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Research Tree provides access to ongoing research coverage, media content and regulatory news on CARREFOUR SA. We currently have 9 research reports from 2 professional analysts.
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Weak profitability in domestic market
09 Mar 17
The group’s profitability decreased over 2016. The underlying operating profit stood at €3,351m, mainly due to a struggling China and declining margins in the domestic market. This led to a net income of €746m vs. €980m a year ago. Higher capex (including cargo property) has offset the improving working capital management, leading to flat net debt (at €4,531m). Carrefour announced a lower than expected dividend at €0.70 per share (in line with 2015). Regarding the outlook, the group said it sees 2017 sales rising in the 3-5% range on a constant currency basis and reiterated plans to float its Carmila property division and its Brazilian units, this year, market conditions permitting. According to management, FY 2017 capex should reach €2,400m.
French big-box and Asia still Carrefour’s challenges
19 Jan 17
Q4 lfl growth in French sales slowed compared to the prior quarter. Hypermarkets continued to underperform. In organic growth, Carrefour did better than its competitor Casino on its home turf over the last quarter. For the international operations, Carrefour’s sales progressed by 4.5% lfl (flat with Q3) despite a 4.2% contraction in Asia. Total sales, including VAT, came in at €85,700m, of which 47% was derived from its home market.
Digital transformation is too small, too late at Carrefour
23 Nov 16
Carrefour main positive in 2017 is Capex decrease to EUR 2.4 Bln (from EUR 2.6 Bln in 2016) as remodeling of hyper/supermarkets is now 2/3 done France Q3 2016 Sales rose +1.2% L-f-L to compare with +3.2% for Carrefour total Sales - Prices in France remain under pressure with Intermarche pushing hard on competitors
More convincing on its home turf
19 Oct 16
Q3 16 sales including VAT came in at €21,781m, leading the total sales from the beginning of the year to €62.33bn. Q3 revenues progressed by 3.2% on a lfl basis driven by accelerated growth on its home turf (1.2%) and resilient business in Brazil (12.4%). In France, the supermarkets and convenience stores are the main growth drivers. In China, struggling operations witnessed a continuous fall in sales of 7.8% on a lfl basis. Carrefour faces also a difficult time in Poland where sales were slightly down.
Q2 deepens Carrefour’s decline
29 Jul 16
Carrefour announced disappointing H1 sales, decreasing by 3.8% at the current rate of exchange with a second negative consecutive quarter (-4.1% yoy in sales in Q2 including VAT). H1 recurring EBIT amounted to €596m, i.e. an operating margin of about 1.6% vs. 1.9% a year before due to higher restructuring costs in several countries. The net result came in at €195m, well below the H1 15 level. Carrefour’s share price plunged 4.03% in the morning.
European countries stand out
15 Apr 16
Carrefour released Q1 16 sales including VAT, of €20,053m vs. €21,005m in 2015. On a lfl basis, revenues excluding petrol and calendar effect were up by 3.1% driven by international operations while the local market was almost stable (convenience stores witnessed the most significant increase of 1.1%). Currencies and petrol prices had unfavourable impacts of 6.9% and 1.2% respectively. The calendar effect was +0.6%. All European countries displayed positive sales momentum. In LatAm, lfl sales were up by 13.5% (but the currency effect was about -34%), boosted by continued growth in all formats in Brazil (+9.9% lfl) and rising sales in Argentina (+23.6% lfl). However, the picture is rather negative in Asia since China sales declined by 8.4%, which swallowed up the positive trend in Taiwan.
Retail sales still in trouble
17 Mar 17
Excluding fuel, Sainsbury’s Q4 retail sales were down on a lfl basis vs. a 0.1% uptick over the Q3. Following this disappointing quarter, FY 2016/17 retail revenues declined by 0.6% on a lfl basis. Including fuel, this came in at 0.2%. Argos’s sales delivered strong 4.3% lfl growth. Together, Sainsbury’s and Argos’s lfl sales were by up 0.3%. Sainsbury continues to lag behind Morrisons, the latter’s sales impressed with 2.5% lfl growth over the last quarter and 1.7% over the whole year. Regarding the outlook, management remains cautious about the highly competitive market and the cost price pressure impact.
Argos and broader non-food offer to defend market share
28 Sep 16
Q2 total sales fell by 0.4% and by 1.1% on a lfl basis. The retail business (excluding Argos) generated almost flat sales compared to Q2 15 but was still experiencing a negative trend on a lfl basis. The good news came from Argos’s recovering business, where revenues impressed with 2.8% growth in H1 following a promising Q2. Sainsbury strengthened its network by opening nine new convenience stores and one supermarket. Sales of groceries online showed an 8% increase (in line with last quarter’s) despite the decrease in both customer orders and basket size. The stock lost 3.27% this morning.
Lower than expected margin
24 Oct 16
Jeronimo Martins released strong Q3 sales growth leading to a 5.5% rise over the last nine months. Total sales reached €10,738m and EBITDA stood at €626,9m, i.e. an EBITDA margin at 5.8%, flat compared to 2015. The 9M net result came in at €501.6m, including gains from the Monterroio disposal for €224m. Adjusted net profit amounted to €266m, 5.6% yoy, boosted by a lower cost of debt. Biedronka remains the main driver for both the group’s top-line and profitability which offset a slight decrease in the Polish business margin (10bp). The underperformance of Ara and Hebe is more pronounced this year due to Ara’s network expansion (expected to be above 2015’s level). Despite the substantial capex, JM continues to enjoy a solid balance sheet with a lower debt burden (reaching €326m vs. €658m in 2015).
On the right track
05 Oct 16
THe Q2 figures witnessed a third consecutive lfl positive growth leading to a H1 16 sales improvement of 1.0% on a lfl basis. H1 sales stood at £24.4bn (£27,338m including fuel) following a promising Q2 (0.9% in the UK and 2.1% for international markets). Tesco’s sales have benefited from the increase in both volume and transactions in all markets. All formats – including the largest and the Extra formats – saw an improving trend in lfl sales performance throughout the half. H1 operating profit came in at £596m, i.e. a 2.2% operating margin and management expects £1.2bn for the whole year. This positive trend in the margin will continue according to management and reach 3.5-4.0% by 2019/20. Net debt decreased to £4,352m but total indebtedness surged by £3,400m with a ballooning pension deficit due to low UK bond yields, in the aftermath of Brexit.
Sales slowdown in France and currency gains in Brazil
13 Oct 16
Q3 sales progressed by 6.7% yoy to €10,425m, mainly driven by the LatAm retail business accounting for 37.14% of group sales (vs. 35.1% in Q2 16 and 30.0% in Q3 15). Casino derives 45.7% of its sales from its domestic market where growth slowed due to an underperforming non-food business hit by unfavourable weather conditions and the decline in tourist activity in Paris. The transfer of stores to franchisees and the closure of loss-making ones have remarkedly pulled down Leader Price, Franprix and Convenience’s total sales. Casino’s e-commerce business was hammered by Cnova Brazil (negative sales momentum for non-food products) while Cdiscount France is delivering strong results (+5.6% net sales growth).