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Growth of 1.9% at constant exchange rates

Regulatory News:

Carrefour (Paris:CA):

• Third-quarter sales of €21.9bn
  • Up +1.9% on a reported basis at constant exchange rates and up 0.5% like-for-like
  • Growth driven by Europe and Latin America
• Third-quarter performance reflecting:
  • Heightened competitive pressure in Europe and particularly in France
  • Atypical seasonality, notably marked by shifts in dates of promotional campaigns
  • An improvement in non-food sales (notably in Latin America and France)
  • A particularly marked fall in food inflation in Brazil and deflation on seasonal fruits and vegetables in Europe
  • An improvement in the evolution of like-for-like sales in Asia
• The new team, which has been rapidly put in place, is fully mobilized to determine the transformation’s key pillars, to be presented by the end of the year.

  Third quarter 2017   Nine months 2017

Salesinc.VAT(€m)

 

  LFL*   Total variation

Salesinc. VAT(€m)

  LFL*   Total variation      

At currentexchangerates

 

Atconstantexchangerates

   

At currentexchangerates

 

At constantexchangerates

France 10,042 -0.9% -1.3%   -1.3% 29,389 +0.5% +0.1%   +0.1% Other countries 11,817   +1.4%   +1.8%   +4.6% 35,523   +2.3%   +7.7%   +5.3% Group 21,859   +0.5%   +0.4%   +1.9% 64,912   +1.5%   +4.1%   +2.8%

*ex petrol and ex calendar

Total sales under banners including petrol stood at €26.4bn in the third quarter of 2017 and at €78.5bn in the first nine months of 2017, up respectively by +2.3% and +2.5% at constant exchange rates.

THIRD QUARTER 2017 SALES INC. VAT

FURTHER GROWTH ON A STRONG COMPARABLE BASE

 

Sales inc. VAT (€m)

  LFL*   Total variation    

At currentexchangerates

 

At constantexchangerates

Group   21,859 +0.5% +0.4%   +1.9% France 10,042 -0.9% -1.3%   -1.3% Other countries   11,817 +1.4% +1.8%   +4.6% Europe 5,894 +0.6% +4.8% +4.9% Latin America 4,290 +4.4% +1.4% +7.7% Asia   1,633 -3.0% -6.9%   -3.5%

*ex petrol ex calendar

Carrefour’s third quarter 2017 sales stood at €21,859m, up +0.5% on a like-for-like basis. The currency effect was an unfavorable -1.5% in the quarter, while the petrol and calendar effects were neutral. Total sales were up +1.9% at constant exchange rates (+0.4% at current exchange rates).

In a persistently challenging competitive environment, sales in France were down -0.9% like-for-like (-1.3% in total). This quarter was notably marked by deflation on fruit and vegetable prices and adverse weather conditions, impacting all formats, as well as by shifts in promotional campaigns, in particular in hypermarkets.

Sales in hypermarkets were down -1.7% on a like-for-like basis, notably due to the shift in the Carrefour Anniversary campaign, which started three weeks later than last year, amid an environment that remained highly promotional. Hypermarket sales were also affected by sharp deflation on seasonal fruit and vegetable prices, which also impacted supermarkets and convenience and other formats. On a challenging comparable base, supermarket like-for-like sales were down -1.2%, while like-for-like sales in convenience and other formats increased by +2.2%.

Sales in Other countries activities rose +4.6% in total at constant exchange rates and by +1.8% at current exchange rates. On a like-for-like basis, sales were up +1.4%.

In Europe, total sales increased by +4.9% at constant exchange rates (+4.8% at current exchange rates) and by +0.6% like-for-like. Most countries in the region were strongly impacted by deflation on seasonal fruit and vegetable prices.

• In Spain, like-for-like sales were slightly down by -0.3%. During the quarter, the Spanish market was impacted by adverse weather conditions and by an increase in competitive pressure. However, total sales posted a rise of +9.0%, reflecting the excellent performance of converted Eroski stores;
• Sales in Italy fell slightly on a like-for-like basis, by -0.5%. This evolution reflects a strong comparable base for the past two years as well as a more promotional environment;
• Sales in Belgium were down -0.5% on a like-for-like basis, also in a more promotional environment;
• Like-for-like sales remained particularly dynamic in Poland and in Romania, up respectively by +4.4% and by +9.2%.

In Latin America, like-for-like sales were up +4.4%. At constant exchange rates, they rose by +7.7% (+1.4% at current exchange rates, including an unfavorable currency effect of -6.3%):

• In Brazil, total sales at constant exchange rates rose by +5.3% and by +1.1% like-for-like, in a context marked by a strong slowdown in food inflation, which entered negative territory this quarter compared with a peak one year earlier (16.8% in August 2016). Non-food sales continued to grow strongly in the quarter.
• Total sales in Argentina rose by +17.4% at constant exchange rates and by +16.7% on a like-for-like basis. The economic recovery that is starting to materialize in the country has not yet had a notable impact on consumption, with volumes remaining under pressure. Moreover, inflation has slowed but remains high, close to 20%.

In Asia, like-for-like sales were down -3.0%:

• China recorded an improvement, with like-for-like sales down by -4.6%.
• In Taiwan, favorable trends continued and like-for-like sales rose for the eleventh consecutive quarter, rising by +0.9% on the back of strong comparables.

NINE MONTH 2017 SALES INC. VAT

TOTAL GROWTH OF +4.1% AT CURRENT EXCHANGE RATES

 

Sales inc. VAT (€m)

  LFL*   Total variation    

At currentexchangerates

 

At constantexchangerates

Groupe   64,912 +1.5% +4.1%   +2.8% France 29,389 +0.5% +0.1%   +0.1% Other countries   35,523 +2.3% +7.7%   +5.3% Europe 17,057 +1.6% +5.7% +5.6% Latin America 13,348 +6.2% +16.4% +9.2% Asia   5,118 -3.9% -4.5%   -4.1%

*ex petrol and ex calendar

Over the first nine months of 2017, Carrefour posted sales of €64,912m, up +1.5% on a like-for-like basis. Currencies had a positive impact of +1.3% in the period, largely due to the appreciation of the Brazilian Real. Petrol had a favorable effect of +0.3% while the calendar effect was an unfavorable -0.4%. At constant exchange rates, total sales were up +2.8% (+4.1% at current exchange rates).

On a like-for-like basis, sales were up +0.5% in France and +2.3% in our Other countries, in a context that remains highly promotional and in a macro-economic environment marked by a sharp slowdown in inflation in several markets. Total sales growth reached +0.1% in France and +5.3% outside of France at constant exchange rates (+7.7% at current exchange rates). This growth reflects a strong sales increase in Latin America, and also takes into account the positive effect of expansion and acquisitions, Billa in Romania and Eroski in Spain.

OUTLOOK

For full-year 2017, Groupe Carrefour sales at constant exchange rates should grow by between 2% and 4%, and the evolution of recurring operating income at current exchange rates should be roughly in line with that of the first half.

The Group aims to reach free cash flow in 2017 at the same level as in 2016, excluding exceptional items, with Capex confirmed at between €2.2bn to €2.3bn.

The new team, which has been rapidly put in place, is fully mobilized to determine the transformation’s key pillars, to be presented by the end of the year.

AGENDA

• Fourth quarter 2017 sales: January 17, 2018 (after market close)
• Full-year 2017 results: March 1, 2018 (before market opening)

VARIATION OF THIRD QUARTER 2017 SALES INC. VAT

Group sales stood at €21,859m. Currencies had an unfavorable effect of -1.5%, largely due to the depreciation of the Argentine Peso. The petrol and calendar effects were both neutral.

   

Salesinc. VAT(€m)

 

Variation ex petrol excalendar

  Variation inc. petrol   LFL   Organic

At constantexchangerates

 

At currentexchangerates

France   10,042 -0.9%   -1.8% -1.3%   -1.3% Hypermarkets 5,167 -1.7%   -2.1% -0.6%   -0.6% Supermarkets 3,189 -1.2% -3.0% -3.0% -3.0% Convenience/Other formats 1,686 +2.2% +1.4% +0.3% +0.3%                   Other countries   11,817 +1.4%   +3.2% +4.6%   +1.8%                   Europe   5,894 +0.6%   +1.4% +4.9%   +4.8% Spain 2,515 -0.3% +0.2% +9.0% +9.0% Italy 1,333 -0.5% -1.2% -0.6% -0.6% Belgium 1,059 -0.5% -0.6% -0.5% -0.5% Poland 484 +4.4% +7.0% +6.4% +8.4% Romania 503 +9.2% +13.3% +10.6% +7.8%                   Latin America   4,290 +4.4%   +7.9% +7.7%   +1.4% Brazil 3,476 +1.1% +5.3% +5.3% +2.6% Argentina 814 +16.7% +17.9% +17.4% -3.6%                   Asia   1,633 -3.0%   -2.3% -3.5%   -6.9% China 1,117 -4.6% -4.6% -5.5% -10.2% Taiwan 515 +0.9% +3.5% +1.4% +1.1%                   Group total   21,859 +0.5%   +1.0% +1.9%   +0.4%

VARIATION OF NINE MONTH 2017 SALES INC. VAT

Group sales stood at €64,912m over nine months. Over the period, currencies had a positive impact of +1.3%, largely due to the appreciation of the Brazilian Real. Petrol had a favorable effect of +0.3% while the calendar effect was an unfavorable -0.4%.

   

Salesinc. VAT(€m)

 

Variation ex petrol excalendar

  Variation inc. petrol   LFL   Organic

At constantexchangerates

 

At currentexchangerates

France 29,389 +0.5%   -0.6% +0.1%   +0.1% Hypermarkets 15,026 -0.9%   -1.4% -0.2% -0.2% Supermarkets 9,521 +0.9% -1.0% -0.8% -0.8% Convenience/other formats 4,842 +4.3% +3.0% +2.8% +2.8%                 Other countries 35,523 +2.3%   +4.1% +5.3%   +7.7%                 Europe 17,057 +1.6%   +2.3% +5.6%   +5.7% Spain 6,928 +0.8% +1.4% +7.6% +7.6% Italy 4,052 +1.7% +0.6% +1.1% +1.1% Belgium 3,186 +0.1% -0.1% -0.3% -0.3% Poland 1,450 +4.3% +7.0% +6.3% +8.6% Romania 1,440 +7.7% +14.0% +25.2% +23.2%                 Latin America 13,348 +6.2%   +10.1% +9.2%   +16.4% Brazil 10,781 +3.6% +8.3% +7.4% +19.7% Argentina 2,567 +15.4% +16.6% +16.1% +4.4%                 Asia 5,118 -3.9%   -2.7% -4.1%   -4.5% China 3,599 -5.5% -4.9% -6.2% -8.9% Taiwan 1,519 +0.6% +3.4% +1.7% +8.0%                 Group total 64,912 +1.5%   +2.0% +2.8%   +4.1%

EXPANSION UNDER BANNERS – THIRD QUARTER 2017

Thousands of sq. m  

Dec. 31, 2016

 

June 30, 2017

 

Openings/Storeenlargements

  Acquisitions  

Closures/Storereductions

 

Total Q32017 change

 

Sept. 30, 2017

France   5,719   5,744   14   -   -6   8   5,752 Europe (ex France) 5,449 5,574 45 9 -44 10 5,584 Latin America 2,335 2,363 27 - -4 23 2,386 Asia 2,758 2,727 4 - -1 3 2,730 Others1   920   958   29   -   -1   28   986 Group   17,181   17,366   118   9   -55   72   17,438

STORE NETWORK UNDER BANNERS – THIRD QUARTER 2017

N° of stores   Dec. 31, 2016   June 30,2017   Openings   Acquisitions  

Closures/Disposals

  Transfers  

Total Q32017 change

  Sept. 30, 2017 Hypermarkets   1,480   1,507   9   2   -3   -   8   1,515 France   243   247   -   -   -   -   -   247 Europe (ex France) 439 458 2 2 -3 - 1 459 Latin America 334 338 4 - - - 4 342 Asia 374 370 - - - - - 370

Others1

  90   94   3   -   -   -   3   97 Supermarkets   3,212   3,194   30   -   -25   2   7   3,201 France 1,065 1,059 2 - -1 - 1 1,060 Europe (ex France) 1,777 1,753 17 - -20 2 -1 1,752 Latin America 150 149 - - -2 - -2 147 Asia 38 43 5 - -1 - 4 47 Others1   182   190   6   -   -1   -   5   195 Convenience   7,072   7,180   160   -   -69   -2   89   7,269 France 4,219 4,237 60 - -22 - 38 4,275 Europe (ex France) 2,312 2,378 82 - -46 -2 34 2,412 Latin America 468 485 10 - -1 - 9 494 Asia 27 32 5 - - - 5 37 Others1   46   48   3   -   -   -   3   51 Cash & carry   171   171   -   -   -   -   -   171 France 143 143 - - - - - 143 Europe (ex France) 13 13 - - - - - 13 Asia 2 2 - - - - - 2 Others1   13   13   -   -   -   -   -   13 Group   11,935   12,052   199   2   -97   -   104   12,156 France 5,670 5,686 62 - -23 - 39 5,725 Europe (ex France) 4,541 4,602 101 2 -69 - 34 4,636 Latin America 952 972 14 - -3 - 11 983 Asia 441 447 10 - -1 - 9 456 Others1   331   345   12   -   -1   -   11   356

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.

1 Africa, Middle East and Dominican Republic.

View source version on businesswire.com: http://www.businesswire.com/news/home/20171018006088/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)orCommunication GroupeTel : +33 (0)1 41 04 26 17