- 2017 : A difficult year
overall
- Slowing sales momentum in 2017:
+1.6% LFL in the full year vs +3.0% in 2016
- Recurring operating income
expected at around €2.00bn in the full year (non-audited estimate),
down about -15% at current exchange rates
- Free Cash Flow excluding
exceptional items around €950m (non-audited estimate) vs. €1,039m
in 2016
- An improved performance in the
fourth quarter following an atypical third quarter
- Like-for-like growth of 1.9% in Q4,
marking a sharp improvement over the previous quarter (+0.5% in Q3)
and in line with the first half (+2.1% in H1);
- Improved trends, notably in
France (+ 1.5 % LFL in Q4 vs -0.9% in Q3), with:
- more favorable momentum in all
formats
- successful Black Friday and year-end
campaigns
- Growth still weak in Brazil,
impacted by food deflation
- The Group’s transformation plan will
be presented on January 23
Regulatory News:
Carrefour (Paris:CA):
Fourth quarter 2017 Full-year 2017
Sales inc. VAT
(€m)
LFL* Total variation
Sales inc. VAT (€m)
LFL* Total variation
At currentexchangerates
At constantexchangerates
At currentexchangerates
At constantexchangerates
France 10,706 +1.5% -0.5% -0.5% 40,096 +0.8% -0.1%
-0.1% Other countries 12,621 +2.1% +0.1% +4.7%
48,144 +2.2% +5.6% +5.1%
Group
23,328 +1.9% -0.2%
+2.3% 88,240 +1.6% +3.0%
+2.7%
*ex petrol and ex calendar and at constant exchange rates
A difficult full-year 2017
2017 Sales: Total growth of +2.7% at constant exchange
rates
Sales inc. VAT (€m) LFL*
Total variation
Atcurrentexchangerates
Atconstantexchangerates
Group 88,240 +1.6% +3.0%
+2.7% France 40,096 +0.8% -0.1%
-0.1% Other countries 48,144
+2.2% +5.6% +5.1% Europe 23,566 +1.3%
+5.0% +4.9% Latin America 18,021 +6.1% +10.9% +8.9% Asia
6,557 -3.7% -4.7% -3.3%
*ex petrol and calendar effects of -0.2% and -0.5% respectively,
at constant exchange rate
Carrefour posted sales of €88,240m in full-year 2017,
representing total growth of +3.0%. At constant exchange rates,
sales were up +2.7%.
The Group’s like-for-like growth was +1.6% in 2017, to be
compared with like-for-like growth of +3.0% in 2016. This evolution
notably reflects a slowdown in food sales growth that was
particularly marked in the second half. Food sales in Brazil grew
at a far slower pace in 2017, impacted by food deflation since the
month of June while food inflation had been high in 2016, in
particular in the second half. Food sales in France and in Europe
in 2017 showed broadly similar trends to 2016.
Non-food sales improved on a like-for-like basis in 2017 vs
2016. Brazil benefited from a revision of its non-food commercial
proposition. In France, apparel benefited from a revision of its
product lines and its commercial policy.
In France, total sales are slightly up, by +0.8%
like-for-like in 2017. In a highly competitive environment,
Carrefour’s commercial momentum was similar to that of 2016.
In a toughening competitive environment in Europe,
like-for-like growth in the full year stood at +1.3%, notably
reflecting improved trends in Northern Europe.
The slowdown in like-for-like growth in Latin America
(+6.1% in 2017 vs +13.5% in 2016) reflects food deflation in Brazil
in the second half, to be compared with double-digit inflation in
2016, as well as high inflation in Argentina in a context that
remains challenging.
Sales trends in Asia improved over the year, at -3.7% (vs
-5.0% in 2016).
Outlook for recurring Operating Income and Free Cash Flow
(non-audited estimates)
Recurring Operating Income for full-year 2017 should stand at
about €2.00bn, a drop of -15% at current exchange rates.
This full-year evolution notably reflects:
- strong commercial pressure,
particularly in France,
- an increase in distribution costs in
our main markets,
- an increase in depreciation after a
period of significant investments,
- a more difficult situation in
Argentina.
The full-year Recurring Operating Income also includes sources
of losses that continue to weigh on profitability, notably the
ex-Dia store network for about -€150m.
Free cash flow in full-year 2017, excluding exceptional
items, should stand around €950m vs. €1,039m in 2016.
Capital expenditure in the full year should stand at €2,145mn ex
Cargo.
FOURTH QUARTER 2017 SALES:
LIKE-FOR-LIKE GROWTH OF +1.9%
Sales inc. VAT (€m) LFL*
Total variation
At currentexchangerates
Atconstantexchangerates
Group 23,328 +1.9% -0.2%
+2.3% France 10,706 +1.5% -0.5%
-0.5% Other countries 12,621
+2.1% +0.1% +4.7% Europe 6,509 +0.4%
+3.4% +3.3% Latin America 4,673 +5.9% -2.4% +8.4% Asia 1,439
-3.0% -5.4% -0.7%
*ex petrol and calendar effects of -0.3% and -0.6% respectively,
at constant exchange rates
Carrefour’s fourth-quarter 2017 sales stood at €23,328m, up
+1.9% like-for-like, an improvement over the previous quarter
(+0.5%), principally linked to activity in France.
In a persistently competitive environment, France posted
like-for-like growth of +1.5% vs -0.9% in the third quarter,
reflecting more favorable momentum in all formats and successful
Black Friday and year-end campaigns. Sales at hypermarkets,
up +0.7% like-for-like, also benefited from the Carrefour
Anniversary campaign, which took place in October this year instead
of in September, as in 2016.
Europe’s performance (+0.4% like-for-like and +3.4% in
total at current exchange rates) was in line with that of Q3:
- In Spain, like-for-like sales
were down -0.6%. This evolution reflects a high comparable base and
continued competitive pressure in this market. Total growth was
+6.0%, notably taking into account the Eroski stores acquired and
integrated in the first half;
- Like-for-like sales in Italy
were down -1.1%. This evolution reflects strong comparables over
the past two years, notably supported by the momentum of store
remodelings and the roll-out of clusterization in supermarkets, as
well as a toughening competitive environment;
- Like-for-like sales in Belgium
were up +0.8%;
- Sales in Poland were up by +1.9%
on a like-for-like basis despite a high comparable base in Q4 2016.
The strong momentum continued in Romania, with sales up
+7.8%.
In Latin America, like-for-like sales were up +5.9%:
- In Brazil, like-for-like sales
rose +1.4%, impacted by food deflation that continued in the fourth
quarter (of around -5%) while Q4 2016 saw food inflation of +13%.In
this context, Atacadão’s like-for-like sales still posted 2.2%
growth, with higher volumes, notably thanks to an excellent Black
Friday campaign. Like-for-like sales at Carrefour Retail were
broadly stable at -0.1%.
- Like-for-like sales in Argentina
increased by +23.2%, a level close to the country’s inflation
rate.
In Asia, sales were down -3.0% on a like-for-like
basis. China posted a like-for-like sales drop of -5.4%, in
line with trends observed over the past quarters, while favorable
trends continued in Taiwan, where like-for-like sales rose
for the twelth consecutive quarter, by +3.5%.
AGENDA
- Presentation of the
transformation plan: January 23, 2018
- Full-year 2017 results: February 28,
2018 (conference call after market close)
- First-quarter 2018 sales: April 11,
2018
VARIATION OF FULL-YEAR 2017 SALES INC. VAT
The Group’s sales in the full year stood at €88,240m. In the
period, currencies had a favorable effect of +0.3%. The petrol
effect was a favorable +0.2% and the calendar effect was an
unfavorable -0.5%.
Sales inc. VAT
(€m)
Variation ex petrol ex
calendar
Total variation inc.
petrol
LFL Organic
At constant exchange
rates
At current exchange
rates
France 40,096 +0.8% -0.3%
-0.1% -0.1% Hypermarkets 20,783 -0.5%
-1.0% -0.2% -0.2% Supermarkets 12,824 +0.9% -1.0% -1.4%
-1.4% Convenience/other formats 6,489 +4.7% +3.6% +2.8% +2.8%
Other countries 48,144 +2.2%
+4.1% +5.1% +5.6%
Other European
countries 23,566 +1.3% +2.0%
+4.9% +5.0% Spain 9,609 +0.4% +1.1% +7.2%
+7.2% Italy 5,510 +0.9% +0.1% +0.5% +0.5% Belgium 4,375 +0.3% +0.2%
-0.2% -0.2% Poland 2,062 +3.6% +6.0% +5.5% +8.2% Romania 2,010
+7.7% +12.9% +20.2% +18.0%
Latin America
18,021 +6.1% +9.8% +8.9%
+10.9% Brazil 14,526 +3.0% +7.6% +6.7% +13.0% Argentina
3,495 +17.6% +18.4% +18.1% +2.9%
Asia 6,557
-3.7% -2.6% -3.3% -4.7%
China 4,619 -5.5% -5.0% -5.7% -9.0% Taiwan 1,938 +1.2% +4.1% +3.1%
+7.3%
Group total 88,240 +1.6%
+2.2% +2.7% +3.0%
EVOLUTION OF FOURTH-QUARTER 2017 SALES INC. VAT
Group sales stood at €23,328m. Currencies had an unfavorable
-2,5% effect. The petrol effect was an unfavorable -0.3% and the
calendar effect was an unfavorable -0.6%.
Sales inc. VAT
(€m)
Variation ex petrol ex
calendar
Total variation inc.
petrol
LFL Organic
At constant exchange
rates
At current exchange
rates
France 10,706 +1.5% +0.6%
-0.5% -0.5% Hypermarkets 5,757 +0.7%
+0.1% 0.0% 0.0% Supermarkets 3,303 +1.0% -0.9% -2.9% -2.9%
Convenience/other formats 1,647 +5.6% +5.2% +2.9% +2.9%
Other
countries 12,621 +2.1% +3.9%
+4.7% +0.1%
Other European countries 6,509
+0.4% +1.3% +3.3% +3.4%
Spain 2,681 -0.6% +0.4% +6.0% +6.0% Italy 1,457 -1.1% -1.4% -1.3%
-1.3% Belgium 1,189 +0.8% +1.2% +0.3% +0.3% Poland 612 +1.9% +3.8%
+3.5% +7.3% Romania 570 +7.8% +10.4% +9.4% +6.6%
Latin America
4,673 +5.9% +9.3% +8.4%
-2.4% Brazil 3,745 +1.4% +5.8% +4.9% -2.7% Argentina 928
+23.2% +23.2% +23.0% -0.9%
Asia 1,439 -3.0%
-2.3% -0.7% -5.4% China 1,019 -5.4%
-5.4% -3.9% -9.1% Taiwan 419 +3.5% +6.4% +8.5% +5.0%
Group total
23,328 +1.9% +2.4% +2.3%
-0.2%
EXPANSION UNDER BANNERS – FOURTH-QUARTER 2017
Thousands of sq. m
Dec. 31,2016
Sept. 30, 2017
Openings/Store
enlargements
Acquisitions
Closures/ Store
reductions
Total Q4 2017
change
Dec. 31, 2017
France 5,719 5,752 35 - -23
12 5,764 Europe (excluding France) 5,449 5,584 87 -
-72 15 5,599 Latin America 2,335 2,386 25 - -2 22 2,408 Asia 2,758
2,730 7 - -2 6 2,736 Others1 920 986 125
- - 125 1,111
Group
17,181 17,438 279
- -99 180 17,618
STORE NETWORK UNDER BANNERS – FOURTH-QUARTER 2017
N° of stores
Dec 31, 2016
Sept 30,2017
Openings
Acquisitions
Closures/ Disposals
Transfers
Total Q4 2017 change
Dec 31,2017
Hypermarkets 1,480 1,515
23 - -10 -
13 1,528 France 243 247 -
- - - - 247 Europe (excluding
France) 439 459 6 - -5 - 1 460 Latin America 334 342 3 - - - 3 345
Asia 374 370 - - -5 - -5 365
Others1
90 97 14 - - - 14
111
Supermarkets 3,212
3,201 92 - -21
1 72 3,273 France 1,065
1,060 3 - -3 - - 1,060 Europe (excluding France) 1,777 1,752 50 -
-18 1 33 1,785 Latin America 150 147 1 - - - 1 148 Asia 38 47 11 -
- - 11 58 Others1 182 195 27 - -
- 27 222
Convenience
7,072 7,269 198 -
-139 -1 58
7,327 France 4,219 4,275 65 - -73 - -8 4,267 Europe
(excluding France) 2,312 2,412 100 - -65 -1 34 2,446 Latin America
468 494 28 - -1 - 27 521 Asia 27 37 4 - - - 4 41 Others1 46
51 1 - - - 1 52
Cash & carry 171 171
1 - - -
1 172 France 143 143 1 - - - 1 144 Europe
(excluding France) 13 13 - - - - - 13 Asia 2 2 - - - - - 2 Others1
13 13 - - - - -
13
Group 11,935 12,156
314 - -170
- 144 12,300 France 5,670 5,725
69 - -76 - -7 5,718 Europe (excluding France) 4,541 4,636 156 - -88
- 68 4,704 Latin America 952 983 32 - -1 - 31 1,014 Asia 441 456 15
- -5 - 10 466 Others1 331 356 42 -
- - 42 398
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: 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20180117006038/en/
CarrefourInvestor RelationsMathilde Rodié,
Anne-Sophie Lanaute and Louis IgonetTel: +33 (0)1 41 04 28
83orShareholder RelationsTel: 0 805 902 902 (toll-free in
France)orGroup CommunicationTel: +33 (0)1 41 04 26 17
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