Q3 2019 Sales October 22, 2019 - Carrefour Group
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Q3 2019 Sales October 22, 2019
Q3 2019 Highlights
ANOTHER QUARTER OF GROWTH RAPID EXECUTION OF 2022 PLAN
Group LFL sales up +2.3% Carrefour continues the overhaul of its model to
support sustainable and profitable growth
Return to growth in Spain (+1.5% LFL)
Multiple initiatives for customer satisfaction: Net
Good commercial momentum in Latin America Promoter Score® (NPS®) rolled out across the Group,
(+12.8% LFL), driven by the highest LFL growth at versatility and greater availability of employees
Carrefour Retail in Brazil in five years
Revamp of the price-promotion-loyalty equation to
Sales in France slightly decreased (-0.9% LFL) reflecting a favor Every Day Low Price (EDLP) and loyalty. Continuation
high comparable base (Q3 2018: +1.6% LFL), reduced of price investments
promotional intensity and price investments, notably in
hypermarkets Broadening of assortment of Carrefour-branded
products, notably in the organic range
Food e-commerce sales growth above +30%
Acceleration in the transformation of store formats
(in particular the hypermarket), further expansion of
growth formats and development of digital
® Net Promoter, Net Promoter System, Net Promoter Score, NPS and the NPS-related emoticons
Q3 2019 SALES – 22/10/2019 are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc 2
01 Carrefour 2022 Recent initiatives
Leader in the food transition for all
CONCRETE ACTIONS TO STRENGTHEN LEADERSHIP
DEVELOPING ORGANIC PRODUCTS
• Organic products sales up +25% in Q3 2019
• Carrefour consolidates its leadership position in France
• Own assortment now above 1,000 SKUs, of which 750 Carrefour Bio-branded
SUPPORTING AGRICULTURAL SECTOR
• More than 440 contracts to support conversion to organic farming signed since
2018, Group ahead of its target
• Agreement to support milk producers by purchasing 30 million liters of mountain milk
per year in France
IMPROVING QUALITY
• Reformulation of more than 600 Carrefour products since start of the year (1,200
since plan launch), withdrawing numerous controversial substances
• Roll-out of blockchain technology throughout Carrefour Quality lines: Camembert
de Normandie is the 11th FQC product in France and 22nd in the world to benefit from this
technology
Q3 2019 SALES – 22/10/2019 4
Construction of a sustainable and profitable growth model (1/2)
PRIORITY GRANTED TO CUSTOMER SATISFACTION
• NPS® generalization and incorporation into the variable remuneration scheme of
Carrefour’s management
• First tangible results in Spain, Argentina and Poland
INITIATIVES TO IMPROVE PRICE AND NON-PRICE COMPETITIVENESS
Customer satisfaction • France: Revamp of the commercial equation, to shift focus from promotions to EDLP
(Unbeatable prices) and loyalty (Loyalty premium)
• Italy: Extension of the “Prezzo Ribassato” campaign across the country (5,000 products)
• Investments in private label offer and omnichannel services
SHOWCASING FOOD EXPERTISE AND ADAPTING NON-FOOD
• Reduction and simplification of assortments: -9.3% at end-September
• Discontinuation of some unprofitable non-food categories, such as jewelry
Carrefour-branded products • Expansion of Carrefour-branded products offer: Launch of 300 new products in Q3
Q3 2019 SALES – 22/10/2019 5
Construction of a sustainable and profitable growth model (2/2)
PROFOUND REVAMP OF HYPERMARKETS
• Reduction of underproductive sales area: 110,000 sqm at end-September
• Revamp of French hypermarkets: Roll-out of a new compact concept in the Dijon and
Flins-sur-Seine stores
ACCELERATION IN E-COMMERCE
• Food e-commerce sales up more than +30% in Q3
Dijon, France • Inauguration of a new order preparation platform in South of Paris
• Opening of the 1,000th Drive in France and 126th Pedestrian Drive
• Acquisition of a 49% stake in a Brazilian fintech
• Launch of express delivery in 9 cities in 4 countries with Glovo
INVESTMENTS IN INNOVATIVE AND GROWTH FORMATS
• Continued roll-out of dedicated Bio Experience organic areas
• Opening of the first 2 Supeco in France
• Opening of 134 new convenience stores
• 3 new Atacadão openings in Brazil
• Conversion of 9 stores into Maxi banner in Argentina
Supeco, France
Q3 2019 SALES – 22/10/2019 6
Operational efficiency and financial discipline
CONTINUED ACTIONS TO IMPROVE OPERATIONAL PERFORMANCE AND TRANSFORM ORGANIZATIONS
ORGANIZATIONAL TRANSFORMATION
• Hypermarket transformation plan in France
• Implementation of the Collective Contractual Severance has started with more than
2,600 planned departures out of a total of 3,000
• Process well underway in Italy involving a reduction of 590 jobs
OPERATIONAL EFFICIENCY AND FINANCIAL DISCIPLINE
• First benefits of purchasing partnerships in France and internationally
• In France, Envergure purchasing gains (Système U) progressing in line with
expectations
• With Tesco, partnerships in the product categories with highest potential for
Carrefour are gradually gaining momentum: 24 global agreements with international
brand suppliers
• Industrialized approach for purchasing of goods not for resale
• Progress on new categories this quarter including self-checkout, computers,
automobile fleet in France
SOLID BALANCE SHEET, FURTHER STRENGHTENED
Q3 2019 SALES – 22/10/2019 7
02 Financial analysis
Q3 2019 Sales: Another quarter of growth, +2.3% LFL
+1.1% -0.9%
+2.3% +0.5% -1.4%
+1.5% -0.8%
+0.7% €(204)m
-0.9% +0.4% +12.8% +2.3%
France Europe LatAm Asia
€20.4 €20.2
€20.1 €20.0
bn bn
bn bn
Q3 2018 LFL Calendar Openings Scope, Petrol Q3 2019 Forex Q3 2019 IAS 29 Q3 2019
restated ex petrol closures at at current at current
for IFRS 5 ex and other constant FX rates FX rates
calendar effects* FX rates pre-IAS post-IAS
pre-IAS 29 29
29
Q3 2019 SALES – 22/10/2019 * Including transfers 9
France
Tough comparable base, price investments and reduced promotional intensity
Convenience &
Q3 - in €m Total Sales Hypermarkets Supermarkets
other formats
Sales inc. VAT 9,768 4,941 3,220 1,608
Total variation -3.2% -4.7% -2.2% -0.9%
LFL ex. petrol ex.
-0.9% -3.6% +1.5% +2.2%
calendar*
*Q3 2019 calendar effect is estimated at +0.6% for France overall, +0.5% for hypermarkets and +0.6% for supermarkets. Petrol had a -1.8% impact overall in
France.
Weaker and competitive market; strong comparable base (+1.6% LFL in Q3 2018)
Stable food sales while non-food sales were down -6.7% LFL
Hypermarkets (-3.6% LFL) impacted by: Strong comparable base, reduction of promotional intensity, investments in EDLP
(Unbeatable prices), development of Carrefour-branded products (with lower prices), reduction of under-productive non-food
sales area and discontinuation of certain categories
Supermarkets (+1.5% LFL): Good performance over strong comps (+2.6% LFL)
Convenience & others (+2.2% LFL): Good momentum on already strong comps (+4.7% LFL). Expansion plan well
underway
Significant achievements in organic and food e-commerce, both strategic priorities
Q3 2019 SALES – 22/10/2019 10Other European countries
Best LFL growth since the launch of the Carrefour 2022 plan
Q3 - in €m Total Sales Spain Italy Belgium Poland Romania
Sales inc. VAT 5,832 2,512 1,221 1,015 523 561
Total variation +0.5% +1.6% -2.9% -2.9% +5.9% +5.2%
LFL ex. petrol
+0.4% +1.5% -2.3% -2.8% +6.2% +2.8%
ex. calendar*
*Q3 2019 calendar effect is estimated at +0.5% for the Other European countries as a whole (+0.3% in Spain, +0.1% in Italy and +1.9% in Belgium).
Petrol had a -0.0% impact overall (-0.4% in Spain, +0.4% in Italy).
Spain (+1.5% LFL): First LFL sales growth since Q2 2017, reflecting the strong focus on customer satisfaction
Italy (-2.3% LFL): Resilient performance in a competitive and decreasing market. Transformation plan underway
Belgium (-2.8% LFL): Difficult and declining market. Acceleration of food transition initiatives with good results. High comps
(Q3 2018: +0.5% LFL)
Poland (+6.2% LFL): Record growth, thanks to strong customer focus
Romania (+2.8% LFL): Continued growth
Q3 2019 SALES – 22/10/2019 11Latin America
Continued strong momentum
Q3 - in €m Total Sales Brazil Carrefour Retail Atacadão Argentina**
Sales inc. VAT 4,026 3,436 1,095 2,341 590
Total variation +11.4% +13.0% +11.8% +13.6% +3.0%
LFL ex. petrol ex.
+12.8% +3.8% +8.8% +1.8% +58.7%
calendar*
*Q3 2019 calendar effect is estimated at +0.3% for Latin America overall (+0.3% in Brazil and -0.3% in Argentina). Petrol had a -0.8% impact overall.
** pre-IAS 29
Brazil (+3.8% LFL): Slowdown of food-at-home inflation by c. -3pp in Q3 vs Q2
• Highest quarterly LFL growth in the last 5 years at Carrefour Retail (+8.8% LFL) thanks to successful repositioning of
hypermarkets, strong performance of convenience, e-commerce and non-food
• Atacadão sales up at +9.0% at constant-FX, with +6.9% contribution from openings (12 new stores YTD). LFL
remained robust (+1.8% LFL) despite inflation slowdown, esp. in agricultural commodities
• Financial services: Record increase in billings (+30.6% in Q3)
Argentina (+58.7% LFL):
• Continued growth in traffic and volumes
• Ability to cope with the crisis environment, strengthened leadership position
Q3 2019 SALES – 22/10/2019 12Asia
Growth in Taiwan
Q3 - in €m Total Sales Taiwan
Sales inc. VAT 574 574
Total variation +5.3% +5.3%
LFL ex. petrol ex. calendar* +2.3% +2.3%
*Q3 2019 calendar effect is estimated at -0.6% in Taiwan. No petrol sales in Asia.
Solid performance of Taiwan (+2.3% LFL), with successful campaigns during two major events, Da Paï Paï and Ghost
Festival
Disposal of 80% of Carrefour China completed on September 26, 2019
Q3 2019 SALES – 22/10/2019 13Ambitions confirmed
Operational targets FINANCIAL OUTLOOK
€2.6bn cost
• Reduction of 350,000 sqm hypermarket sales area worldwide by 2022
reduction plan
on an annual basis by 2020
• -15% reduction in assortments by 2020
€4.2bn of food
• Carrefour-branded products accounting for one-third of sales in 2022 e-commerce sales
in 2022
• 2,700 convenience stores openings by 2022
€4.8bn sales in
organic products
in 2022
Disposal of non-
strategic real estate
assets for €500m
already achieved in
2019
Q3 2019 SALES – 22/10/2019 14Appendix October 22, 2019
Q3 2019 gross sales
Change at current Change at constant LFL Organic growth
Gross sales
exch. rates inc. exch. rates inc. ex. petrol ex. petrol
(in €m)
petrol petrol ex. calendar ex. calendar
France 9,768 -3.2% -3.2% -0.9% -2.4%
Hypermarkets 4,941 -4.7% -4.7% -3.6% -4.2%
Supermarkets 3,220 -2.2% -2.2% +1.5% -1.9%
Others, inc. convenience 1,608 -0.9% -0.9% +2.2% +2.1%
Other European countries 5,832 +0.5% +0.7% +0.4% +0.0%
Spain 2,512 +1.6% +1.6% +1.5% +1.2%
Italy 1,221 -2.9% -2.9% -2.3% -3.4%
Belgium 1,015 -2.9% -2.9% -2.8% -4.8%
Poland 523 +5.9% +6.2% +6.2% +6.0%
Romania 561 +5.2% +7.1% +2.8% +7.4%
Latin America (pre-IAS 29) 4,026 +11.4% +16.0% +12.8% +16.5%
Brazil 3,436 +13.0% +8.4% +3.8% +8.6%
Argentina (pre-IAS 29) 590 +3.0% +56.4% +58.7% +56.6%
Asia 574 +5.3% +2.5% +2.3% +3.1%
Taiwan 574 +5.3% +2.5% +2.3% +3.1%
Group total (pre-IAS 29) 20,199 +0.7% +1.5% +2.3% +2.2%
IAS 29 impact -204
Group total (post-IAS 29) 19,996
Q3 2019 SALES – 22/10/2019 16Nine-month 2019 gross sales
Change at current Change at constant LFL Organic growth
Gross sales
exch. rates inc. exch. rates inc. ex. petrol ex. petrol
(in €m)
petrol petrol ex. calendar ex. calendar
France 28,518 -2.7% -2.7% +0.2% -1.0%
Hypermarkets 14,549 -3.2% -3.2% -1.6% -2.1%
Supermarkets 9,482 -2.1% -2.1% +1.9% -0.8%
Others, inc. convenience 4,487 -2.3% -2.3% +2.5% +2.4%
Other European countries 16,912 -0.7% -0.4% -0.4% -0.7%
Spain 6,991 +0.1% +0.1% -0.4% -0.3%
Italy 3,728 -4.3% -4.3% -2.8% -4.4%
Belgium 3,030 -3.0% -3.0% -1.6% -3.3%
Poland 1,551 +3.5% +4.7% +5.0% +4.7%
Romania 1,612 +5.6% +7.6% +3.3% +7.6%
Latin America (pre-IAS 29) 11,972 +4.5% +17.1% +14.5% +18.1%
Brazil 10,213 +8.0% +10.0% +6.0% +10.8%
Argentina (pre-IAS 29) 1,759 -11.9% +50.8% +53.1% +50.7%
Asia 1,590 +5.1% +2.7% +1.3% +2.6%
Taiwan 1,590 +5.1% +2.7% +1.3% +2.6%
Group total (pre-IAS 29) 58,992 -0.5% +1.9% +3.1% +3.2%
IAS 29 impact -148
Group total (post-IAS 29) 58,844
Q3 2019 SALES – 22/10/2019 17Q3 technical effects
Calendar Petrol Forex
France +0.6% -1.8% -
Hypermarkets +0.5% -1.0% -
Supermarkets +0.6% -1.1% -
Others, inc. convenience +0.7% -5.9% -
Other European countries +0.5% -0.0% -0.2%
Spain +0.3% -0.4% -
Italy +0.1% +0.4% -
Belgium +1.9% - -
Poland +0.3% -0.1% -0.4%
Romania -0.2% -0.0% -1.9%
Latin America +0.3% -0.8% -4.5%
Brazil +0.3% -0.5% +4.6%
Argentina -0.3% - -53.3%
Taiwan -0.6% - +2.7%
Group total +0.5% -1.4% -0.8%
Q3 2019 SALES – 22/10/2019 18Stores under banners at end Q3 2019
(#) Hypermarkets Supermarkets Convenience Cash & Carry Total
France 248 1 068 3 927 145 5 388
Other European countries 452 1 775 2 599 55 4 881
Spain 205 109 791 23 1 128
Italy 51 410 614 14 1 089
Belgium 40 442 301 0 783
Poland 89 152 640 0 881
Romania 35 262 46 18 361
Others 32 400 207 0 639
Latin America 188 149 522 185 1 044
Argentina 88 97 399 7 591
Brazil 100 52 123 178 453
Asia 171 81 3 0 255
Taiwan 64 68 0 0 132
Others 107 13 3 0 123
Others(1) 136 293 56 14 499
Total 1,195 3,366 7,107 399 12,067
(1) Africa, Middle-East and Dominican Republic
Q3 2019 SALES – 22/10/2019 19This presentation contains both historical and forward-
looking statements. These forward-looking statements
are based on Carrefour management's current views
and assumptions. Such statements are not guarantees
of future performance of the Group. Actual results or
performances may differ materially from those in such
forward-looking statements as a result of a number of
risks and uncertainties, including but not limited to the
risks described in the documents filed with the Autorité
des Marchés Financiers as part of the regulated
information disclosure requirements and available on
Carrefour's website (www.carrefour.com), and in
Disclaimer
particular the Annual Report (Document de Référence).
These documents are also available in the English
language on the company's website. Investors may
obtain a copy of these documents from Carrefour free
of charge. Carrefour does not assume any obligation to
update or revise any of these forward-looking
statements in the future.You can also read
