Carrefour: Sales growth in the fourth quarter and in 2012

Thu Jan 17, 2013 1:30am EST

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Continued growth in emerging markets, notably Latin America, better quarter in
France

     Q4 2012 sales (inc. VAT): +0.8% to €22.9bn 

     Full-year 2012 sales (inc. VAT): +1.0% to €86.6bn 
BOULOGNE-BILLANCOURT, France--(Business Wire)--
Regulatory News:

* Q4 2012 sales: €22.9bn, +0.8%, supported by Latin America and food sales.
Fourth quarter also confirms the improvement in trends reported in France in the
third quarter. Consumption in Southern Europe remains under pressure.

* France: Sales up 0.6%, with a further improvement in trends in hypermarkets,
sales growth in supermarkets and a solid performance in convenience. The figures
benefit from an increase in fuel sales. 
* Europe (excluding France): Sales down 2.4%. The impact of the drop in
consumption is significant this quarter in Southern Europe and Poland. Belgium
continues to record solid growth. 
* Latin America: Sales up 4.8% (+15.1% at constant exchange rates). Continued
strong growth in Brazil. 
* Asia: Sales growth of 5.6% (-0.5% at constant exchange rates). In China,
expansion continues and constant currency sales increased by 0.7%. Taiwan
recorded lower sales in the quarter.

* Full-year 2012 sales: €86.6bn, +1.0%. Emerging markets performed well, notably
Latin America where sales increased by 4.8% (+12.2% at constant exchange rates).

* 2012 Recurring Operating Income: The Group is comfortable with the current
median consensus which stands at around €2.07bn.

Fourth quarter 2012 sales inc. VAT1

                        €m        Change at current exch.    Change at constant exch. rates           Change at constant exch. rates         
                                  rates inc. petrol          inc. petrol                              ex. petrol                             
                                  Total                      LFL                       Total          LFL                       Total        
                                                                                                                                             
 France                 10,537    +0.6%                      +1.3%                     +0.6%          -0.8%                     -0.9%        
                                                                                                                                -            
 Europe (ex. France)    6,387     -2.4%                      -3.6%                     -3.1%          -3.9%                     -3.4%        
 Latin America          4,268     +4.8%                      +10.9%                    +15.1%         +11.2%                    +15.8%       
 Asia                   1,661     +5.6%                      -3.9%                     -0.5%          -3.9%                     -0.5%        
                                                                                                                                             
 Group                  22,853    +0.8%                      +1.3%                     +2.1%          +0.4%                     +1.6%        


Full-year 2012 sales inc. VAT1

                        €m        Change at current exch.    Change at constant exch.           Change at constant exch. rates         
                                  rates inc. petrol          rates inc. petrol                  ex. petrol                             
                                  Total                      LFL                   Total        LFL                       Total        
                                                                                                                                       
 France                 39,533    +0.1%                      +0.9%                 +0.1%        -1.5%                     -1.5%        
 Europe (ex. France)    23,667    -2.5%                      -2.9%                 -2.1%        -3.4%                     -2.5%        
 Latin America          16,140    +4.8%                      +9.4%                 +12.2%       +10.1%                    +13.1%       
 Asia                   7,218     +10.0%                     -4.1%                 +0.2%        -4.1%                     +0.2%        
                                                                                                                                       
 Group                  86,558    +1.0%                      +1.0%                 +1.7%        0.0%                      +1.1%        


1 Activities in Greece, Singapore, Colombia, Malaysia and Indonesia have been
reclassified as Discontinued Activities as of Jan. 1, 2012. Variations are
pro-forma. 

FRANCE

Fourth quarter 2012 sales inc. VAT2

                                  €m        Change inc. petrol           Change ex. petrol       
                                            LFL               Total      LFL             Total   
                                                                                                 
 Hypermarkets                     6,043     -0.1%             -0.7%      -2.0%           -2.3%   
 Supermarkets                     3,394     +2.2%             +0.8%      +0.1%           +0.1%   
 Convenience and other formats    1,101     +6.8%             +7.6%      +4.0%           +4.8%   
                                                                                                 
 France                           10,537    +1.3%             +0.6%      -0.8%           -0.9%   


The calendar effect in France is estimated at -0.5% in the fourth quarter. 

Sales in France were up 0.6%. Petrol sales benefited from the "Low Price
Guarantee" launched in May and contributed +1.5% to sales growth. 

LFL sales in Hypermarkets were broadly stable. Excluding petrol, LFL sales were
down by 2.0%. This performance confirms the sequential improvement observed in
the previous quarter. Food sales grew for the first time in over two years. 

LFL sales in Supermarkets were up by 2.2% (+0.1% excluding petrol). Sales to our
franchisees continued to rise this quarter, despite strong 2011 comparables. 

The roll-out of Drive continues, reaching 205 outlets at year-end. 

Convenience and other formats recorded LFL sales growth of 6.8%. Excluding
petrol, LFL sales rose 4.0%, renovated stores performed well. 

2 In 2012, expansion was marked by three 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. 

EUROPE (excluding France) 

Fourth quarter 2012 sales inc. VAT3

                        €m       Change at current exch.    Change at constant exch. rates           Change at constant exch.         
                                 rates inc. petrol          inc. petrol                              rates ex. petrol                 
                                 Total                      LFL                       Total          LFL                   Total      
                                                                                                                                      
 Spain                  2,440    -4.8%                      -5.6%                     -4.8%          -6.8%                 -6.0%      
 Italy                  1,497    -7.8%                      -6.6%                     -7.8%          -6.5%                 -7.8%      
 Belgium                1,189    +3.8%                      +3.3%                     +3.8%          +3.3%                 +3.8%      
 Other countries        1,261    +3.8%                      -2.1%                     0.0%           -1.7%                 +0.5%      
                                                                                                                                      
 Europe (ex. France)    6,387    -2.4%                      -3.6%                     -3.1%          -3.9%                 -3.4%      


The calendar effect in Europe (excluding France) is estimated at -0.3% in the
fourth quarter. Exchange rate effects were positive in the quarter due to the
appreciation of the Polish and Turkish currencies against the euro. 

Sales in Europe (excluding France) fell by 2.4% at current exchange rates,
broadly in line with the previous quarter. 

Weak LFL sales trends in Spain continued (-6.8% excluding petrol) as austerity
measures continued to impact consumption. 

In Italy, LFL sales dropped by 6.5% excluding petrol. The drop in consumption
since this summer has resulted in a more intense competitive and promotional
environment. 

Belgium recorded a further rise in sales (+3.3% LFL), confirming the good
momentum observed in recent quarters. 

Sales in other countries (Poland, Turkey and Romania) were stable at constant
exchange rates. Sales ex. petrol were down 1.7% LFL, with a tougher consumption
environment in Poland in the fourth quarter. LFL sales grew in Romania and in
Turkey. 

3 On August 8, 2012, Carrefour sold to Marinopoulos its stake in their joint
venture, leading to the Group`s operations being reclassified as Discontinued
Activities as of January 1, 2012. Variations are pro-forma. 

LATIN AMERICA

Fourth quarter 2012 sales inc. VAT4

                  €m       Change at current           Change at constant exch. rates           Change at constant exch.         
                           exch. rates inc. petrol     inc. petrol                              rates ex. petrol                 
                           Total                       LFL                       Total          LFL                   Total      
                                                                                                                                 
 Brazil           3,285    +2.2%                       +9.6%                     +12.6%         +10.0%                +13.3%     
 Argentina        983      +14.4%                      +15.4%                    +24.6%         +15.4%                +24.6%     
                                                                                                                                 
 Latin America    4,268    +4.8%                       +10.9%                    +15.1%         +11.2%                +15.8%     


The calendar effect in Latin America is estimated at -1.4% in the fourth
quarter. The unfavorable currency effects of -10.3% are attributable to the
depreciation of the Brazilian real and the Argentine peso against the euro. 

Sales in Latin America rose by 4.8% and by 15.1% excluding currencies, broadly
in line with the previous quarter. 

In Brazil, sales ex petrol increased by 13.3% at constant exchange rates, of
which 10.0% LFL. All formats contributed to this strong performance. 

Argentina recorded growth of 24.6% at constant exchange rates, of which 15.4%
LFL. Expansion was driven by the contribution of the store network acquired from
Eki earlier in June 2012. 

ASIA

Fourth quarter 2012 sales inc. VAT5

                    €m       Change at current exch.    Change at constant exch. rates         
                             rates                                                             
                             Total                      LFL                       Total        
                                                                                               
 China              1,308    +6.4%                      -3.1%                     +0.7%        
 Other countries    353      +2.5%                      -7.0%                     -4.7%        
                                                                                               
 Asia               1,661    +5.6%                      -3.9%                     -0.5%        


The calendar effect in Asia is estimated at +0.4% in the fourth quarter. The
Taiwanese and Chinese currencies appreciated against the euro this quarter,
accounting for Asia`s positive currency effect of 6%. 

Sales in Asia rose by 5.6%. Excluding currencies, they were broadly stable
(-0.5%). 

Sales at constant rates in China were up +0.7%. Expansion offset the drop in LFL
sales (-3.1%). LFL sales trends improved over previous quarters. 

Sales in other countries (Taiwan and India) were up by 2.5% at current exchange
rates. Taiwan recorded lower sales this quarter at constant exchange rates. 

4 Activities in Colombia were reclassified as Discontinued Operations effective
January 1, 2012. Variations are pro-forma. 

5 Activities in Singapore, Malaysia and Indonesia were reclassified as
Discontinued Operations effective January 1, 2012. Variations are pro-forma. 

2012 sales incl. VAT6

                                          Change at current            Change at constant exch.           Change at constant exch.         
                                          exch. rates  inc. petrol     rates  inc. petrol                 rates  ex. petrol                
                                €m        Total                        LFL                   Total        LFL                   Total      
 Hypermarkets                   21,792    -1.9%                        -1.3%                 -1.9%        -3.5%                 -3.8%      
 Supermarkets                   13,348    +1.4%                        +3.0%                 +1.4%        +0.1%                 +0.2%      
 Convenience & other formats    4,393     +6.8%                        +6.5%                 +6.8%        +4.8%                 +5.3%      
 France                         39,533    +0.1%                        +0.9%                 +0.1%        -1.5%                 -1.5%      
                                                                                                                                           
 Spain                          9,039     -4.1%                        -4.8%                 -4.1%        -6.4%                 -5.6%      
 Italy                          5,720     -5.7%                        -4.9%                 -5.7%        -4.7%                 -5.6%      
 Belgium                        4,309     +2.2%                        +2.0%                 +2.2%        +2.0%                 +2.2%      
 Other countries                4,599     +1.0%                        -1.0%                 +2.9%        -0.7%                 +3.4%      
 Europe (ex. France)            23,667    -2.5%                        -2.9%                 -2.1%        -3.4%                 -2.5%      
                                                                                                                                           
 Brazil                         12,540    +1.2%                        +7.7%                 +9.4%        +8.5%                 +10.4%     
 Argentina                      3,600     +19.6%                       +16.4%                +23.6%       +16.4%                +23.6%     
 Latin America                  16,140    +4.8%                        +9.4%                 +12.2%       +10.1%                +13.1%     
                                                                                                                                           
 China                          5,583     +10.8%                       -5.1%                 +0.2%        -5.1%                 +0.2%      
 Other countries                1,635     +7.3%                        -0.9%                 +0.2%        -0.9%                 +0.2%      
 Asia                           7,218     +10.0%                       -4.1%                 +0.2%        -4.1%                 +0.2%      
                                                                                                                                           
 Group                          86,558    +1.0%                        +1.0%                 +1.7%        0.0%                  +1.1%      


2012 under banners incl. VAT7

                    France incl. overseas territories           Europe                   Latin America            Asia                 Others8               Group                  
                                                                (ex. France)                                                                                                        
                    €m                          Change          €m             Change    €m             Change    €m         Change    €m          Change    €m           Change    
                                                                                                                                                                                    
 Hypermarkets       23,128                      -3.5%           16,445         -4.0%     13,993         +4.7%     8,343      +9.6%     3,478       +12.9%    65,387       +0.4%     
 Supermarkets       15,464                      -1.3%           9,254          -1.5%     1,568          +7.9%     55         +7.3%     677         +45.8%    27,018       -1.3%     
 Other formats      6,147                       +5.3%           2,155          +2.7%     579            +0.8%     30         +9.5%     -           -         8,911        +4.4%     
 Total              44,739                      -1.7%           27,853         -3.7%     16,140         +4.8%     8,428      +9.6%     4,155       +17.2%    101,316      +0.2%     


6 Activities in Greece, Singapore, Colombia, Malaysia and Indonesia were
reclassified as Discontinued Activities effective January 1, 2012. Variations
are pro-forma. 

7 Activities in Singapore, Colombia and Malaysia were reclassified As
Discontinued Activities effective January 1, 2012. Variations are pro-forma.
Activities in Greece and Indonesia remain under banner sales. 

8 Northern Africa, Middle East and Dominican Republic 

EXPANSION UNDER BANNERS - Q4 2012

In the fourth quarter, we opened or acquired 243,000 gross m², bringing total
new space in 2012 to 590,000 m². Net of disposals or closures, the network added
186,000 m² in the fourth quarter (248,000 m² in 2012).

 Thousands of sq. m    31 Dec. 2011    30 Sep. 2012    Openings / Store enlargements    Acquisitions    Closures    Transfers    Disposals    31 Dec. 2012    
                                                                                                                                                              
 France                5,078           4,940           29                               2               -12                      -2           4,957           
 Europe (ex. Fr)       6,241           6,292           88                                               -24                                   6,355           
 Latin America         1,936           2,014           31                                                                                     2,045           
 Asia                  2,447           2,518           93                                               -18                                   2,593           
 Group                 15,702          15,764          241                              2               -54                      -2           15,951          


STORE NETWORK UNDER BANNERS - Q4 2012

In the fourth quarter, Carrefour opened or acquired 266 stores for a total of
836 new stores in 2012 (gross basis). Net of disposals or closures, the network
grew by 168 stores in the fourth quarter (346 in 2012).

 No of stores       31 Dec. 2011    30 Sep. 2012    Openings    Acquisitions    Closures    Transfers    Disposals    31 Dec. 2012    
                                                                                                                                      
 Hypermarkets       1,334           1,347           23                          -4                                    1,366           
 France             232             220             1                           -1                                    220             
 Europe (ex. Fr)    509             518             6                                                                 524             
 Latin America      260             267             5                                                                 272             
 Asia               333             342             11                          -3                                    350             
                                                                                                                                      
 Supermarkets       3,010           3,444           25          1               -13         -1           -2           3,454           
 France             977             933             3           1               -1                       -2           934             
 Europe (ex. Fr)    1,866           2,326           22                          -11         -1                        2,336           
 Latin America      150             168                                                                               168             
 Asia               17              17                                          -1                                    16              
                                                                                                                                      
 Convenience        5,150           4,877           211                         -79         1                         5,010           
 France             3,285           3,308           76                          -42                                   3,342           
 Europe (ex.Fr)     1,787           1,354           115                         -37         1                         1,433           
 Latin America      78              215             20                                                                235             
 Asia               0               0                                                                                 0               
                                                                                                                                      
 Cash & carry       154             158             6                                                                 164             
 France             137             139                                                                               139             
 Europe (ex. Fr)    15              17              4                                                                 21              
 Asia               2               2               2                                                                 4               
                                                                                                                                      
 Group              9,648           9,826           265         1               -96                      -2           9,994           
 France             4,631           4,600           80          1               -44                      -2           4,635           
 Europe (ex.Fr)     4,177           4,215           147                         -48                                   4,314           
 Latin America      488             650             25                                                                675             
 Asia               352             361             13                          -4                                    370             


AGENDA

March 7, 2013: Full-year 2012 results

April 18, 2013: Q1 2013 sales

                                                                                                                                           
 APPENDIX                                                                                                                                  
 
                                                                                                                                         
 
IMPACT OF RESTATEMENTS ON FULL YEAR 2011 P&L                                                                                             
 (REPORTED / PRO FORMA)                                                                                                                    
                                                                                                                                           
                                                                          2011               Impact of Greece,                2011         
 In millions of euros                                                     reported           Singapore, Colombia,             pro-forma    
                                                                                             Malaysia and Indonesia                        
 Sales, net of taxes                                                      81,271             -5,204                           76,067       
 Loyalty program                                                          -816               5                                -810         
 Other revenues                                                           2,309              -85                              2,224        
 Total revenues                                                           82,764             -5,283                           77,481       
 Cost of sales                                                            -64,912            4,239                            -60,673      
 Gross margin of current operations                                       17,852             -1,043                           16,809       
 SG&A                                                                     -13,969            909                              -13,060      
 Current operating income before D&A and provisions (EBITDA)              3,883              -134                             3,749        
 Depreciation & provisions                                                -1,701             149                              -1,552       
 Recurring operating income                                               2,182              15                               2,197        
 Non current income and expenses                                          -2,662             325                              -2,337       
 Operating income                                                         -481               341                              -140         
 Financial result                                                         -757               52                               -705         
 Result before tax                                                        -1,238             393                              -845         
 Income tax                                                               -1,002             71                               -931         
 Equity accounted companies                                               64                 0                                64           
 Net income from recurring operations                                     -2,176             464                              -1,713       
 Net income from discontinued operations                                  2,580              -464                             2,116        
 Total net income                                                         404                0                                404          
 Of which net income - Group Share                                        371                0                                371          
 Of which Net income from recurring operations - Group Share              -2,202             339                              -1,863       
 Of which Net income from discontinued operations - Group Share           2,573              -339                             2,234        
 Of which net income - Minority Interest                                  33                 0                                33           


Carrefour
Investor relations:
Réginald Gillet, Alessandra Girolami, Matthew Mellin
Tel: +33 1 41 04 26 00
opr
Shareholder relations:
Céline Blandineau
Tel: +33 805 902 902 (toll free in France)
or
Group Communication
Tel: +33 1 41 04 26 17

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