Carrefour says it is rather pleased with its financial results in the second quarter and first half of the year, despite challenging conditions in Europe. Growth was driven by its core markets, France and Brazil.
Adding hundreds of stores
The French retailer confirms its financial targets for 2024 and “enters the second half of the year with confidence”, a press release states. In a mixed economic environment, the group had a very good performance in its two main countries, France and Brazil, CEO Alexandre Bompard said. Elsewhere in Europe, the group claims to have suffered from the weather.
In France, the group increased its footprint with the acquisition of 23 former Casino stores and the integration of 175 Cora and Match supermarkets. It also added a record number of new franchisees with 166 convenience stores. Market share in the home market thus reached its highest level since 2012. However, comparable sales fell 2 % in the first half of the year, according to the group this was caused by lower prices following the inflation peak.
Belgian strategy works
Carrefour’s sales rose 10.8 % like-for-like in the second quarter, and 12.1 % over the first half of the full year. EBITDA grew 3.4 % to 1.92 billion euros, while recurring operating profit rose 6.2 % to 743 million euros. Operating margin improved 11 basis points to 1.8 %. E-commerce grew significantly by 28 % in the second quarter and 30 % in the first half of the year. In Brazil, gross trade volume even increased by 46 %.
In Belgium, the supermarket group believes the trend is positive. Last year, Carrefour benefited from the sustained industrial action at Delhaize and saw exceptionally strong sales growth, which now results in a comparable decline of 3.8 %. Still, the chain says it sees the success of its current commercial strategy. Recurring operating profit rose there, unlike in the rest of Europe. Profits actually halved in Europe (excluding France) over the first half of the year, from 164 million euros in 2023 to 84 million euros today.
Carrefour expects to end 2024 with more profits. The Paris Olympics, where the retailer is a major sponsor, should provide greater visibility and promote the group’s values.
