Earnings Release • Jul 27, 2022
Earnings Release
Open in ViewerOpens in native device viewer
Alexandre Bompard, Chairman and CEO, declared: "In a context of accelerating inflation, Carrefour performed strongly and continued to post growing results, confirming the solidity of its model and the relevance of its commercial strategy to its customers, with continued market share gains in all of its key geographies. This good commercial momentum is the result of the unfailing mobilization of the teams. Coupled with strict cost control, it allows us to look to the second half with confidence. At the same time, the Group continues its transformation. The acquisition of Grupo BIG is now finalized and the Group is making rapid progress in the integration process. We recently announced the sale of Carrefour Taiwan to our partner Uni-President, which will be a value-enhancing operation for the Group. We continue to implement our digital plan with significant progress, notably for Carrefour Links. Last, we are strengthening our CSR commitment, for example with a proactive approach to reducing our energy consumption. Carrefour continues its forward march and will present its new strategic plan on November 8, initiating its 2026 trajectory and reinforcing its long-term ambitions."
NB: Taiwan operations are fully consolidated in the present results publication. They will be accounted for as discontinued operations in 2022, starting with Carrefour's third quarter sales publication, in accordance with the IFRS 5 accounting standard
Notes: (1) €2.8bn over the 2021-2023 period vs. €2.7bn previously; (2) Net Free Cash Flow corresponds to free cash flow after net finance costs and net lease payments. It includes cash-out of exceptional charges
| (in €m) | H1 2021 restated1 |
H1 2022 | Variation |
|---|---|---|---|
| Sales inc. VAT | 38,319 | 43,420 | +5.4% LFL |
| Recurring operating income (ROI) | 740 | 814 | +10.0%, i.e. +1.6% (+€12m) at constant FX |
| Recurring operating margin | 2.1% | 2.1% | - |
| Operating income | 660 | 741 | +12.1% / +€80m |
| Adjusted net income, Group share | 337 | 325 | €(12)m |
| Adjusted EPS | 0.42 | 0.43 | +3.1% |
| Net Free Cash Flow | (1,990) | (1,880) | +€110 m |
| Net financial debt (at June 30) | 5,525 | 6,533 | +€1,008 m (incl. FX impact) |
Note: (1) Restated for the April 2021 IFRS IC decision on the recognition of configuration and customization costs related to SaaS (Software as a Service) contracts (IAS 38)
In a context marked by inflation, Carrefour maintained its solid commercial momentum and focus on customer satisfaction in the first half. This translated into steady market share gains in the Group's key countries, notably France, Spain and Brazil. Combined with a granular pricing strategy and strong cost discipline, it enabled the Group to live up to the commitment made at the beginning of the year: Protect the purchasing power of its customers while consolidating its economic model. This is reflected in a stable ROI margin at 2.1% over the halfyear and by a marked improvement of +€110 million in net free cash flow.
As expected, consumer price indexes gradually accelerated in all Group's countries, reflecting inflation in raw materials, production costs and distribution costs. In this context, consumption patterns proved resilient. During the second quarter, Carrefour observed a slight evolution in consumer purchasing behavior, particularly in European countries where inflation is the most pronounced such as Spain and Romania, reflecting growing consumer attention to purchasing power constraints. Carrefour addresses this well with:
| Second-quarter 2022 | ||||||
|---|---|---|---|---|---|---|
| Total variation | ||||||
| Sales inc. VAT (€m) |
LFL1 | At current exchange rate |
At constant exchange rate |
|||
| France | 10,354 | +1.4% | +7.3% | +7.3% | ||
| Europe | 6,151 | +3.8% | +6.1% | +6.4% | ||
| Latin America (pre-IAS 29) | 5,957 | +27.7% | +63.7% | +41.8% | ||
| Asia | 616 | -4.7% | +2.2% | -4.9% | ||
| Group (pre-IAS 29) | 23,078 | +7.3% | +17.2% | +13.0% | ||
| IAS 292 | 80 | |||||
| Group (post-IAS 29) | 23,158 |
Notes: (1) Excluding petrol and calendar effects and at constant exchange rates, (2) Hyperinflation and foreign exchange in Argentina
Group sales increased by +7.3% LFL in Q2 (+8.1% LFL in food, +2.9% LFL in non-food), reflecting solid commercial momentum, in an inflationary context, and the relevance of our multi-format and omnichannel model. This performance was achieved against high comps with +3.6% LFL in Q2 2021 and +6.3% in Q2 2020.
| Q2 | |||
|---|---|---|---|
| LFL | 2020 | 2021 | 2022 |
| France | +0.7% | +4.7% | +1.4% |
| Europe | +4.7% | -1.9% | +3.8% |
| Latin America | +20.9% | +10.5% | +27.7% |
| Taiwan | -2.5% | -1.4% | -4.7% |
| Group | +6.3% | +3.6% | +7.3% |
In France, in an overall stable market despite growing inflation, Q2 2022 sales increased +1.4% LFL (+1.9% LFL in food, -2.7% LFL in non-food), on a high comparable base linked to sanitary constraints that were still in place in Q2 2021. Group market share continued to grow over the quarter (+0.3 points in value and +0.5 points in volume in Q2)1 , notably in hypermarkets and convenience. Hypermarkets benefitted from their attractiveness in terms of offer, price and promotion. Convenience stores were particularly dynamic, driven by the resumption of tourism in big cities. BtoB activity, which had been particularly impacted by restaurant closures through June 2021, as well as services (travel agency, ticketing, etc.) recovered sharply. Store network transformation continues: to date, out of the 43 store transfers scheduled for 2022, 37 stores -of which 16 hypermarkets and 21 supermarkets- have already been converted to lease-management. The remaining 6 supermarkets will be transferred in the coming months.
| Q2 | |||
|---|---|---|---|
| LFL | 2020 | 2021 | 2022 |
| Hypermarkets | -3.6% | +4.3% | -0.5% |
| Supermarkets | +4.3% | +7.0% | -0.7% |
| Convenience/other formats | +6.3% | +1.3% | +10.1% |
| o/w Convenience | +11.4% | -3.0% | +5.2% |
| France | +0.7% | +4.7% | +1.4% |
In Europe, like-for-like sales were up +3.8% compared to Q2 2021.
1 Market shares based on NielsenIQ RMS data for FMCG-Fresh excluding wine for the 14-week period ending 03/07/2022 for Carrefour France vs the total French retail market (Copyright © 2022, NielsenIQ)
| Q2 | |||
|---|---|---|---|
| LFL | 2020 | 2021 | 2022 |
| Spain | +9.8% | -2.8% | +4.8% |
| Italy | -7.4% | -3.2% | +4.7% |
| Belgium | +15.9% | -6.7% | -4.8% |
| Poland | -4.2% | +7.1% | +15.0% |
| Romania | -2.2% | +8.4% | +6.4% |
| Europe (excl. France) | +4.7% | -1.9% | +3.8% |
In Latin America, LFL sales increased by +27.7% in Q2.
| Q2 | |||
|---|---|---|---|
| LFL | 2020 | 2021 | 2022 |
| Brazil | +14.9% | +3.4% | +19.4% |
| Atacadão | +8.6% | +10.2% | +22.4% |
| Carrefour Retail | +30.3% | -11.4% | +10.5% |
| Argentina | +54.0% | +45.1% | +71.2% |
| Latin America | +20.9% | +10.5% | +27.7% |
In Taiwan (Asia), Q2 sales were up +2.2% at constant exchange rates. Like-for-like sales were down -4.7%, impacted notably by store closures due to Covid-19, on a high comparable base driven by precautionary purchases in 2021.
H1 2022 gross sales increased by 5.4% on a like-for-like basis. The Group's gross sales stood at €43,317m pre-IAS 29, an increase of +10.2% at constant exchange rates. This variation included positive impacts of +1.5% for expansion and scope and +3.1% from petrol. After including a positive currency effect of +3.1%, linked to the appreciation of the Brazilian Real, total sales were up +13.2%.
Net sales amounted to €39,054m.
Gross margin stood at 20.0% of net sales, down -134bps. This reflected:
Distribution costs improved by 103bps to 15.3% of net sales, compared to 16.3% in H1 2021, despite a marked increase in costs related to raw materials (energy, paper, etc.). They benefited from the good sales momentum and cost-savings plans.
Group Recurring Operating Income (ROI) reached €814m, up +€74m (+10.0%), or +1.6% at constant exchange rates (the currency effect was positive at +€62m, notably due to the appreciation of the Brazilian Real). Operating margin stood at 2.1%, in line with H1 2021.
The improvement in H1 ROI reflected:
Non-recurring income and expenses was fairly stable at €(85) vs €(70)m in H1 2021 and mainly included provisions and costs related to the acquisition of Grupo BIG. The relative stability reflects a strong decrease in capital gains (€62m vs. €248m in H1 2021, which included the sale of Market Pay and the Pinheiros project in Brazil), offset by sharp decline in restructuring costs (€(16)m vs. €(260)m in H1 2021).
1 H1 2021 comparable base is restated for the April 2021 IFRS IC decision on the recognition of configuration and customization costs related to SaaS contracts (IAS 38). Taiwan operations are included in H1 consolidated numbers
Net income, Group share stood at €255 vs €271m in H1 2022. It included the following items:
Adjusted net income, Group share decreased by (3.5)% to €325m compared to €337m in H1 2021.
Adjusted EPS improved by +3.1% to €0.43 vs €0.42 in H1 2021.
In H1 2022, the Group posted an improvement of +€110m in its net free cash flow2 from €(1,990)m to €(1,880)m, mainly reflecting:
Net financial debt stood at €6,533m at June 30, 2022, vs €5,525m at June 30, 2021. This variation over 12 months notably included:
Since 2018, the Group has demonstrated great financial discipline and has strengthened its balance sheet and liquidity. This is an important asset in the current context, marked by rapid changes in food retail and macroeconomic uncertainties.
As of June 30, 2022, the Group was rated Baa1 stable outlook by Moody's and BBB stable outlook by Standard & Poor's.
In June 2022, the Group redeemed a bond issue maturing in July in the amount of €1bn, with a coupon of 1.75%.
1 Excluding non-current income and taxes not assessed on pre-tax income
2 Net Free Cash Flow corresponds to free cash flow after net finance costs and net lease payments. It includes cash-out of exceptional charges
In March 2022, the Group successfully placed a Sustainability-Linked Bond issue for a total amount of €1.5bn. It is made up of two tranches, rated BBB by S&P, and is indexed to the Group's sustainable development objectives:
This issue was exceptionally well received by the market, with total demand of nearly €8bn. Carrefour will report each year in its Universal Registration Document on the level of progress of its key non-financial performance indicators, which will be assessed by an independent third party. The amounts raised finance the general needs of the Group and allow for bond refinancing.
In Brazil, in the framework of the acquisition of Grupo BIG, the Group raised bank loans totaling R\$6.3bn (R\$2.9bn in January 2022 and R\$1.5bn in May 2022, after R\$1.9bn in September 2021).
Carrefour has set itself the ambition of being a world leader in Digital Retail. The Group's objectives are for e-commerce GMV of €10bn and an additional digital contribution to current operating income of €600m by 2026. In H1 2022, the Group progressed in line with its plan:
Carrefour completed the acquisition of Grupo BIG in Brazil, which is included in consolidated accounts as of June 1 st, 2022. The integration process is ongoing and first store conversions will be effective in September 2022. Carrefour has already launched a first wave of joint purchasing negotiations, and the new management structure is up and running.
The Group reiterates its synergy target, gradually ramping up to represent a net additional contribution to Carrefour Group EBITDA of at least R\$2.0bn (c. €360m) in 2025.
Carrefour announced on July 19, 2022 the signing of an agreement to sell its 60% ownership of Carrefour Taiwan to Uni-President. This transaction values Carrefour Taiwan at an enterprise value of €2.0bn. Closing of the transaction is subject to approval by Taiwanese competition authorities and other customary conditions. It should be effective by mid-2023.
After the completion of Grupo BIG's acquisition in Brazil last June, this transaction will refocus Carrefour on its core strategic markets in Europe and Latin America.
The Taiwanese operations will be accounted for as discontinued operations in 2022, starting with Carrefour's third quarter sales publication, in accordance with the IFRS 5 accounting standard.
The Group's CSR and Food Transition index, which enables effective management of its extra-financial performance, reached 108% in the first half. Carrefour confirms its objectives for the 2022-2025 period.
The Group has made particular progress on the following commitments:
The Group remains very attentive to macroeconomic and market developments, in particular food inflation and cost inflation, household consumption and customer satisfaction. The Group is confident in its teams and its model to:
In this context, the Group:
The Carrefour Board of Directors met on July 27, 2022 under the chairmanship of Alexandre Bompard and approved the condensed consolidated financial statements for the first half of 2022. These accounts were reviewed by the statutory auditors who expressed an unqualified conclusion.
Investor Relations Sébastien Valentin, Anthony Guglielmo and Louise Brun Tel: +33 (0)1 64 50 79 81 Shareholder Relations Tel: 0 805 902 902 (toll-free in France) Group Communication Tel: +33 (0)1 58 47 88 80
As part of its capital allocation policy, the Group has proceeded during the first half of 2022 with two tranches of share buybacks with a view to their future cancellation, the first for an amount of €400m and the second for an amount of €350m, as authorized by the Annual General Meeting of May 21, 2021
The first tranche of share buybacks started on March 7, 2022 and ended on April 13, 2022: 21,232,106 shares were purchased at an average price of €18.84 per share; these shares have been canceled as per a decision by the Board of Directors of April 20, 2022 to reduce the share capital of Carrefour SA.
The second tranche of share buybacks started on May 2, 2022 and ended on May 24, 2022: 17,191,700 shares were purchased at an average price of €20.36 per share; 12,506,325 shares have been canceled as per a decision by the Board of Directors of June 3, 2022 to reduce the share capital of Carrefour SA.
After this cancellation of such shares, the outstanding number of shares of Carrefour S.A. is 742,157,461 shares and the number of treasury shares is hence 11,544,870 shares, representing approximately 1.6% of the share capital.
The number of shares carrying voting rights thus stands at 730,612,591 as of July 27, 2022
| Sales | Variation ex petrol ex calendar |
Total variation inc. petrol | |||
|---|---|---|---|---|---|
| inc. VAT (€m) |
LFL | Organic | at current exchange rates |
at constant exchange rates |
|
| France | 10,354 | +1.4% | +0.6% | +7.3% | +7.3% |
| Hypermarkets | 5,036 | -0.5% | -1.6% | +6.8% | +6.8% |
| Supermarkets | 3,461 | -0.7% | -1.9% | +4.2% | +4.2% |
| Convenience /other formats | 1,857 | +10.1% | +11.8% | +14.8% | +14.8% |
| Other European countries | 6,151 | +3.8% | +2.9% | +6.1% | +6.4% |
| Spain | 2,778 | +4.8% | +5.1% | +11.0% | +11.0% |
| Italy | 1,108 | +4.7% | -2.2% | +1.0% | +1.0% |
| Belgium | 1,057 | -4.8% | -5.0% | -4.7% | -4.7% |
| Poland | 575 | +15.0% | +15.5% | +13.8% | +16.7% |
| Romania | 634 | +6.4% | +8.7% | +8.3% | +8.8% |
| Latin America (pre-IAS 29) | 5,957 | +27.7% | +30.5% | +63.7% | +41.8% |
| Brazil | 5,059 | +19.4% | +22.5% | +65.2% | +35.6% |
| Argentina (pre-IAS 29) | 898 | +71.2% | +72.3% | +56.0% | +72.9% |
| Asia | 616 | -4.7% | -5.0% | +2.2% | -4.9% |
| Taiwan | 616 | -4.7% | -5.0% | +2.2% | -4.9% |
| Group total (pre-IAS 29) | 23,078 | +7.3% | +7.0% | +17.2% | +13.0% |
| IAS 29(1) | 80 | ||||
| Group total (post-IAS 29) | 23,158 |
Note: (1) hyperinflation and foreign exchange
| LFL change excl. petrol and calendar |
Q2 2020 | Q2 2021 | Q2 2022 |
|---|---|---|---|
| France | +0.7% | +4.7% | +1.4% |
| Hypermarkets | -3.6% | +4.3% | -0.5% |
| Supermarkets | +4.3% | +7.0% | -0.7% |
| Convenience /other formats | +6.3% | +1.3% | +10.1% |
| Other European countries | +4.7% | -1.9% | +3.8% |
| Spain | +9.8% | -2.8% | +4.8% |
| Italy | -7.4% | -3.2% | +4.7% |
| Belgium | +15.9% | -6.7% | -4.8% |
| Poland | -4.2% | +7.1% | +15.0% |
| Romania | -2.2% | +8.4% | +6.4% |
| Latin America | +20.9% | +10.5% | +27.7% |
| Brazil | +14.9% | +3.4% | +19.4% |
| Argentina | +54.0% | +45.1% | +71.2% |
| Asia | -2.5% | -1.4% | -4.7% |
| Taiwan | -2.5% | -1.4% | -4.7% |
| Group total | +6.3% | +3.6% | +7.3% |
| Calendar | Petrol | Foreign exchange |
|
|---|---|---|---|
| France | +1.1% | +5.5% | - |
| Hypermarkets | +1.3% | +7.1% | - |
| Supermarkets | +1.0% | +5.1% | - |
| Convenience /other formats | +0.5% | +2.4% | - |
| Other European countries | +0.9% | +2.3% | -0.3% |
| Spain | +1.0% | +4.2% | - |
| Italy | +1.1% | +2.1% | - |
| Belgium | +0.3% | - | - |
| Poland | +2.3% | -1.1% | -2.9% |
| Romania | +0.1% | +0.0% | -0.5% |
| Latin America | +1.0% | +0.1% | +21.9% |
| Brazil | +1.2% | +0.3% | +29.5% |
| Argentina | +0.6% | - | -16.9% |
| Asia | +0.1% | - | +7.1% |
| Taiwan | +0.1% | - | +7.1% |
| Group total | +1.0% | +2.9% | +4.2% |
| Sales | Variation ex petrol ex calendar |
Total variation inc. petrol | |||||
|---|---|---|---|---|---|---|---|
| inc. VAT (€m) |
LFL | Organic | at current exchange rates |
at constant exchange rates |
|||
| France | 19,966 | +0.7% | -0.1% | +6.1% | +6.1% | ||
| Hypermarkets | 9,803 | -0.8% | -1.6% | +5.3% | +5.3% | ||
| Supermarkets | 6,662 | -1.8% | -3.3% | +3.1% | +3.1% | ||
| Convenience /other formats | 3,502 | +9.5% | +11.0% | +14.9% | +14.9% | ||
| Other European countries | 11,753 | +2.3% | +1.6% | +4.3% | +4.6% | ||
| Spain | 5,294 | +4.1% | +4.5% | +10.4% | +10.4% | ||
| Italy | 2,137 | +2.6% | -3.6% | -1.2% | -1.2% | ||
| Belgium | 2,053 | -5.9% | -5.9% | -5.9% | -5.9% | ||
| Poland | 1,080 | +10.3% | +10.8% | +8.1% | +10.5% | ||
| Romania | 1,189 | +4.1% | +6.7% | +5.6% | +6.6% | ||
| Latin America (pre-IAS 29) | 10,282 | +22.4% | +25.6% | +48.6% | +32.6% | ||
| Brazil | 8,610 | +13.7% | +17.2% | +48.1% | +25.5% | ||
| Argentina (pre-IAS 29) | 1,672 | +67.0% | +68.1% | +51.1% | +68.4% | ||
| Asia | 1,317 | -2.5% | -2.7% | +4.6% | -3.0% | ||
| Taiwan | 1,317 | -2.5% | -2.7% | +4.6% | -3.0% | ||
| Group total (pre-IAS 29) | 43,317 | +5.4% | +5.3% | +13.2% | +10.2% | ||
| IAS 29(1) | 103 | ||||||
| Group total (post-IAS 29) | 43,420 |
Note: (1) hyperinflation and foreign exchange
| LFL change excl. petrol and calendar |
H1 2020 | H1 2021 | H1 2022 |
|---|---|---|---|
| France | +2.4% | +4.1% | +0.7% |
| Hypermarkets | -1.4% | +3.8% | -0.8% |
| Supermarkets | +6.2% | +7.0% | -1.8% |
| Convenience /other formats | +6.6% | -0.6% | +9.5% |
| Other European countries | +5.4% | -1.7% | +2.3% |
| Spain | +8.3% | -0.6% | +4.1% |
| Italy | -2.6% | -7.4% | +2.6% |
| Belgium | +11.2% | -2.2% | -5.9% |
| Poland | +2.0% | +2.3% | +10.3% |
| Romania | +3.5% +3.2% |
+4.1% | |
| Latin America | +19.0% | +13.2% | +22.4% |
| Brazil | +11.4% | +7.2% | +13.7% |
| Argentina | +61.4% +39.1% |
+67.0% | |
| Asia | +2.1% | -4.1% | -2.5% |
| Taiwan | +2.1% | -4.1% | -2.5% |
| Group total | +7.0% | +3.9% | +5.4% |
| Calendar | Petrol | Foreign exchange |
|
|---|---|---|---|
| France | +0.4% | +5.8% | - |
| Hypermarkets | +0.3% | +6.6% | - |
| Supermarkets | +0.7% | +5.8% | - |
| Convenience /other formats | +0.4% | +3.6% | - |
| Other European countries | +0.2% | +2.1% | -0.3% |
| Spain | +0.5% | +3.6% | - |
| Italy | +0.2% | +2.1% | - |
| Belgium | +0.0% | - | - |
| Poland | +0.2% | -0.6% | -2.4% |
| Romania | -0.1% | +0.0% | -0.9% |
| Latin America | +0.1% | +0.2% | +16.0% |
| Brazil | +0.0% | +0.5% | +22.7% |
| Argentina | +0.3% | - | -17.4% |
| Asia | -0.3% | - | +7.7% |
| Taiwan | -0.3% | - | +7.7% |
| Group total | +0.3% | +3.1% | +3.1% |
| Net sales | ROI | |||||||
|---|---|---|---|---|---|---|---|---|
| (in €m) | H1 2021 | H1 2022 | Variation at constant exchange rates |
Variation at current exchange rates |
H1 2021 | H1 2022 | Variation at constant exchange rates |
Variation at current exchange rates |
| France | 16,889 | 17,910 | +6.0% | +6.0% | 187 | 194 | +3.8% | +3.8% |
| Europe (ex-France) | 10,158 | 10,636 | +5.0% | +4.7% | 225 | 163 | -27.5% | -27.8% |
| Latin America | 6,208 | 9,244 | +33.2% | +48.9% | 309 | 444 | +24.8% | +43.7% |
| Asia | 1,208 | 1,263 | -3.1% | +4.6% | 47 | 40 | -22.0% | -14.8% |
| Global functions | - | - | - | - | -28 | -26 | n.a. | n.a. |
| TOTAL | 34,462 | 39,054 | +10.3% | +13.3% | 740 | 814 | +1.6% | +10.0% |
| (in €m) | H1 2021 | H1 2021 restated(1) |
H1 2022 | Variation at constant exchange rates |
Variation at current exchange rates |
|---|---|---|---|---|---|
| Net sales | 34,462 | 34,462 | 39,054 | 10.3% | 13.3% |
| Net sales, net of loyalty program costs | 34,059 | 34,059 | 38,625 | 10.4% | 13.4% |
| Other revenue | 1,040 | 1,040 | 1,215 | 9.9% | 16.8% |
| Total revenue | 35,100 | 35,100 | 39,840 | 10.4% | 13.5% |
| Cost of goods sold | (27,734) | (27,734) | (32,016) | 12.2% | 15.4% |
| Gross margin | 7,365 | 7,365 | 7,824 | 3.6% | 6.2% |
| As a % of net sales | 21.4% | 21.4% | 20.0% | (130)bps | (134)bps |
| SG&A | (5,622) | (5,622) | (5,968) | 4.2% | 6.2% |
| As a % of net sales | 16.3% | 16.3% | 15.3% | (91)bps | (103)bps |
| Recurring operating income before D&A (EBITDA)(2) | 1,873 | 1,873 | 1,987 | 1.6% | 6.1% |
| EBITDA margin | 5.4% | 5.4% | 5.1% | (43)bps | (35)bps |
| Amortization | (1,003) | (1,003) | (1,041) | 1.8% | 3.8% |
| Recurring operating income (ROI) | 740 | 740 | 814 | 1.6% | 10.0% |
| Recurring operating margin | 2.1% | 2.1% | 2.1% | (17)bps | (6)bps |
| Income from associates and joint ventures | (10) | (10) | 12 | ||
| Recurring operating income including income from associates and joint ventures |
730 | 730 | 826 | ||
| Non-recurring income and expenses | (41) | (70) | (85) | ||
| Operating income | 689 | 660 | 741 | ||
| Financial result | (132) | (132) | (186) | ||
| Finance costs, net | (80) | (80) | (151) | ||
| Net interests related to leases commitment | (52) | (52) | (72) | ||
| Other financial income and expenses | (1) | (1) | 37 | ||
| Income before taxes | 556 | 528 | 555 | ||
| Income tax expense | (187) | (186) | (202) | ||
| Net income from continuing operations | 369 | 342 | 353 | ||
| Net income from discontinued operations | 23 | 23 | 5 | ||
| Net income | 392 | 365 | 358 | ||
| of which Net income, Group share | 298 | 271 | 255 | ||
| of which continuing operations | 275 | 248 | 250 | ||
| of which discontinued operations | 23 | 23 | 5 | ||
| of which Net income, Non-controlling interests | 94 | 94 | 103 | ||
| of which continuing operations | 94 | 94 | 103 | ||
| of which discontinued operations | - | - | - | ||
| Net Income, Group share, adjusted for exceptional items | 337 | 337 | 325 | ||
| Depreciation from supply chain (in COGS) | (130) | (130) | (132) | ||
| Net Income, Group share, adj. for exceptional items, per share | 0.42 | 0.42 | 0.43 | ||
| Weighted average number of shares pre-dilution (in millions) | 804 | 804 | 752 |
Notes: (1) Restated for the April 2021 IFRS IC decision on the recognition of configuration and customization costs related to SaaS contracts (IAS 38); (2) Recurring Operating Income Before Depreciation and Amortization (EBITDA) also excludes depreciation and amortization from supply chain activities which is booked in cost of goods sold
| (in €m) | June 30, 2021 published |
June 30, 2021 restated(1) |
June 30, 2022 |
|---|---|---|---|
| ASSETS | |||
| Intangible assets | 9,412 | 9,384 | 9,980 |
| Tangible assets | 10,620 | 10,620 | 12,521 |
| Financial investments | 1,247 | 2,479 | 2,488 |
| Deferred tax assets | 727 | 728 | 667 |
| Investment properties | 298 | 298 | 313 |
| Right-of-use asset | 4,522 | 4,522 | 4,654 |
| Consumer credit from financial-service companies – LT | 1,827 | 1,827 | 1,866 |
| Other non-current assets | 1,637 | 405 | 679 |
| Non-current assets | 30,291 | 30,264 | 33,169 |
| Inventories | 5,942 | 5,942 | 7,227 |
| Trade receivables | 2,698 | 2,698 | 3,402 |
| Consumer credit from financial-service companies – ST | 3,721 | 3,721 | 3,708 |
| Tax receivables | 727 | 727 | 800 |
| Other current assets | 1,134 | 1,134 | 1,127 |
| Other current financial assets | 400 | 400 | 687 |
| Cash and cash equivalents | 1,294 | 1,294 | 2,539 |
| Current assets | 15,917 | 15,917 | 19,490 |
| Assets held for sale | 101 | 101 | 96 |
| TOTAL | 46,309 | 46,282 | 52,755 |
| LIABILITIES | |||
| Shareholders' equity, Group share | 9,469 | 9,750 | 10,019 |
| Minority interests in consolidated companies | 1,593 | 1,597 | 2,103 |
| Shareholders' equity | 11,063 | 11,347 | 12,122 |
| Deferred tax liabilities | 518 | 518 | 425 |
| Provision for contingencies | 2,806 | 2,494 | 3,652 |
| Borrowings – Long-term | 6,146 | 6,146 | 5,915 |
| Lease liabilities – Long-term | 3,760 | 3,760 | 3,900 |
| Bank loans refinancing – Long-term | 1,630 | 1,630 | 2,115 |
| Tax payables – Long-term | 215 | 215 | 210 |
| Non-current liabilities | 15,077 | 14,764 | 16,216 |
| Borrowings – Short-term | 1,038 | 1,038 | 3,809 |
| Lease liabilities – Short-term | 977 | 977 | 1,047 |
| Trade payables | 11,385 | 11,385 | 13,283 |
| Bank loans refinancing – Short-term | 3,182 | 3,182 | 2,497 |
| Tax payables – Short-term | 1,167 | 1,167 | 1,121 |
| Other current payables | 2,421 | 2,421 | 2,659 |
| Current liabilities | 20,170 | 20,170 | 24,417 |
| Liabilities related to assets held for sale | - | - | - |
| TOTAL | 46,309 | 46,282 | 52,755 |
Notes: (1) Restated for the April 2021 IFRS IC decision on the recognition of configuration and customization costs related to SaaS contracts (IAS 38) and for the May 2021 IFRS IC decision on employee benefits (IAS 19)
| (in €m) | H1 2021 | H1 2022 | Variation |
|---|---|---|---|
| NET DEBT AT OPENING | (2,616) | (2,633) | (16) |
| EBITDA | 1,873 | 1,987 | 114 |
| Income tax | (165) | (205) | (41) |
| Financial result (excl. cost of debt and interest related to leases obligations) | (1) | 37 | 39 |
| Cash impact of restructuring items and others | (132) | (170) | (38) |
| Gross cash flow (excl. discontinued) | 1,575 | 1,649 | 74 |
| Change in working capital requirement (incl. change in consumer credit) | (2,241) | (2,061) | 180 |
| Discontinued operations | (9) | (4) | 5 |
| Operating cash flow (incl. exceptional items and discontinued) | (675) | (416) | 259 |
| Capital expenditure(1) | (539) | (557) | (18) |
| Asset disposals (business-related) | 35 | 68 | 33 |
| Change in net payables and receivables on fixed assets | (219) | (273) | (54) |
| Free cash flow | (1,398) | (1,177) | 220 |
| Free cash flow (excl. exceptional items and discontinued) | (1,255) | (1,054) | 201 |
| Payments related to leases (principal and interests) net of subleases payments received | (513) | (551) | (39) |
| Net cost of financial debt | (80) | (151) | (71) |
| Net free cash flow | (1,990) | (1,880) | 110 |
| Net free cash flow (excl. exceptional items and discontinued) | (1,847) | (1,756) | 91 |
| Exceptional items and discontinued operations(2) | (143) | (123) | 19 |
| Financial investments | (248) | (936) | (688) |
| Disposal of investments | 188 | 25 | (163) |
| Capital increase/ (reduction) and share buyback | (443) | (751) | (309) |
| Dividends paid | (473) | (424) | 49 |
| Others | 57 | 66 | 9 |
| NET DEBT AT CLOSE | (5,525) | (6,533) | (1,008) |
Notes: (1) Restated for Makro; (2) Discontinued operations, restructuring (€125m in H1 2022 vs €157m in H1 2021) and others
| (in €m) | Total shareholders' equity |
Shareholders' equity, Group share |
Minority interests |
|---|---|---|---|
| At December 31, 2021 | 11,830 | 10,251 | 1,579 |
| H1 2022 total net income | 358 | 255 | 103 |
| Other comprehensive income/(loss), after tax | 655 | 448 | 207 |
| Dividends | (413) | (380) | (33) |
| Impact of scope and others(1) | (308) | (555) | 247 |
| At June 30, 2022 | 12,122 | 10,019 | 2,103 |
Note: (1) Mainly share buyback
| (in €m) | H1 2021 | H1 2021 restated(1) |
H1 2022 |
|---|---|---|---|
| Net income, Group share | 298 | 271 | 255 |
| Restatement for non-recurring income and expenses (before tax) | 41 | 70 | 85 |
| Restatement for exceptional items in net financial expenses | 17 | 17 | (4) |
| Tax impact(2) | (10) | (11) | (13) |
| Restatement on share of income from companies consolidated by the equity method |
- | - | - |
| Restatement on share of income from minorities | 14 | 14 | 7 |
| Restatement for net income of discontinued operations, Group share | (23) | (23) | (5) |
| Adjusted net income, Group share | 337 | 337 | 325 |
Notes: (1) Restated for the April 2021 IFRS IC decision on the recognition of configuration and customization costs related to SaaS contracts (IAS 38); (2) Tax impact of restated items (non-recurring income and expenses and financial expenses) and exceptional tax items
The impact on Group sales is presented in the table below:
| Sales incl. VAT (€m) | 2021 | LFL(1) | Calendar | Expansion, scope and others(2) |
Petrol | 2022 at constant rates pre-IAS 29 |
Forex | 2022 at current rates pre-IAS29 |
IAS 29(3) | 2022 at current rates post-IAS 29 |
|---|---|---|---|---|---|---|---|---|---|---|
| Q1 | 18,577 | +3.4% | -0.5% | +0.9% | +3.3% | +7.1% | +1.9% | 20,239 | +23 | 20,261 |
| Q2 | 19,742 | +7.3% | +1.0% | +1.8% | +2.9% | +13.0% | +4.2% | 23,078 | +80 | 23,158 |
| H1 | 38,319 | +5.4% | +0.3% | +1.4% | +3.1% | +10.2% | +3.1% | 43,317 | +103 | 43,420 |
Notes: (1) Excluding petrol and calendar effects and at constant exchange rates; (2) Including transfers; (3) Hyperinflation and currencies
Carrefour's CSR and food transition index assesses Carrefour's annual extra-financial results. Designed to measure the performance of CSR policies over several years, the index sets an annual target for the strategic CSR indicators. The overall index score is a simple average of the scores for these indicators.
| Category | Objective | H1 2022 | H1 2022 score |
|---|---|---|---|
| Products | 107% | ||
| Sustainable agriculture |
15% of fresh food sales are organic or agroecological by 2025(1) |
4.6% | 92% |
| Raw materials | 100% of sensitive raw materials to be covered by a risk reduction plan by 2025(2) |
56% | 101% |
| 20,000 tons of packaging avoided by 2025 (cumulative since 2017) |
13,291 | 126% | |
| Packaging | 100% reusable, recyclable or compostable packaging by 2025(3) |
44%(4) | 86% |
| Animal welfare | 100% of our key animal welfare policy objectives deployed in all countries by 2025(5) |
58% | 98% |
| Suppliers engagement |
300 suppliers to commit to the food transition pact by 2025 | 194 | 139% |
| Stores | 103% | ||
| Waste | 100% of waste to be recycled by 2025 | 68% | 92% |
| CO2 emissions | Reduce CO2 emissions by -50% by 2030 and by -70% by 2040 vs 2019 (scopes 1 & 2) |
-22% | 114% |
| Partner producers |
45,000 partner producers by 2025 | 39,886 | 104% |
| Customers | 104% | ||
| Food transition in stores |
+30 points increase in in-store customer surveys regarding organic and local products, the reduction of food waste and packaging, health and nutrition by 2025(6) |
+11 | 107% |
| Act For Food program |
80% of our customers believe that Carrefour helps them to enjoy a healthier and more responsible diet while remaining affordable by 2022(7) |
78% | 100% |
| Employees | 118% | ||
| Employees engagement |
Minimum employee recommendation score of 75/100 awarded to Carrefour every year by its employees(8) |
82% | 128% |
| Gender equality | Women to account for 35% of the top 200 managers by 2025 |
26% | 102% |
| Training | Every year, at least 50% of employees have access to training |
73% | 146% |
| Disability | Employees with disabilities account for at least 4% the Group's total workforce |
3.5% | 96% |
Note: (1) Objective concerning organic agriculture only. The methodology for agroecology will be rolled out in H2 2022; (2) 3 objectives concerning: fisheries resources, materials with a risk of deforestation (palm oil, Brazilian beef, soy, cocoa and trader traceability) and textile materials (cotton, cashmere and viscose; (3) Group objective. France only, reporting is being rolled out to the other countries of the Group; (4) Data for Q1 2022; (5) Objectives concerning: the sale of "cage-free eggs", the use of "cage-free ingredient eggs", the rearing conditions for chickens and animal welfare audits in slaughterhouses; (6) The Customer Barometer measures in-store customer satisfaction on a scale of 0 to 200 for the following criteria: "Choice of organic products", "Choice of local products", "Reduction of plastic packaging", "Fight against food waste" and "Quality of Carrefour brand products"; (7) 563,000 respondents in H1 2022; (8) 16,615 employees surveyed in H1 2022.
| Thousands of sq. m | Dec. 31 2021 |
March 31 2022 |
Openings/ Store enlargements |
Acquisitions | Closures/ Store reductions/ Disposals |
Q2 2022 change |
June 30 2022 |
|---|---|---|---|---|---|---|---|
| France | 5,586 | 5,595 | +17 | +3 | -10 | +10 | 5,605 |
| Europe (ex Fr) | 5,908 | 5,910 | +35 | - | -38 | -2 | 5,907 |
| Latin America | 2,790 | 2,799 | +26 | +1,158 | -1 | +1,183 | 3,982 |
| Asia | 572 | 572 | - | - | -1 | -1 | 571 |
| Others(1) | 1,543 | 1,576 | +12 | - | -144 | -132 | 1,445 |
| Group | 16,399 | 16,452 | +91 | +1,161 | -193 | +1,059 | 17,510 |
Note: (1) Africa, Middle East and Dominican Republic
| N° of stores | Dec. 31 2021 |
March 31 2022 |
Openings | Acquisitions | Closures/ Disposals |
Transfers | Total Q2 2022 change |
June. 30 2022 |
|---|---|---|---|---|---|---|---|---|
| Hypermarkets | 1,130 | 1,141 | +3 | - | -21 | -1 | -19 | 1,122 |
| France | 253 | 253 | - | - | - | - | - | 253 |
| Europe (excl. France) | 457 | 457 | +1 | - | -1 | - | - | 457 |
| Latin America | 184 | 184 | - | - | - | -1 | -1 | 183 |
| Asia | 70 | 70 | - | - | - | - | - | 70 |
| Others(1) | 166 | 177 | +2 | - | -20 | - | -18 | 159 |
| Supermarkets | 3,574 | 3,595 | +62 | +386 | -67 | -1 | +380 | 3,975 |
| France | 1,043 | 1,040 | +1 | - | -2 | - | -1 | 1,039 |
| Europe (excl. France) | 1,926 | 1,939 | +49 | - | -30 | - | +19 | 1,958 |
| Latin America | 151 | 151 | - | +386 | -1 | -1 | +384 | 535 |
| Asia | 4 | 4 | - | - | - | - | - | 4 |
| Others(1) | 450 | 461 | +12 | - | -34 | - | -22 | 439 |
| Convenience stores | 8,642 | 8,618 | +185 | +17 | -80 | - | +122 | 8,740 |
| France | 4,330 | 4,337 | +43 | +17 | -27 | - | +33 | 4,370 |
| Europe (excl. France) | 3,430 | 3,405 | +129 | - | -49 | - | +80 | 3,485 |
| Latin America | 558 | 554 | +12 | - | -2 | - | +10 | 564 |
| Asia | 274 | 274 | - | - | -2 | - | -2 | 272 |
| Others(1) | 50 | 48 | +1 | - | - | - | +1 | 49 |
| Cash & carry | 440 | 444 | +8 | - | - | +2 | +10 | 454 |
| France | 147 | 147 | +1 | - | - | - | +1 | 148 |
| Europe (excl. France) | 12 | 12 | - | - | - | - | - | 12 |
| Latin America | 259 | 262 | +7 | - | - | +2 | +9 | 271 |
| Asia | - | - | - | - | - | - | - | - |
| Others(1) | 22 | 23 | - | - | - | - | - | 23 |
| Soft discount (Supeco) | 108 | 116 | +1 | - | - | - | +1 | 117 |
| France | 26 | 32 | - | - | - | - | - | 32 |
| Europe (excl. France) | 81 | 84 | +1 | - | - | - | +1 | 85 |
| Latin America | 1 | - | - | - | - | - | - | - |
| Asia | - | - | - | - | - | - | - | - |
| Others(1) | - | - | - | - | - | - | - | - |
| Group | 13,894 | 13,914 | +259 | +403 | -168 | - | +494 | 14,408 |
| France | 5,799 | 5,809 | +45 | +17 | -29 | - | +33 | 5,842 |
| Europe (excl. France) | 5,906 | 5,897 | +180 | - | -80 | - | +100 | 5,997 |
| Latin America | 1,153 | 1,151 | +19 | +386 | -3 | - | +402 | 1,553 |
| Asia | 348 | 348 | - | - | -2 | - | -2 | 346 |
| Others(1) | 688 | 709 | +15 | - | -54 | - | -39 | 670 |
Note: (1) Africa, Middle East and Dominican Republic
Free cash flow corresponds to cash flow from operating activities before net finance costs and net interests related to lease commitment, after the change in working capital, less net cash from/(used in) investing activities.
Net Free Cash Flow corresponds to free cash flow after net finance costs and net lease payments.
Sales generated by stores opened for at least twelve months, excluding temporary store closures, at constant exchange rates, excluding petrol and calendar effects and excluding IAS 29 impact.
Like for like sales growth plus net openings over the past twelve months, including temporary store closures, at constant exchange rates.
Gross margin corresponds to the sum of net sales and other income, reduced by loyalty program costs and cost of goods sold. Cost of sales comprise purchase costs, changes in inventory, the cost of products sold by the financial services companies, discounting revenue and exchange rate gains and losses on goods purchased.
Recurring Operating Income corresponds to the gross margin lowered by sales, general and administrative expenses, depreciation and amortization.
Recurring Operating Income Before Depreciation and Amortization (EBITDA) also excludes depreciation and amortization from supply chain activities which is booked in cost of goods sold.
Operating Income (EBIT) corresponds to the recurring operating income after income from associates and joint ventures and non-recurring income and expenses. This latter classification is applied to certain material items of income and expense that are unusual in terms of their nature and frequency, such as impairment of non-current assets, gains and losses on sales of non-current assets, restructuring costs and provisions recorded to reflect revised estimates of risks provided for in prior periods, based on information that came to the Group's attention during the reporting year.
® Net Promoter, Net Promoter System, Net Promoter Score, NPS and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc
This press release contains both historical and forward-looking statements. These forward-looking statements are based on Carrefour management's current views and assumptions. Such statements are not guarantees of future performance of the Group. Actual results or performances may differ materially from those in such forward looking statements as a result of a number of risks and uncertainties, including but not limited to the risks described in the documents filed with the Autorité des Marchés Financiers as part of the regulated information disclosure requirements and available on Carrefour's website (www.carrefour.com), and in particular the Universal Registration Document. These documents are also available in English on the company's website. Investors may obtain a copy of these documents from Carrefour free of charge. Carrefour does not assume any obligation to update or revise any of these forward-looking statements in the future.
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.