First-quarter 2018 sales: +2.6% at constant exchange rates Carrefour 2022: Solid transformation momentum initiated

Transcription

1 First-quarter 2018 sales: +2.6% at cnstant Carrefur 2022: Slid transfrmatin mmentum initiated First-quarter 2018 sales f 20,776m, up +2.6% at cnstant and up 0.4% n a like-fr-like basis, penalized by: Less favrable markets verall in Eurpe, ntably due t adverse weather cnditins impacting mre specifically nn-fd and hypermarkets; Cntinued sharp fd deflatin in Brazil; Persistently strng cmpetitive pressure in the Grup s main markets. Slid executin dynamic f the «Carrefur 2022» plan in the first quarter: Implementatin f the peratinal transfrmatin plan: Launch f the prcess t transfrm the rganizatins in France, Belgium and Argentina; psitive mmentum in gains n direct and indirect purchasing; advances in discussins n the remval f 273 ex-dia stres frm the Grup s scpe; Rll-ut f mnichannel ffer: Rapid extensin f hme delivery in France; pening f new Drives; launch f the Carrefur Pay payment slutin; rapid advances in the plan t create a single carrefur.fr website; acquisitin f a majrity stake in start-up Quitque, a leader f meal-kit hme deliveries in France; First achievements in the fd transitin fr all: Launch f the first fd blckchain in the pultry prduct line t ensure traceability; extensin f the range f prducts cntaining n antibitics t varius prducts in Belgium, Pland and recently in Spain; signature f a partnership with the WWF t accelerate the cnversin and the develpment f rganic prducts in France. Sales inc. VAT ( m) LFL* At current Ttal variatin At cnstant Grup 20, % -2.4% +2.6% France 9, % +0.9% +0.9% Other cuntries 11, % -5.1% +4.0% Eurpe 5, % +2.9% +2.8% Latin America 3, % -11.9% +9.1% Asia 1, % -10.9% -4.5% *excluding petrl and calendar effects f +0.2% and +1.3% respectively at cnstant PAGE 1

2 FIRST-QUARTER 2018 SALES INC. VAT: LIKE-FOR-LIKE GROWTH OF 0.4% Carrefur s first-quarter 2018 sales std at 20,776m, up 2.6% at cnstant. Taking int accunt an unfavrable currency effect f -5.0%, principally due t the depreciatin f the Brazilian Real, the ttal variatin f sales at current was -2.4%. On a like-fr-like basis, first-quarter 2018 sales were up +0.4%, impacted by less dynamic markets in Eurpe, cntinued fd deflatin in Brazil, strng cmpetitive pressure in the Grup s main markets, but als by peratinal disruptins in France and Belgium. In France, sales were up +0.9% in ttal (dwn 0.1% like-fr-like) in a less favrable market than in the previus quarter and in a persistently cmpetitive envirnment. Supermarkets and cnvenience psted slid sales mmentum with like-fr-like grwth ver the quarter. Hypermarket sales were affected by adverse weather cnditins and peratinal disruptins. Eurpe psted a +2.8% increase in ttal sales at cnstant (and a 0.8% decrease like-fr-like) with cntrasting perfrmance in fd between cuntries, reflecting divergent market dynamics. In Spain, ttal sales grwth was +4.4%, driven by the strng perfrmance f the stres acquired frm Erski which were integrated ver the curse f Like-fr-like sales were dwn -0.6%, in line with trends in the secnd half f 2017 despite a less dynamic fd market; In Italy, amid a persistently difficult cnsumptin envirnment and tugher cmpetitive pressure, ttal sales were dwn 0.9% and like-fr-like sales decreased by -3.2%. This evlutin reflects a challenging cmparable base ver the past tw years, bsted by the rll-ut f supermarket clusterizatin and the extensin f shpping hurs in sme stres t 24 hurs a day; Sales in Belgium were dwn -0.4% in ttal and -1.6% like-fr-like, ntably impacted by peratinal disruptins; In Pland, ttal sales were up +5.7% at cnstant (-0.8% like-fr-like), while strng mmentum cntinued in Rmania, with sales grwth f +10.6% at cnstant and +7.7% likefr-like, driven by an increase in vlumes. In Latin America, ttal sales rse by +9.1% at cnstant and by +4.5% n a like-fr-like basis: In Brazil, like-fr-like sales psted a slight increase f +0.4%. At Carrefur Retail, fd sales are mre resilient than in previus quarters despite strng deflatin; nn-fd sales cntinued t pst a duble-digit increase n high cmparables. Atacadã s sales increased by +0.5% like-fr-like, als penalized by fd deflatin. Regarding financial services, ttal billings with the Grup s credit cards were up +37.5% in the quarter and Banc CSF s credit prtfli rse by +23.6%. In Argentina, like-fr-like sales were up +21.2%, reflecting the cuntry s inflatin. Vlumes cntinued t gradually increase. Finally, in Asia, sales were dwn by -4.5% at cnstant and -3.9% like-fr-like, in line with trends in previus quarters. Like-fr-like sales in China decreased by -6.6% in a cmpetitive envirnment marked by the increasing share f the e-cmmerce channel, ntably during the Chinese New Year celebratins. Psitive trends cntinued in Taiwan, where like-fr-like sales grew fr the thirteenth cnsecutive quarter, by +3.3%. PAGE 2

3 FIRST-QUARTER 2018 ACHIEVEMENTS Slid executin dynamic f the Carrefur 2022 transfrmatin plan The Grup presented n January 23, 2018 the «Carrefur 2022» transfrmatin plan, built n fur pillars and aiming at making Carrefur the leader f the fd transitin fr all. Numerus actins have already been launched in each f these pillars. 1. Deply a simplified and pen rganizatin Carrefur annunced several partnerships during the first quarter, including: The acquisitin f a majrity stake in the Quitque startup, a leader f meal kit hme deliveries in France and a French pineer f Fdtech; Partnerships with specialists r sectr leaders, ntably Shwrmprivé in nline private sales, La Pste and its Stuart subsidiary fr hme delivery and Sapient fr the transfrmatin f the e-cmmerce ffer; A strategic partnership with Tencent in China that has rapidly materialized, including the launch f a first applicatin n WeChat in rder t enhance the visibility f Carrefur s nline ffer. In additin, t simplify its rganizatin, ntably that f headquarters, Carrefur initiated discussins in France, Belgium and Argentina. 2. Achieve prductivity and cmpetitiveness gains T gain leeway and imprve its efficiency and cmpetitiveness, Carrefur has launched a cst-reductin plan that shuld reach 2bn by 2020 n an annualized basis. In the first quarter, Carrefur has: Initiated psitive mmentum in gains n purchasing, bth direct and indirect; Started reducing verhead csts; Launched the prcess t remve 273 ex-dia stres frm the Grup s scpe. The reductin in Capex thrugh greater selectivity and prductivity started in the first quarter, with an annual investment target f 2bn (ex. Carg). 3. Create an mnichannel universe f reference T rll ut its mnichannel ffer, Carrefur invested this quarter in the expansin f its grwth frmats and accelerated in e-cmmerce. The Grup has ntably: Opened 76 cnvenience stres and 4 Cash & Carry stres; Accelerated the number f Drive penings in France and extended D+1 hme delivery t 10 new cities, bringing the ttal t 21 cities. Mrever, Carrefur pened last Mnday in Lyn and Saint-Etienne its first «pedestrian drives», and begins peratins tday in the Paris regin f its secnd rder preparatin platfrm. The creatin f a single pint f entry fr nline sales, carrefur.fr, is prgressing rapidly and it shuld be launched in the furth quarter. This quarter als saw the launch f the Carrefur Pay payment slutin. Five hypermarkets in France shuld switch t lease management cntracts starting in September f this year. 4. Overhaul the ffer t prmte fd quality In line with its ambitin t ffer all cnsumers an everyday quality fd ffer that is reliable and reasnably priced, Carrefur develped several prjects in the first quarter: The Grup is applying fr the first time in France the blckchain technlgy t a fd prduct line, pultry, and will extend this technlgy t eight ther prduct lines in Carrefur extended its range f prducts cntaining n antibitics t eggs, salmn, veal and prk in ther Grup cuntries including Belgium, Pland and recently Spain. PAGE 3

4 Carrefur signed a partnership with the WWF t accelerate the cnversin t and the develpment f rganic prducts in France in rder t guarantee price, vlume and a 3- t 5-year cmmitment. Specific instre labelling indicates which rganic prducts are under cnversin. Success f a 350mn bnd issue Carrefur annunced n March 22, 2018 the placement f nn-dilutive cash-settled cnvertible bnds. This placement crrespnds, synthetically, t a fixed-rate bnd in eurs f a nminal value f arund 350mn, with a 6 year maturity due in The success f this issue illust the strength f Carrefur s balance sheet and has allwed t Grup t refinance its debt in excellent cnditins. FINANCIAL OUTLOOK The Grup cnfirms the utlk presented n February 28: The Grup s 2018 results will remain clsely linked t the evlutin f freign, particularly the Brazilian Real. The spt rate n April 10, 2018 std at 4.21 Reais t the eur vs an average rate in 2017 f 3.61 Reais; Given the investment levels f the past years, the Grup shuld cntinue t see in 2018 an increase in depreciatin; The Capex target fr 2018 is 2bn (ex. Carg). AGENDA Annual General Meeting: June 15, 2018 First-half 2018 results: July 26, 2018 Third-quarter 2018 sales: Octber 17, 2018 CONTACTS Investr Relatins Mathilde Rdié, Anne-Sphie Lanaute et Luis Ignet Tel : +33 (0) Sharehlder Relatins Tel : (tll-free in France) Grup Cmmunicatin Tel : +33 (0) PAGE 4

5 VARIATION OF FIRST-QUARTER 2018 SALES INC. VAT Sales inc. VAT ( m) Variatin ex petrl ex calendar LFL Organic Ttal variatin inc. petrl at cnstant at current France 9, % -1.2% +0.9% +0.9% Hypermarkets 4, % -2.9% -0.5% -0.5% Supermarkets 3, % -0.4% +1.5% +1.5% Prximity/ther frmats 1, % +2.6% +4.2% +4.2% Other cuntries 11, % +2.1% +4.0% -5.1% Other Eurpean cuntries 5, % +0.1% +2.8% +2.9% Spain 2, % +0.4% +4.4% +4.4% Italy 1, % -3.2% -0.9% -0.9% Belgium 1, % -1.2% -0.4% -0.4% Pland % +1.2% +5.7% +9.2% Rmania % +10.3% +10.6% +7.4% Latin America 3, % +7.4% +9.1% -11.9% Brazil 3, % +4.0% +6.0% -11.0% Argentina % +21.2% +22.2% -15.8% Asia 1, % -4.3% -4.5% -10.9% China 1, % -7.7% -8.0% -13.7% Taiwan % +4.6% +4.6% -3.4% Grup ttal 20, % +0.8% +2.6% -2.4% PAGE 5

6 EXPANSION UNDER BANNERS FIRST-QUARTER 2018 Thusands f sq. m Dec 31, 2017 Openings/ Stre enlargements Acquisitins Clsures/ Stre reductins Ttal Q change March 31, 2018 France 5, ,762 Eurpe (ex France) 5, ,577 Latin America 2, ,432 Asia 2, ,684 Others 1 1, ,104 Grup 17, ,558 STORE NETWORK UNDER BANNERS FIRST-QUARTER 2018 N f stres Dec. 31, 2017 Openings Acquisitins Clsures/ Dipsals Transfers Ttal change Q March 31, 2018 Hypermarkets 1, ,379 France Eurpe (ex France) Latin America Asia Others Supermarkets 3, ,233 France 1, ,060 Eurpe (ex France) 1, ,749 Latin America Asia Others Cnvenience 7, ,221 France 4, ,215 Eurpe (ex France) 2, ,398 Latin America Asia Others Cash & carry France Eurpe (ex France) Latin America Asia Others Grup 12, ,189 France 5, ,666 Eurpe (ex France) 4, ,646 Amérique latine 1, ,015 Asie Autres Africa, Middle East and Dminican Republic. PAGE 6

7 DEFINITIONS Like-fr-like sales grwth: Sales generated by stres pened fr at least twelve mnths, excluding temprary stre clsures, at cnstant. Organic grwth: Like-fr-like sales plus net penings ver the past twelve mnths, including temprary stre clsures, at cnstant. PAGE 7