Carrefour (CA) Q2 2024 earnings summary

Executive summary

• Net sales for H1 2024 were €40.6bn, up 12.1% like-for-like, with recurring operating income rising 6.2% to €743m, driven by strong results in Brazil and France, offsetting weaker trends in Europe.

• Cost savings of €580m achieved, with stable net free cash flow and private label share of food sales rising to 37%; e-commerce GMV up 30%, mainly in Brazil.

• Acquisition of Cora and Match in France completed July 1, 2024, and Grupo BIG integration in Brazil delivering synergies ahead of schedule.

• Net income (Group share) was €25m, sharply down from H1 2023 due to the absence of one-off gains.

• Full-year 2024 financial targets are confirmed, with confidence entering H2.

Financial highlights

• Recurring operating income increased to €743m (+6.2%), with EBITDA up 3.4% to €1,916m and recurring operating margin at 1.8% (+11bps); adjusted EPS rose to €0.46.

• Net sales reached €40.6bn, with gross margin at 19.4% (down 37bps), and SG&A improved by 53bps to 15.1%.

• Net free cash flow was €(1,704)m, stable year-over-year; net financial debt at €5,418m.

• Net income, Group share, was €25m, impacted by non-recurring items and hyperinflation in Argentina.

• Share buybacks totaled €485m in H1 2024, with further mandates ongoing.

Outlook and guidance

• FY 2024 guidance reaffirmed: growth in EBITDA, recurring operating income, and net free cash flow in line with the 2026 plan.

• 2025 synergy target for Grupo BIG in Brazil raised to R$3.0bn.

• 2026 targets include 40% private label food sales, €8–10bn e-commerce GMV, >€1.7bn net free cash flow, and >€2bn annual capex.