UPDATE 1-Carrefour keeps 2024 goals as France, Europe improve in Q3
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PARIS, Oct 23 (Reuters) - Carrefour CARR.PA, Europe's largest food retailer, said on Wednesday it looked to the end of the year with confidence and it kept its 2024 financial goals intact after sales improved in France and Europe in the third quarter.
Third-quarter group sales reached 23.983 billion euros ($25.85 billion), marking like-for-like annual growth of 8.8%, in line with market expectations for 8.6% growth.
Carrefour has accelerated price cuts to win back market share from rivals in France and in Europe. It also benefited from solid growth in Brazil, its second-largest market.
Supermarkets across Europe have been under strain as inflation drives consumers to cut back on groceries and seek bargains at discount chains. In France, Carrefour faces tough competition from market leader Leclerc, a private company.
"We are seeing the first signs of positive change in consumer behaviour, with a marked increase in sales of organic products and improved sales of branded products," said Carrefour Chief Financial Officer Matthieu Malige.
Carrefour reiterated 2024 financial objectives for growth in Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) and Recurring Operating Income (ROI) and net free cash flow in line with its 2026 plan trajectory.
It also confirmed its cost savings target for 2024 of 1.2 billion euros and said it had achieved 616 million euros out of the 700 million euros in share buybacks planned for 2024.
In France, which accounts for around 45% of Carrefour's revenue, sales were down 3% like-for-like in the third quarter compared to a 3.5% fall in the second quarter
In Europe sales declined 1.5%, a sequential improvement from a 2.7% decline in the second quarter.
In Brazil, sales rose 5.8% in the quarter, helped by the continued ramp-up of the Grupo BIG stores following their conversion and the good performance at the Atacadao cash-and-carry stores.
($1 = 0.9279 euros)
(Reporting by Dominique Vidalon, Helen Reid; editing by Tassilo Hummel and David Evans)
((dominique.vidalon@thomsonreuters.com; +33149495432; Reuters Messaging: dominique.vidalon.reuters.com@reuters.net))
