Published: October 12, 2005
Carrefour Announces 3rd Quarter Sales Including VAT
October 12th 2005
Despite a very weak economic environment, improving like for likes in
France, tactical acquisitions, and faster organic growth, have led to an
increase in Q3 pro forma group sales ex-currency of 5.1%
(+7.2% inc. currency)
Sales in France increased 2.4%. Carrefour continues to win food
market share
Sales outside France increased by 8.3%
THIRD QUARTER 2005
Sales Like Expansion Total Currencies Total
Incl. for Ex.
VAT like (%) Currency (%) (%)
(mEUR) (%) (%)
FRANCE 10 085 1.9 0.5 2.4 0.0 2.4
EUROPE 7 887 0.3 5.8 6.1 1.1 7.1
ex Fce
LATIN 1 663 2.3 8.7 11.0 21.1 32.0
AMERICA
ASIA 1 642 0.5 13.7 14.2 4.5 18.7
TOTAL 21 276 1.2 3.9 5.1 2.0 7.2
9 MONTHS 2005
Sales Like Expan Total Currencies Total
Incl. for -sion Ex.
VAT like Currency (%) (%)
(mEUR) (%) (%) (%)
FRANCE 28 996 0.7 0.5 1.2 0.0 1.2
EUROPE 22 650 0.7 4.4 5.1 1.0 6.1
ex Fce
LATIN 4 456 4.8 5.5 10.3 11.7 22.0
AMERICA
ASIA 4 635 3.7 14.2 17.9 1.2 19.2
TOTAL 60 738 1.2 3.2 4.4 1.2 5.6
* In the third quarter, Carrefour pro forma group sales, including
VAT, but ex-currency, grew 5.1%. Including currency, sales grew 7.2%.
On reported Q3 2004 numbers, sales growth was 2.7% ex currency and
4.7% including currency respectively (Mexico, Japan, Prodirest, the
Czech Republic and Slovakia have been deconsolidated as of the 1st
January 2005).
* In France, Carrefour continues to deliver food market share gains.
In the quarter, we gained 0.4% market share in hypermarkets and 0.3%
share overall, according to Secodip. Year to date, we have won 0.2%
in hypermarkets, 0.3% in hard discount and 0.1% in convenience
stores. Supermarket share is stable. Despite continued deflation,
strong volume growth in food and petrol inflation enabled
hypermarkets to register a 2.4% increase in like for like sales.
Supermarket like for likes, while still negative, showed an
improvement on Q2.
* The trading environment in Europe remains challenging. However,
despite weak market volumes and deflation, sales trends are stable
quarter on quarter. Sales in the region increased 6.1% in the
quarter, with like for likes increasing 0.3%.
* We confirm that we will open around 1.4 million square metres of
new space in 2005 through organic growth and through tactical
acquisitions. In Q3, we opened 524 new stores under banner,
accounting for 480 000 m2 of new space. This included 22
hypermarkets, 135 supermarkets, 169 hard discount stores and 195
convenience stores. We now have 11 833 stores in our portfolio.
* We have continued our efforts to clean up and upgrade our portfolio
of assets. At the end of the quarter, we announced our intention to
swap our activities in the Czech Republic and Slovakia for Tesco's
activities in Taiwan.
* Despite a tough economic and competitive environment, we continue
to follow a consistent and determined pricing strategy. The market
remains very difficult, with little sign of improvement in the
foreseeable future. Against this background, we remain committed to
doing what is necessary to reinforce our price competitiveness and to
win market share in all our markets, as we have been doing since the
beginning of this year.
* FRANCE
THIRD QUARTER 2005
Sales Like for Expansion Total
(mEUR) like (%) (%)
(%)
FRANCE 10 085 1.9 0.5 2.4
Hypermarkets 5 214 2.4 0.0 2.4
Supermarkets 2 112 -0.3 0.9 0.6
Hard discount 568 -2.4 4.9 2.5
Others 2 191 3.8 0.1 4.0
9 MONTHS 2005
Sales Like for Expansion Total
(mEUR) like (%) (%)
(%)
FRANCE 28 996 0.7 0.5 1.2
Hypermarkets 15 086 1.4 0.0 1.4
Supermarkets 6 161 -1.6 2.3 0.7
Hard discount 1 776 -0.8 5.0 4.2
Others 5 974 1.5 -1.2 0.3
In France, like for like sales trends in hypermarkets and
supermarkets have improved versus Q2. A consistent and determined
pricing strategy has driven food market share gains for the group
year to date.
In France, sales rose 2.4% in the quarter on a pro forma basis
stripping out the contribution of Prodirest, which has been
deconsolidated from the 1st January 2005, but not including the
contribution from the 101 Penny Market stores which were acquired
from Rewe in June. The closing of this transaction has not yet been
finalized.
Hypermarket sales grew by 2.4%. With no new stores in the period,
this consisted wholly of like for like sales growth. Excluding
petrol, like for like sales increased by 0.5% despite a negative
calendar effect of 0.3%.
This increase was mainly due to an increase in the value of the
average basket of 0.9%. The trend in the number of customer
transactions declined slightly, down 0.4% in Q3 and broadly flat on a
calendar-adjusted basis.
Supermarket sales in the quarter were up 0.6%. Like for like sales,
including petrol, fell slightly by 0.3%, representing a significant
improvement on the -2.4% recorded in Q2. Excluding petrol, like for
like sales fell 3.6%. This compares to -5.3% in Q2.
Over the quarter, Champion has made progress implementing its multi
year program to expand and to upgrade its store portfolio. 6 new
stores were acquired and 20 stores were extended to accommodate a
wider range of non-food. Non-food sales increased 10.6% over the
quarter. We are on track to extend 100 stores by the year end.
ED grew sales by 2.5% in the quarter. Like for likes fell by 2.4%. We
opened 14 stores in the quarter.
Convenience stores same-store sales fell 0.1% excluding petrol. At
the end of the quarter, there were 1 651 convenience stores in our
portfolio, an increase of 1 versus the end of Q2 2005.
Overall, in France in Q3, we opened 48 000 m2 of new space, of which
hypermarkets accounted for 2 000 m2 and supermarkets 16 000 m2.
* EUROPE
THIRD QUARTER 2005
Sales Like Expansion Total Curren Total
for Ex. cies
(mEUR) like (%) Currency (%)
(%) (%) (%)
EUROPE ex 7 887 0.3 5.8 6.1 1.1 7.1
Fce
Spain Total 3 458 3.1 1.5 4.6 0.0 4.6
Hypermarkets 2 206 5.1 3.2 8.3 0.0 8.3
Supermarkets 239 -9.9 -11.8 -21.7 0.0 -21.7
Hard 724 1.1 3.3 4.4 0.0 4.4
discount
Others 290 9.5 -2.4 7.1 0.0 7.1
Italy Total 1 624 -3.3 5.3 2.0 0.0 2.0
Hypermarkets 675 -4.5 4.6 0.1 0.0 0.1
Supermarkets 505 -2.8 1.2 -1.6 0.0 -1.6
Others 444 -1.5 11.2 9.7 0.0 9.7
Belgium 1 142 -0.8 0.3 -0.5 0.0 -0.5
Total
Hypermarkets 588 -0.5 0.0 -0.5 0.0 -0.5
Supermarkets 260 -2.1 2.2 0.0 0.0 0.0
Others 293 -0.1 -0.7 -0.8 0.0 -0.8
Other 1 664 -1.4 21.9 21.9 20.5 26.5
countries
9 MONTHS 2005
Sales Like Expansion Total Currencies Total
for Ex.
(mEUR) like Currency (%) (%)
(%)
(%) (%)
EUROPE ex 22 650 0.7 4.4 5.1 1.1 6.1
Fce
Spain Total 9 746 3.3 1.6 4.9 0.0 4.9
Hypermarkets 6 134 4.9 3.0 7.9 0.0 7.9
Supermarkets 659 -6.8 -12.0 -18.8 0.0 -18.8
Hard 2 172 1.8 3.0 4.8 0.0 4.8
discount
Others 782 8.5 -0.1 8.4 0.0 8.4
Italy Total 4 862 -1.7 3.5 1.8 0.0 1.8
Hypermarkets 1 983 -1.3 3.2 1.8 0.0 1.8
Supermarkets 1 593 -2.3 3.1 0.7 0.0 0.7
Others 1 286 -1.4 4.7 3.3 0.0 3.3
Belgium 3 441 -1.1 1.2 0.1 0.0 0.1
Total
Hypermarkets 1 771 -0.8 0.0 -0.8 0.0 -0.8
Supermarkets 808 -0.6 3.6 3.0 0.0 3.0
Others 862 -2.2 1.6 -0.6 0.0 -0.6
Other 4 600 -1.1 15.0 13.9 5.9 19.8
countries
Sales trends across Europe remained stable versus Q2 in a challenging
economic environment. Spain continued to grow strongly. We gained
market share in all our major markets, reinforced by tactical
acquisitions in markets such as Italy, Poland and Turkey.
Overall, sales in Europe grew 6.1% in the period on constant exchange
rates and on a pro forma basis, stripping out the contributions of
the Czech Republic and Slovakia, which have been deconsolidated from
the 1st January 2005, but including the acquisitions made in Cyprus,
Turkey, and Italy which were consolidated as of Q3.
Sales in Spain increased 4.6%, the same rate of growth as in Q2.
Hypermarkets recorded like for like sales growth of 5.1% in the
quarter. Dia meanwhile increased like for like sales by 1.1%. The
sales performance of supermarkets, however, was again impacted by
radical action taken to eliminate the operating loss reported in
2004. This has involved the transfer of 5 supermarkets to the Maxi
Dia concept and 11 "mini-hypermarkets" to the Carrefour banner by the
end of August.
In Belgium, hypermarket like for likes were down 0.5% and supermarket
like for likes fell by 2.1% as a result of on going efforts to
reinforce price image. Overall, like for like sales in Belgium were
down 0.8%. Both hypermarkets and supermarkets gained market share in
the period.
Italy remains the most challenging market in Europe. Nonetheless, we
were again able to increase market share in hypermarkets despite a
fall in like for like sales of 4.5%. Supermarket like for likes fell
2.8%.
Elsewhere in Europe, in Greece, Poland and Turkey, we continued to
show strong growth with sales up 16.0%, 29.7% and 60.1% respectively.
We are committed to reinforcing our already strong presence in these
markets through faster organic growth and tactical acquisitions even
though the challenging market environment weighs on like for like
sales in the short term.
8 hypermarkets, 129 supermarkets, 123 hard discount stores and 179
convenience stores were opened in the quarter.
* LATIN AMERICA
THIRD QUARTER 2005
Sales Like Expan Total Currencies Total
for Sion Ex.
(mEUR) like Currency (%) (%)
(%) (%) (%)
LATIN 1 663 2.3 8.7 11.0 21.1 32.0
AMERICA
Brazil 1 113 -1.5 8.4 6.9 28.7 35.6
Total
Argentina 391 13.0 4.3 17.3 4.2 21.5
Total
Colombia 159 -1.1 23.5 22.4 13.8 36.2
Total
9 MONTHS 2005
Sales Like Expansion Total Currencies Total
for Ex.
(mEUR) like (%) Currency (%) (%)
(%) (%)
LATIN 4 456 4.8 5.5 10.3 11.7 22.0
AMERICA
Brazil 2 941 2.5 4.3 6.9 17.1 24.0
Total
Argentina 1 080 12.1 1.5 13.6 -2.0 11.6
Total
Colombia 436 -0.3 26.6 26.3 12.6 38.8
Total
Latin America once again showed strong sales growth, despite a
difficult economic environment in Brazil. This was due to an
acceleration of organic growth in Brazil and Colombia as well as
continued strong like for like growth in Argentina.
Sales in Latin America increased 11.0% on constant currency on a pro
forma basis, stripping out the contribution of Mexico, which has been
deconsolidated from the 1st January 2005. Like for like sales in the
region increased 2.3%.
In Brazil, sales from new square metres increased 8.4%. In addition
to three new hypermarkets opened organically since the beginning of
the year, we acquired from Sonae in June 10 hypermarkets formerly
operating under the BIG banner and located in the Sao Paulo area. The
sales from these hypermarkets have been consolidated on transfer to
the Carrefour banner. So far, nine have become Carrefour
hypermarkets. Like for like sales in Brazil fell by 1.5%, reflecting
in part the cannibalization effect from the acceleration of new store
openings. Hypermarket like for likes fell 1.4% while supermarket like
for likes fell by 7.2%.
Colombia grew constant currency sales by 22.4%, reflecting
accelerating organic growth in the country (We expect to open 6
stores this year versus 4 in 2004). We are committed to building
rapidly a leadership position in Colombia even if in the short term
this holds back like for like sales growth because of internal
cannibalisation.
Like for like sales growth in Argentina was stable versus Q2 (+13.0%
versus +12.9%). Like for like sales growth in supermarkets and
hypermarkets was 18.1% and 8.1% respectively. Dia also showed strong
like for likes, up 13.9%.
3 hypermarkets and 21 hard discount stores were opened in Latin
America in the quarter.
* ASIA
THIRD QUARTER 2005
Sales Like Expansion Total Currencies Total
for Ex.
(mEUR) like (%) Currency (%) (%)
(%) (%)
ASIA 1 642 0.5 13.7 14.2 4.5 18.7
China 511 1.1 18.3 19.3 2.2 21.6
Total
Taiwan 385 -0.4 9.7 9.3 5.6 14.8
Total
Korea 416 -1.6 10.9 9.3 13.5 22.8
Total
Other 330 3.4 14.9 18.2 -4.1 14.2
countries
9 MONTHS 2005
Sales Like Expansion Total Currencies Total
for Ex.
(mEUR) like (%) Currency (%) (%)
(%) (%)
ASIA 4 635 3.7 14.2 17.9 1.2 19.2
China 1 501 3.9 24.6 28.5 -3.2 25.2
Total
Taiwan 1 031 2.4 8.4 10.8 3.1 13.9
Total
Korea 1 157 4.8 5.7 10.5 11.9 22.3
Total
Other 946 3.9 15.3 19.2 -6.6 12.6
countries
In Asia, we have rationalized our portfolio, announcing our intention
to reinforce key markets such as Taiwan through acquisition, and
maintained a high level of organic growth with 30% of the group's new
organic square metres in Q3 having opened in the region.
As a result of our efforts, pro forma sales grew 14.2% on constant
exchange rates, stripping out the contribution of Japan, which has
been deconsolidated from the 1st January 2005 following the franchise
agreement with Aeon in March. Like for like sales growth was 0.5%.
China grew like for likes by 1.1%. This reflects strong growth in
food volumes offset by a decline in non-food sales as a result of the
timing of two key public holidays.
Korea and Taiwan both saw an increase in the number of customer
transactions as consumers responded positively to the roll out of new
commercial models. However, further significant price investments
caused the value of the average basket to decline and, as a result,
there was a small decline in like for likes, down 1.6% and 0.4%
respectively.
Like for like sales in Indonesia grew strongly, up 7.9%. Like for
likes were down in Thailand by 2.0%. Here, a significant increase in
the price of petrol, linked to the reduction of government subsidies,
caused a substantial decline in customer transactions. The value of
the average basket, however, increased as customers spent more per
trip. (A similar reduction of government subsidies in Indonesia is
likely to take effect in Q4).
11 hypermarkets and 11 hard discount stores were opened in Asia in
the quarter.
* NETWORK OF STORES UNDER BANNERS - Q3 2005
June Openings Additions Disposals/ Sept
2005 Transfers 2005
HYPERMARKETS 887 16 6 -13 896
France 216 216
Europe ex 354 4 4 -13 349
Fce
Latin 139 2 1 142
America
Asia 178 10 1 189
SUPERMARKETS 2 404 18 117 -13 2 526
France 1 024 6 -4 1 026
Europe ex 1 161 18 111 -9 1 281
Fce
Latin 211 211
America
Asia 8 8
HARD 5 088 119 50 -37 5 220
DISCOUNT
France 658 14 1 673
Europe ex 3 673 73 50 -32 3 764
Fce
Asia 201 11 212
Latin 556 21 -6 571
America
CONVENIENCE 2 850 37 158 -34 3 011
STORES
France 1 650 12 4 -15 1 651
Europe ex 1 200 25 154 -19 1 360
Fce
CASH AND 177 3 180
CARRY
France 130 3 133
Europe ex 47 47
Fce
TOTAL 11 193 331 -97 11
COUNTRIES 406 833
Total France 3 678 29 10 -18 3 699
Total Europe 6 435 120 319 -73 6 801
ex Fce
Total 906 23 1 -6 924
Americas
Total Asia 387 21 1 409
Investor relations: David Shriver, Etienne Humbert
Tel : (33) 01 53 70 19 00
Shareholders information: Veronique Kretz
No vert : 0805 902 902
Press relations: TBWA Corporate
Tel : (33) 01 49 09 26 66
This information is provided by RNS
The company news service from the London Stock Exchange
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