24/07/2024 - Carrefour SA: Earnings Document

[X]

H1 2024 Results

Q2 2024 Sales

July 24th, 2024

Key takeaways

Alexandre Bompard,

Chairman & CEO

H1 2024 Key financial highlights

€40.6bn

Net Sales

+12.1% LFL

€1.2bn target confirmed

for FY24

of which

+10.8% in Q2

€580m

Cost

savings

€743m

Recurring

Operating

Income

+6.2%

Strong growth in Brazil and solid performance in France

Driven by EBITDA and WCR thanks to continued improvement in inventories

Stable

Net free

cash-flow

vs H1 2023

H1 2024 RESULTS

July 24, 2024

3

CSR - Successful H1 2024 initiatives

CSR and Food

Transition Index

107%

  • -49%in GHG emissions vs. 2019 (vs. -40% in H1 23)
  • 48,105 partner producers (vs. 35,618 in H1 23)
  • 329 suppliers committed to the Food Transition Pact (vs. 233 in H1 23)

47 of Top 100 suppliers have a 1.5°C trajectory

H1 2024 RESULTS

Partnership

with GreenYellow

Photovoltaic panels over

~350 car parks in France to generate 450 GWh per year within 3 years

July 24, 2024

4

H1 2024 Strategic highlights

Private labels accounted for

e-commerce GMV

Unlimitail is now in

37% of food sales,

increased by 30%,

13 countries, and serves

+2pts vs. H1 2023

driven by Brazil

~30 active retail partners

R$2.3bn run-rate

Fast expansion

Closing of the

synergies achieved

including 10 Atacadão

acquisition of

at June-end 2024.

stores in Brazil, and

Cora and Match

2025 target raised

166 franchised

in France on

to R$3.0bn

convenience stores

July 1st, 2024

in France

H1 2024 RESULTS

July 24, 2024

5

Financial Results

Matthieu Malige,

Group CFO

Q2 sales growth +10.8% LFL

(2.9)%

+10.8%

€23,377m

(0.2)%

(0.8)%

(1.0)%

€22,708m

France: -3.5%

(11.7)%

Europe: -2.7%

LatAm: +44.5%

Q2 2023 Gross

LFL

Expansion &

Petrol

Calendar

Forex

Q2 2024 Gross

sales

M&A

sales

H1 2024 RESULTS

July 24, 2024

7

Stabilization of food inflation at low-single digit in Europe

12M food inflation in Europe

20%

18%

16%

14%

12%

10%

8%

6%

4%

2%

0% -2%

4.2%

2.5%

1.4%

1.1%

0.8%

MoM food inflation in France

0.1%

0.3%

0.1%

0.3%

0.0%

0.4%

0.2%

0.0%

0.1%

0.4%

0.0%

-1%

(0.3)%

(0.3)%

(0.2)%

Jun23 Jul23 Aug23

Sep23 Oct23 Nov23 Dec23 Jan24

Feb24 Mar24

Apr24 May24 Jun24

Source: local national institutes of statistics

H1 2024 RESULTS

July 24, 2024

8

France: Aggressive price investments & margin improvement

France Q2 2024 LFL of -3.5%

  • Food sales down -2.7% LFL; Non-food-10.9% LFL
  • Gradual improvement of market share dynamics
    • Stabilization of market share in volume at the end of Q2(1)
    • Cora/Match to contribute as of July

H1 2024 ROI up +6.2%

ROI margin up +14bps at 1.6%

  • Strong price investment more than offset by cost discipline and positive impact from Carrefour 2026 initiatives(2)

+6.2%

LFL

Q2 2024

H1 2024

France

-3.5%

-2.0%

Hypermarkets

-5.5%

-3.4%

€270m

€286m

Supermarkets

-2.4%

-1.2%

Convenience & others

-0.9%

-0.1%

  1. Source: Kantar WorldPanel
  2. Include notably e-commerce, transfers to lease management and franchise, retail media, etc.

1.4%

1.6%

margin

margin

H1 2023

H1 2024

H1 2024 RESULTS

July 24, 2024

9

Europe: Price investments and adverse weather in Q2

Europe Q2 LFL of -2.7%

  • Inflation slowing down in all markets
  • Sluggish market trends
  • Poor weather conditions strongly affecting seasonal non-food sales and traffic in the hypermarket format in Western Europe
  • High comps in Belgium

LFL

Q2 2024

H1 2024

Europe (excl. France)

-2.7%

-1.5%

Spain

-2.1%

-0.8%

Italy

-5.4%

-3.5%

Belgium

-3.8%

-2.0%

Romania

+0.2%

+0.9%

Poland

-2.5%

-3.3%

H1 2024 RESULTS

Temporary pressure on ROI

  • Price investments to protect competitiveness, particularly in Spain
  • Integration costs of Cora stores in Romania temporarily weighing on profitability
  • Highly competitive landscape in Italy and Poland
  • Solid ROI and ROI margin trajectory in Belgium

-48%

€164m €84m

H1 2023

H1 2024

ROI at current FX, evolution at constant FX

July 24, 2024

10

Disclaimer

Carrefour SA published this content on 24 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 July 2024 15:48:24 UTC.

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