Carrefour Results Better than Expected

Carrefour posted stronger than expected results for the first half of the year. France appears to have stabilized and overseas sales are rising. This is even before the new CEO has begun his planned improvements.See Below:

H1 2012 sales: €43.7 bn, +0.9%, driven by growth in emerging markets, notably in Latin America, where sales rose 5.3% (+8.3% at constant exchange rates)

Q2 2012 sales:  €21.7 bn, broadly stable at -0.3%, supported by sustained growth in emerging markets. Sales trends stabilized in France and Europe.

• France: Sales down 2.1%, supported by improving food sales but impacted by a fall in non-food sales, notably for seasonal goods. Sales trends at hypermarkets and supermarkets are in line with the expected effects of the action plan. Significant improvement of sales in convenience. Acceleration of Drive roll-out with 125 outlets at end-June.

• Europe (ex. France): Sales down 3.5% (-2.4% at constant exchange rates), impacted by a depressed consumption environment in Southern Europe. Growth in sales in Belgium.

• Latin America: Sales up 2.7% (+7.4% at constant exchange rates). In Brazil, Atacadao continued its growth.

• Asia: Sales up 14% (+1.8% at constant exchange rates), an improvement over the previous quarter. Sales growth in China, driven by expansion.