Carrefour - 2017 Annual Report

C A R R E F O U R — 4 6 Financial overview The 2017 results reflect a difficult year overall, with slowing like-for-like sales growth of 1.6% in 2017, compared with 3% in 2016, and recurring operating income of €2,006 million, down 14.7% at current exchange rates, primarily reflecting strong competitive pressure (particularly in France), higher distribution costs in the Group’s main markets, an increase in depreciation after a period of significant investments and a more difficult situation in Argentina. Free cash flow excluding non-recurring items came in at €950 million, compared with €1,039 million in 2016, with investment of €2.1 billion (excluding Cargo Property), compared with €2.5 billion in 2016. Net sales Net sales rose 2.6% over 2016 at constant exchange rates. Like-for-like sales grew by 1.6% in 2017, compared with growth of 3.0% in 2016. This change is mainly attributable to slowing growth in food sales, particularly in the second semester. Food sales in Brazil grew much more slowly in 2017, adversely affected by food deflation since June, while food inflation had been particularly strong in 2016, notably in the second semester. In France, sales rose slightly, by 0.8% compared with 2017. In a more intense competitive environment, like-for-like sales in Europe grew by 1.3%, mainly reflecting a positive trend in northern Europe. The slowdown in like-for-like sales in Latin America (up 6.1% in 2017, vs. 13.5% in 2016) reflects food deflation in Brazil in the second semester, compared with double-digit food inflation in 2016, as well as high inflation in Argentina in an economic context that remains difficult. The trend in like-for-like sales in Asia improved during the year, down by 3.7%, compared with 5.0% in 2016. France 35,835 Latin America 16,042 Europe (excl. France) 21,112 Asia 5,907 Net sales by geographic region (in €m) REFERENCE Net sales (in €m) 2016 76,645 2017 78 897 , To find out more, visit carrefour.com or see the 2017 Registration Document