Latest news with #AlexandreBompard
Yahoo
28-04-2025
- Business
- Yahoo
Carrefour Q1 FY25 performance matches outlook
French retail giant Carrefour has announced that the group's performance for the first quarter (Q1) of 2025 (FY25) aligns with the full-year outlook with like-for-like (LFL) sales growth of 2.9%. The Q1 results showed stability, mirroring the performance seen in the preceding quarter. Carrefour has maintained progress on its strategic plans despite slow-moving European markets, which remain highly competitive. Consumer patterns showed little change from the close of 2024. The proportion of own-brand products from Carrefour saw a slight increase, reaching 38% compared to 37% in Q1 2024. The gross merchandise value (GMV) for e-commerce surged 19%, with Brazil a significant contributor. In the French market, there was a 1.7% LFL decrease in quarterly sales, which included a 1.3% LFL dip in food sales and a more pronounced 6.2% LFL drop in non-food sales. Across Europe, there was a modest 0.3% LFL uptick in sales during the same period, bolstered by a 0.9% LFL rise in food sales that helped counterbalance a 2.9% LFL contraction in non-food sales. Brazil experienced a robust 5.4% LFL increase in quarterly sales along with an enhancement of the Net Promoter Score by seven points. Overall, when accounting for constant exchange rates, total sales rose 3.6% and Atacadão's quarterly sales jumped by 6.9% LFL. Carrefour has been expanding its network of convenience stores, opening an additional 72 locations in Q1. Carrefour chairman and CEO Alexandre Bompard stated: 'Carrefour's performance in the first quarter of 2025 is in line with the previous quarter and consistent with our annual outlook. In a persistently challenging economic environment, we have, as planned, launched new price investment campaigns in most of our countries and successfully rolled out our new loyalty programme, Le Club Carrefour, in France. Solid performances in France, Spain and Brazil highlight the effectiveness of our strategy focused on purchasing power and customer satisfaction. 'As a result, we maintained strong commercial momentum this quarter and reinforced our market shares in our key geographies. Driven by the commitment of our teams and franchised partners, we are pursuing the execution of our strategic plan with determination and reaffirm all our financial objectives for 2025.' The company's direct exposure to recent global tensions remains minimal given the localised nature of Carrefour's operations. Carrefour rtherefore reaffirms its objectives for 2025 and forecasts marginal increases in EBITDA, recurring operating income and net free cash flow. On 3 April, Carrefour announced the decision to enhance its bid to acquire all remaining shares of Grupo Carrefour Brasil. All minority shareholders of Grupo Carrefour Brasil have now given their approval for Carrefour to proceed with the acquisition of all outstanding shares not already under its control. Following this approval, Carrefour will continue with the subsequent phases required to complete this acquisition deal, anticipated to conclude by mid-June 2025. Bompard stated: 'It represents a significant step forward in the group's growth strategy in Brazil and a successful first step in the strategic review initiated by Carrefour last February. Full ownership will allow us to manage operations with greater agility, reinforcing our ability to drive sustainable and profitable growth in one of our most dynamic markets." In March 2025, Carrefour received authorisation from France's competition watchdog Autorité de la Concurrence to proceed with its acquisition of Louis Delhaize's French operations. "Carrefour Q1 FY25 performance matches outlook" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Reuters
10-03-2025
- Business
- Reuters
Carrefour dispute with franchisees raises risk for shareholders, says activist
PARIS, March 10 (Reuters) - Rising tensions between French supermarket group Carrefour ( opens new tab and its network of franchise stores in France could hurt the retailer's operational and financial performance, activist fund Whitelight Capital said on Monday. Since taking the helm at Carrefour in 2017, CEO Alexandre Bompard has focused on converting stores in France to franchises to outsource costs and protect margins in a fiercely competitive market. But some franchises are increasingly complaining of unfair conditions in the relationship. The Carrefour Franchisees Association (AFC), which represents 260 stores, said on Friday it was launching an alternative purchasing network named Project X, challenging Carrefour's supply chain. "Carrefour must imperatively adapt its economic model to avoid a progressive erosion of its franchise network and a weakening of its supply chain," France-based fund Whitelight said in a statement on its website. Whitelight, which says it holds an undisclosed stake in Carrefour, said the retailer must rebalance its relations with the franchisees as the tension is creating "structural risks for shareholders". Carrefour could not be immediately reached for comment. Its shares were up 0.27% at 13.3 euros by 1435 GMT. Whitelight Capital founder Kevin Romanteau declined to disclose the size of his fund's stake in Carrefour but told Reuters he wanted to increase it. He said it would be "desirable" to obtain a seat on Carrefour's board. The AFC has previously taken Carrefour to court, challenging the price at which the group sells franchisees products that are sold in their stores. AFC vice-president Anthony Thebaud said on Monday he had not heard from Carrefour, adding he was "available" to talk. "The franchise model is unbalanced, it is not sustainable," said Bryan Garnier analyst Clement Genelot, adding that any rebalancing would have a negative impact on the company.
Yahoo
20-02-2025
- Business
- Yahoo
Carrefour (CRERF) Q4 2024 Earnings Call Highlights: Strong Growth in Key Markets Amidst ...
Total Sales (Q4): EUR25.7 billion, up 2.6% at current currency. Group Like-for-Like Sales (Q4): Up 7.1%. Recurring Operating Income: EUR2.213 billion, up 1.4% excluding currency effects. EBITDA Growth: 1.7% increase. Net Free Cash Flow: EUR1,450 million. France Recurring Operating Income: Increased by 5.5%, surpassing EUR1 billion. Brazil Recurring Operating Income Growth: Close to 25% in local currency. Argentina Recurring Operating Income: EUR115 million, a record level. Cost Savings: EUR1.240 billion achieved in 2024. E-commerce GMV: EUR6 billion, up 18%. Dividend Increase: Ordinary dividend up 6% to EUR0.92 per share, plus a special dividend of EUR0.23 per share. New Store Openings (France): Over 450 new convenience stores. Net Debt Increase: EUR1.220 billion, primarily due to M&A activities. Warning! GuruFocus has detected 5 Warning Signs with CRERF. Release Date: February 19, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Carrefour (CRERF) achieved growth in recurring operating income, EBITDA, and net free cash flow, aligning with multiyear expectations. Carrefour France saw a significant increase in market share and recurring operating income, reaching its highest level in over a decade. Brazil's recurring operating income grew by nearly 25% in local currency, with Atacadao outperforming the market. Carrefour's e-commerce segment experienced substantial growth, with GMV increasing by 18%, reinforcing its leadership in home delivery. The company achieved a 111% score in its Corporate Social Responsibility Index, meeting emissions reduction goals ahead of schedule. The European market remained challenging, with weak consumption and competitive pressures impacting profitability. Foreign exchange had a strong negative impact, particularly due to the depreciation of the Brazilian real and Argentine peso. Recurring operating income in Europe was down, affected by competitive markets and low volume growth. Net financial charges increased significantly, largely driven by the situation in Argentina. The company faces limited visibility on the timing of volume recovery in Europe, impacting future growth projections. Q: Can you provide more details on the strategic review of your activities and organizational models? Are you considering disposals, acquisitions, or changes in headcount and markets? A: Alexandre Bompard, Chairman and CEO, explained that the strategic review is comprehensive, with no limits on topics or entities. It includes all activities, formats, operating models, and the real estate portfolio. The goal is to ensure the right market positioning and operating model in a changed competitive landscape. Q: How much CapEx are you planning to invest in France, and what areas will it focus on? A: Matthieu Malige, CFO, stated that the CapEx budget for France will increase by 20% compared to 2024, focusing on improving customer experience through store revamps, logistics enhancements, and ensuring product availability, which is crucial for customer satisfaction and market share dynamics. Q: What was the impact of M&A on the French EBIT, and how does it affect the underlying margin? A: Matthieu Malige noted that the impact of M&A on French EBIT was fairly neutral in 2024, with the consolidation of profits from Cora & Match and the costs associated with synergy implementation balancing each other out. Q: Why are you opting for a special dividend instead of share buybacks, and how does this align with your capital allocation strategy? A: Matthieu Malige explained that due to a new 8% tax on share buybacks in France, Carrefour chose to issue a special dividend instead. The capital allocation strategy balances shareholder returns, M&A opportunities, and maintaining a strong balance sheet. Q: What factors contributed to the decline in European margins, and do you expect this trend to continue? A: Alexandre Bompard highlighted that the decline was due to competitive markets and low volume growth. The focus remains on strategic initiatives like price investments and private labels to drive future performance, but visibility on volume recovery remains limited. Q: How do you view the competitive environment in France, and is there potential for further consolidation? A: Alexandre Bompard noted that the competitive landscape has changed significantly, leading to market polarization. Carrefour has benefited from consolidation through strategic acquisitions like Cora & Match, and will continue to be selective in M&A to ensure accretive deals that do not compromise profitability. Q: Can you clarify the guidance for slight EBIT growth and how it varies by region? A: Matthieu Malige stated that the guidance for slight growth considers the lack of visibility on volume recovery and ongoing price investments. The growth is expected to be driven by France and Brazil, with Spain showing positive trends, while Europe remains challenging. Q: What is your outlook on free cash flow and the role of disposals and working capital gains in achieving your 2026 target? A: Matthieu Malige indicated that while working capital gains may not be as strong in 2025, disposals, particularly sale and leasebacks, will continue to contribute. The company remains confident in reaching the EUR1.7 billion free cash flow target by 2026. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
