etail giant Carrefour said today that rising sales in Asia and Latin America helped to offset shrinking European second-quarter sales.The retailer recorded quarterly sales of €20.46 billion, down 0.6% at current exchange rates (including petrol) from the same period a year ago, noting that Q2 sales improved at its core French hypermarkets and turned positive in China.
Growth in Brazil, the second largest market for Carrefour after France, slowed during the period, however, while trading conditions remained difficult in Western Europe.
Carrefour's French operations, which make up some 40% of group sales, saw an improved quarter as shoppers spent more on food during the period, with a 0.2% drop in revenue to €9.65 billion for the second quarter compared to a 0.7% fall in the previous quarter.
The wider European picture for Carrefour was somewhat more mixed, with Italy continuing to struggle amid fierce retail competition and weakened consumer spending. Revenue also fell in Belgium, the company said. According to Carrefour, Spain 'held up better' during the quarter. Total sales for Europe, excluding France, dropped by 4.1% to €5.24 billion at current exchange rates including petrol.
Emerging markets showed continued momentum during the period, with Carrefour Asia posting a 4.3% increase in reported sales to €1.69 billion. Carrefour's Latin American sales were up by 12% at constant currencies excluding petrol sales, although they only rose by 1.2% on a reported basis to €3.8 billion. Carrefour said that the continuing depreciation of Brazilian and Argentine currencies had a negative impact of 1.9% during the second quarter. Brazil lost some momentum during the period, with like-for-like sales growth slowing to 7.1% from 10.6% in the first quarter.
Carrefour CFO Pierre-Jean Sivignon stated that the market consensus for 2013 earnings before interest and taxes of around €2.2 billion was 'reasonable', provided exchange rates in Latin American currencies did not worsen against the euro.
