Carrefour (CA) Q2 2025 earnings summary

Executive summary

• Q2 2025 sales accelerated to +4.4% like-for-like, up from +2.9% in Q1, with strong commercial performance and improved trends in France, Spain, and Brazil, supported by higher wages and lower inflation in Europe.

• Strategic initiatives included full buyout of Brazil minority interests, disposal of 7% stake in Carmila, launch of the Concordis buying alliance, and exclusive negotiations to divest Italian operations.

• Integration of Cora and Match progressed, with 400 new proximity stores opened in Europe and ongoing store conversions.

• Net sales rose 2.8% year-over-year to €41.8bn, with 7.5% growth at constant exchange rates, but offset by currency headwinds in Brazil and Argentina.

• Net loss attributable to the Group was €401m, impacted by significant non-recurring expenses and impairments, especially in Italy.

Financial highlights

• H1 2025 group like-for-like sales up 3.7%, with Q2 accelerating to 4.4%; H1 gross sales reached €46,559m, and recurring operating income was €681m, down from €743m in H1 2024, mainly due to Cora & Match and FX impacts.

• EBITDA rose 1.1% to €1,936m; adjusted net income, Group share, was €210m (vs €313m in H1 2024); adjusted EPS at €0.32, down 30% year-over-year.

• Net free cash flow was -€2,091m, impacted by Cora & Match consolidation and lower real estate divestment; net debt increased to €6,989m, mainly due to acquisitions and dividend payments.

• Gross margin improved to 19.6% of net sales (+18bps year-over-year).

• Operating income dropped to €166m from €632m, due to higher non-recurring expenses, including impairments and restructuring.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: slight growth in EBITDA, recurring operating income, and net free cash flow.

• H2 2025 expected to show improvement in net free cash flow, with Cora and Match no longer weighing on profits.

• 2026 targets include €10bn e-commerce GMV, >€1.7bn net free cash flow, >5% annual dividend growth, and 40% of food sales from Carrefour-brand products.