Robust Brazil, improving France lift Carrefour Q3 sales growth

Record ID: 81814

  • Title: Robust Brazil, improving France lift Carrefour Q3 sales growth
  • Date: 19th October 2016
  • Summary: PARIS, FRANCE (FILE - AUGUST 2011) (REUTERS) VARIOUS OF EXTERIOR OF CARREFOUR STORE
  • Embargoed: 3rd November 2016 10:30
  • Keywords: Robust Brazil improving France lift Carrefour Q3 sales growth
  • Location: LONDON, ENGLAND, UK / VARIOUS LOCATIONS IN FRANCE /BELGIUM
  • City: LONDON, ENGLAND, UK / VARIOUS LOCATIONS IN FRANCE /BELGIUM
  • Country: France
  • Topics: Company News Markets,Economic Events
  • Reuters ID: LVA00154O6XSD
  • Aspect Ratio: 16:9
  • Story Text:World number-two retailer Carrefour said on Wednesday (October 19) that sales growth accelerated in the third quarter, reflecting robust sales in Brazil and an improving performance in its biggest market, France, despite a difficult environment there.
    "Obviously France, the French economy has been a concern for Carrefour for quite some time. I think the latest figures form Q3 have shown that they are making progress there, they're improving their online operation, they're modernising their stores. But certainly I think a more global outlook is also very positive. They've just opened a new store in Poland, new markets there. Ultimately there does appear to be some evidence of a turnaround in the business and ultimately hopefully that will continue as we head into or head towards the end of the year," said Michael Hewson, Market Analyst, CMC Markets.
    In China, where Carrefour is restructuring its operations, slowing consumer consumption remained a challenge, but the rate of decline in sales slowed to 7.8 percent like-for-like from 9.3 percent in the second quarter.
    Market estimates for full-year 2016 earnings before interest and tax (EBIT) of around 2.45 billion euros were "achievable", according to finance chief Pierre-Jean Sivignon.
    Carrefour, which makes 73 percent of its sales in Europe, is pursuing a global revival initiated by Chief Executive Georges Plassat in 2012 by focusing on price and cost cuts, and expansion into smaller convenience stores, while also renovating its chain of hypermarkets.
    Europe's largest retailer said third-quarter sales were 21.78 billion euros ($23.91 billion), above the median analyst estimates for 21.71 billion in a Thomson Reuters poll.
    Stripping out fuel and calendar effects, like-for-like revenue grew 3.2 percent year-on-year, an acceleration from the 2.7 percent growth achieved in the second quarter.
    In France, like-for-like sales rose 1.2 percent, beating consensus expectations of 0.6 percent growth, a performance Citi analysts said would be "supportive to the shares".
    Its smaller rival Casino reported a sales slowdown in the quarter.
    Both retailers face weak consumer demand, low food inflation and poor weather in France as well intense price competition.
    In Brazil, Carrefour's second-largest market, like-for-like sales rose 12.4 percent.
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