Carrefour: Sales Growth in the Second Quarter of 1.3% at Constant Exchange Rates

Thu Jul 18, 2013 2:01am EDT

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Carrefour: Sales Growth in the Second Quarter of 1.3% at Constant Exchange Rates

Sales growth in France ex. calendar impact

Growth in Latin America and China

Regulatory News:

Carrefour (Paris:CA):

Q2 2013 consolidated sales inc. VAT: €20.5bn, up 1.3% at constant exchange rates; ex. calendar and ex. petrol, organic growth of 2.2%. The continued depreciation of the Brazilian and Argentine currencies had a negative impact of 1.9% over the quarter.

  • France: Ex. calendar sales up 1.3%; broadly flat on a reported basis (-0.2%). In a challenging environment and despite adverse weather conditions, hypermarkets continued to recover. Other formats performed well.
  • International: Sales up 2.6% at constant exchange rates and organic growth of 2.3%. Sales in Southern Europe remained difficult. Continued growth in Latin America, and resumption of growth in China.

H1 2013 consolidated sales inc. VAT: €41.0bn, up 1.3% at constant exchange rates; ex. calendar and ex. petrol, organic growth of 2.1%.

Second quarter 2013 sales inc. VAT1

 

      €m      

Change at
constant exch. rates
inc. petrol

 

     

Change at
constant exch. rates
ex. petrol

 

     

Change at
current exch.
rates
inc. petrol

 

     

Change
ex. petrol
ex. calendar

 

LFL  

Organic
growth2

  Total LFL  

Organic
growth2

  Total Total

Organic
growth2

                           
France 9,654 -0.6%   -0.2%   -0.2% -1.1%   -0.2%   -0.2% -0.2% +1.3%
International 10,806 +0.9%   +2.3%   +2.6% +0.8%   +2.2%   +2.6% -1.0% +2.7%
Total Group 20,460 +0.2%   +1.1%   +1.3% 0.0%   +1.3%   +1.4% -0.6% +2.2%

First half 2013 sales inc. VAT1

 

      €m       Change at

constant exch. rates
inc. petrol

      Change at

constant exch. rates
ex. petrol

     

Change at
current exch.
rates
inc. petrol

 

      Change
ex. petrol
ex. calendar
LFL  

Organic
growth²

  Total LFL  

Organic
growth²

  Total Total

Organic
growth2

                           
France 18,968 -0.6%   -0.4%   -0.4% -1.3%   -0.6%   -0.6% -0.4% +0.7%
International 22,048 +1.1%   +2.6%   +2.8% +1.0% +2.5% +2.8% -1.4% +2.9%
Total Group 41,016 +0.3%   +1.2%   +1.3% +0.1% +1.3% +1.4% -1.0% +2.1%

Sales under banners

Total sales under banners3 including petrol for Q2 2013 stood at €24.3bn, up 0.6% at constant exchange rates (-1.1% at current exchange rates). In H1 2013, total sales under banners was €48.6bn, up 0.6% at constant exchange rates (-1.3% at current exchange rates).

FRANCE

Second quarter 2013 sales inc. VAT

      €m       Change inc. petrol       Change ex. petrol      

Change ex. petrol
ex.calendar

LFL  

Organic
growth4

  Total LFL  

Organic
growth4

  Total

Organic
growth4

                         
Hypermarkets 5,202 -1.2%   -0.5%   -0.5% -1.1%   -0.4%   -0.4% +1.2%
Supermarkets 3,276 -0.8% -1.4% -1.4% -1.8% -1.4% -1.4% -0.1%
Convenience and other formats 1,176 +3.0%   +4.8%   +4.8% +0.8%   +3.6%   +3.6% +4.6%
France 9,654 -0.6%   -0.2%   -0.2% -1.1%   -0.2%   -0.2% +1.3%

Organic sales in France were up 1.3% excluding the negative calendar impact estimated at -1.5%; they were broadly stable at -0.2% on a reported basis, in a context marked by unfavorable weather conditions. The impact of petrol sales on overall sales growth is broadly neutral this quarter.

Excluding the calendar impact, organic sales at Hypermarkets were up 1.2% excluding petrol and up 1.1% including petrol. On a reported basis, they were down 0.5% (-0.4% ex. petrol). Food sales continued to grow this quarter.

Excluding the calendar impact, organic sales at Supermarkets were stable at -0.1%, both including and excluding petrol. On a reported basis, they were down 1.4% both including and excluding petrol.

Excluding the calendar impact, Convenience and other formats posted organic sales growth of 4.6% excluding petrol (+5.8% including petrol). On a reported basis, sales were up 4.8% (+3.6% excluding petrol).

INTERNATIONAL

Second quarter 2013 sales inc. VAT5

 

      €m       Change at

constant exch. rates

inc. petrol

      Change at

constant exch. rates

ex. petrol

     

Change at
current exch.
rates
inc. petrol

 

      Change
ex. petrol
ex. calendar
LFL  

Organic
growth6

  Total LFL  

Organic
growth6

  Total Total

Organic
growth6

                           
Other European countries 5,237 -4.2%   -4.5%   -4.2% -4.3%   -4.5%   -4.2% -4.1% -3.9%
Latin America 3,884 +8.5% +11.0% +11.7% +8.0% +10.7% +11.5% +1.2% +11.3%
Asia 1,685 -0.1%   +4.2%   +4.2% -0.1%   +4.2%   +4.2% +4.3% +4.4%
International 10,806 +0.9%   +2.3%   +2.6% +0.8%   +2.2%   +2.6% -1.0% +2.7%

The Group’s international sales were up 2.6% at constant exchange rates; ex. calendar and ex. petrol, organic sales were up 2.7%. Sales in Europe continued to be impacted by weak consumption, particularly in Southern Europe. Growth continued in Latin America and sales in Asia returned to growth this quarter.

Other European countries

Organic sales were down 4.5% in Europe in the second quarter. Excluding the calendar effect estimated at -0.6%, organic sales were down 3.9%. Currencies had a broadly neutral effect.

Sales in the area were affected by unfavorable weather conditions, which came on top of the adverse impact on consumption of the economic environment that Europe has been facing for several quarters. In Italy, organic sales decreased by 11.2% (-9.9% LFL), and by 0.4% in Belgium (-1.0% LFL). Spain held up better sequentially this quarter, with a drop in organic sales of 1.7% (-2.6% LFL).

Latin America

Sales were up 11.7% at constant exchange rates in Latin America and organic sales rose 11.0%. Excluding the calendar effect and excluding petrol, organic sales were up 11.3%. Currencies had a negative impact of 10.5% this quarter due to the continued depreciation of the Brazilian real and the Argentine peso against the euro.

In Brazil, growth remained strong in all formats, with organic sales up 9.5% (LFL +7.1%). Argentina saw its sales grow by 23.8% at constant exchange rates, including organic growth of 16.2%, in a regulatory context characterized by the continuation of a price freeze.

Asia

Excluding the calendar effect, organic sales were up 4.4%.

In China, organic sales grew by 4.6% at constant exchange rates. LFL sales turned positive with an increase of 0.4% in the quarter. In Taiwan, sales were up.

H1 2013 SALES7

 

      €m       Change at

constant exch. rates

inc. petrol

      Change at

constant exch. rates

ex. petrol

     

Change at
current exch.
rates
inc. petrol

 

      Change

ex. petrol
ex. calendar

LFL  

Organic
growth8

  Total LFL  

Organic
growth8

  Total Total

Organic
growth8

                           
Hypermarkets 10,267 -1.6%   -1.2%   -1.2% -2.0%   -1.5%   -1.5% -1.2% 0.0%
Supermarkets 6,454 -0.4% -1.0% -1.0% -1.2% -0.7% -0.7% -1.0% +0.3%
Convenience & other formats 2,247 +3.9%   +5.1%   +5.1% +2.1%   +4.1%   +4.1% +5.1% +5.2%
Total France 18,968 -0.6%   -0.4%   -0.4% -1.3%   -0.6%   -0.6% -0.4% +0.7%
 
Other European countries 10,389 -4.1% -4.3% -4.1% -4.1% -4.4% -4.1% -4.0% -3.8%
Latin America 7,852 +9.9% +12.5% +12.8% +9.6% +12.4% +12.8% +0.5% +12.9%
Asia 3,807 -2.3%   +1.9%   +1.9% -2.3%   +1.9%   +1.9% +2.1% +1.6%
International 22,048 +1.1%   +2.6%   +2.8% +1.0%   +2.5%   +2.8% -1.4% +2.9%
 
Group 41,016 +0.3%   +1.2%   +1.3% +0.1%   +1.3%   +1.4% -1.0% +2.1%

EXPANSION UNDER BANNERS – Q2 2013

In Q2 2013, we opened or acquired 79,000 gross m² (108,000 m² in H1). Net of disposals or closures, the network added 24 000 m² (45 000 m² in H1).

          Openings/     Closures/       Total Q2  
31 Dec. 31 March Store Store 2013 30 June
Thousands of m²   2012       2013   enlargements   Acquisitions   reductions   Transfers   Disposals   change   2013
                                         
France   5,075       5,060   8   1   -4       -4   1   5,061
Europe (ex. France)   5,629       5,621   26       -34   -1       -9   5,613
Latin America   2,045       2,054   2                   2   2,057
Asia   2,592       2,604   16       -13           4   2,608
Others 9   608       631   28       -3           25   656
Group   15,949       15,970   80   1   -53   -1   -4   24   15,994

STORE NETWORK UNDER BANNERS – Q2 2013

In Q2 2013, Carrefour opened or acquired 178 stores (322 in H1 2013). Net of disposals and closures, the network grew by 66 stores (108 stores in H1).

No of stores   31 Dec.   31 March   Openings   Acquisitions   Closures   Transfers   Disposals   Total Q2   30 June
    2012   2013                       2013 change   2013
                                     
Hypermarkets   1,366   1,373   6       -4   -1       1   1,374
France   232   232                           232
Europe (ex France)   457   461   1       -2   -1       -2   459
Latin America   272   273                       0   273
Asia   350   352   2       -2           0   352

Others 9

  55   55   3                   3   58
                                     
Supermarkets   3,454   3,437   19       -20   1   -2   -2   3,435
France   964   954               1   -2   -1   953
Europe (ex France)   2,176   2,166   10       -18           -8   2,158
Latin America   168   168                       0  

168

Asia   16   15   2                   2   17
Others 9   130   134   7       -2           5   139
                                     
Convenience   5,010   5,053   152   1   -85   0       68   5,121
France   3,405   3,406   50   1   -38   -1       12   3,418
Europe (ex France)   1,370   1,391   85       -47   1       39   1,430
Latin America   235   256   17                   17   273
Asia   0   0                       0   0
Others 9   0   0                       0   0
                                     
Cash & carry   164   173           -1           -1   172
France   140   140                       0   140
Europe (ex France)   14   20           -1           -1   19
Asia   4   4                       0   4
Others 9   6   9                       0   9
                                     
Group   9,994   10,036   177   1   -110   0   -2   66   10,102
France   4,741   4,732   50   1   -38       -2   11   4, 743
Europe (ex France)   4,017   4,038   96       -68           28   4,066
Latin America   675   697   17       0           17   714
Asia   370   371   4       -2           2   373
Others 9   191   198   10       -2           8   206

AGENDA
August 29, 2013: 2013 first-half results

1

 

Variations are pro-forma with activities in Greece, Singapore, Colombia, Malaysia, Indonesia and Turkey reclassified as Discontinued Activities as of Jan. 1, 2012, in accordance with IFRS 5.

2

LFL sales plus net openings over the past twelve months.

3

Total sales under banners including sales by franchisees and international partnerships

4

LFL sales plus net openings over the past twelve months.

5

Variations are pro-forma with activities in Greece, Singapore, Colombia, Malaysia, Indonesia and Turkey reclassified as Discontinued Activities as of Jan. 1, 2012, in accordance with IFRS 5.

6

LFL sales plus net openings over the past twelve months.

7

Variations are pro-forma with activities in Greece, Singapore, Colombia, Malaysia, Indonesia and Turkey reclassified as Discontinued Activities as of Jan. 1, 2012, in accordance with IFRS 5.

8

LFL sales plus net openings over the past twelve months.

9

Maghreb, Middle East and Dominican Republic.

Carrefour
Investor Relations:
Réginald Gillet, Alessandra Girolami, Matthew Mellin
+33 (0)1 41 04 26 00
or
Shareholder relations:
Céline Blandineau
Toll free: +33 (0)8 05 90 29 02
or
Group Communications
+33 (0)1 41 04 26 17

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