Carrefour: Continued Sales Growth in the Second Quarter of 2017

+6.1% in the quarter and +6.2% in the half

  • Reported sales growth of +6.1% in Q2, reflecting a good like-for-like performance and expansion
    • Continued solid growth in food sales; like-for-like sales growth in non-food
  • Further sales growth in France: +0.8%
    • Like-for-like growth in all formats
  • Strong momentum in all European countries: +8.6%
    • Like-for-like growth of +3.4%
  • Sales up +13.6% in the Rest of the world1

BOULOGNE-BILLANCOURT, France--()--Regulatory News:

Carrefour (Paris:CA):

    Second quarter 2017   First half 2017
  Sales inc. VAT
(€m)
  LFL*  

Total
variation
at current
exch. rates

Sales inc. VAT
(€m)

  LFL*  

Total
variation
at current
exch. rates

International 11,817   +3.4%   +11.1% 23,706   +2.8%   +11.0%
France 9,942   +1.9%   +0.8% 19,348   +1.3%   +0.8%
Group 21,759   +2.8%   +6.1% 43,053   +2.1%   +6.2%

*ex petrol, ex calendar

Total sales under banners including petrol stood at €26.3bn in the second quarter of 2017 and at €52.1bn in the first half, up respectively by 5.2% and 4.9% at current exchange rates.

Due to the filing on June 28, 2017 by Atacadão S.A. (Grupo Carrefour Brasil), the parent company of all Carrefour Group’s activities in Brazil, of the preliminary prospectus in connection with the listing of Grupo Carrefour Brasil’s shares on the Novo Mercado segment of the São Paulo stock exchange, the level of detail of Carrefour’s second quarter sales release will be limited. The usual sales breakdown per region will be made public when Carrefour Group releases its first-half results on August 30, 2017.

1 Latin America and Asia

FIRST HALF 2017 SALES INC. VAT

SOLID GROWTH IN THE HALF

    Sales inc. VAT
(€m)
 

LFL ex petrol
ex calendar

 

Total
variation at
current exch.
rates

   
France   19,348 +1.3%   +0.8%
International   23,706 +2.8%   +11.0%
Other European countries 11,163 +2.2% +6.1%
Rest of the world   12,543 +3.3%   +15.7%

Carrefour posted solid growth in the first half of 2017, with sales of €43.1bn, up 6.2%. This performance reflects robust like-for-like sales growth in all regions in which the Group operates, in a strongly promotional context and in a macroeconomic environment marked by the slowdown of inflation in several markets. It also reflects the positive effect of expansion and acquisitions, Billa in Romania and Eroski in Spain. Food sales continued to grow strongly, up 6.3% in the half, of which 2.7% on a like-for-like basis.

This performance demonstrates once again the relevance of Carrefour’s multiformat model and its balanced geographical footprint. Carrefour’s omnichannel approach continued to gain momentum, with strong growth of 30.4% of its Gross Merchandise Value this half.

The currency effect was a positive 2.8% in the half, largely due to the appreciation of the Brazilian Real. The petrol effect was also favorable at +0.5%. The calendar effect was an unfavorable -0.6%.

SECOND QUARTER 2017 SALES INC. VAT

CONFIRMATION OF THE GROUP’S GOOD MOMENTUM

    Sales inc. VAT
(€m)
 

LFL ex petrol
ex calendar

 

Total
variation at
current exch.
rates

   
France   9,942 +1.9%   +0.8%
International   11,817 + 3.4%   +11.1%
Other European countries 5,778 +3.4% +8.6%
Rest of the world   6,038 +3.4%   +13.6%

Carrefour confirmed in Q2 its good sales growth momentum.

In a persistently challenging competitive environment, France posted a good performance in the second quarter, with reported sales up 0.8% and like-for-like sales up +1.9%. Sales were up in all formats and benefited from the growth of e-commerce and the growing momentum of ex-DIA stores converted to Carrefour banners for more than 12 months. Food sales contributed to France’s good performance, rising by +2.8% on a like-for-like basis.

Like-for-like sales in hypermarkets were up +0.5%, in an environment that remained strongly promotional throughout the quarter. Supermarkets continued to perform well with like-for-like sales up +1.9%. Growth in convenience and other formats remained particularly solid, up +6.7% on a like-for-like basis.

International sales were up +11.1% in the second quarter. On a like-for-like basis, sales growth was solid and stood at +3.4%, driven by strong +3.6% growth of food sales. Sales outside of France benefited this quarter from a positive currency effect of +3.4%.

In Other European countries, second quarter 2017 sales improved markedly once again (+8.6% on a reported basis and +3.4% like-for-like), helped by favorable weather conditions:

  • In Spain, like-for-like sales were up +2.6% in the second quarter and were up +9.4% on a reported basis, reflecting the excellent performance of the converted Eroski stores;
  • Positive momentum accelerated in Italy, where like-for-like sales were up +3.9%, driven by food;
  • Growth resumed in Belgium, with like-for-like sales up +2.4%;
  • Like-for-like sales continue to be particularly dynamic in Poland and Romania.

In the Rest of the world, sales grew strongly, up +13.6% on a reported basis, of which +3.4% like-for-like. More detailed information on performance in these markets will be given during the first half results presentation on August 30 2017.

Overall, in the quarter, the currency effect was a favorable +1.8%, largely due to the appreciation of the Brazilian Real. Petrol had an unfavorable effect of -0.3%. The calendar effect was a favorable +0.3%.

VARIATION OF SECOND QUARTER 2017 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   9,942 +0.8%   +0.8%   +2.0%   +1.9%   +0.7%
Hypermarkets   5,012 +0.8%   +0.8%   +1.5%   +0.5%   -0.1%
Supermarkets 3,280 -0.3% -0.3% +1.8% +1.9% -0.2%
Convenience/other formats 1,650 +3.1% +3.1% +3.9% +6.7% +5.1%
                       
International   11,817 +11.1%   +7.6%   +3.8%   +3.4%   +5.4%
                       
Other European countries   5,778 +8.6%   +8.4%   +3.7%   +3.4%   +4.2%
Spain 2,302 +9.4% +9.4% +2.5% +2.6% +3.1%
Italy 1,392 +4.3% +4.3% +5.1% +3.9% +3.1%
Belgium 1,101 +2.2% +2.2% +2.2% +2.4% +2.3%
                       
Rest of the world   6,038 +13.6%   +6.9%   +3.8%   +3.4%   +6.6%
Group total   21,759 +6.1%   +4.4%   +3.0%   +2.8%   +3.3%

VARIATION OF FIRST-HALF 2017 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   19,348 +0.8%   +0.8%   +2.1%   +1.3%   +0.1%
Hypermarkets   9,859 +0.0%   +0.0%   +0.6%   -0.5%   -1.0%
Supermarkets 6,333 +0.3% +0.3% +2.5% +2.0% +0.0%
Convenience/other formats 3,156 +4.2% +4.2% +6.1% +5.6% +3.9%
                       
International   23,706 +11.0%   +5.6%   +2.2%   +2.8%   +4.6%
                       
Other European countries   11,163 +6.1%   +6.0%   +2.2%   +2.2%   +2.8%
Spain 4,413 +6.9% +6.9% +1.6% +1.5% +2.0%
Italy 2,719 +2.0% +2.0% +3.2% +2.7% +1.6%
Belgium 2,127 -0.3% -0.3% +0.0% +0.3% +0.1%
                       
Rest of the world   12,543 +15.7%   +5.2%   +2.2%   +3.3%   +6.4%
Group total   43,053 +6.2%   +3.3%   +2.1%   +2.1%   +2.6%

EXPANSION UNDER BANNERS – SECOND QUARTER 2017

Thousands of sq. m.  

Dec. 31,
2016

  March 31,
2017
 

Openings/
Store
enlargements

  Acquisitions  

Closures/
Store
reductions

 

Total Q2
2017 change

 

June 30,
2017

France   5,719   5,727   22   2   -7   17   5,744
Europe (ex France) 5,449 5,529 56 55 -66 45 5,574
Rest of the world 5,094 5,113 10 - -33 -23 5,090
Others1   920   939   27   -   -9   18   958
Group   17,181   17,308   116   57   -115   57   17,366

STORE NETWORK UNDER BANNERS – SECOND QUARTER 2017

N° of stores  

Dec. 31,
2016

 

March 31,
2017

 

Openings

 

Acquisitions

 

Closures/
Disposals

  Transfers  

Total Q2
2017 change

 

June 30,
2017

Hypermarkets   1,480   1,503   6   8   -9   -1   4   1,507
France   243   246   -   -   -   1   1   247
Europe (ex France) 439 454 2 8 -4 -2 4 458
Rest of the world 708 711 1 - -4 - -3 708

Others1

  90   92   3   -   -1   -   2   94
Supermarkets   3,212   3,194   23   1   -22   -2   0   3,194
France 1,065 1,060 3 1 -1 -4 -1 1,059
Europe (ex France) 1,777 1,758 13 - -20 2 -5 1,753
Rest of the world 188 190 2 - - - 2 192
Others1   182   186   5   -   -1   -   4   190
Convenience   7,072   7,106   167   -   -96   3   74   7,180
France 4,219 4,220 46 - -32 3 17 4,237
Europe (ex France) 2,312 2,337 104 - -63 - 41 2,378
Rest of the world 495 502 16 - -1 - 15 517
Others1   46   47   1   -   -   -   1   48
Cash & carry   171   170   1   -   -   -   1   171
France 143 142 1 - - - 1 143
Europe (ex France) 13 13 - - - - - 13
Rest of the world 2 2 - - - - - 2
Others1   13   13   -   -   -   -   -   13
Group   11,935   11,973   197   9   -127   -   79   12,052
France 5,670 5,668 50 1 -33 - 18 5,686
Europe (ex France) 4,541 4,562 119 8 -87 - 40 4,602
Rest of the world 1,393 1,405 19 - -5 - 14 1,419
Others1   331   338   9   -   -2   -   7   345

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

Carrefour
Investor Relations:
Mathilde Rodié, Anne-Sophie Lanaute, Louis Igonet
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

Carrefour
Investor Relations:
Mathilde Rodié, Anne-Sophie Lanaute, Louis Igonet
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