXPANSION UNDER BANNERS – First quarter 2017
|Thousands of sq. m.||
|Europe (ex France)||5,449||29||101||-50||80||5,529|
STORE NETWORK UNDER BANNERS – First quarter 2017
|N°. of stores||
|Europe (ex France)||439||-||17||-3||1||15||454|
|Europe (ex France)||1,777||13||-||-31||-1||-19||1,758|
|Europe (ex France)||2,312||77||-||-52||-||25||2,337|
|Cash & carry||171||-||-||-1||-||-1||170|
|Europe (ex France)||13||-||-||-||-||-||13|
|Europe (ex France)||4,541||90||17||-86||-||21||4,562|
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.
1Africa, Middle East and Dominican Republic.