11 January 2006 -
Pro forma Group sales increase 6.1% (+4.3% on constant currency)
Focus on faster sales growth begins to produce results
Still faster sales growth expected in 2006
• 2005 has been a turnaround year for Carrefour. We now have a new management and corporate governance structure better suited to the needs of the business; old taboos have been abandoned, enabling us to upgrade and strengthen our portfolio of assets; we have won domestic market share for the first time since 2000 through a consistent and determined focus on the customer; and we have increased by nearly 50% the number of new square metres added during the year versus 2004.
• These efforts have enabled us to deliver pro forma sales growth in 2005 of 6.1% (4.3% on a constant currency basis) in a market characterized by weak volumes and deflation. Consolidated group sales, taking into account disposals, increased 2.9%.
• Consistent efforts to strengthen pricing in France, and particularly in French hypermarkets, enabled us to win back food market share each quarter over the course of the year. Overall, French hypermarkets increased food market share according to Secodip by 0.3% (between 29/12/04 and 04/12/05). Hard discount grew market share by 0.2% and convenience stores by 0.1% in the same period. Supermarket market share was stable. As a result, the group increased market share by 0.6% overall, the first increase over the course of a year since 2000. As expected, these efforts to strengthen pricing will mean a decline in Activity Contribution in France in 2005. The trend in H2 should be in line with that of H1. However, strong growth outside of France should mostly compensate for this decline.
• Outside France, Carrefour’s new engines for growth are performing well in Europe, Asia and Latin America. Pro forma sales growth on constant currency outside France was 7.5% (+11.0% including currency). Significant growth in new square metres in markets such as Poland, Greece, Turkey, Brazil, Colombia, China and Indonesia has underpinned market share and productivity gains, even if like for like growth has sometimes been impacted.