Carrefour sales beat forecasts as France, Brazil drive growth
Carrefour Outperforms Expectations in Second Quarter
(Corrects operating profit figure in paragraph 5 to 757 million euros from 759 million)
Strong Sales Performance
July 23 (Reuters) - Carrefour reported better-than-expected second-quarter sales on Thursday, as Europe's largest food retailer benefited from improving momentum in France and a return to expansion in Brazil.
Second-quarter sales rose 1.9% on a like-for-like basis, above the analyst consensus estimate of 1.6%.
France Market Growth
Sales in France, Carrefour's largest market, grew for the fifth consecutive quarter, with a like-for-like increase of 1%. Analysts had expected a 0.8% rise.
Brazil Returns to Expansion
The sales beat was also supported by Brazil, where the French retailer returned to growth with a 0.4% uptick after a recent slump.
Financial Highlights
Operating Income and Margins
First-half recurring operating income rose to 757 million euros on a margin of 1.9%, up from 727 million euros a year earlier. Analysts polled by the company had expected operating profit of 779 million euros.
Strategic Initiatives
The retailer is pursuing a plan to gain market share in its core countries and boost profitability through price cuts, digital investments and annual cost savings of 1 billion euros by 2030.
Seasonal Demand Impact
Finance chief Matthieu Malige said Carrefour also benefited from strong seasonal demand during June's heatwave, selling 200,000 fans, air-conditioning units and humidifiers, and more than 7 million bags of ice in a single week.
Reporting Credits
(Reporting by Gianluca Lo Nostro; Editing by Matt Scuffham)
