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Carrefour

Earnings Release Oct 16, 2014

1182_iss_2014-10-16_1dcd5ec6-c03b-4f23-b31c-95aff2f7b7ff.pdf

Earnings Release

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SOLID ORGANIC SALES GROWTH: +2.8% IN THE THIRD QUARTER 2014 +3.8% IN THE FIRST NINE MONTHS OF 2014

Q3 2014 sales: €21.1bn, up +2.8%
o
France
:
Further sales growth
o
International :
Strong organic growth of +5.0%, excellent performance in Brazil and
Argentina
Nine-month 2014
sales: €61.4bn, a strong
+3.8%
increase
o
France
:
Sales up +1.3%, growth in all formats
o
International :
Strong organic growth of +5.7%

Third quarter 2014 consolidated sales inc. VAT

The Group's organic growth reached +2.8%. Carrefour's sales stood at €21,077m. The currency effect was -1.9% and the impact of petrol prices was -1.0%. The calendar effect is neutral this quarter (-0.1%).

Sales
inc. VAT
(€m)
Change
at current
exchange
rates
Change
at constant
exchange
rates
Organic growth
ex petrol
ex calendar
France 10,040 -1.1% -1.1% +0.2%
International 11,037 +0.8% +4.4% +5.0%
Group 21,077 -0.1% +1.8% +2.8%

Total sales under banners including petrol in Q3 2014 stood at €25.4bn, up +2.1% at constant exchange rates.

Nine-month 2014 consolidated sales inc. VAT

Sales
inc. VAT
(€m)
Change
at current
exchange
rates
Change
at constant
exchange
rates
Organic growth
ex petrol
ex calendar
France 29,114 +0.0% +0.0% +1.3%
International 32,265 -2.2% +5.4% +5.7%
Group 61,379 -1.2% +2.8% +3.8%

Total sales under banners including petrol for the first nine months of 2014 stood at €73.6bn, up +2.9% at constant exchange rates.

Note: LFL and organic growth numbers are presented ex calendar and ex petrol.

FRANCE Third quarter 2014 sales inc. VAT

Sales
inc. VAT
(€m)
Change
at current
Change
at constant
Ex petrol, ex calendar
exchange
rates
exchange
rates
LFL Organic
growth
France 10,040 -1.1% -1.1% -0.2% +0.2%
Hypermarkets 5,409 -1.6% -1.6% -0.7% -0.2%
Supermarkets 3,340 -2.4% -2.4% -1.2% -1.1%
Convenience and other
formats
1,291 +4.3% +4.3% +4.1% +5.1%

France

France recorded further organic sales growth this quarter on the back of strong comparables (+2.0%) in spite of unusually heavy rainfall in July and August and a significant cyclical decrease in fruit and vegetable prices.

The drop in petrol prices at the pump had an impact of -1.5%.

Sales at hypermarkets were down -0.2% on an organic basis and down -0.7% LFL. Dry grocery products posted further growth. Non-food sales were resilient.

Sales at supermarkets were down -1.1% on an organic basis (-1.2% LFL).

Organic sales in convenience and other formats confirmed their momentum with growth of +5.1%.

INTERNATIONAL Third quarter 2014 sales inc. VAT

Change
Sales
at current
Change
at constant
Ex petrol, ex calendar
inc. VAT
(€m)
exchange
rates
exchange
rates
LFL Organic
growth
Other European countries 5,311 -1.8% -2.0% -1.3% -1.6%
Latin America 3,966 +6.9% +17.5% +13.7% +18.5%
Asia 1,760 -3.6% -3.1% -6.6% -3.3%
International 11,037 +0.8% +4.4% +2.9% +5.0%

Organic sales in International markets grew by +5.0% (+2.9% LFL). The calendar effect is neutral this quarter and currencies had an impact of -3.6%.

Other European countries

In other European countries, organic sales were down -1.6% in the quarter amid unfavourable weather conditions and a significant cyclical decrease in fruit and vegetable prices. On a like-for-like basis, sales were down -1.2% in Spain, down -4.8% in Italy and up +1.3% in Belgium. They were stable in Poland and up in Romania.

Latin America

Organic sales in Latin America were up +18.5%. Currencies had an impact of -10.6% as a result of the depreciation of the Argentine peso.

In Brazil, organic sales were up +12.8% (+7.7% LFL) on the back of strong comparables of +8.2%. All formats recorded solid performance. Argentina's organic sales were up +34.6%, of which +30.5% LFL.

Asia

Expansion in Asia continued and contributed +3.4% to sales evolution. In total, organic sales were down by 3.3% on a challenging comparable base. Currencies had an impact of -0.5% in the quarter.

In China, expansion generated growth of +4.5% and organic sales fell by -3.7% in a persistently frugal consumption environment. In Taiwan, organic sales were down -2.2% (-1.6% LFL).

APPENDIX

LFL Sales in Q3 and nine-months 2014

Q3
2014
9 months 2014
LFL
ex petrol
ex calendar
LFL LFL
ex petrol
ex calendar
LFL
France -0.2% -1.4% +1.1% -0.1%
Hypermarkets -0.7% -1.9% +0.1% -1.1%
Supermarkets -1.2% -2.1% +1.2% +0.2%
International +2.9% +2.6% +3.8% +3.6%
Other European countries -1.3% -1.8% -0.4% -0.7%
Spain -1.2% -1.7% -0.2% -0.4%
Italy -4.8% -5.2% -2.5% -3.2%
Belgium +1.3% +0.4% +2.2% +2.0%
Latin America +13.7% +13.2% +13.8% +13.7%
Brazil +7.7% +7.6% +7.1% +7.5%
Asia -6.6% -6.4% -4.9% -5.2%
China -8.2% -7.8% -6.0% -6.2%
Group total +1.6% +0.7% +2.7% +1.9%

EXPANSION UNDER BANNERS – Q3 2014

In Q3 2014, Carrefour opened or acquired 123,000 gross sq. m. Net of disposals and closures, the network added 51,000 sq. m. in the quarter. Since the beginning of the year, the network has added 394,000 gross sq. m. (226,000 net sq. m.).

Thousands of sq. m Dec 31
2013
June 30
2014
Openings/
Store
enlargements
Acquisitions Closures/
Store
reductions
Transfers Total
Q3 2014
change
Sept 30
2014
France 5,071 5,153 11 2 -3 10 5,163
Europe (ex France) 5,539 5,602 67 4 -25 46 5,648
Latin America 2,088 2,117 17 17 2,134
Asia 2,765 2,776 -44 -44 2,732
Others1 712 730 21 21 751
Group 16,176 16,378 116 6 -72 50 16,428

STORE NETWORK UNDER BANNERS – Q3 2014

In Q3 2014, Carrefour opened or acquired 280 stores, mainly convenience stores (191). Net of disposals or closures, the network added 196 stores in Q3 2014, bringing the total network to 10,608 stores at the end of September.

No. of stores Dec 31
2013
June 30
2014
Openings Acquisitions Closures/
Disposals
Transfers Total
Q3 2014
change
Sept 30
2014
Hypermarkets 1,421 1,438 6 -3 3 1,441
France 234 236 236
Europe (ex France) 475 484 1 -1 484
Latin America 277 281 3 3 284
Asia 371 373 -2 -2 371
Others1 64 64 2 2 66
Supermarkets 2,917 2,954 77 5 -8 2 76 3,030
France 949 958 1 -1 958
Europe (ex France) 1,656 1,669 73 4 -7 2 72 1,741
Latin America 169 169 169
Asia 17 18 18
Others1 126 140 4 4 144
Convenience 5,593 5,844 191 -68 -2 121 5,965
France 3,458 3,624 41 -24 17 3,641
Europe (ex France) 1,795 1,855 126 -44 -2 80 1,935
Latin America 316 340 18 18 358
Others1 24 25 6 6 31
Cash & carry 174 176 1 -5 -4 172
France 138 140 140
Europe (ex France) 19 19 19
Asia 5 5 -5 -5 0
Autres1 12 12 1 1 13
Group 10,105 10,412 275 5 -84 196 10,608
France 4,779 4,958 41 1 -25 17 4,975
Europe (ex France) 3,945 4,027 200 4 -52 152 4,179
Latin America 762 790 21 21 811
Asia 393 396 -7 -7 389
Others1 226 241 13 13 254

1 Maghreb, 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.

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