AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

Carrefour

Earnings Release Apr 13, 2017

1182_10-q_2017-04-13_657e37bd-7a6d-433b-a66f-5531070497ac.pdf

Earnings Release

Open in Viewer

Opens in native device viewer

FURTHER SALES GROWTH IN Q1 2017: +6.2% to €21.3bn CONTINUED PROGRESSION IN FOOD SALES

  • Sharp increase in sales in the first quarter of 2017, reflecting the relevance of Carrefour's multiformat model and balanced country portfolio
  • o Robust growth of +6.2% at current exchange rates
  • o Continued progression in food sales: up +2.2% like-for-like and +5.9% on a reported basis
  • o Significant increase of Group Gross Merchandise Value: +34%

Solid growth in international operations (+10.9% at current exchange rates)

  • o Good sales performance on the back of strong comparables
  • o Continued growth in Latin America amid a slowdown in inflation
  • Further sales growth in France (+0.8%)
  • o Continued roll-out of omnichannel strategy
  • o Good performance in convenience and growing momentum of ex-DIA stores converted to Carrefour banners for more than 12 months

Target of 3% to 5% full-year 2017 sales growth at constant exchange rates confirmed

Sales inc. VAT
(€m)
LFL ex petrol
and ex
calendar
Total variation
International 11,889 +2.1% +10.9%
France 9,406 +0.5% +0.8%
Group 21,295 +1.4% +6.2%

This quarter, currencies and petrol both had a favorable impact of +3.9% and +1.3% respectively. The calendar effect was particularly strong at -1.6%, notably due to the fact that Easter is in the second quarter this year and there was one less trading day in Q1 2017 as 2016 was a leap year.

Total sales under banners including petrol stood at €25.7bn in the first quarter of 2017, up +4.7% at current exchange rates.

FIRST QUARTER 2017 SALES INC. VAT

Sales inc. VAT
(€m)
LFL ex petrol
and ex
calendar
Total
variation
International 11,889 +2.1% +10.9%
Latin America 4,518 +7.8% +30.9%
Asia 1,987 -4.0% -4.1%
Other European countries 5,384 +0.9% +3.6%
France 9,406 +0.5% +0.8%

Carrefour posted solid growth in the first quarter of 2017, with sales of €21.3bn, up 6.2%. This performance once again underscores the relevance of Carrefour's multiformat model and the good balance of its country portfolio. Food sales showed solid growth, rising by 5.9% in the quarter. Carrefour's omnichannel approach continued to gain momentum with a significant increase of +34% in Group Gross Merchandise Value this quarter.

This quarter was marked by a particularly strong calendar effect of -1.6%, due to the fact that Easter is in the second quarter this year and there was one less trading day in Q1 2017 as 2016 was a leap year. Carrefour benefited this quarter from a favorable currency effect of +3.9%, due to the appreciation of the Brazilian Real. The petrol effect was also favorable, at +1.3%.

Sales in international activities were up +10.9% in the first quarter of 2017. This performance takes into account a negative calendar effect of -1.8% and a positive currency effect of +7.3%. Like-for-like sales growth was solid, at +2.1%, driven by a +2.8% increase in food sales.

In Latin America, like-for-like sales were up +7.8% (+11.7% on an organic basis), a solid performance. The currency effect was +22.1%.

In Brazil, the roll-out of Carrefour's multiformat model continues to bear fruit in an environment marked by high unemployment and a slowdown in inflation in Q1. In this context, Carrefour posted a good performance, with like-for-like sales up +5.6% (+10.5% on an organic basis). Carrefour's success in the country reflects the continued progression of Atacadão and hypermarkets as well as further openings of convenience stores under the Express banner. Like-for-like sales in Argentina were up +14.6% in a difficult economic environment.

Asia posted another sequential improvement in sales, which were down -4.0% in the first quarter of 2017 (-2.3% on an organic basis). China recorded a like-for-like sales drop of -5.5% and sales in Taiwan rose for the ninth consecutive quarter, up +0.3% on a like-for-like basis on the back of strong comparables.

In Other European countries, sales rose again in the quarter (+3.6% in total) on a challenging comparable base in several countries. On a like-for-like basis, sales were up +0.9% in the quarter.

  • In Spain, like-for-like sales were up +0.3% in the quarter on the back of strong comparables in the same period last year (+3.4%);
  • Positive momentum continued in Italy, where like-for-like sales were up +1.6%, on the back of strong comparables in Q1 2016 (+4.5%) ;
  • Like-for-like sales remained very dynamic in Poland and in Romania.

In a first quarter marked by an unfavorable calendar effect and a very competitive environment, France showed good resilience and posted sales growth (+0.8% in total). For the fifth year in succession, food sales were up in the first quarter, with a like-for-like increase of +1.3%.

Total sales at hypermarkets were down -0.8% (-1.6% LFL) in an environment that remained highly promotional throughout the quarter. Other formats continued to perform well, with total supermarket sales up +1.1% (+2.2% LFL) and total sales in convenience and other formats continuing to be particularly solid at +5.5% (+4.4% LFL), benefiting from the growth of e-commerce and the positive momentum of ex-DIA stores converted to Carrefour banners for more than 12 months.

VARIATION OF FIRST QUARTER 2017 SALES INC. VAT

Total
sales
inc. VAT
(€m)
Change at
current
exchange
rates inc.
petrol
Change at
constant
exchange
rates inc.
petrol
LFL inc. petrol LFL ex petrol
ex calendar
Organic
growth
ex petrol
ex calendar
France 9,406 +0.8% +0.8% +2.1% +0.5% -0.6%
Hypermarkets 4,848 -0.8% -0.8% -0.4% -1.6% -2.0%
Supermarkets 3,053 +1.1% +1.1% +3.2% +2.2% +0.2%
Convenience
/other
1,505 +5.5% +5.5% +8.6% +4.4% +2.5%
formats
International 11,889 +10.9% +3.6% +0.6% +2.1% +3.9%
Other European countries 5,384 +3.6% +3.6% +0.6% +0.9% +1.3%
Spain 2,110 +4.3% +4.3% +0.6% +0.3% +0.8%
Italy 1,328 -0.4% -0.4% +1.2% +1.6% 0.0%
Belgium 1,026 -2.7% -2.7% -2.3% -1.8% -2.1%
Latin America 4,518 +30.9% +8.8% +5.0% +7.8% +11.7%
Brazil 3,666 +37.6% +7.4% +2.8% +5.6% +10.5%
Asia 1,987 -4.1% -5.0% -6.7% -4.0% -2.3%
China 1,446 -8.6% -7.0% -8.4% -5.5% -4.1%
Group total 21,295 +6.2% +2.3% +1.3% +1.4% +1.9%

EXPANSION UNDER BANNERS – First quarter 2017

Thousands of sq. m. Dec. 31.
2016
Openings/
Store
enlargements
Acquisitions Closures/
Store
reductions
Total Q1
2017 change
March 31,
2017
France 5,719 12 7 -73 -55 5,664
Europe (ex France) 5,449 29 101 -50 80 5,529
Latin America 2,335 24 - -2 22 2,358
Asia 2,758 27 - -30 -3 2,755
Others1 920 20 - -1 20 939
Group 17,181 112 109 -156 64 17,246

STORE NETWORK UNDER BANNERS – First quarter 2017

N°. of stores Dec. 31,
2016
Openings Acquisitions Closures/
Disposals
Transfers Total Q1
2017 change
March 31,
2017
Hypermarkets 1,480 9 19 -7 2 23 1,503
France 243 - 2 - 1 3 246
Europe (ex France) 439 - 17 -3 1 15 454
Latin America 334 3 - - - 3 337
Asia 374 4 - -4 - - 374
Others1 90 2 - - - 2 92
Supermarkets 3,212 23 - -37 -4 -18 3,194
France 1,065 2 - -4 -3 -5 1,060
Europe (ex France) 1,777 13 - -31 -1 -19 1,758
Latin America 150 - - -1 - -1 149
Asia 38 3 - - - 3 41
Others1 182 5 - -1 - 4 186
Convenience 7,072 123 - -91 2 34 7,106
France 4,219 36 - -37 2 1 4,220
Europe (ex France) 2,312 77 - -52 - 25 2,337
Latin America 468 7 - -2 - 5 473
Asia 27 2 - - - 2 29
Others1 46 1 - - - 1 47
Cash & carry 171 - - -1 - -1 170
France 143 - - -1 - -1 142
Europe (ex France) 13 - - - - - 13
Asia 2 - - - - - 2
Others1 13 - - - - - 13
Group 11,935 155 19 -136 - 38 11,973
France 5,670 38 2 -42 - -2 5,668
Europe (ex France) 4,541 90 17 -86 - 21 4,562
Latin America 952 10 - -3 - 7 959
Asia 441 9 - -4 - 5 446
Others1 331 8 - -1 - 7 338

1 Africa, 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.

Talk to a Data Expert

Have a question? We'll get back to you promptly.