1Q16 RESULTS

French retail giant Carrefour reported revenue (including VAT) of €20.1 billion in 1Q16, down 4.5% from €21.0 billion in 1Q15. Sales were adversely impacted by foreign currency effects and petrol prices. Group comparable sales grew by 3.1% at constant exchange rates, excluding fuel and on a comparable calendar basis. The increase was driven by 5.3% growth in the company’s international markets; growth was flat in France.

SALES BY GEOGRAPHIC SEGMENT

France:

• In 1Q16, Carrefour’s comparable sales were flat, at €9.3 billion; the company stated that a hike in petrol prices impacted performance in the quarter.
• Hypermarkets posted comps of (0.6)%, while supermarkets were up 0.7%, and convenience and other format stores were up 1.1%.
• The company transformed 115 stores this quarter, which were acquired from Dia, bringing the total number of stores converted to the Carrefour banner to 267.

International:

• In the international segment, comparable sales (excluding fuel and on a comparable calendar basis) grew by 5.3% at constant currency.
• Excluding France, Carrefour’s Europe comps grew by 3.2%. Comparable sales growth was 3.4% in Spain, 4.5% in Italy and 1.0% in Belgium.
• Management commented that the company posted comparable sales growth in nearly every country in which it operates in Europe in the quarter.
• Comparable sales in Latin America were up 13.5%. Brazil and Argentina posted comp growth of 9.9% and 23.6%, respectively.
• In Asia, comparable sales dropped by 4.9%. China’s comps fell by 8.4%, but improved from previous periods. In Taiwan, comps grew by 8.4%, marking the fifth consecutive quarter of sales growth.

OUTLOOK

Carrefour will focus on expanding and modernizing its store network to enhance the attractiveness of its locations. The company also intends to accelerate its digital transformation throughout the company and revamp its supply chain during the year.