Carrefour (CA) Q2 2024 earnings summary

Executive summary

• Net sales for H1 2024 were €40.6bn, up 12.1% like-for-like, with recurring operating income rising 6.2% to €743m, driven by strong performance in Brazil and France, offsetting weaker trends in Europe.

• Cost savings of €580m achieved, with stable net free cash flow and strong e-commerce and private label growth, especially in Brazil.

• Acquisition of Cora and Match in France completed July 1, 2024, and Grupo BIG integration in Brazil is driving synergies and growth.

• E-commerce and digital transformation accelerated, with GMV up 30% and retail media expansion across 13 countries.

• Net income (Group share) was €25m, sharply down from H1 2023 due to the absence of one-off gains.

Financial highlights

• Q2 sales reached €22.7bn, up 8.9% at constant currency; group like-for-like sales up 10.8%.

• Recurring operating income increased to €743m (+6.2%), with EBITDA up 3.4% to €1,916m.

• Gross margin declined 37bps to 19.4% of net sales, mainly due to price investments and franchise transfers in France.

• Net free cash flow was €(1,704)m in H1, stable year-over-year; net financial debt at €5,418m.

• Adjusted net income, Group share, was €313m (+2.3%).

Outlook and guidance

• Full-year 2024 objectives for EBITDA, ROI, and net free cash flow confirmed, in line with the 2026 plan trajectory.

• FY24 recurring operating income target of €1.2bn confirmed; synergy target for Grupo BIG in Brazil raised to R$3.0bn by 2025.

• 2026 targets include 40% private label food sales, €8–10bn e-commerce GMV, and >€1.7bn net free cash flow.

• H2 expected to improve in Europe as one-off negative factors in H1 are not expected to repeat.

• Real estate disposals for the year expected to be slightly lower than last year but remain significant.