Carrefour Sales Lifted by Latin America -- Update

By Nick Kostov

PARIS-- Carrefour SA beat analyst consensus in the third quarter with robust sales growth in Latin America and ongoing improvements in its core French market, even though its Asia business continued to shrink.

Sales rose 1.1% to EUR21.78 billion ($23.91 billion) in the three months to Sept. 30, the retailer said, slightly above analysts' expectations of EUR21.71 billion. On a like-for-like basis, which excludes currency and calendar effects and gasoline sales, revenue rose 3.2%.

Carrefour stock rose more than 2% in early trading in Paris.

A confluence of difficulties--from competition in its home market of France to a restructuring in China and difficult economic conditions in Brazil--have hurt Carrefour in recent months. Ahead of the latest numbers, the stock had lost 19% in the past year.

In France, where Carrefour does almost half of its business, sales fell 0.9% to EUR10.17 billion. On a like-for-like basis, revenue in France rose 1.2% as food sales increased in the period put gasoline prices weighed on revenue.

International sales grew 4.5% by the same like-for-like measure, with Latin America the standout performer. In Brazil, where the economy has been in recession, like-for-like sales grew 12.4%.

Trading conditions in Asia remain challenging, however, with sales falling 5% on the same basis. Carrefour continued to restructure its operations in China, and finance chief Pierre-Jean Sivignon said that the latest quarter had seen "several encouraging signs for food sales" in the country.

With currency effects included, sales in Latin America rose 9.7%, within which Brazil rose 25%, while sales in Asia were down 6.9%.

Following the third-quarter sales update, Mr. Sivignon said the 2016 market consensus for earnings before interest and tax of EUR2.45 billion is achievable.

"We keep adding growth over growth," Mr. Sivignon said.

Write to Nick Kostov at Nick.Kostov@wsj.com

(END) Dow Jones Newswires

October 19, 2016 03:45 ET (07:45 GMT)

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