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Carrefour Quarterly Sales Rise 5.9%, In-Line With Views

Carrefour said sales in the second quarter were 22.64 billion euros, up 5.9% from a year earlier, in line with market consensus, thanks principally to new store openings.

A consensus of analyst forecasts compiled by Thomson Financial had put sales in the period at 22.707 billion euros.

On a like-for-like basis, Carrefour's sales rose 1.1% over the three months.

It said it intends to pursue its expansion program, notably in Poland where it last week gained clearance for the purchase of Ahold's stores and raised its target for new store space this year to 17 million square meters from 1.5 million previously.

French sales were 10.4 billion euro, up 0.13% and unchanged on a like-for-like basis and those of French hypermarkets were 5.549 billion euros, up 2.2% or 1.4% like for like, thanks to volume increases in a deflationary market.

Deutsche Bank had forecast French sales at 10.586 billion euros in the second quarter, of which 5.602 billion from hypermarkets.

Carrefour said that while the prices it paid wholesalers accelerated in the second quarter, there was no impact on its retail selling prices due to its policy of local price leadership.

Dry grocery goods in hypermarkets saw deflation of 1.2% in the period, it said.

In French supermarkets, sales rose 1.2% at 2.29 billion euros and added 0.4% like for like while those in discount outlets rose 4.2% to 734 million, but this was thanks to new store openings and they fell 0.1% like for like.

In Europe outside France, Carrefour's sales were up 5.8% at 8.535 billion euros, a rise of 2.7% like for like.

In Italy sales rose 3.1% to 1.778 billion Euro thanks to expansion, but were down 0.7% like for like.

A major expansion program led to a 34.9% jump in Latin American sales to 2.32 billion euros and these rose 7.3% like for like.

In Brazil, where sales totaled 1.57 billion euros thanks to expansion, like for like sales rose just 0.8%.

Asian sales rose 13.6% at 1.38 billion euros, but added just 1.6% like for like.