Paris, France -- (MARKET WIRE) -- March 8, 2007 --
PRESS RELEASE
Levallois, 8th March 2007
2006: the rate of growth accelerates
- SALES : + 6.6%
- ACDA* : + 5.7%
- NET INCOME FROM RECURRING OPERATIONS GROUP SHARE : + 3.3%
- DIVIDEND FIXED AT 1.03 EUROS PER SHARE**
The Supervisory Board of Carrefour, which met on the 7th of March 2007, has examined the consolidated accounts for the financial year 2006 presented by the Management Board following its meeting on the 27th of February 2007.
The Management Board has decided to propose to the Annual General Meeting of shareholders a dividend of EUR1.03 per share for the financial year 2006, representing an increase of 3% versus the amount distributed for the 2005 financial year. This dividend will be paid on the 4th of May 2007.
Consolidated profit and loss account
EURm 2006 2005 Growth
Net sales 77,901 73,060 +6.6%
Activity 4,845 4,582 +5.7%
Contribution
before
Depreciation and
Amortisation (ACDA)*
Activity 3,258 3,152 +3.4%
Contribution
% Activity 4.2% 4.3%
Contribution
margin
Net income 1,857 1,798 +3.3%
from recurring
ops Group Share
Net income 2,268 1,436 + 58%
Group Share
* Before non recurring elements
** Subject to approval by the General Meeting
1 We achieved our main objectives in 2006
Our consistent focus on customers and growth has enabled us to meet our main objectives.
- Sales ex VAT, up 6.6% on current exchange rates, and 6.4%
on constant exchange rates, grew more than two percentage
points faster than in 2005 and 2004.
- We won food market share in France for the second
consecutive year (+0.5% according to TNS Worldpanel).
- We opened 1.4 million m2, representing nearly a thousand
stores, of which 103 were hypermarkets, double the rate
achieved in 2004.
We have continued to develop the main pillars of our strategy:
- We are reinforcing our strategy of low prices and strong
promotions in an environment in Europe which is
characterised by weak growth in food consumption and by
price deflation.
- We are strengthening constantly our assortments and our
services.
- We are reinforcing the effectiveness and recognition of
our brand in all the countries where we are present.
2 All regions contributed to growth
Regional breakdown of Net sales
EURm 2006 2005 Growth
France 37,212 35,577 + 4.6%
Europe (ex France) 29,850 28,102 + 6.2%
Latin America 5,928 5,075 + 16.8%
Asia 4,911 4,306 + 14.0%
Total Group 77,901 73,060 + 6.6%
-> All regions contributed to sales growth.
Note that ex-petrol like for like sales growth accelerated in 2006 to + 1.1% from 0% in 2004 and 2005.
3 Activity Contribution before depreciation and amortisation (ACDA) increased by 5,7%
Activity contribution before depreciation and amortization increased by 5.7%, almost in line with sales.
The acceleration of the opening of new m2 resulted in an increase in asset costs (rents and depreciation). Activity Contribution increased by 3.4% to EUR3,258m. This compares to a decline of 2.9% in 2005.
Activity Contribution
EURm 2006 2005 Growth
Net sales 77,901 73,060 +6.6%
Commercial 17,740 16,569 +7.1%
income
Commercial 22.8% 22.7%
margin
SG&A 12,895 11,986 +7.6%
Activity 4,845 4,582 +5.7%
Contribution
before
depreciation
and
amortization
Depreciation 1,587 1,430 + 11.0%
and
amortization
Activity 3,258 3,152 +3.4%
Contribution
-> Commercial margin increased as a result of a better margin mix and lower logistics costs which offset the impact of lower prices. 2006 was again characterised by a tight control of operating costs, even as we added resources to the shop floor.
Breakdown of Activity Contribution by region
EURm 2006 2005 Growth France 1,718 1,713 + 0.3% Europe (ex France) 1,208 1,145 + 5.5% Latin America 161 133 + 21.8% Asia 171 162 + 5.4% Total Groupe 3,258 3,152 + 3.4%
-> All regions contributed to the increase in Activity Contribution
4 Net income from recurring operations Group Share increased by 3,3%
The divestment of insufficiently profitable activities has led to a non-recurring exceptional item of EUR412m, mainly as a result of the disposal of our Korean activities. This number, compared to a loss of EUR362m in 2005, resulted in an increase of net income group share of 58% to EUR2,268m.
Profit and loss account
EURm 2006 2005 Growth
Activity Contribution 3,258 3,152 + 3.4%
Non recurring elements 15.9 (20.8) na
EBIT 3,274 3,132 + 4.6%
Financial costs (480) (450) + 6.6%
Income tax (810) (785) + 3.2%
Tax rate 29.0% 29.3%
Minority interest (163) (150) + 9.2%
Associates 36 51 (29.2%)
Net income from rec. 1,857 1,797 + 3.3%
Ops Group Share
Discontinued activities 412 (362)
Net income group share 2,268 1,436 + 58%
-> Financial costs increased by 6.6%, mainly as a result of an increase in
interest rates and an increase in average net debt over the year.
The tax rate was more or less stable as at the end of 2005, at 29%. Our balance
sheet and financial ratios were solid, with a reduction of year end net debt of
EUR481 m.
The strength of our cash flows enabled us in 2006 to finance EUR3.4 bn of operating capital expenditure, an increase of 11% compared to 2005.
5 2007 - 2008: the engines for growth
The food retail industry in mature European markets is characterised by low growth and deflation. Within this context, we are leveraging the following engines for growth:
- Convergence, and strengthening, of the Carrefour brand:
- Following our successful experience in Spain and
Brazil in 2006 with our new formats Carrefour
Express and Carrefour Bairro, we are accelerating
our multi format, single brand, strategy and have
strengthened Carrefour own label.
- In 2007, we will extend the multi format, single
brand, strategy to Turkey, Belgium, Poland and
Argentina.
- The overhaul of our commercial model in food and
non-food, in order to guarantee to our customers
a wider offer better adapted to their needs, a better
choice of products, and a more satisfactory in-store
experience. This commercial remodelling should enable
us to find additional means to reduce our prices
and increase the buying power of our customers.
- Acceleration of new m2 in growth markets:
- We will open at least 1.5m new m2 this year.
- Of this, we will open around 1 million m2 in growth
markets outside France, Italy, Belgium and Spain.
- We are preparing to develop new engines for growth
in countries with strong growth potential such as
Russia and India.
Objectives for 2007 / 2008
- Sales 2007 - 2008 :
- Within the current competitive environment, we
anticipate sales growth in 2007 at least as
strong as in 2006.
- With regards 2008, our achievements in 2006, as
well our forecasts for 2007, give us confidence
that we can grow sales around 10%.
- For both years, meeting these targets assumes
that we make the expected level of tactical
acquisitions
- Activity Contribution 2007 - 2008:
- For 2007, Activity Contribution will grow,
although at a slower pace than sales, reflecting
our determination to consolidate our low price
leadership and to accelerate our expansion plans.
- For 2008, we continue to believe that we can grow
Activity Contribution in line with sales. However,
this depends on the resources we will need to
invest in order to win the competitive game,
particularly in France. We will not grow profits
at the expense of sales and market share.
Publication of Q1 2007 sales
11 April 2007
Annual General Meeting:
The ordinary and extraordinary General Meeting shall be convened for Friday 20
April at 2pm at the Group headquarters. In the very likely case that the
necessary quorum shall not be reached, the General Meeting will be convened a
second time on Monday April 30 at 9.30 at the Carrousel du Louvre, 99 rue de
Rivoli in Paris (75 001).
This information is provided by RNS
The company news service from the London Stock Exchange