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2014 Registration Document
Presentation of the Group
1
Results and highlights of 2014
1.2
Results and highlights of 2014
Carrefour’s results in 2014
Carrefour’s results in 2014 testifies to the Group’s growth momentum.
The Group has built on its fundamentals around strong growth levers:
a balanced country portfolio, a comprehensive and unique multi-format
model, and operational excellence in all of its businesses.
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Strong growth in Group earnings
The Group saw further acceleration in sales growth in 2014. Organic
sales were up by 3.9%, excluding tax. At current exchange rates, this
was a -0.2% change. Recurring operating income rose, both in Europe
and in the emerging countries, progressing by +10.6%, at constant
exchange rates, to €2.39 billion. Net income from recurring operations,
Group share, increased by +24.6%, to €1.18 billion.
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France: further growth in profitability
The Group’s good performance in France testifies to the strong position
in grocery and illustrates the dynamism of the multi-format model. In
2014, organic sales excluding petrol progressed by +1.2% on top of an
already positive +1.0% growth in 2013. Growth was seen in all formats
in France, for the second consecutive year.
Attractiveness improved across the various formats, with steady
improvement in terms of price perception, higher numbers of checkout
transactions, and a rise in overall customer satisfaction.
The Group’s recurring operating income continued to improve, increasing
by 6.1% to €1.27 billion. This increase can be partly attributed to an
improved commercial margin related to decreased shrinkage and to
gains in logistics. Profitability was solid in all formats.
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International: success of the multi-local model
In Europe outside of France, sales stabilised in 2014 after several years
of decline. This was supported by the recovery in Spain, improved trends
in the second half of the year in Italy, and solid performance in the
other countries. Profitability in Europe outside of France increased, with
recurring operating income up by +9.6% over 2014.
Brazil and Argentina saw remarkable growth with 18.1% combined
organic growth in sales, on a high basis of comparison in 2013. Recurring
operating income in Latin America was also up again, by +23.2% at
constant exchange rates. Profitability continued to increase across formats
in Brazil. In an uncertain economic environment in Argentina, recurring
operating income was stable, showing excellent resilience. Carrefour has
strengthened its position in Brazil and Argentina as a leading food retailer.
In Asia, organic growth dropped by -1.8% in 2014, reflecting an
environment of frugality in consumption in China and lower sales of
shopping cards. Carrefour’s model in China is evolving to adapt to this
context. Commercial margin increased. The activity held up well in Taiwan.
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Solid cash flow and increased investment
Cash flow stood at €2.5 billion in 2014, compared with €2.0 billion in
2013. Carrefour continued to invest in order to bring its stores up to
standards, modernise and develop its network (€2.4 billion in 2014).
The Group significantly strengthened its multi-local and multi-format
presence, which contributed to the current balance of its country and
activity portfolio. The Group’s free cash-flow increased to €306 million
in 2014, compared to €26 million in 2013.