French retailer Carrefour has reported like-for-like sales growth of 13.5% in the first quarter of its financial year on the back of the 'sound execution' of its strategic initiatives.
Carrefour-branded products accounted for 37% of food sales during the quarter compared to the same period last year, while e-commerce GMV increased by 33%, driven by the retailer's performance in Brazil.
The retail group registered stable sales in France and the rest of Europe, reflecting the slowdown in inflation and price investments, while volumes remained under pressure.
Sales in Brazil increased by 1.3% on a like-for-like basis, marking a recovery from a decline of 2.2% in the fourth quarter of 2023. It was boosted by the performance of Atacadão (up 1.8% LFL) and Sam’s Club (up 6.9% LFL), among others.
Carerfour chair and chief executive officer, Alexandre Bompard commented, “In the first quarter, Carrefour Group demonstrated resilience in Europe against a backdrop of continued pressure on purchasing power. The group also recorded very clear signs of recovery in Brazil, notably in its Atacadão and Sam’s Club formats.
Full-Year Outlook
Carrefour confirmed its financial targets for 2024, including growth in EBITDA and recurring operating income. It foresees net free cash flow in line with its Carrefour 2026 plan.
Bompard added, “In order to strengthen our competitiveness while protecting our economic model, we are heightening our cost-reduction dynamic and will accelerate price reductions throughout 2024 in France and the rest of Europe. Further progress in implementing our strategic plan enables the group to view the rest of the year with confidence and to confirm its full-year 2024 targets.”
The group also announced that it has initiated a new share buyback programme, announced in February of this year, worth €700 million.
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