Activity Contribution reflecting commercial investments
Net income impacted by significant non recurring charges
First benefits of the Transformation Plan
2009: a performance that reflects the implementation of the Transformation Plan
- Slight growth in sales: up 1.2% at constant exchange rates ex petrol and ex calendar effect (down 1.2% on a reported basis), driven by growth markets
- Activity Contribution of €2,777m, down 16%, impacted by commercial investments of €639m but boosted by significant cost savings, especially in the second half
- Net income Group share of €385m (vs. €1,274m in 2008), impacted by non recurring and restructuring charges of €1,072m
- Selective management of Capex: €2,137m in 2009 (vs. €2,908m in 2008)
2009 objectives achieved
- Market share gains, particularly in France (+0.2%1), thanks to the reinforced attractiveness of our brand and banners
- Cost savings amounting to €590m
- Activity Contribution of €2,777m, at the high end of the announced target of between €2.7bn and €2.8bn
- Free cash flow of €1,479m, reflecting our disciplined investment policy and inventory reduction
Priorities and objectives for 2010
- Like‐for‐like market share gains thanks to tailored commercial investments and an improved price image
- Improve AC margin through flawless execution of the Transformation Plan: operational efficiency gains, through gross operating cost savings of €500m
- Focus on cash generation: continued selectivity in investments, at around the same level as 2009, with priority to G4 transformation and expansion in Brazil and China, combined with a 2‐day reduction of inventory
Lars Olofsson, CEO and Board member of Carrefour, declared:
“With the successful launch of the ‘’En Avant’’ Transformation Plan and fully mobilized teams, Carrefour has gained new momentum. The past year has allowed us to register major advances: market share gains in France;
a redynamised Carrefour brand; the success of Carrefour Discount products; accelerated banner conversion and the roll‐out of new concepts.
Our 2009 objectives were achieved and the foundations for Carrefour’s future have been laid.
In 2010, in an environment that is likely to remain challenging, we will consolidate these gains through flawless execution of the transformation plan and strengthened sales dynamics in our key markets. Carrefour, with a
renewed and leaner organisation and new management, will continue to implement its strategy to attain its ambition: become the preferred retailer.”
In its 18 February, 2010 meeting, the Carrefour Board of Directors examined and approved the 2009 consolidated financial statements, which are currently being audited.
The Board decided to propose to shareholders at the AGM, to be held on May 4, a dividend of €1.08/share for 2009, similar to the 2008 level.
This dividend will be paid on 12 May 2010.
Income statement
• Sales fell by 1.2% relative to 2008, but rose by 1.2% excluding petrol, currency effects and adjusted for the calendar effect.
• Commercial margin, as a percentage of sales, was stable (and fell by 20 basis points ex petrol) because of the investments made by the Group in its commercial offer. Their effects are partly mitigated by shrinkage
and logistics cost savings and purchasing gains.
• Savings in SG&A expenses reached €540m, above our initial objectives. These savings partly compensated for the effects of inflation and of expansion, limiting growth in SG&A expenses to 1.8%. SG&A expenses
excluding asset costs were slightly up (+1.2%) while the increase in asset costs slowed in the second half of the year, amounting to +4.3% over the full year.
• Activity Contribution fell by 16.0 % to €2,777m.
• Non‐recurring charges rose to €1,072m. The main items were as follow: €766m in impairment charges, mainly in Italy, €172m in restructuring charges and €66m linked to the transformation plan.
• As a result, Group EBIT fell by 38.9% to €1,705m.
• Financial expenses rose by 8.6% to €610m.
• The tax rate was 58.3%, as a result of the non‐deductibility of the exceptional impairment charges.
• The change in minority interests (‐€110m against ‐€266m in 2008) was due to the following factors: (1) the capital gain on the disposal of Merter and Mercury in 2008 and (2) lower contribution to results from
subsidiaries that are not fully‐owned.
• Net income from continuing operations, Group share, was €385m, compared to €1,274m in 2008.
Adjusted for exceptional items, Net income from continuing operations, Group share was down 35% to €1,151m.
Cash flow, debt and liquidity statement
• Cash flow reached €3,419m, down 14.6%, reflecting mainly the fall in Activity Contribution before Depreciation and Amortization.
• Working capital requirements resulted in a positive inflow of €320m (against €971m in 2008), primarily
reflecting the improvement in merchandise treasury of €313m (€655m in 2008), achieved thanks to better inventory management.
• Capex was strictly managed, and was down 26.5% to €2,137m. The drop is principally due to Europe.
Investment remains stable in France, reflecting the Carrefour Market conversion plan.
• As a result, free cash‐flow reached €1,479m compared with €1,916m on 31 December 2008.
• On 31 December 2009, net financial debt totalled €6,460m, a fall of 2.9% compared to 31 December 2008 (€6,652m).
• Over the course of the period, the Group refinanced debt worth €1.3bn through private placements. The Group’s liquidity situation is solid, with €3bn undrawn committed syndicated loans, and the schedule for
the repayment of bonds totalling €8.7bn to be spread over the next 8 years. |
