Carrefour, the multinational retail giant, has recently released its third-quarter trading update, showcasing an impressive 9% increase in group like-for-like sales. This growth can be attributed to various factors across different regions.
In its home market, France, Carrefour reported a solid 4.3% like-for-like growth during the quarter. This performance was bolstered by consistent growth across various store formats. Supermarket sales in France increased by 3.8%, but the standout performance was observed in the Hypermarkets segment, which witnessed a remarkable 4.2% growth. The convenience stores also continued to perform exceptionally well, with a 5.3% increase in like-for-like sales.
Carrefour’s success in France is a testament to the company’s execution and positioning in this crucial market. The key driver of this growth was the solid 5.7% increase in like-for-like sales in the food category, while the nonfood segment experienced a decline of 6.8%.
In Latin America, particularly in Brazil, Carrefour faced a slight setback with a 3.7% decline in like-for-like sales. This decline was primarily driven by Atacadao, which saw a 2.7% decrease in sales due to unfavorable economic conditions characterized by falling inflation and negative volume. However, the company’s decision to convert former Grupo BIG stores into Atacadao outlets proved to be a successful move, with a remarkable 22% like-for-like growth in the quarter.
In Europe, Carrefour achieved an overall like-for-like growth of 4.1%, with all countries except Poland contributing to this positive trend. Notably, Belgium’s like-for-like sales stood out with a robust 7.5% increase.
Additionally, Carrefour has made significant progress in its share-buyback program, completing EUR 664 million out of its EUR 800 million target. The company also reaffirmed its guidance for 2023, anticipating growth in EBITDA, recurring operating income, and net free cash flow in line with their estimates. As a result, there are no immediate plans to revise the fair value estimate, which remains at EUR 18.10. With the current performance, Carrefour’s shares are considered to be in a strong 4-star territory.
