par CARREFOUR (EPA:CA)
Carrefour Q1 2024 Sales Press Release
LFL sales up +13.5% in Q1 2024
Sound execu on of strategic ini a ves
Full-year 2024 financial targets confirmed
● Like-for-like sales growth of +13.5% in Q1 ● Broadly stable sales in France (-0.4% LFL) and the rest of Europe (-0.2% LFL) , reflec ng the slowdown in infla on and price investments, while volumes remained under pressure ● Inflec on in Brazil, with sales up +1.3% LFL in Q1 (a er -2.2% LFL in Q4), notably thanks to good performance at Atacadão (+1.8% LFL) and Sam’s Club (+6.9% LFL) and to the con nued ramp-up of ex-BIG stores converted to Atacadão (+21% LFL) ● Intensified price investments in France and the rest of Europe, supported by the strategic ini a ves of the Carrefour 2026 plan and reinforced cost savings plan, raised to €1.2bn in 2024 (vs. €1.0bn) ● Sound execu on of strategic ini a ves in Q1 o Con nued progress from Carrefour-branded products, reaching 37% of food sales (vs. 35% in Q1 2023) o Strong +33% growth in e-commerce GMV, notably driven by Brazil o Strong NPS® increase of more than 6 points, including +8 points in France, notably driven by price percep on o Ramp-up of Eureca, Carrefour’s European purchasing pla orm, now including 20 partner suppliers ● Full-year 2024 financial targets confirmed : Growth in EBITDA and Recurring Opera ng Income; Net Free Cash Flow in line with the Carrefour 2026 plan trajectory ● Carrefour has ini ated its €700m share buyback program with €428m secured to date , including €365m related to the buyback of 25 million shares from Galfa |
Alexandre Bompard, Chairman and Chief Execu ve Officer, declared: “In the first quarter, Carrefour Group demonstrated resilience in Europe against a backdrop of con nued pressure on purchasing power. The Group also recorded very clear signs of recovery in Brazil, notably in its Atacadão and Sam’s Club formats. In order to strengthen our compe veness while protec ng our economic model, we are heightening our cost-reduc on dynamic and will accelerate price reduc ons throughout 2024 in France and the rest of Europe. Further progress in implemen ng our strategic plan enables the Group to view the rest of the year with confidence and to confirm its full-year 2024 targets.”
FIRST-QUARTER 2024 KEY FIGURES
First-quarter 2024
Total varia on
6,155 | -0.2% | +2.4% | +1.8% | |
6,000 | +48.0% | +2.7% | +47.8% | |
22,156 | +13.5% | +0.4% | +12.1% | |
75 |
Group (pre-IAS 29) |
La n America (pre-IAS 29)
IAS 29 2
Group (post-IAS 29) 22 ,230
Notes: (1) Excluding petrol and calendar effects and at constant exchange rates; (2) Hyperinfla on and foreign exchange in Argen na
STRATEGIC INITIATIVES PROGRESSING WELL IN Q1 2024
Carrefour is staying the course against a backdrop marked by a sharp slowdown in food infla on in all European countries, further trading down and con nued pressure on volumes.
In this context, the Group made new advances in the implementa on of the Carrefour 2026 plan:
● Carrefour-branded products con nued to show strong progress, reaching 37% of food sales vs. 35% in Q1 2023 , supported by growing popularity (voted favorite retailer brand in France for the 4th successive year)
● European mutualiza on con nues, with a strong ramp-up of Eureca, the European purchasing pla orm, and the roll-out of shared services
● Digital ini a ves con nued to bear fruit, with a +33% increase in e-commerce GMV in Q1 and further advances in the Data and Retail media ac vity
In the first quarter, the Group strengthened investments in its compe veness in France and the rest of Europe, with new price reduc on campaigns. This reposi oning is already no ceable in a strong NPS® increase at Group level (+6 points) driven by improving price percep on. Carrefour plans to increase its investments throughout 2024 and is giving itself the necessary means to implement this policy while protec ng its economic model, raising its cost saving objec ve to €1.2bn from €1.0bn ini ally.
In Brazil, the quarter was marked by a sequen al improvement in ac vity and by the good performance of converted former Grupo BIG stores, contribu ng strongly to growth in sales and profitability. At the same me, the Group ini ated the conversion wave of 40 Carrefour hypermarkets to Atacadão and Sam’s Club formats, to be finalized by 2026 (including 20 in 2024), with 5 stores already reopened in Q1 and 9 undergoing conversion work.
Carrefour is also making further progress in CSR, notably on climate and diversity, with the implementa on of a proac ve promo on policy on diversity.
The Paris 2024 Olympic and Paralympic Games, for which Carrefour is a premium partner, are an unprecedented showcase for the promo on of our values, par cularly on inclusion and disability, and for the Group’s “raison d'être,” the food transi on for all. Carrefour will provide all fresh products used for the athletes' meals at the Olympic and Paralympic Village. Carrefour will sell with exclusivity more than 400 products under the Paris 2024 license. This partnership also brings together all Group employees, including those working in franchise stores, who took part in a major internal cohesion project around sport during the “Big Carrefour Tournament.”
The Group is moving forward with confidence. Strategic ini a ves in Europe are bearing fruit; ac vity is significantly improving in Brazil, driven both by a more buoyant market environment and the ramp-up of converted stores. In this context, Carrefour confirms its financial targets for 2024: Growth in EBITDA and Recurring Opera ng Income; Net Free Cash Flow in line with the Carrefour 2026 plan trajectory.
FIRST-QUARTER 2024 SALES INC. VAT
First-quarter sales inc. VAT increased by +13.5% on a like-for-like basis (LFL). They reached €22,156m pre-IAS 29, an increase of +12.1% at constant exchange rates. This increase includes a nega ve petrol effect of -2.3%, and a calendar effect of +1.4%, mainly linked to the leap year and the ming of Easter in the first quarter this year. A er taking into account a nega ve exchange rate effect of -11.8%, mainly reflec ng the deprecia on of the Argen nian Peso, total sales growth at current exchange rates amounted to +0.4%. The impact of the applica on of IAS 29 was +€75m.
LFL
| Q1 2024
| ||
France | -0.4% | ||
Europe | -0.2% | ||
La n America | +48.0% | ||
Group | +13.5% | ||
management. | |
LFL
| Q1 2024
|
Hypermarkets | -1.3 % |
Supermarkets | +0.1 % |
Convenience/other formats | +0.8 % |
o/w Convenience | +0.2% |
France | -0.4 % |
In France , Q1 LFL sales were slightly down, by -0.4%, reflec ng LFL food growth of +0.4% while non-food sales were down -7.5% LFL. This performance comes in a context of slowing infla on and con nued pressure on volumes. Carrefour con nued to invest in its compe veness, with price reduc ons on more than 700 products at na onal level during the quarter, the announcement of new price reduc on waves every fortnight, star ng with an average 10% reduc on on 100 everyday products on April 1 st , and mul ple addi onal price ini a ves at store level. Customer sa sfac on has improved strongly in France, with an NPS® increase of +8pts year-on-year. At the same me, Carrefour is con nuing to transform the way it operates its stores in France, with 6 of the 16 hypermarkets scheduled for transfer in 2024 already switched to lease
In Europe , sales are broadly stable (-0.2% LFL in Q1). The sequen al decelera on reflected the general slowdown in food infla on over the quarter, while the Group strengthened its price investment policy.
● In Spain (+0.7% LFL), Carrefour maintained solid momentum in food (+1.2% LFL) and posted a slight decline in non-food (-1.2% LFL). NPS® was up +6 points year-on-year
● In Italy (-1.4% LFL), sales were slightly down over the quarter in a market marked by decreasing volumes
● In Belgium (-0.2% LFL), sales were broadly stable. A er +4.3% LFL sales growth in January/February with an increase in volumes, confirming excellent commercial momentum, sales decreased in March (-7.6% LFL) on an excep onally high comparable base (+16.8% LFL in March 2023) linked to major disrup ons last year at a compe tor
● In Romania (+1.7% LFL), Carrefour con nued to report solid sales growth despite a high comparable base (+12.5% LFL in Q1 2023) and a sharp slowdown in infla on. Total sales increased by +15.0% at constant exchange rate, notably driven by the integra on of the Cora stores acquired in Q4, which benefit from Carrefour’s commercial model, with first synergies already visible
● In Poland (-4.2% LFL), the sales decrease came amid a par cularly difficult market environment, with heightened compe on since the beginning of the year
LFL Q1 2024
Spain +0.7%
Italy -1.4%
Belgium -0.2%
Romania +1.7% Poland -4.2%
Europe (excl. France) | -0.2% |
In La n America , like-for-like sales were up +48.0%.
● In Brazil , LFL sales rose by +1.3 % in Q1, returning to growth a er three quarters of decline. Ac vity has improved significantly month a er month, with +3.7% LFL sales growth in March. This good performance reflects improved commercial momentum in all formats, with a recovery in volumes, amid a return to slightly posi ve food infla on. Total sales grew by +2.5 % at constant exchange rate. The foreign exchange effect was a favorable +3.7% in the quarter.
o Atacadão sales were up +6.6% at constant exchange rate in Q1 2024, driven by LFL sales up +1.8% and expansion with 20 new stores opened in the last 12 months. This good momentum notably reflected recovery in BtoB business and the success of commercial ini a ves such as
the roll-out of in-store service counters (bakery, butchery, cold cuts). 58 stores now offer those services (vs. 19 in December 2023), which will con nue to be rolled out to approximately 120 stores by year-end. Ex-Grupo BIG stores converted to Atacadão con nued their rapid ramp-up, with +21% LFL growth in Q1
o Carrefour Retail sales (-1.4% LFL) also showed sequen al improvement since Q4 2023 (-5.5% LFL), with a return to posi ve territory in March. Non-food sales posted solid growth over the quarter (+2.4% LFL). The store por olio adjustment is concluded, with 123 stores (16 hypermarkets and 107 supermarkets) sold or closed at end-March
o Sam’s Club sales con nued their excellent momentum (+6.9% LFL), benefi ng from a sharp
+33.5 % increase in ac ve members vs. March 2023 o E-commerce GMV con nued to post strong growth in Q1 (+52%), driven by a +78% increase in food
o Financial services maintained solid growth, with billings up +16% and a +22% increase in credit por olio in Q1, notably reflec ng the recruitment of new customers in recently-converted stores
● In Argen na (+265.0% LFL), Carrefour con nued to report very strong growth in a context of hyperinfla on. The Group also strengthened its price posi oning leadership
LFL
| Q1 2024
| ||
Brazil | +1.3 % | ||
Atacadão | +1.8% | ||
Carrefour Retail | -1.4 % | ||
Sam’s Club | +6.9% | ||
Argen na | +265.0% | ||
La n America | +48.0% | ||
COMPLETION OF ACQUISITIONS
The comple on of several acquisi ons, announced in recent months, already took place or is expected this year:
● In Spain, Carrefour completed the acquisi on of supermarkets and convenience stores under the SuperCor banner from El Corte Inglés on April 9. The transac on includes 43 stores for a revised enterprise value of €53m (compared to the announcement of €60m for 47 stores). Stores will be rapidly converted to Carrefour Market, Carrefour Express and Supeco formats, with the first reopenings expected in early May
● In France, the acquisi on of 25 ex-Casino stores out of the 31 announced on January 24 is expected to be completed on April 30. It is subject to Casino’s ability to li the condi ons precedent a ached to the transfer. The effec ve acquisi on of the remaining stores from Intermarché is expected in the second half of the year
● The closing of the acquisi on of Cora and Match banners in France is s ll expected by summer 2024
IMPLEMENTATION OF THE €700M SHARE BUYBACK PROGRAM
The Group ini ated the new share buyback program announced in February for an amount of €700m.
29,041,471 shares were repurchased since March 4, for a total amount of €428m, including 4,041,471 shares at an average price of 15.68 euros and the buyback of 25 million shares (c.3.5% of the share capital) from Galfa, for an amount of €365m [1] , as announced on March 26, 2024. As a reminder, these 25 million shares will be delivered a er payment of the dividend for the financial year 2023 (subject to approval of the Annual General Mee ng on May 24, 2024).
On April 24, 2024, the Board of Directors decided to cancel 16,844,310 shares. To date, the number of shares making up the share capital therefore amounts to 691,946,506, including 2,395,286 treasury shares. The total number of outstanding shares as of April 24, 2024 thus amounts to 689,551,220 , of which 25 million shares repurchased and not yet delivered to date.
FURTHER PROGRESS IN CSR
In the first quarter, Carrefour con nued to implement strong CSR commitments, in line with the Carrefour 2026 plan:
● Climate change - In January 2024, Carrefour énergie s ini ated a partnership with Octopus Energy in France, with the aim of offering its customers an ultra-compe ve French green electricity offer, thus pursuing its ac ons in favor of the energy and environmental transi on
● Diversity - Carrefour has launched an unprecedented ac on plan in France to reinforce diversity of origin among its managers. Based on an extensive in-house survey of Group employees in France, to which almost 20,000 responded, this ac on plan is founded on four complementary pillars: training in non-discrimina on and diversity awareness, crea on of a community of role models, recruitment and promo on of candidates from diverse backgrounds, notably in conjunc on with specialized associa ons
● Responsible consump on - The Group has launched the Restart project, a key project enabler for responsible consump on, with the aim of tes ng and deploying best prac ces for more sustainable and inclusive stores. Topics include an -waste, packaging, climate, second-hand, nutri on, accessibility and diversity
● Carrefour Founda on - In January 2024, the Carrefour Founda on began a new mandate, now focused on the fight against food insecurity, in the current context of increasing needs of food aid associa ons
AGENDA
● Annual General Mee ng: May 24, 2024
● Q2 sales and H1 2024 results: July 24, 2024 (a er market close)
● Q3 sales: October 23, 2024 (a er market close)
CONTACTS
Investor Rela ons
Sébas en Valen n, Anthony Guglielmo and Mathilde Novick | 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 First-quarter 2024 sales inc. VAT
Varia on ex petrol ex
Total varia on inc. petrol
Sales calendar
( €m) | LFL | Organic | ||
France | 10,000 | -0.4 % | -1.8 % | |
Hypermarkets Supermarkets | 4 ,807 | -1.3 % | -3.0 % | |
3 ,392 | +0.1 % | -0.5 % | ||
Convenience /other formats | 1 ,802 | +0.8 % | -0.7 % | |
Other European countries | 6,155 | -0.2 % | -0.3 % | |
Spain | 2 ,716 | +0.7 % | +0.6 % | |
Italy | 1 ,035 | -1.4 % | -3.0 % | |
Belgium | 1 ,102 | -0.2 % | -0.2 % | |
Romania | 725 | +1.7 % | +3.7 % | |
Poland | 576 |
| -4.2 % | -4.7 % |
La n America (pre-IAS 29) | 6,000 | +48.0 % | +47.8 % |
-2.1 % | -2.1 % |
-3.8 % | -3.8 % |
+2.4 % | +1.8 % |
+2.7 % | +47.8 % |
inc. VAT 
at current at constant
exchange exchange rates rates
-0.1 % -0.1 %
-1.3 % -1.3 %
+0.2 % +0.2 %
-1.2 % -1.2 %
+1.3 % +1.3 %
+13.7 % +15.0 %
+9.4 % +0.6 %
Brazil 5 ,168 
+1.3 % +1.6 % +6.2 % +2.5 %
Argen na (pre-IAS 29) | 832 | +265.0% | +272.3% | -14.7% | +274.5% | ||
Group total (pre-IAS 29) | 22,156 | +13.5% | +12.8% | +0.4% | +12.1% | ||
IAS 29 (1) | 75 |
Group total (post-IAS 29) 22,230
Note: (1) hyperinfla on and foreign exchange
Technical effects – First-quarter 2024
Foreign
Calendar Petrol
exchange
France | +1.4 % | -1.7 % | - | |
Hypermarkets Supermarkets | +1.6 % | -2.4 % | - - | |
+1.5 % | -1.1 % | |||
Convenience /other formats | +0.8 % | -1.2 % | - | |
Other European countries | +1.5 % | -0.5 % | +0.6 % | |
Spain | +0.6 % | -1.0 % | - | |
Italy | +2.3 % | -0.5 % | - | |
Belgium | +1.5 % | - | - | |
Romania | +1.6% | -0.1% | -1.2% | |
Poland | +4.3% | +1.0% | +8.8% | |
La n America | +1.2% | -1.2% | -45.1% | |
Brazil | +1.0% | -0.1% | +3.7% | |
Argen na | +2.2% | - | -289.2% | |
Group total | +1.4 % | -2.3 % | -11.8 % |
Change in the company’s share capital
Dec. 31 2023 | Apr. 24 2024 | ||
Total number of shares | 708,790,816 | 691,946,506 | |
Shares bought back for cancella on | 12,802,839 | - | |
Other treasury shares | 4,806,686 | 2,395,286 | |
Total number of outstanding shares | 691,181,291 | 689,551,220 [2] |
Expansion under banners – Q1 2024
Closures/ Openings/
Dec. 31 Store
Store Acquisi ons Q1 2024 change Mar. 31 2024
2023 reduc ons/
enlargements
Thousands of sq. m Disposals
France | 5 ,697 | +14 | +2 | -16 | - | 5 ,697 |
Europe (ex Fr) | 5 ,937 | +42 | - | -24 | +18 | 5 ,955 |
La n America | 3 ,951 | +7 | - | -152 | -144 | 3 ,807 |
Others (1) | 2 ,113 | +66 | - | - | +66 | 2 ,178 |
Group | 17 ,698 | +129 | +2 | -192 | -61 | 17 ,638 |
Note: (1) Asia, Africa, Middle East and Dominican Republic
Store network under banners – Q1 2024
N° of stores | Dec. 31 2023 | Openings | Acquisi ons | Closures/ Disposals | Transfers | Total Q1 2024 change | Mar. 31 2024 |
Hypermarkets | 1,182 | - | - | -17 | -4 | -21 | 1,161 |
France | 253 | - | - | - | - | - | 253 |
Europe (ex France) | 469 | - | - | - | - | - | 469 |
La n America | 223 | - | - | -16 | -4 | -20 | 203 |
Others (1) | 237 | - | - | -1 | - | -1 | 236 |
Supermarkets | 4 ,146 | 59 | - | -34 | -5 | 20 | 4 ,166 |
France | 1 ,037 | 2 | - | -2 | - | - | 1 ,037 |
Europe (ex France) | 2 ,139 | 52 | - | -14 | -1 | 37 | 2 ,176 |
La n America | 212 | - | - | -15 | -4 | -19 | 193 |
Others (1) | 758 | 5 | - | -3 | - | 2 | 760 |
Convenience stores | 8 ,754 | 106 | 8 | -99 | 2 | 17 | 8 ,771 |
France | 4,561 | 51 | 8 | -29 | - | 30 | 4,591 |
Europe (ex France) | 3 ,445 | 43 | - | -66 | 1 | -22 | 3 ,423 |
La n America | 631 | 7 | - | -4 | 1 | 4 | 635 |
Others (1) | 117 | 5 | - | - | - | 5 | 122 |
Cash & carry | 584 | 5 | - | -1 | 7 | 11 | 595 |
France | 151 | 2 | - | -1 | - | 1 | 152 |
Europe (ex France) | 12 | - | - | - | - | - | 12 |
La n America | 387 | 1 | - | - | 7 | 8 | 395 |
Others (1) | 34 | 2 | - | - | - | 2 | 36 |
So discount (Supeco) | 213 | - | - | -83 | - | - | 130 |
France | 33 | - | - | - | - | - | 33 |
Europe (ex France) | 97 | - | - | - | - | - | 97 |
La n America | 83 | - | - | -83 | - | - | - |
Others (1) | - | - | - | - | - | - | - |
Sam’s Club | 51 | - | - | - | - | - | 51 |
France | - | - | - | - | - | - | - |
Europe (ex France) | - | - | - | - | - | - | - |
La n America | 51 | - | - | - | - | - | 51 |
Others (1) | - | - | - | - | - | - | - |
Group | 14,930 | 170 | 8 | -234 | - | -56 | 14,874 |
France | 6,035 | 55 | 8 | -32 | - | 31 | 6,066 |
Europe (ex France) | 6,162 | 95 | - | -80 | - | 15 | 6,117 |
La n America | 1,587 | 8 | - | -118 | - | -110 | 1,477 |
Others (1) | 1,146 | 12 | - | -4 | - | 8 | 1,154 |
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.
® Net Promoter, Net Promoter System, Net Promoter Score, NPS and the NPS-related emo cons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc
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.