Carrefour, one of Europe’s largest grocery retailers, said yesterday that it was looking to the second half of the year with confidence after strong sales and profit growth in Brazil offset weaker figures in its home market.
Overall group sales surged 12.1% on a like-for-like basis to €44.86bn, with recurring operating income growing 6.2% to €743m.
However, in France, LFL sales declined by 2.0%. The group said this reflected the slowdown in food inflation and its “aggressive” pricing investment policy in a market context where volumes remained slightly negative. Carrefour noted that its market share dynamics were gradually improving as it battled to win back shoppers from rivals such as Leclerc.
In the second quarter, food sales decreased by 2.7%, and non-food sales were down 10.9%. The group said sales were negatively impacted by adverse weather conditions, which hit demand for seasonal products and impacted shopper traffic in its hypermarkets.
However, operating profit in France increased by 6.2% to €286m in the half after cost savings helped offset price investments. Carrefour noted that the figure also benefited from an increase in sales of private label lines and an improvement in the profitability of its digital activities.
At its operations in Brazil and Argentina, sales jumped 46.2% LFL, driven by growing volumes and high food inflation.
Alexandre Bompard, Chairman and CEO, commented: “In a mixed economic context, Carrefour delivered a very good performance in its two key countries. In France, the group accelerated its price investment policy while preserving its profitability, added a record number of new franchisees, and expanded its footprint through the integration of Cora and Match. Carrefour’s market share in France reached its highest level since 2012.
“In Brazil, the ramp-up of converted stores, the commercial momentum of Atacadão, and the synergies from the integration of Grupo BIG, which are higher than expected, contributed to strong growth in profitability.
“In parallel, the group is accelerating the implementation of the Carrefour 2026 plan, with the growth of e-commerce, retail media, and its private label. With these results, Carrefour enters the second half of the year with confidence and confirms its financial objectives for 2024.”
