CARREFOUR: Q3 2012 sales (inc. VAT): +2.1% to €22.6 bn Continued growth in emerging markets, notably Latin America, better quarter in France 9-month 2012 sales (inc. VAT) up 1.3% to €66.3 bn

Thu Oct 11, 2012 1:30am EDT

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CARREFOUR: Q3 2012 sales (inc. VAT): +2.1% to €22.6 bn Continued growth in emerging markets, notably Latin America, better quarter in France 9-month 2012 sales (inc. VAT) up 1.3% to €66.3 bn

Regulatory News:

Carrefour (Paris: CA)

Q3 2012 sales: €22.6 bn, +2.1%, driven notably by Latin America. The quarter showed an improvement in France, but Southern Europe remained difficult.

  • France: Sales up 1.2%, supported by improving sales trends in hypermarkets and supermarkets and by petrol sales. Sales at convenience formats continued to grow strongly. Drive openings continued, with 164 outlets at the end of September (39 openings in the quarter).
  • Europe (excl. France): Sales down 2.2%, impacted by continued pressure on consumption in Southern Europe. Sales in Belgium grew again this quarter.
  • Latin America: Sales up 5.2% (+12.8% at constant exchange rates), accelerating growth in Brazil.
  • Asia: Sales growth of 12.3% (+1.1% at constant exchange rates), broadly in line with the previous quarter. In China, expansion offset the slowdown in consumption. Taiwan and Indonesia continued their solid growth.
    Q3 2012 Sales inc. VAT VENTES TTC 201 11 October 2012

9-month 2012 sales: €66.3 bn, +1.3%, supported by emerging markets, notably Latin America, whose sales grew by 5.3% (+9.9% at constant exchange rates).

Third quarter 2012 sales inc. VAT1

  €m   Change  

Change at constant

exch. rates inc. petrol

  Change at constant exch. rates ex. petrol
  LFL   Total LFL   Total
 
                   
France 9,985 +1.2% +1.7% +1.2% -1.5% -1.1%
Europe (excl. France) 5,858 -2.2% -2.9% -2.2% -3.3% -2.5%
Latin America 4,517 +5.2% +9.3% +12.8% +10.1% +14.0%
Asia 2,267   +12.3% -3.1%   +1.1% -3.1%   +1.1%
                   
Group 22,627   +2.1% +1.5%   +2.5% +0.2%   +1.8%
 

9-month 2012 sales inc. VAT1

  €m   Change   Change at constant exch. rates inc. petrol   Change at constant exch. rates ex. petrol
  LFL   Total LFL   Total
                   
France 28,996 -0.1% +0.8%   -0.1% -1.7%   -1.8%
Europe (excl. France) 17,280 -2.5% -2.7% -1.7% -3.2% -2.1%
Latin America 13,217 +5.3% +7.7% +9.9% +8.6% +11.0%
Asia 6,778   +10.5% -3.3%   +0.8% -3.3%   +0.8%
                   
Group 66,271   +1.3% +0.8%   +1.5% -0.2%   +1.0%

FRANCE

Third quarter 2012 sales inc. VAT2

  €m   Change   LFL     Change ex. petrol
    LFL   Total
                 
Hypermarkets 5,360 -0.9% -0.3% -3.3%   -3.4%
Supermarkets 3,432 +2.9% +4.0% 0.0% +1.1%
Convenience and other formats 1,194   +5.9%   +5.0% +3.1%   +3.8%
                 
France 9,985   +1.2%   +1.7% -1.5%   -1.1%

The calendar effect in France is estimated at -1.6% in the third quarter.

Sales in France were up 1.2%. The petrol effect was a positive 2.3%, as fuel sales continued to benefit from the "Low Price Guarantee" launched in May in hypermarkets.

LFL sales at Hypermarkets were broadly stable (-0.3%). Excluding petrol, LFL sales were down 3.3%, an improvement of over 2 percentage points vs. the previous quarter. For the third consecutive quarter, sales trends in food improved.

LFL sales at Supermarkets were up 4.0% (stable excluding petrol) with an increase in food sales. Sales to our franchisees continued to rise this quarter, despite strong 2011 comparables.

The roll-out of Drive continued, with the number of outlets totaling 164 at the end of the quarter: 39 Drive outlets were opened over the quarter.

Convenience and other formats (notably cash & carry) recorded LFL sales growth of 5.0%. Excluding petrol, sales rose 3.1%, driven by the performance of renovated stores. At the end of June, the convenience network included 426 City, 355 Contact, 181 Express and 15 Montagne.

EUROPE (excluding France)

Third quarter 2012 sales inc. VAT3

  €m   Change   Change at constant exch. rates inc. petrol   Change at constant exch. rates ex. petrol
  LFL   Total LFL   Total
                   
Spain 2,320 -3.2% -3.8%   -3.2% -5.4%   -4.7%
Italy 1,327 -8.3% -7.4% -8.3% -6.6% -7.6%
Belgium 1,049 +1.5% +2.1% +1.5% +2.1% +1.5%
Other countries 1,161   +4.7% -0.1%   +4.6% 0.0%   +4.9%
                   
Europe (excl. France) 5,858   -2.2% -2.9%   -2.2% -3.3%   -2.5%

The calendar effect in Europe (excluding France) is estimated at -1.0% in the third quarter. Currency effects were broadly neutral.

Sales in Europe (excl. France) fell 2.2%, marking a stabilization in trends as compared to the previous quarter.

Spain recorded a better quarter in a context marked by an increase in VAT on September 1, but pressure remained intense, especially on discretionary spending.

In Italy, LFL sales ex-petrol sales were down 6.6%. Competitive pressure intensified in the quarter in the face of a significant decrease in consumption.

Belgium recorded LFL sales growth of 2.1%, continuing the positive trends observed in previous quarters. All formats registered LFL sales growth.

Sales in other countries (Poland, Turkey and Romania) were broadly stable on a LFL basis. Including expansion, they were up 4.6% at constant exchange rates.

LATIN AMERICA

Third quarter 2012 sales inc. VAT

  €m   Change   Change at constant exch. rates inc. petrol   Change at constant exch. rates ex. petrol
  LFL   Total LFL   Total
                   
Brazil 3,103 +0.1% +8.9%   +11.3% +9.7%   +12.4%
Other countries 1,413   +18.4% +10.6%   +17.0% +11.4%   +18.1%
                   
Latin America 4,517   +5.2% +9.3%   +12.8% +10.1%   +14.0%

The calendar effect in Latin America is not significant in the third quarter. Currency effects were a negative 7.6%, mainly attributable to the depreciation of the Brazilian real and the Argentine peso in the month of September vs. the euro.

Sales in Latin America rose 5.2% and by 12.8% excluding currencies, marking an acceleration over the previous quarter (+7.4%). Expansion was boosted by the reopening of all the acquired Eki stores under the Carrefour banner in Argentina.

In Brazil, sales excluding petrol at constant exchange rates rose 12.4%, or +9.7% on a LFL basis. Atacadão’s sales growth continued on a tough comparable basis in 2011. Atacadão’s sales reflect both the format’s dynamism and rising prices for staple products. LFL hypermarket sales continued to improve.

Other countries, notably Argentina, recorded growth of 18.1%, or +11.4% on a LFL basis (excluding petrol, at constant exchange rates).

ASIA

Third quarter 2012 sales inc. VAT4

  €m   Change   Change at constant exch. rates
  LFL   Total
             
China 1,367 +13.9% -6.1%   +0.1%
Other countries 900   +10.0% +1.1%   +2.6%
             
Asia 2,267   +12.3% -3.1%   +1.1%

The calendar effect in Asia was not significant in the third quarter. The 13.8% appreciation of the Chinese currency contributed to a positive 11.2% foreign exchange effect in Asia.

Sales in Asia were up 12.3%. Excluding currencies, sales rose 1.1%.

Sales in China at constant exchange rates were stable, supported by expansion (+6.2%), in a context marked by economic slowdown.

LFL sales in Other countries were up 2.6%. Sales in Taiwan and Indonesia continued to grow.

9-month 2012 sales inc. VAT5

  €m   Change   Change at constant exch. rates inc. petrol   Change at constant exch. rates ex. petrol
  LFL   Total LFL   Total
                   
Hypermarkets 15,749 -2.4% -1.7%   -2.4% -4.0%   -4.3%
Supermarkets 9,954 +1.6% +3.2% +1.6% +0.1% +0.3%
Convenience and other formats 3,293   +6.6% +6.4%   +6.6% +5.1%   +5.4%
France 28,996   -0.1% +0.8%   -0.1% -1.7%   -1.8%
                   
Spain 6,599 -3.9% -4.6% -3.9% -6.3% -5.5%
Italy 4,223 -5.0% -4.3% -5.0% -4.1% -4.8%
Belgium 3,119 +1.6% +1.6% +1.6% +1.6% +1.6%
Other countries 3,338   0.0% -0.6%   +4.0% -0.4%   +4.4%
Europe (excl. France) 17,280   -2.5% -2.7%   -1.7% -3.2%   -2.1%
                   
Brazil 9,255 +0.9% +7.0% +8.2% +7.9% +9.3%
Other countries 3,962   +17.2% +9.6%   +14.3% +10.4%   +15.3%
Latin America 13,217   +5.3% +7.7%   +9.9% +8.6%   +11.0%
                   
China 4,275 +12.2% -5.7% 0.0% -5.7% 0.0%
Other countries 2,504   +7.7% +0.6%   +2.1% +0.6%   +2.1%
Asia 6,778   +10.5% -3.3%   +0.8% -3.3%   +0.8%
                   
Group 66,271   +1.3% +0.8%   +1.5% -0.2%   +1.0%

The calendar effect over the first nine months is estimated at +0.2% at Group level (of which -1.0% in Q3), or +0.2% in France, +0.2% in Europe, +0.4% in Latin America and -0.4% in Asia.

EXPANSION UNDER BANNERS – Q3 2012

In the third quarter, we opened or acquired 131,000 gross sq. m, bringing to 363,000 sq. m the total of new space since the beginning of 2012. Net of disposals or closures, the network added 72,000 sq. m in the third quarter (48,000 sq. m since the beginning of the year).

Thousands of sq. m 31 Dec. 2011   30 Juin 2012   Openings/ Store enlargement Acquisitions Closures Transfers Disposals   30 Sep. 2012
                       
France 5,078   4,939   9   -4   -3   4,940
Europe (ex. Fr) 6,241   6,260   68   -36       6,292
Latin America 2,340   2,401   23           2,424
Asia 2,636   2,673   31   -16       2,690
Total Group 16,296   16,273   131   -56   -3   16,345

STORE NETWORK UNDER BANNERS – Q3 2012

In the third quarter, we opened or acquired 176 stores for a total of 595 new stores since the beginning of 2012 on a gross basis. Net of disposals or closures, the network grew by 73 stores in the second quarter (174 since the beginning of the year).

No. of stores 31 Dec. 2011   30 June 2012   Openings Acquisitions Closures Transfers Disposals   30 Sep. 2012
                       
Hypermarkets 1,437   1,443   13   -6       1,450
France 232   220               220
Europe (ex Fr) 509   517   5   -4       518
Latin America 335   340   4           344
Asia 361   366   4   -2       368
                       
Supermarkets 3,010   2,985   28   -17 450 -2   3,444
France 977   934         1 -2   933
Europe (ex Fr) 1,866   1,866   28   -17 449     2,326
Latin America 150   168               168
Asia 17   17               17
                       
Convenience 5,170   5,286   135   -78 -450     4,893
France 3,285   3,301   40   -32 -1     3,308
Europe (ex Fr) 1,787   1,768   79   -44 -449     1,354
Latin America 98   217   16   -2       231
Asia 0   0               0
                       
Cash & carry 154   158               158
France 137   139               139
Europe (ex Fr) 15   17               17
Asia 2   2               2
                       
Total 9,771   9,872   176   -101   -2   9,945
France 4,631   4,594   40   -32   -2   4,600
Europe (ex Fr) 4,177   4,168   112   -65       4,215
Latin America 583   725   20   -2       743
Asia 380   385   4   -2       387

AGENDA
January 17 2013: Q4 2012 sales
March 7 2013: Full-year 2012 results

1 Operations in Greece and Singapore have been reclassified as Discontinued Activities as of January 1, 2012. Figures are pro-forma, ex. Greece and Singapore.

2 During the first 9 months of 2012, expansion was marked by 3 changes in scope: the end of the franchise agreement with Coop Atlantique effective January 1, 2012, the end of the franchise agreement with Altis effective April 6, 2012 and the integration of Guyenne & Gascogne on June 1, 2012 after the success of the cash tender offer, with a secondary option in shares, followed by a compulsory buyout offer.

3 On August 8, 2012, Carrefour sold to Marinopoulos its stake in their joint venture, Carrefour Marinoupolos, leading to the Group’s operations being reclassified as Discontinued Activities. As of January 1, 2012, to facilitate comparison, the Q3 2011 figures have been restated pro-forma ex. Greece.

4 Operations in Singapore have been reclassified as Discontinued Activities as of January 1, 2012. Figures are pro-forma, ex. Singapore.

5 Operations in Greece and Singapore have been reclassified as Discontinued Activities as of January 1, 2012. Figures are pro-forma, ex. Greece and Singapore.

Investor Relations:
Réginald Gillet, Alessandra Girolami, Matthew Mellin
+33 (1) 41 04 26 00
or
Shareholder relations:
Céline Blandineau, +33 (0) 805 902 902 (toll free in France)
or
Group Communication: +33 (1) 41 04 26 20

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