Half Year 2024 Carrefour SA Earnings Call Transcript
Key Points
- Carrefour (CRERF) achieved a strong performance in Brazil, with a 46% increase in operating income, reaching EUR366 million.
- The company completed the acquisition of hypermarket chains, enhancing commercial dynamism and creating strong synergies.
- E-commerce contributed significantly to commercial results, with gross merchandise value rising by 45%.
- Carrefour (CRERF) generated substantial synergies amounting to BRL2.3 billion, surpassing initial goals and ahead of schedule.
- Recurring operating income increased by 6.2%, reflecting solid achievements in Brazil and France.
- Consumer spending in Europe remains low, with people shopping more frequently but buying fewer items each time.
- Adverse weather conditions across most European countries significantly impacted traffic in hypermarkets and sales of non-food items.
- Recurring operating income decreased in all European markets except Belgium, with specific challenges in Spain, Italy, and Poland.
- Net financial charges increased significantly in H1, mainly due to the impact of IAS 29 hyperinflation accounting in Argentina.
- Free cash flow performance was roughly stable compared to H1 last year, with net free cash flow at minus EUR1.7 billion.
Good evening to all of you. Thank you for joining today's call to present our performance for the first half of 2024. Before giving numbers, I'd like to provide context about our current situation, the current economic context is mixed. In Brazil, we see more positive consumption trends with higher food inflation and lower interest rates.
On the other end consumer spending in Europe remains low, even though inflation rates have stabilized, people keep shopping more frequently, but buying fewer items each time with a focus on promotions. In addition, adverse weather conditions across most European countries have significantly impacted traffic in hypermarkets on the sales of nonfood items are seasonal products. Some factors seem to fuel a gradual recovery in purchasing power, in particular, will wage growth should ultimately result in giving households more budget flexibility.
The French National Institute of Statistics forecasting a growth of 0.9% in 2024 after only 0.3% in 2023. However, many uncertainties
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