Carrefour Reports Higher Than Expected Turnover in Q3 Despite Challenges in Latin America

PARIS (Agefi-Dow Jones)–The mass distribution group Carrefour published on Wednesday a turnover higher than expected in the third quarter, supported by food price inflation in Europe while the group suffered from the effects of unfavorable market and exchange rates in Latin America.

Carrefour has confirmed that it is targeting, over the whole year, an increase in its gross operating surplus (Ebitda), current operating profit and net free cash flow compared to 2022. It has also confirmed its objective of reduce its structural costs by 1 billion euros in 2023.

During the period from July to September, the distributor’s turnover stood at 23.63 billion euros, an increase of 9% on a comparable basis, that is to say excluding the calendar effect. and variation in gasoline prices, and at constant exchange rates.

In published data, turnover increased by 0.5% in the third quarter.

According to a consensus by FactSet, analysts on average expected quarterly turnover of 22.73 billion euros.

Sales in France increased by 4.3% like-for-like in the third quarter, to 10.77 billion euros. They were notably supported by the good performance of hypermarkets (+4.2%) and that of e-commerce, up 16%, Carrefour highlighted.

Elsewhere in Europe, the group’s turnover increased by 4.1% on a comparable basis, to 6.54 billion euros. These developments mask a decline in volume sales, both in food and non-food, as a result of continued pressure on purchasing power, Carrefour underlined.

This particularly benefited Carrefour brand products, whose share of turnover increased by 3 points, to 35% over the quarter. The group has set itself the objective of achieving 40% of its sales through its own brands by 2026.

In Latin America, third quarter sales fell 4% on a reported basis, to 6.32 billion euros. Activity in Brazil, the group’s main market in the region, fell by 4.3%, to 5.31 billion euros, penalized by food deflation and a decline in consumption. On a comparable basis, sales in Brazil fell by 3.7%.

-François Schott, Agefi-Dow Jones; +33 (0)1 41 27 47 92; fschott@agefi.fr ed: LBO

CARREFOUR FINANCIAL RELEASES: http://www.carrefour.com/fr/finances/communiqués

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October 25, 2023 2:01 PM ET (6:01 PM)