Earnings Release • Feb 28, 2019
Earnings Release
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Alexandre Bompard, Chairman and Chief Executive Officer, declared: "We have launched an unprecedented transformation in 2018. Our encouraging results now allow us to revise upwards a number of 2022 targets. We continue to revitalize our commercial policy, with a strong push in favor of purchasing power and food quality. We are adapting our formats, especially hypermarkets, and accelerating the deployment of our growth formats and a benchmark omnichannel offer. And we continue to improve our operational efficiency. For Carrefour, 2019 will be a year in which we will deepen the initiatives of the 2022 plan, to better serve our customers."
| 2017 | 2018 | ||
|---|---|---|---|
| (in €m) | reported | post-IAS 29 | Variation |
| Sales inc. VAT | 88,240 | 84,916 | +1.4% LFL |
| Recurring operating income (ROI) | 2,006 | 1,905 | Pre-IAS 29: €1,938m up +4.6%, +€93m (constant FX) |
| Recurring operating margin | 2.5% | 2.5% | Stable |
| Adjusted net income, Group share | 773 | 802 | +€29m |
| Free cash flow restated for exceptional items | 950 | 1,088 | +€138m |
| Net debt at closing | 3,743 | 3,785 | +€42m / -€165m (constant FX) |
1For a comparison to the reported 2017 ROI at current exchange rates, refer to the table on page 11 of this release. For a comparison to the 2017 IFRS 5 ROI, refer to the table on page 10 of this press release.
With the success of its international Act for Food campaign, Carrefour has established itself in 2018 as the leader in the food transition for all stakeholders (customers, suppliers, farmers, associations, public authorities, etc).
In 2019, the Group will pursue the very concrete initiatives implemented in 2018, in order to offer healthy and environmentally-friendly food:
Carrefour is accelerating the in-depth revamp of its in-store commercial proposition and is rethinking the product and service range to better meet consumer expectations:
In 2018, commercial investments aimed at enhancing competitiveness were launched in all countries, particularly in France and in Brazil, and are continuing:
Carrefour continues to modernize its store network and its offer, adapting to the specificities of each catchment area. The Group will continue its drive to reduce underperforming commercial sales area, principally non-food, and is stepping up its ambition with a global objective of sales area reduction of 400,000 sq. m by 2022.
In France, after the development in 2018 of dedicated organic product areas, outlets, e-commerce order preparation platforms and the first tests of shop-in-shops of consumer electronics, the in-depth transformation of hypermarkets continues in 2019. This transformation aims at responding to the situation and role of each hypermarket in its catchment area and emphasizing the Group's food know-how:
An omnichannel offer supported by partnerships is now deployed throughout the Group. Carrefour notably launched in 2018 single websites in each country, order preparation platforms and new Drives including pedestrian Drives (51 in France at the end of February 2019):
As part of its digital strategy, Carrefour will take a new step in March 2019 with the opening of the Digital Hub. It will host teams from the Carrefour-Google Lab, experts in Artificial Intelligence and Machine Learning, and more than 300 Carrefour employees specialized in digital and e-commerce.
Carrefour continues the rapid expansion of its growth formats, with the opening of new Cash & Carry and convenience stores:
During the first year of the plan, Carrefour initiated the transformation of its organizations to make them simpler and more agile:
Carrefour launched a cost-reduction program in all countries and achieved savings of €1,050m in 2018. This solid dynamic allows Carrefour to raise its cost-reduction ambition to €2.8 billion on a full-year basis by 2020 (vs €2.0 billion initially planned).
To reach this target, the Group will continue to implement a more industrialized and efficient approach across all its operational processes:
In parallel, Carrefour's purchasing alliances, notably with Système U and Tesco, will start bearing fruit beginning in 2019.
In 2018, Carrefour improved the management of its inventory and investments:
Finally, as part of its objective of selling €500m of non-strategic real estate assets, the Group has already concluded several transactions valued at more than €160m in 2018.
Group sales inc. VAT (pre-IAS 29) amounted to €85,164m, an increase of +2.5% at constant exchange rates. After taking into account an unfavorable exchange rate effect of -5.3%, mainly due to the depreciation of the Brazilian real and the Argentine peso, the total variation in sales at current exchange rates is -2.8 %. On a likefor-like (LFL) basis, sales increased by +1.4%, with an improvement in the second half (+2.0%) vs the first half (+0.7%). Post-application of the IAS 29 norm, the Group's sales inc. VAT stood at €84,916m.
Gross margin represented 22.5% of net sales, down vs 2017 (23.1%), as a result of the evolution of the integrated/franchise mix, and commercial investments in competitive markets.
Distribution costs decreased sharply in 2018 and represented 18.0% of net sales vs 18.6% reported in 2017, reflecting the effectiveness of the cost reduction program.
The Group's recurring operating income (ROI) amounted to €1,905m. Prior to application of the IAS 29 norm, the Group's ROI was €1,938m, up €93m (+4.6%) at constant exchange rates compared to the 2017 reported ROI (currencies had a negative impact of -€161m, notably due to the depreciation of the Brazilian real).
very strong acceleration in the digital segment O2O, a powerful program including cost-reduction and closures of loss-making stores was implemented
Group EBITDA stood at €3,469m, representing a 4.6% margin, stable vs 2017 reported margin.
In 2018, non-recurring income and expenses stood at €(1,161)m, notably reflecting costs related to the reorganization plans in the different countries.
Net income, Group share, stood at €(561)m. It includes the following items:
Adjusted net income, Group share, stood at €802m, up vs €773m reported in 2017.
In 2018, free cash flow adjusted for exceptional items amounted to €1,088m, an increase of 14% (vs €950m reported in 2017).
2018 reported free cash flow stood at €636m vs €503m in 2017.
Net financial debt remained globally stable at €3,785m at December 31, 2018, compared to €3,743m at December 31, 2017, despite an unfavorable currency effect of €206m.
In 2018, Carrefour issued bonds in the amount of approximately €1.8bn. These operations enabled the Group to maintain an average maturity of 3.6 years and thus significantly improve its liquidity over the medium term.
The success of these operations, which were largely oversubscribed, attests to the great confidence of fixedincome investors in Carrefour's signature.
In addition, Carrefour has undrawn credit facilities with its banking partners in the amount of €3.9bn maturing in 2022 and 2023.
The Carrefour Group thus benefits from a solid balance sheet. This is an important asset in the context of rapid changes in food retail.
At December 31, 2018 the Group was rated BBB+ negative outlook by Standard & Poor's and Baa1 stable outlook by Moody's.
The proposed dividend for the 2018 financial year amounts to €0.46 per share, stable compared to the 2017 financial year. This dividend will be proposed in cash or in shares, at the shareholder's choice, and will be submitted to the approval of the Annual General Meeting on June 14, 2019.
The powerful transformation momentum initiated in 2018 and the results already achieved, in a complex macroeconomic context, reinforce management's confidence in the relevance of the Carrefour 2022 plan, supporting the Group's ambition: To be the leader in the food transition for all.
The Group will continue its transformation in 2019 by strengthening the 2018 initiatives.
The financial targets for the Carrefour 2022 strategic plan are as follows:
At its meeting on February 27, 2019, the Board of Directors of Carrefour, under the chairmanship of Mr. Alexandre Bompard, approved the consolidated financial statements for 2018. The audit of the Group's consolidated financial statements was performed and the certification report is being issued.
Investor Relations Selma Bekhechi, Anthony Guglielmo and Antoine Parison 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
In Argentina, the cumulative inflation rate over the last three years is greater than 100%, according to a combination of indices used to measure the country's inflation (inflation of wholesale prices and consumer prices having exceeded the 100% threshold), and no significant decrease in inflation is expected in 2019 in a context in which, moreover, the Argentine peso has depreciated.
As a result, the criteria of the IAS 29 norm are fulfilled and according to a consensus shared by the AMF and ESMA, Argentina is considered a hyperinflationary economy within the meaning of IFRS as of July 1, 2018. Thus, the terms of IAS 29 relating to financial reporting in hyperinflationary economies become applicable from January 1st, 2018 as if Argentina had always been in hyperinflation and the comparative amounts presented in 2017 are not restated.
| (in €m) | 2018 pre-IAS 29 |
IAS 29 impact |
2018 post-IAS 29 |
|---|---|---|---|
| Gross sales incl. tax | 85,164 | (248) | 84,916 |
| Net sales | 76,199 | (198) | 76,000 |
| Net sales, net of loyalty program costs | 75,459 | (198) | 75,261 |
| Other revenue | 2,658 | (2) | 2,656 |
| Total revenue | 78,117 | (200) | 77,917 |
| Cost of goods sold | (60,985) | 136 | (60,850) |
| Gross margin | 17,131 | (64) | 17,067 |
| As a % of net sales | 22.5% | 22.5% | |
| SG&A | (13,719) | 51 | (13,668) |
| As a % of net sales | (18.0%) | (18.0%) | |
| Recurring operating income before D&A (EBITDA) | 3,481 | (13) | 3,469 |
| EBITDA margin | 4.6% | 4.6% | |
| Depreciation and amortization | (1,474) | (20) | (1,494) |
| Recurring operating income (ROI) | 1,938 | (33) | 1 ,905 |
| Recurring operating margin | 2.5% | 2.5% | |
| Recurring operating income including income from associates and joint ventures |
1,952 | (33) | 1,919 |
| Non-recurring income and expenses | (1,159) | (2) | (1,161) |
| Operating income | 793 | (35) | 758 |
| Financial expense | (318) | 56 | (262) |
| Income before taxes | 475 | 21 | 496 |
| Income tax expense | (537) | (2) | (539) |
| Net income from continuing operations | (62) | 19 | (43) |
| Net income from discontinued operations | (301) | (301) | |
| Net income | (363) | 19 | (344) |
| Of which Net income, Group share | (582) | 21 | (561) |
| Of which net income from continuing operations, Group share | (280) | 21 | (259) |
| Of which Net income, Non-controlling interests | 219 | (2) | 216 |
| Net income, Group share, adjusted for exceptional items | 779 | 23 | 802 |
| Net sales | Recurring operating income | |||||||
|---|---|---|---|---|---|---|---|---|
| (in €m) | 2017 restated for IFRS 5 |
2018 pre-IAS 29 |
Variation at constant exchange rates |
Variation at current exchange rates |
2017 restated for IFRS 5 |
2018 pre-IAS 29 |
Variation at constant exchange rates |
Variation at current exchange rates |
| France | 35,253 | 35,615 | 1.0% | 1.0% | 822 | 466 | (43.3%) | (43.3%) |
| Europe (ex France) | 21,112 | 21,076 | 0.0% | (0.2%) | 677 | 664 | (1.7%) | (1.9%) |
| Latin America | 16,042 | 14,007 | 11.0% | (12.7%) | 715 | 800 | 33.8% | 11.9% |
| Asia | 5,907 | 5,501 | (4.1%) | (6.9%) | 4 | 45 | n.m. | n.m. |
| International | 43,061 | 40,584 | 3.5% | (5.8%) | 1,397 | 1,510 | 19.6% | 8.1% |
| Global functions | (83) | (38) | (55.2%) | (54.4%) | ||||
| TOTAL | 78,315 | 76,199 | 2.4% | (2.7%) | 2,135 | 1,938 | (1.7%) | (9.2%) |
| Net sales | Recurring operating income | |||||||
|---|---|---|---|---|---|---|---|---|
| (in €m) | 2017 reported |
2018 pre-IAS 29 |
Variation at constant exchange rates |
Variation at current exchange rates |
2017 reported |
2018 pre-IAS 29 |
Variation at constant exchange rates |
Variation at current exchange rates |
| France | 35,835 | 35,615 | (0.6%) | (0.6%) | 692 | 466 | (32.6%) | (32.6%) |
| Europe (ex France) | 21,112 | 21,076 | 0.0% | (0.2%) | 677 | 664 | (1.7%) | (1.9%) |
| Latin America | 16,042 | 14,007 | 11.0% | (12.7%) | 715 | 800 | 33.8% | 11.9% |
| Asia | 5,907 | 5,501 | (4.1%) | (6.9%) | 4 | 45 | n.m. | n.m. |
| International | 43,061 | 40,584 | 3.5% | (5.8%) | 1,397 | 1,510 | 19.6% | 8.1% |
| Global functions | (83) | (38) | (55.2%) | (54.4%) | ||||
| TOTAL | 78,897 | 76,199 | 1.7% | (3.4%) | 2,006 | 1,938 | 4.6% | (3.4%) |
| Net sales | Recurring operating income | |||||||
|---|---|---|---|---|---|---|---|---|
| (in €m) | 2017 restated for IFRS 5 |
2018 post-IAS 29 |
Variation at constant exchange rates |
Variation at current exchange rates |
2017 restated for IFRS 5 |
2018 post-IAS 29 |
Variation at constant exchange rates |
Variation at current exchange rates |
| France | 35,253 | 35,615 | 1.0% | 1.0% | 822 | 466 | (43.3%) | (43.3%) |
| Europe (ex France) | 21,112 | 21,076 | 0.0% | (0.2%) | 677 | 664 | (1.7%) | (1.9%) |
| Latin America | 16,042 | 13,809 | 15.7% | (13.9%) | 715 | 767 | 23.6% | 7.2% |
| Asia | 5,907 | 5,501 | (4.1%) | (6.9%) | 4 | 45 | n.m. | n.m. |
| International | 43,061 | 40,385 | 5.3% | (6.2%) | 1,397 | 1,476 | 14.3% | 5.7% |
| Global functions | (83) | (38) | (55.2%) | (54.4%) | ||||
| TOTAL | 78,315 | 76,000 | 3.4% | (3.0%) | 2,135 | 1,905 | (5.1%) | (10.8%) |
| Net sales | Recurring operating income | |||||||
|---|---|---|---|---|---|---|---|---|
| (in €m) | 2017 reported |
2018 post-IAS 29 |
Variation at constant exchange rates |
Variation at current exchange rates |
2017 reported |
2018 post-IAS 29 |
Variation at constant exchange rates |
Variation at current exchange rates |
| France | 35,835 | 35,615 | (0.6%) | (0.6%) | 692 | 466 | (32.6%) | (32.6%) |
| Europe (ex France) | 21,112 | 21,076 | 0.0% | (0.2%) | 677 | 664 | (1.7%) | (1.9%) |
| Latin America | 16,042 | 13,809 | 15.7% | (13.9%) | 715 | 767 | 23.6% | 7.2% |
| Asia | 5,907 | 5,501 | (4.1%) | (6.9%) | 4 | 45 | n.m. | n.m. |
| International | 43,061 | 40,385 | 5.3% | (6.2%) | 1,397 | 1,476 | 14.3% | 5.7% |
| Global functions | (83) | (38) | (55.2%) | (54.4%) | ||||
| TOTAL | 78,897 | 76,000 | 2.6% | (3.7%) | 2,006 | 1,905 | 1.0% | (5.0%) |
| (in €m) | 2017 restated for IFRS 5 |
2018 post-IAS 29 |
Variation at constant exchange rates |
Variation at current exchange rates |
|---|---|---|---|---|
| Net sales | 78,315 | 76,000 | 3.4% | (3.0%) |
| Net sales, net of loyalty program costs | 77,673 | 75,261 | 3.3% | (3.1%) |
| Other revenue | 2,719 | 2,656 | 5.0% | (2.3%) |
| Total revenue | 80,392 | 77,917 | 3.3% | (3.1%) |
| Cost of goods sold | (62,311) | (60,850) | 3.8% | (2.3%) |
| Gross margin | 18,081 | 17,067 | 1.6% | (5.6%) |
| As a % of net sales | 23.1% | 22.5% | (40bps) | (63bps) |
| SG&A | (14,409) | (13,668) | 2.5% | (5.1%) |
| As a % of net sales | (18.4%) | (18.0%) | 16bps | 41bps |
| Recurring operating income before D&A (EBITDA)2 | 3,735 | 3,469 | (1.5%) | (7.1%) |
| EBITDA margin | 4.8% | 4.6% | (23bps) | (20bps) |
| Depreciation and amortization | (1,536) | (1,494) | 2.7% | (2.8%) |
| Recurring operating income (ROI) | 2,135 | 1,905 | (5.1%) | (10.8%) |
| ROI margin | 2.7% | 2.5% | (22bps) | (22bps) |
| Recurring operating income including income from associates and JVs | 2,139 | 1,919 | (4.6%) | (10.3%) |
| Non-recurring income and expenses | (1,162) | (1,161) | ||
| Operating income | 978 | 758 | ||
| Financial expense | (445) | (262) | ||
| Income before taxes | 533 | 496 | ||
| Income tax expense | (618) | (539) | ||
| Net income from continuing operations | (85) | (43) | ||
| Net income from discontinued operations | (277) | (301) | ||
| Net income | (362) | (344) | ||
| Of which Net income, Group share | (531) | (561) | ||
| Of which net income from continuing operations, Group share | (254) | (259) | ||
| Of which net income from discontinued operations, Group share | (277) | (301) | ||
| Of which Net income, Non-controlling interests | 169 | 216 | ||
| Of which Net income from continuing operations, Non-controlling interests | 169 | 216 | ||
| Of which Net income from discontinued operations, Non-controlling interests | - | - | ||
| Net income, Group share, adjusted for exceptional items | 903 | 802 | ||
| Depreciation from supply chain (in COGS) | (63) | (70) |
1 2018 IFRS consolidated accounts
2 Recurring EBITDA excludes depreciation from supply chain activities which is booked in cost of goods sold and excludes nonrecurring items as defined below
| (in €m) | 2017 reported |
2018 post-IAS 29 |
Variation at constant exchange rates |
Variation at current exchange rates |
|---|---|---|---|---|
| Net sales | 78,897 | 76,000 | 2.6% | (3.7%) |
| Net sales, net of loyalty program costs | 78,253 | 75,261 | 2.5% | (3.8%) |
| Other revenue | 2,722 | 2,656 | 4.9% | (2.4%) |
| Total revenue | 80,975 | 77,917 | 2.6% | (3.8%) |
| Cost of goods sold | (62,760) | (60,850) | 3.1% | (3.0%) |
| Gross margin | 18,214 | 17,067 | 0.9% | (6.3%) |
| As a % of net sales | 23.1% | 22.5% | (40bps) | (63bps) |
| SG&A | (14,641) | (13,668) | 0.9% | (6.6%) |
| As a % of net sales | (18.6%) | (18.0%) | 32bps | 57bps |
| Recurring operating income before D&A (EBITDA)1 | 3,636 | 3,469 | 1.1% | (4.6%) |
| EBITDA margin | 4.6% | 4.6% | (7bp) | (4bp) |
| Depreciation and amortization | (1,567) | (1,494) | 0.7% | (4.7%) |
| Recurring operating income (ROI) | 2,006 | 1,905 | 1.0% | (5.0%) |
| ROI margin | 2.5% | 2.5% | (4bps) | (4bp |
| Recurring operating income including income from associates and JVs | 2,010 | 1,919 | 1.5% | (4.5%) |
| Non-recurring income and expenses | (1,310) | (1,161) | ||
| Operating income | 700 | 758 | ||
| Financial expense | (445) | (262) | ||
| Income before taxes | 255 | 496 | ||
| Income tax expense | (618) | (539) | ||
| Net income from continuing operations | (363) | (43) | ||
| Net income from discontinued operations | 1 | (301) | ||
| Net income | (362) | (344) | ||
| Of which Net income, Group share | (531) | (561) | ||
| Of which net income from continuing operations, Group share | (531) | (259) | ||
| Of which net income from discontinued operations, Group share | 1 | (301) | ||
| Of which Net income, Non-controlling interests | 169 | 216 | ||
| Of which Net income from continuing operations, Non-controlling interests | 169 | 216 | ||
| Of which Net income from discontinued operations, Non-controlling interests | - | - | ||
| Net income, Group share, adjusted for exceptional items | 773 | 802 | ||
| Depreciation from supply chain (in COGS) | (63) | (70) |
1 Recurring EBITDA excludes depreciation from supply chain activities which is booked in cost of goods sold and excludes nonrecurring items as defined below
| (in €m) | 2017 reported | 2018 |
|---|---|---|
| ASSETS | ||
| Intangible assets | 9,341 | 9,444 |
| Tangible assets | 13,097 | 12,637 |
| Financial investments | 2,721 | 2,650 |
| Deferred tax assets | 636 | 723 |
| Investment properties | 410 | 389 |
| Consumer credit from financial-service companies – Long-term | 2,455 | 2,486 |
| Other non-current assets | 337 | 379 |
| Non-current assets | 28,996 | 28,709 |
| Inventories | 6,690 | 6,135 |
| Trade receivables | 2,750 | 2,537 |
| Consumer credit from financial-service companies – Short-term | 3,866 | 3,722 |
| Tax receivables | 890 | 853 |
| Other assets | 851 | 887 |
| Current financial assets | 161 | 190 |
| Cash and cash equivalents | 3,593 | 4,300 |
| Current assets | 18,800 | 18,624 |
| Assets held for sale | 16 | 46 |
| TOTAL | 47,813 | 47,378 |
| LIABILITIES | ||
| Shareholders' equity, Group share | 10,059 | 9,169 |
| Minority interests in consolidated companies | 2,099 | 2,117 |
| Shareholders' equity | 12,159 | 11,286 |
| Deferred tax liabilities | 489 | 541 |
| Provision for contingencies | 3,003 | 3,521 |
| Borrowings – Long-term | 6,428 | 6,936 |
| Bank loans refinancing – Long-term | 2,661 | 1,932 |
| Non-current liabilities | 12,581 | 12,930 |
| Borrowings – Short-term | 1,069 | 1,339 |
| Trade payables | 15,082 | 14,161 |
| Bank loans refinancing – Short-term | 2,817 | 3,582 |
| Tax payables and others | 1,282 | 1,142 |
| Other debts | 2,813 | 2,938 |
| Current liabilities | 23,063 | 23,162 |
| Liabilities related to assets held for sale | 11 | - |
| TOTAL | 47,813 | 47,378 |
| (in €m) | 2017 restated for IFRS 5 |
2017 reported |
2018 post-IAS29 |
Var 2018 post-IAS 29 vs. 2017 reported |
|---|---|---|---|---|
| NET DEBT AT OPENING1 | (4,531) | (4,531) | (3,728) | 803 |
| Gross cash flow (continuing operations) | 2,749 | 2,653 | 2,248 | (405) |
| Change in working capital | 188 | 189 | (54) | (243) |
| Impact of discontinued operations | (95) | 0 | (86) | (86) |
| Cash flow from operations | 2,843 | 2,843 | 2,108 | (735) |
| Capital expenditure | (2,369) | (2,379) | (1,611) | 768 |
| Change in net payables to fixed asset suppliers | (77) | (88) | (53) | 35 |
| Net asset disposals | 127 | 127 | 194 | 67 |
| Impact of discontinued operations | (20) | 0 | (2) | (2) |
| Free cash flow | 503 | 503 | 636 | 134 |
| Free cash flow excluding exceptional items and discontinued operations | 1,044 | 950 | 1,088 | 138 |
| Financial investments | (259) | (259) | (193) | 65 |
| Proceeds from disposals of subsidiaries | 13 | 13 | 22 | 9 |
| Others | (45) | (45) | 15 | 61 |
| Impact of discontinued operations | 3 | 3 | 15 | 12 |
| Cash flow after investments | 215 | 215 | 494 | 280 |
| Capital increase | 969 | 969 | 89 | (880) |
| Dividends paid | (292) | (292) | (235) | 57 |
| Acquisition/disposal of investments without change in control | 479 | 479 | (0) | (479) |
| Treasury shares | (40) | (40) | 42 | 82 |
| Cost of net financial debt | (317) | (317) | (233) | 84 |
| Others | (225) | (225) | (215) | 10 |
| NET DEBT AT CLOSE | (3,743) | (3,743) | (3,785) | (42) |
1 The Group applied IFRS 9 standard – Financial Instruments for the first time as of January 1st, 2018
| (in €m) | Total shareholders' equity |
Shareholders' equity, Group share |
Minority interests |
|---|---|---|---|
| At December 31, 2017 | 12,159 | 10,059 | 2,099 |
| Adjustments linked to the first-time application of IFRS 91 | (259) | (141) | (119) |
| Adjustments linked to the first-time application of IAS 29 | 237 | 237 | - |
| At January 1, 2018 | 12,136 | 10,155 | 1,980 |
| Total net income over the period | (344) | (561) | 216 |
| Dividends | (242) | (152) | (90) |
| Impact of scope and others | (263) | (273) | 10 |
| At December 31, 2018 | 11,286 | 9,169 | 2,117 |
| (in €m) | 2017 restated for IFRS 5 |
2017 reported |
2018 pre-IAS29 |
2018 post-IAS29 |
|---|---|---|---|---|
| Net income, Group share | (531) | (531) | (582) | (561) |
| Restatement for non-recurring income and expenses (before tax) | 1,162 | 1,310 | 1,159 | 1,161 |
| Restatement for exceptional items in net financial expenses | 21 | 21 | 48 | 48 |
| Tax impact 2 | (10) | (10) | (43) | (43) |
| Restatement on share of income from minorities and companies consolidated by the equity method |
(16) | (16) | (104) | (104) |
| Restatement for net income of discontinued operations | 277 | (1) | 301 | 301 |
| Adjusted net income, Group share | 903 | 773 | 779 | 802 |
1 The Group applied IFRS 9 standard – Financial Instruments for the first time as of January 1st, 2018
2 Tax impact of restated items (non-recurring income and expenses and financial expenses) and non-recurring tax items
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 is the difference between the sum of net sales, other income, reduced by loyalty program costs and the 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 is defined as the difference between gross margin and sales, general and administrative expenses, depreciation and amortization and provisions.
Recurring Operating Income Before Depreciation and Amortization (EBITDA) excludes depreciation from supply chain activities which is booked in cost of goods sold and excludes non-recurring items as defined below.
Operating Income (EBIT) is defined as the difference between gross margin and sales, general and administrative expenses, depreciation, amortization and non-recurring items
Non-recurring income and expenses are certain material items that are unusual in terms of their nature and frequency, such as impairment, restructuring costs and expenses related to the revaluation of pre-existing risks on the basis of information that the Group became aware of during the accounting period.
Free cash flow is defined as the difference between funds generated by operations (before net interest costs), the variation of working capital requirements and capital expenditures.
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 dlooking 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 Annual Report (Document de Référence). 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
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