Oct 16 - Franch market share gains driven by the strong performance of Carrefour Market and the success of Carrefour-branded products.
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Market share gains of 0.2%1 for the Group over the first eight months of 2009
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Confirmation of the success of Carrefour Market (+6% like-for-like ex-petrol in Q3)
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Good performance of convenience formats and excellent results for newly-opened Carrefour City and Contact stores
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Weak sales in hypermarkets, notably in non-food
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Strong sales of Carrefour-branded products (sales up 11% in Q3), continued success for Carrefour Discount
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Strong performance of the stores converted to the Dia banner, stable market share for ED but continuation of difficult trading (-7% like-for-like in Q3)
G4 excluding France: continuation of difficult trading conditions
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In Spain, Q3 hypermarket sales performance in line with H1 (-9.3% like-for-like ex-petrol), Dia volumes continued to increase but were strongly impacted by food deflation
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Like for like sales in Italy in line with Q2 2009 (-3.5% ex petrol in Q3), more difficult trading in Belgium (-3.9% in Q3)
Growth markets2: continued growth in Brazil, resilience in China in a deflationary environment
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Sustained growth in Brazil (+14.8% ex-petrol at constant exchange rates)
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Growth in China in line with H1 (+7.1% at constant exchange rates), although sales continued to be impacted by deflationary pressure
Decision to sell activities in Russia
Decision to sell the Group’s activities in Russia and pull out of the market, given the absence of sufficient organic growth prospects and acquisition opportunities in the short-and medium-term that would have allowed Carrefour to attain a position of leadership.
Carrefour on track to attain its 2009 objectives:
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Activity Contribution in line with the lower end of the €2.7 bn to €2.8 bn range announced on June 30, 2009
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€600m investment in commercial dynamics
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Cost savings of at least €500 million
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Free cash flow of €1.2 billion, thanks to a two-day improvement in inventories and capital expenditure capped at €2.3 billion for the full year
Commenting on this sales performance, Lars Olofsson, CEO and Board member, said:
"In a persistently challenging environment, notably in our Western European markets, Carrefour’s third-quarter sales performance demonstrates the relevance of our multi-format strategy. The Group continues to gain market share in France, reflecting the success of Carrefour Market, which offsets the disappointing Q3 sales of our hypermarkets. The Group’s growth markets, particularly in Latin America, continue to post dynamic sales. In Q4, we will continue our commercial efforts and stay the course to attain our objectives. We remain focused on pursuing our strategy and implementing the transformation plan that will allow Carrefour to regain leadership in its markets."