Carrefour

Earnings Release • Mar 10, 2005

News Details

Corporate | 10 March 2005 09:48

Carrefour S.A.: Annual results 2004

Corporate-news announcement processed and sent by DGAP. The sender is solely responsible for the contents of this announcement. —————————————————————————— Carrefour S.A.: Annual results 2004 – 2004 earnings per share grew 2.8% – Net debt fell by EUR1.1bn – In 2005, we have to go further and faster to return to profitable growth Sales ex. VAT: 72 668 mEUR +4.0% on constant exchange rates +3.1% on current exchange rates EBIT: 3 234 mEUR -0.5% Recurring net profit Group share after goodwill amortization: 1 662 mEUR +2.6% EPS after goodwill amortization: 2.29EUR +2.8% Key Messages from 2004 In 2004, we repositioned our French hypermarkets on price and food market share in France was stable overall. We began the year with only 30% of our stores number one or number two on price locally. Today, over three quarters are number one and almost all are ranked number one or number two versus their local competitors. Although we lost share in hypermarkets, we gained market share of our supermarkets and hard discount stores which enabled us to maintain food market share overall in France, according to Secodip. We grew profitability and ROCE outside of France As a result, we grew EBITDA by 0.9% despite the cost of price investment in France. We began to divest underperforming or non-core assets We sold or closed 57 supermarkets in Spain, Argentina and Brazil, and sold our 22% stake in the Portuguese retailer Modelo Continente. At the same time we reinforced our position in key markets through in-fill acquisitions (Greece, Poland) and franchise agreements (France, Italy). We improved our financial ratios Year end net debt for the year fell by 14% or EUR1.1bn, while interest cover increased over 10% to 11.6x and gearing fell from 107% to 90%. A summary of the 2004 results In m EUR 2004 2003 Chg Sales excluding VAT 72668 70486 +3.1% EBITDA 4917 4871 +0.9% EBIT 3234 3251 -0.5% EBIT margin 4.5% 4.6% Profit before tax 2810 2788 +0.8% Recurring net profit 2075 2049 +1.3% Recurring net profit – Gp sh. before GW 1981 1938 +2.2% after GW 1662 1620 +2.6% Non recurring items – Gp share (275) 9 ns Net profit – Gp share 1387 1629 -14.9% EPS before GW (in euros) 2.73 2.67 +2.5% after GW (in euros) 2.29 2.23 +2.8% Cash flow 3406 3433 -0.8% Capital expenditure 2564 2717 -5.6% Net debt / Sh. Equity 90% 107% Cash flow/net debt 50% 43% Interest coverage 11.6x 10.5x (EBITDA / financial charges) Sales ex-VAT per zone in m euros 2004 2003 Chg Chg on ctt rates France 35 723 35 704 +0.1% +0.1% Europe (excl. Fce) 27 123 25 527 +6.3% +6.2% Americas 4 721 4 619 +2.2% +7.5% Asia 5 101 4 637 +10.0% +18.8% Total Group 72 668 70 486 +3.1% +4.0% EBIT per zone in m euros 2004 2003 Chg current rates France 1965 2 144 -8.3% Europe (excl. Fce) 1070 952 +12.4% Americas 50 13 3.8x Asia 149 143 +4.0% Total Group 3234 3 251 -0.5% Our goals in 2005 In 2005, we have to achieve four key goals Strengthen our price image in our French hypermarkets In 2005, we will invest further to improve our price image with the goal of being number one on price locally in all our stores. Grow customer traffic in our French hypermarkets to win market share We must communicate better to the consumer. We will reinforce the attractiveness of our product offer, focusing on competitiveness, innovation and modernisation. Improve significantly our profitability and ROCE outside of France We will build on strong market positions in Europe, Asia and Latin America. We are also cleaning up and upgrading our portfolio of assets. With the divestment of Mexico and Japan we are close to achieving our initial target of divesting assets with cash in of EUR1bn. Prepare for accelerated growth in 2006 and 2008 We can guarantee that we will open one million square metres of new space in 2005. We will prepare to accelerate our opening programme from 2006 onwards. We will examine how to use our skills as a multi format retailer to reinforce our share in key markets. AGM 20 APRIL 2005 The Shareholders Annual Meeting will be held on April 20th 2005 in Paris in the Carrousel du Louvre at 9.00 am. A dividend of 0.94 euro per share will be proposed vs 0.74 euro in 2003, an increase of 27% It will be payable on April 22 2005. DATES OF PUBLICATIONS 2005 12 April: 1Q sales 12 July: 2Q sales 1 September: 1H results 12 October: 3Q sales 12 January 2006 : 4Q Sales CONTACTS Shareholders information Investor relations Press Relations N° vert 0805 902 902 (33) 01 53 70 19 00 (33) 01 49 09 26 66 All our results available on http://www.carrefour.com end of message, (c)DGAP 10.03.2005 —————————————————————————— WKN: 852362; ISIN: FR0000120172; Index: Listed: Freiverkehr in Berlin-Bremen, Düsseldorf, Frankfurt, Hamburg, Hannover, München und Stuttgart 100948 Mär 05