from CARREFOUR (EPA:CA)
Carrefour Q3 2023 Sales Press Release
Con nued solid commercial momentum
LFL sales up +9.0% in Q3
Full-year 2023 targets confirmed
● Good commercial momentum in Q3, in a context of slowing infla on o Like-for-like (LFL) sales growth of +9.0% o Sharp increase in sales of private labels, exceeding 35% of food sales (+3pts vs Q3 2022) o Accelera on in e-commerce GMV, up +31% in Q3, including +16% in France ● In France, LFL sales increased +4.3% , with good performance in all formats, notably in hypermarkets (+4.2% LFL), driven by food sales ● In Europe, Carrefour posted +4.1% LFL growth , driven by Spain (+5.0% LFL) and Belgium (+7.5% LFL) ● In Brazil, LFL sales decreased -3.7% , reflec ng the country’s turn to food defla on during the quarter, amid pressure on consump on ● Integra on of Grupo BIG : Rapid ramp-up of stores converted to Atacadão. R$2bn synergy target by 2025 confirmed ● Cost savings ini a ves progressing well , including headquarters op miza on within the framework of the European mutualisa on. €1bn cost savings target in 2023 confirmed ● The Group confirms all its financial targets for 2023 : Growth in EBITDA, Recurring Opera ng Income and Net Free Cash Flow ● Carrefour’s €800m share buyback for 2023 con nues, with €664m achieved as of October 20 |
Alexandre Bompard, Chairman and Chief Execu ve Officer, declared: “In a context of con nued pressure on the purchasing power of our customers, our Group confirmed the solidity of its commercial momentum and the a rac veness of its model, thanks to the reless commitment of its teams. In the third quarter, we con nued the implementa on of the Carrefour 2026 plan, in par cular through the deployment of the Maxi method in our European stores, the full opera onaliza on of ‘Eureca,’ our European purchasing pla orm, and the con nua on of our digital transforma on, with robust e-commerce growth and increasing use of tech & data solu ons. In this context, Carrefour enters the end of the year with confidence and confirms its full-year 2023 objec ves.”
THIRD-QUARTER 2023 KEY FIGURES
Third-quarter 2023
Total varia on
6,541 | +4.1% | +2.6% | +2.2% | |
6,319 | +20.2% | -4.0% | +19.1% | |
23,629 | +9.0% | +0.5% | +6.9% | |
16 |
Group (pre-IAS 29) |
La n America (pre-IAS 29)
IAS 29 2
Group (post-IAS 29) 23,645
Notes: (1) Excluding petrol and calendar effects and at constant exchange rates; (2) Hyperinfla on and foreign exchange in Argen na
CONTINUED SOLID COMMERCIAL MOMENTUM IN Q3 AMID UNCHANGED FUNDAMENTALS
Carrefour posted solid growth in sales in France (+4.3% LFL) and in Europe (+4.1% LFL) in Q3, while ac vity in Brazil remained under pressure (-3.7% LFL). The quarter was marked by a con nua on of the trends observed over the past few months, with ac vity and customer behavior in line with those of the previous quarter.
In France and Europe, the sales evolu on in Q3 (c.+4% LFL) compared to Q2 (c.+7% LFL) reflected the general slowdown in food infla on of around three points, cycling on strong accelera on of infla on last year. Consumer prices have been globally stable month over month since the start of summer in Europe. Against a backdrop of con nued pressure on purchasing power (cumula ve infla on over 2 years of around +20% in Western Europe and +30% in Eastern Europe), consumer behavior remained unchanged, with con nued trading down and food and non-food volumes s ll contrac ng in Q3, at a pace close to that of the previous quarter.
In this context, Carrefour maintained solid commercial momentum, relying on the strength of its commercial model, the focus of its teams on customer sa sfac on, and the a rac veness of its offering. Carrefour has stepped up ini a ves to support its customers’ purchasing power, notably with the “Frozen Prices” campaigns and several waves of targeted price reduc ons. Carrefour-branded products con nue to a ract an ever-increasing customer base; they represent more than 35% of food sales over the quarter, up +3 points year-on-year. This rapid increase supports the Group’s ambi on of reaching 40% of food sales from private labels by 2026.
The environment was more difficult in Brazil, which has seen year-on-year food defla on since August, with a slowdown of more than 4 points compared to the previous quarter, while volumes were s ll down. In this context, Atacadão is holding up well thanks to its a rac ve price posi oning and rapid ramp-up of stores converted from Grupo BIG. The Group reiterates its synergy target of at least R$2.0bn by 2025.
In this environment, the Group con nues to execute its strategic plan at good pace:
- The rollout of the Maxi method con nues in European hypermarkets and supermarkets, with encouraging preliminary results
- European mutualiza on of central func ons is progressing swi ly:
- In the procurement area, with the Madrid-based Eureca pla orm: the four suppliers announced for
2023 are fully opera onal; a new wave of about fi een addi onal suppliers is underway for 2024
- In headquarters, with the op miza on of support func ons, notably in France
- In digital, Carrefour made good progress over the quarter, in par cular for Unlimitail (Retail Media JV with Publicis), which is comple ng the implementa on of its organiza on and has ini ated encouraging discussions with several non-food retailers in Europe
- Carrefour con nued to implement its CSR commitments, par cularly on disability, a major cause of the Carrefour 2026 strategic plan
- The Group maintains its strong cost discipline, with further ini a ves in Q3, and confirms its objec ve of €1bn savings in 2023
- The acquisi on of Cora's ac vi es in Romania received the approval of the an trust authority, without remedy. The takeover will be effec ve in the coming weeks
- Carrefour recently announced the con nua on of the transforma on of its store network in France, with
16 hypermarkets and 21 supermarkets to be transferred to lease management in 2024
Based on this good opera onal performance, the Group enters the end of the year with confidence, an cipa ng a con nua on of current trends, and confirms its full-year 2023 financial objec ves : growth in EBITDA, Recurring Opera ng Income and Net Free Cash Flow.
THIRD-QUARTER 2023 SALES INC. VAT
Third-quarter sales inc. VAT increased by +9.0% on a like-for-like basis (LFL). They reached €23,629m pre-IAS 29, an increase of +6.9% at constant exchange rates. This increase includes a nega ve petrol effect of -1.5%. A er taking into account a nega ve exchange rate effect of -6.4%, mainly linked to the deprecia on of the Argen nian Peso, total sales growth at current exchange rates amounted to +0.5%. The impact of the applica on of IAS 29 was +€16m.
LFL Q2 2023 Q3 2023
+7.3 % | +4.3 % |
+7.4 % | +4.1 % |
+17.3 % | +20.2 % |
+10.3 % | +9.0 % |
Group |
France Europe La n America
In France , Q3 LFL sales were up +4.3%. This good performance was driven by food sales (+5.7% LFL), while non-food sales remained down in the quarter (-6.8% LFL). The hypermarket format was par cularly dynamic with +4.2% LFL growth, including +5.7% LFL in food. E-commerce GMV remained dynamic with +16% growth in the quarter, a er +14% in H1. As recently announced, the Group plans to transfer 37 new stores (16 hypermarkets and 21 supermarkets) to lease-management in 2024.
Q2 2023 | Q3 2023 |
+6.6 % | +4.2 % |
+7.6 % | +3.8 % |
+8.2% | +5.3% |
+8.8% | +5.7% |
+7.3% | +4.3% |
France |
LFL
Hypermarkets Supermarkets Convenience/other formats incl. Convenience
In Europe , sales increased by +4.1% LFL in the quarter. The slowdown of around 3 points vs Q2 (+7.4% LFL) reflects that of food infla on in all countries. Volumes remained globally nega ve, with the excep on of Belgium, which benefited from a sharp business recovery.
● In Spain (+5.0% LFL), Carrefour maintained solid growth momentum in all formats, notably in hypermarkets, despite high exposure to non-food which remained under pressure. Carrefour announced during the quarter the acquisi on of 47 supermarkets and convenience stores under the SuperCor banner, with closing expected in the first half 2024
● In Italy (+1.7% LFL), Carrefour con nued its posi ve trajectory with strengthened price compe veness and con nued improvement in customer sa sfac on
● In Belgium (+7.5% LFL), the Group confirmed its recovery with excellent commercial momentum, transla ng into marked outperformance in sales and volumes vs the market. This good performance notably reflects the success of the commercial ini a ves implemented over the last 12 months
● In Poland (-3.9% LFL), sales decrease was directly linked to the very high comparable base (+18.5% LFL in Q3 2022 in the context of the war in Ukraine)
● In Romania (+4.5% LFL), Carrefour posted solid momentum, with growth in store traffic
LFL Q2 2023 Q3 2023
+7.7% | +5.0% |
+4.7% | +1.7% |
+12.5% | +7.5% |
+0.4% | -3.9% |
+7.5% | +4.5% |
+7.4% | +4.1% |
Europe (excl. France) |
Spain Italy Belgium Poland Romania
In La n America , LFL sales were up +20.2%.
● In Brazil , LFL sales were down -3.7%, globally in-line with Q2 performance (-3.2% LFL) despite a slowdown of more than 4 points in food infla on, which was nega ve in August and September. Total sales were down -3.9% at constant exchange rates. The foreign exchange effect was a nega ve -0.5%.
o Sales at Atacadão were down -2.7% LFL, improving sequen ally versus Q2 2023 (-4.3% LFL). The legacy scope posted a sales decrease in line with Q2 despite the slowdown in food infla on, thanks to be er volume momentum. Sales at former Grupo BIG stores converted to
Atacadão ramped up fast, with strong +22.2% LFL growth in Q3 o Carrefour Retail sales were more impacted by the economic environment and high comparable base (+15.0% LFL in Q3 2022). LFL sales were down -7.7% in Q3
o Sam’s Club sales were up +9.3% with +2.0% LFL sales growth and the addi on of 5 stores over the past 12 months. The number of ac ve members increased +10.2% vs. Q3 2022, thanks to the recruitment of new customers through digital tools
o E-commerce GMV was up +50%, including +67% in food e-commerce, thanks to the ramp-up of Atacadão's online business and the integra on of Grupo BIG
o Financial services con nued to grow, with a +26% increase in credit por olio and billings up
+13 % in Q3, notably benefi ng from the addi on of former Grupo BIG customers
● In Argen na (+141.2% LFL), Carrefour once again demonstrated the strength of its model in a country experiencing very high infla on. Sales growth reflected further market share gains, driven by the addi on of new customers
LFL Q2 2023 Q3 2023
-3.2 % | -3.7 % |
-4.3% | -2.7% |
+0.3% | -7.7% |
n.a. | +2.0% |
+127.0% | +141.2% |
+17.3% | +20.2% |
La n America |
Brazil
Atacadão
Carrefour Retail
Sam’s Club
Argen na
FURTHER IMPLEMENTATION OF THE €800M SHARE BUYBACK
As part of its €800m share buyback program for 2023, Carrefour has repurchased 38,195,704 shares between February 27 and October 20, 2023, at an average price of 17.40 euros, for a total amount of €664m.
On 25 October 2023, Carrefour's Board of Directors approved the cancella on of 11,193,018 shares. Following these cancella ons, the total number of shares making up the share capital will be 708,790,816, including 9,607,385 treasury shares and the number of shares in issue will therefore be 699,183,431.
CARREFOUR, A COMMITTED COMPANY
In Q3 2023, the Group con nued to implement the major CSR pillars of the Carrefour 2026 strategic plan.
● On climate , Carrefour launched in September 2023 an interna onal coali on that aims to accelerate sales of plant-based alterna ves with seven industrial partners (Danone, Unilever, Bel, Andros, Bonduelle, Nutri on & Santé, Savencia). This coali on will accelerate and unite around the objec ve of €500m in sales of plant-based protein products in Europe by 2026 at Carrefour, with an overall objec ve of €3bn for the eight partners
● On disability , which is the main cause of the Carrefour 2026 strategic plan:
o Carrefour organized a major innova on compe on with Vivatech , in order to select 3 startups whose handi-accessible solu ons are currently being tested in a laboratory hypermarket to promote more inclusion, in Villeneuve-La-Garenne
o The Group also announced, during Paralympic Week in October 2023, its support, through the Carrefour Founda on, of the French Paralympic and Sports Commi ee in order to develop the prac ce of sport for people with disabili es throughout France
o Finally, Carrefour announced the launch in October 2023 of “ Cafés Joyeux ” products in more than 800 stores in France, in order to support and develop the employment of people with cogni ve or mental disabili es
● On solidarity , Carrefour responded immediately to an appeal by Restos du Cœur with an excep onal dona on of products
Carrefour’s ac ons contributed to further strengthening its extra-financial ra ngs: Moody's ra ng rose from 73 to 76 out of 100. Carrefour maintained its AA ra ng by MSCI and Prime C+ by Oekom ISS. The Group obtained the maximum score of 5/5 on its diversity audit conducted by the GEEIS.
AGENDA
● Q4 sales and FY 2023 results: February 20, 2024
CONTACTS
Investor Rela ons | |
Sébas en Valen n, Anthony Guglielmo | Tel : +33 (0)1 64 50 82 57 |
Shareholder Rela ons | Tel : 0 805 902 902 (toll-free in France) |
Group Communica on | Tel : +33 (0)1 58 47 88 80 |
APPENDIX
Third-quarter 2023 sales inc. VAT
Varia on ex petrol ex
Total varia on inc. petrol
Sales calendar
( €m) | LFL | Organic | ||
France | 10,769 | +4.3 % | +3.4 % | |
Hypermarkets Supermarkets | ,151 | +4.2 % | +2.9 % | |
,594 | +3.8 % | +3.2 % | ||
Convenience /other formats | ,024 | +5.3 % | +4.9 % | |
Other European countries | 6,541 | +4.1 % | +3.6 % | |
Spain Italy | ,075 | +5.0 % | +5.1 % | |
,083 | +1.7 % | +0.1 % | ||
Belgium | ,113 | +7.5 % | +5.7 % | |
Poland | 563 | -3.9 % | -4.2 % | |
Romania | 706 | +4.5 % | +5.8 % | |
La n America (pre-IAS 29) | 6,319 | +20.2 % | +19.6 % | |
Brazil | ,311 | -3.7 % | -3.9 % |
+2.1 % | +2.1 % |
+0.7 % | +0.7 % |
+2.6 % | +2.2 % |
+2.2 % | +2.2 % |
-4.0 % | +19.1 % |
-4.3 % | -3.9 % |
inc. VAT 
at current at constant
exchange exchange rate rates
+3.6 % +3.6 % +3.1 % +3.1 %
-0.3 % -0.3 % +5.7 % +5.7 % +1.4 % -3.8 % +5.2 % +6.0 %
Argen na (pre-IAS 29) | 1,008 | +141.2% | +142.7% | -2.3% | +142.9% | ||
Group total (pre-IAS 29) | 23,629 | +9.0% | +8.4% | +0.5% | +6.9% | ||
IAS 29 (1) | 16 |
Group total (post-IAS 29) 23,645
Note: (1) hyperinfla on and foreign exchange
Technical effects – Third-quarter 2023
Calendar | Petrol | Foreign exchange | ||
France | +0.2 % | -1.5 % | - | |
Hypermarkets Supermarkets | +0.3 % | -2.4 % | - - | |
+0.5 % | -0.1 % | |||
Convenience /other formats | -0.4 % | -1.4 % | - | |
Other European countries | -0.1 % | -1.3 % | +0.4 % | |
Spain Italy | -0.2 % | -2.7 % | - - | |
+0.0 % | -0.4 % | |||
Belgium | -0.0 % | - | - | |
Poland | +0.4 % | 0.0 % | +5.2 % | |
Romania | +0.1 % | 0.0 % | -0.8 % | |
La n America | -0.2 % | -0.3 % | -23.1 % | |
Brazil Argen na | -0.2 % | +0.2 % | -0.5 % -145.2 % | |
+0.2 % | - | |||
Group total | +0.0 % | -1.5 % | -6.4 % |
Nine-month 2023 sales inc. VAT
Varia on ex petrol ex
Total varia on inc. petrol
Sales calendar
( €m) | LFL | Organic | ||
France | 31,544 | +6.2 % | +5.3 % | |
Hypermarkets Supermarkets | ,173 | +5.6 % | +4.1 % | |
,558 | +6.2 % | +5.5 % | ||
Convenience / Other formats | ,814 | +7.6 % | +7.9 % | |
Other European countries | 18,965 | +6.7 % | +6.2 % | |
Spain Italy | 8,654 | +7.2% | +7.4% | |
3,249 | +3.9% | +1.6% | ||
Belgium | 3,369 | +10.0% | +8.4% | |
Poland | 1,661 | +0.7% | +0.9% | |
Romania | 2,032 | +7.9% | +9.3% | |
La n America (pre-IAS 29) | 18,567 | +20.7 % | +22.9 % | |
Brazil | ,560 | -0.9 % | +2.0 % |
+3.4 % | +3.4 % |
+1.7 % | +1.7 % |
+4.6 % | +4.4 % |
+4.2% | +4.2% |
+10.1 % | +29.1 % |
+9.9 % | +10.2 % |
inc. VAT
At current At constant exchange exchange rates rates
+4.2 % +4.2 % +6.4 % +6.4 %
+0.8% +0.8% +8.5% +8.5 % +1.6% -0.4% +9.2% +9.3%
Argen na (pre-IAS 29) | 3 ,007 | +130.0 % | +131.2 % | +11.2 % | +131.6 % | ||
Group total (pre-IAS 29) | 69,077 | +10.4% | +10.5% | +5.5% | +10.3% | ||
IAS 29 (1) | (34) |
Group total (post-IAS 29) 69,042
Note : (1) hyperinfla on and foreign exchange
Technical effects – Nine months 2023
Calendar | Petrol | Foreign exchange | ||
France | +0.2 % | -2.1 % | - | |
Hypermarkets Supermarkets | +0.2 % | -2.6 % | - - | |
+0.3 % | -1.6 % | |||
Convenience / Other formats | +0.1 % | -1.6 % | - | |
Other Europeans countries | +0.0 % | -1.7 % | +0.2 % | |
Spain Italy | -0.1 % | -3.1 % | - - | |
+0.2% | -0.9% | |||
Belgium | +0.0% | - | - | |
Poland | +0.0% | -1.3% | +2.0% | |
Romania | +0.1% | -0.0% | -0.1% | |
La n America | +0.0% | -1.0% | -19.0% | |
Brazil Argen na | +0.0 % | -0.6 % | -0.3 % -120.4 % | |
+0.4 % | - | |||
Group total | +0.1% | -2.3% | -4.9% |
Expansion under banners – Q3 2023
Closures/ Openings/
Dec. 31 June 30 Store Q3 2023
Store Acquisi ons Sept. 30 2023
Thousands of sq. 2022 2023 reduc ons/ change
enlargements
m Disposals
France | 5 ,629 | 5 ,633 | 7 | 1 | -6 | 2 | 5 ,636 |
Europe (ex Fr) | 5 ,965 | 5 ,810 | 45 | 0 | -42 | 3 | 5 ,813 |
La n America (1) | 4 ,010 | 3 ,917 | 22 | 0 | -4 | 16 | 3 ,933 |
Others (2) | 1 ,638 | 1 ,561 | 583 | 0 | -17 | 566 | 2 ,127 |
Group (1) | 17 ,241 | 16 ,921 | 656 | 1 | -69 | 587 | 17 ,508 |
Notes: (1) Asia, Africa, Middle East and Dominican Republic
Store network under banners – Q3 2023
N° of stores | Dec. 31 2022 | June 30 2023 | Openings | Acquisi ons | Closures/ Disposals | Transfers | Total Q3 2023 change | Sept. 30 2023 |
Hypermarkets | 1 ,128 | 1 ,104 | 72 | - | -7 | - | 65 | 1 ,169 |
France | 253 | 253 | - | - | - | - | - | 253 |
Europe (ex France) | 455 | 454 | 3 | - | -2 | - | 1 | 455 |
La n America | 252 | 223 | - | - | - | - | - | 223 |
Others (1) | 168 | 174 | 69 | - | -5 | - | 64 | 238 |
Supermarkets | 3 ,842 | 3 ,794 | 343 | - | -36 | -1 | 306 | 4 ,100 |
France | 1 ,039 | 1 ,037 | - | - | - | - | - | 1 ,037 |
Europe (ex France) | 2,088 | 2,044 | 53 | - | -29 | 0 | 24 | 2,068 |
La n America | 246 | 233 | - | - | - | -1 | -1 | 232 |
Others (1) | 469 | 480 | 290 | - | -7 | - | 283 | 763 |
Convenience stores | 8,573 | 8,557 | 123 | 10 | -82 | 0 | 51 | 8,608 |
France | 4 ,472 | 4 ,493 | 42 | 10 | -21 | - | 31 | 4 ,524 |
Europe (ex France) | 3 ,471 | 3 ,381 | 59 | - | -58 | 0 | 1 | 3 ,382 |
La n America | 581 | 594 | 12 | - | -2 | - | 10 | 604 |
Others (1) | 49 | 89 | 10 | - | -1 | - | 9 | 98 |
Cash & carry | 541 | 567 | 6 | - | - | 1 | 7 | 574 |
France | 148 | 150 | - | - | - | - | - | 150 |
Europe (ex France) | 12 | 12 | - | - | - | - | - | 12 |
La n America | 356 | 374 | 5 | - | - | 1 | 6 | 380 |
Others (1) | 25 | 31 | 1 | - | - | - | 1 | 32 |
So discount (Supeco) | 221 | 220 | 1 | - | - | - | 1 | 221 |
France | 33 | 33 | - | - | - | - | - | 33 |
Europe (ex France) | 91 | 93 | 1 | - | - | - | 1 | 94 |
La n America | 97 | 94 | - | - | - | - | - | 94 |
Others (1) | - | - | - | - | - | - | - | - |
Sam’s Club | 43 | 47 | - | - | - | - | - | 47 |
France | - | - | - | - | - | - | - | - |
Europe (ex France) | - | - | - | - | - | - | - | - |
La n America | 43 | 47 | - | - | - | - | - | 47 |
Others (1) | - | - | - | - | - | - | - | - |
Group | 14,348 | 14,289 | 545 | 10 | -125 | 0 | 430 | 14,719 |
France | 5,945 | 5,966 | 42 | 10 | -21 | - | 31 | 5,997 |
Europe (ex France) | 6,117 | 5,984 | 116 | - | -89 | 0 | 27 | 6,011 |
La n America | 1,575 | 1,565 | 17 | - | -2 | 0 | 15 | 1,580 |
Others (1) | 711 | 774 | 370 | - | -13 | - | 357 | 1,131 |
Note: (1) Asia, Africa, Middle East and Dominican Republic
DEFINITIONS
Free cash flow
Free cash flow corresponds to cash flow from opera ng ac vi es before net finance costs and net interests related to lease commitment, a er the change in working capital, less net cash from/(used in) inves ng ac vi es.
Net Free Cash Flow
Net Free Cash Flow corresponds to free cash flow a er net finance costs and net lease payments.
Like for like sales growth (LFL)
Sales generated by stores opened for at least twelve months, excluding temporary store closures, at constant exchange rates, excluding petrol and calendar effects and excluding IAS 29 impact.
Organic sales growth
Like for like sales growth plus net openings over the past twelve months, including temporary store closures, at constant exchange rates.
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DISCLAIMER
This press release contains both historical and forward-looking statements. These forward-looking statements are based on Carrefour management's current views and assump ons. Such statements are not guarantees of future performance of the Group. Actual results or performances may differ materially from those in such forward looking statements as a result of a number of risks and uncertain es, including but not limited to the risks described in the documents filed with the Autorité des Marchés Financiers as part of the regulated informa on disclosure requirements and available on Carrefour's website (www.carrefour.com), and in par cular the Universal Registra on Document. These documents are also available in English on the company's website. Investors may obtain a copy of these documents from Carrefour free of charge. Carrefour does not assume any obliga on to update or revise any of these forward-looking statements in the future.