Earnings Release • Apr 13, 2017
Earnings Release
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| 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.
| 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 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.
| 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% |
| 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 |
| 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.
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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