SOURCE: Carrefour SA

July 12, 2005 12:01 ET

Carrefour SA announces Trading Statement

Paris, France -- (MARKET WIRE) -- July 12, 2005 --


July 12th 2005

In Q2, pro forma group sales ex-currency increased 3.1% (+4.1% inc. currency) in
a deflationary environment across Europe

Sales in France increased 0.2%. Hypermarkets again increased customer
transactions and won market share

                         SECOND QUARTER 2005

          Sales    Like   Expansion  Total    Currencies Total
                   for               Ex.
          (mEUR)   like        (%)   Currency      (%)    (%)
                    (%)               (%) *  

FRANCE    9 816    -0.3        0.5      0.2         0.0    0.2

EUROPE    7 638     0.1        3.6      3.7         0.8    4.5
ex Fce       

LATIN     1 472     3.6        4.9      8.5        11.5   20.0
AMERICA   

ASIA      1 426     3.0       13.3     16.3        -0.1   16.2


TOTAL    20 352     0.3        2.8      3.1         1.0    4.1


                            FIRST HALF 2005

          Sales    Like   Expansion  Total    Currencies Total
                   for               Ex.
          (mEUR)   like        (%)   Currency      (%)    (%)
                    (%)               (%) *  
 
FRANCE   19 196     0.0        0.6      0.6         0.0    0.6

EUROPE   14 958     0.8        3.8      4.5         0.9    5.5
ex Fce      

LATIN     2 793     6.2        3.8     10.0         6.8   16.7
AMERICA  

ASIA      2 993     5.5       14.5     20.0        -0.6   19.4


TOTAL    39 940     1.0        2.9      3.9         0.7    4.6

* Pro forma


-In the second quarter, Carrefour pro forma group sales, including VAT,
 but ex-currency, grew 3.1%. Including currency, sales grew 4.1%. On 
 reported Q2 2004 numbers, sales growth was 1.9% and 2.9% respectively 
 (Mexico and Japan were deconsolidated as of the 1st January 2005).

-As we have highlighted in recent communications, the trading environment
 in Europe is very challenging. We have seen deflation and weak market 
 volumes across most of Europe since the end of last year. In the second 
 quarter, however, these trends have been even more apparent. In this 
 tough environment, our goal has been to consistently out perform the 
 competition and win market share. To this end, we have made progress in 
 the quarter.

-Our price investments in France, particularly in our hypermarkets, have
 delivered results. The number of customer transactions in our French
 hypermarkets grew by 1.4% in the quarter and, as a result, market share
 increased. Overall, Carrefour Group in France grew market share over the
 first half, the first increase by the group as a whole since 2000.

-We are on track to exceed one million square metres of new space in 2005
 through organic growth and through tactical acquisitions. In Q2, we  
 opened 208 new stores under banner, accounting for 201,000 m2 of new 
 space. This included 8 hypermarkets, 12 supermarkets, 129 hard discount 
 stores and 54 convenience stores. We now have 11,432 stores in our 
 portfolio.

-In addition, we have acquired through tactical acquisitions an additional
 425,000 m2 of new space through acquisitions in Poland, Italy, Turkey,
 Cyprus and Brazil. Together, these acquisitions would account for more 
 than 1% sales growth in a full year.


- FRANCE

                      SECOND QUARTER 2005

               Sales    Like   Expansion Total
               (mEUR)   for        (%)    (%)
                        like 
                        (%)

FRANCE         9 816    -0.3       0.5    0.2

Hypermarkets   5 000     0.4       0.0    0.4

Supermarkets   2 084    -2.4       2.9    0.5

Hard             625     0.7       5.0    5.7
discount     

Others         2 106    -0.1      -1.7   -1.8


                       FIRST HALF 2005

               Sales    Like   Expansion Total
               (mEUR)   for        (%)    (%)
                        like 
                        (%)

FRANCE        19 196     0.0       0.6    0.6

Hypermarkets   9 872     1.0       0.0    1.0

Supermarkets   4 048    -2.2       3.0    0.8

Hard discount  1 207     0.0       5.1    5.1

Others         4 068    -0.1      -1.8   -1.8


In France, sales rose 0.2% in the quarter.

Hypermarket sales grew by 0.4%. With no new stores in the period, this consisted
wholly of like for like sales growth. Excluding petrol, like for like sales fell
by 0.9%. There was a positive calendar effect in the period of 0.4%. This takes
into account the number of trading days versus the corresponding period in 2004,
which had a positive impact of 0.8%, as well as the timing of Easter, which had
a negative impact of 0.4%.

Food sales decreased by 0.7% while non-food decreased by 1.2%. Food sales saw
deflation of 2.5% and non-food of 6.9%. This compares to food deflation in Q1
2005 of 0.4% and non-food deflation of 5.1%. The increase in deflation in both
food and non-food in Q2 meant that like for like sales excluding petrol were
negative despite the first increase in food volumes for over a year of 1.8%, and
an increase in non-food volumes of 5.7%.

The trend in the number of customer transactions continued to improve, up 1.4%
in Q2 versus an increase of 0.3% in Q1 and versus a decline of over 2% in 2004.
The value of the average basket, however, fell by 2.3% reflecting the
deflationary consequences of our efforts to strengthen our price image.

Supermarket sales in the quarter were up 0.5%. Like for like sales, including
petrol, fell by 2.4%. Excluding petrol, like for like sales fell 5.3%. This
reflects weak market volumes, significant food deflation, and a negative
calendar effect of 0.2%. (Unlike hypermarkets, Champion stores were open on two
public holidays in May 2004 which fell on Sunday this year). The value of the
average basket, as well as the number of customer transactions, trended down.

Over the quarter, Champion has made progress in its efforts to expand and to
upgrade its store portfolio. Eight new stores were opened or acquired and 27
stores were extended to accommodate a wider range of non-food as we seek to
increase the differentiation of our supermarket offer. Non-food sales increased
10% over the quarter. We are on track to extend 100 stores by the year end.
Although store extensions create disruption in the short term, they create a
stronger base for sales growth thereafter. The 90 stores extended in 2004 are
currently showing like for like strong sales growth excluding petrol (+8%).

ED grew sales by 5.7% in the quarter. Like for likes increased by 0.7% versus a
fall in Q1 of 0.8%. We opened 11 stores in the quarter.

Convenience stores same-store sales increased 2.2%. At the end of the quarter,
there were 1,650 convenience stores in our portfolio, an increase of 9 versus
the end of Q1 2005.

In June, we announced our intention to divest Prodirest, our food service
business with net sales in 2004 of EUR526 m to a JV between Rewe and the Swiss
group Coop, and, at the same time, to acquire the 101 discount stores in France
owned by Rewe. These stores had net sales in 2004 of EUR262m.

Overall, in France in Q2, we opened 44,000 m2 of new space, of which
hypermarkets accounted for 7,000 m2 and supermarkets 26,000 m2.



-EUROPE

                               SECOND QUARTER 2005

              Sales    Like   Expansion   Total    Currencies  Total
                        for               Ex.
              (mEUR)   like        (%)    Currency       (%)     (%)
                         (%)               (%)    

EUROPE ex      7 638     0.1       3.6      3.7         0.8     4.5
Fce

Spain Total    3 232     3.2       1.4      4.6         0.0     4.6
Hypermarkets   2 000     4.3       2.6      7.0         0.0     7.0
Supermarkets     217    -6.2     -12.3    -18.5         0.0   -18.5
Hard discount    753     2.5       3.2      5.7         0.0     5.7
Others           262     7.8       0.2      8.0         0.0     8.0

Italy Total    1 617    -3.5       2.5     -0.9         0.0    -0.9
Hypermarkets     634    -4.7       3.4     -1.3         0.0    -1.3
Supermarkets     545    -2.9       2.2     -0.7         0.0    -0.7
Others           438    -2.1       1.4     -0.7         0.0    -0.7

Belgium        1 171     0.0       0.7      0.7         0.0     0.7
Total
Hypermarkets     597    -0.2       0.0     -0.2         0.0    -0.2
Supermarkets     279     1.4       1.9      3.3         0.0     3.3
Others           295    -1.0       0.9     -0.1         0.0    -0.1


                                 FIRST HALF 2005

              Sales    Like   Expansion   Total    Currencies  Total
                        for               Ex.
              (mEUR)   like        (%)    Currency       (%)     (%)
                         (%)               (%)    

EUROPE ex     14 958     0.8       3.8      4.5         0.9     5.5
Fce

Spain Total    6 288     3.5       1.7      5.1         0.0     5.1
Hypermarkets   3 928     4.7       3.0      7.7         0.0     7.7
Supermarkets     420    -4.9     -12.1    -17.0         0.0   -17.0
Hard discount  1 448     2.2       2.8      5.0         0.0     5.0
Others           492     7.9       1.3      9.3         0.0     9.3

Italy Total    3 238    -0.9       2.7      1.8         0.0     1.8
Hypermarkets   1 308     0.4       2.4      2.7         0.0     2.7
Supermarkets   1 088    -2.1       4.0      1.9         0.0     1.9
Others           842    -1.3       1.5      0.2         0.0     0.2

Belgium        2 300    -1.2       1.6      0.4         0.0     0.4
Total
Hypermarkets   1 184    -0.9       0.0     -0.9         0.0    -0.9
Supermarkets     548     0.1       3.9      4.1         0.0     4.1
Others           569    -3.2       2.7     -0.5         0.0    -0.5

Sales across Europe reflect also the deflation and weak volumes which are
characteristic of the market in France. The impact of market deflation plus the
deflationary impact of our own price cuts meant that the value of the average
basket deteriorated versus Q1 in every market in which we trade in Europe but one -
Portugal - in both hypermarkets and supermarkets.

Overall, sales in Europe grew 3.7% in the period on constant exchange rates.

Sales in Spain increased 4.6%, driven by hypermarkets and hard discount. Despite
increased deflationary pressures, hypermarkets continued to show mid single
digit like for like sales growth, up 4.3% in the quarter. Dia meanwhile
increased like for like sales by 2.5%. The sales performance of supermarkets,
however, was impacted by ongoing efforts to eliminate the operating loss
reported in 2004. This has involved the transfer of 5 supermarkets to the Maxi
Dia concept and 11 "mini-hypermarkets" to the Carrefour banner by the end of
August, the closure of 18 stores in 2004, and the reformatting of the remaining
165 stores in H1 2005. As a result of these efforts, sales overall were down
12.3% while like for likes were down 6.2%.

In Belgium, hypermarket like for likes were broadly stable (-0.2%) and
supermarket like for likes increased by 1.4% as a result of on going efforts to
reinforce price image. Overall, like for like sales in Belgium were flat versus
-2.4% in Q1.

In Italy, we were able to win food market share in hypermarkets, despite a fall
in like for like sales of 4.7%, as recessionary conditions worsened over the
quarter. Supermarket like for likes fell 2.9%. In April, we reinforced our
competitive position in the Italian market through a partnership agreement with
the Group Aligros, a leading food retailer in the Apulia region. This follows a
recent master franchise agreement with Ce.Di. Marche which came into effect on
January 1st 2005, as well as an agreement with Finiper announced on March 10th
2005.

Sales in Greece and Turkey increased by 11.6% and 8% respectively. Like for like
sales fell by 1.6% in Greece, and by 2.9% in Turkey as the trend in the value of
the average basket declined in both markets versus Q1. In May, we reinforced
already strong market shares in these markets through the acquisition of Chris
Cash & Carry in Cyprus and by agreeing to buy Gima and Endi in Turkey.

Sales from our acquisitions in Italy, Cyprus and Turkey will be consolidated
from Q3.

In Poland, like for like sales fell 9.7%. An important event in the quarter was
the death of Pope John Paul the Second. As a mark of respect, our stores were
closed for three days. This had a negative impact on our sales of 2.8%. In
addition, we continued to see a cannibalisation effect following the opening of
our Arkadia store in October last year which impacted 4 other stores in Warsaw.
Overall, sales increased 22.8% reflecting the consolidation of 12 hypermarkets
from Ahold in March.

1 hypermarket, 10 supermarkets, 89 hard discount stores and 45 convenience
stores were opened in the quarter.

-LATIN AMERICA

                          SECOND QUARTER 2005

              Sales    Like   Expansion   Total    Currencies  Total
                        for               Ex.
              (mEUR)   like        (%)    Currency       (%)     (%)
                         (%)               (%)*    

LATIN         1 472     3.6       4.9       8.5         11.5    20.0
AMERICA  

Brazil         964      0.6       3.4       4.0         17.8    21.9
Total    

Argentina      363     12.9       1.8      14.7         -4.5    10.2
Total    

Colombia       145     -2.1      25.7      23.6         12.8    36.4
Total    


                                FIRST HALF 2005

              Sales    Like   Expansion   Total    Currencies  Total
                        for               Ex.
              (mEUR)   like        (%)    Currency       (%)     (%)
                         (%)               (%)*    

LATIN        2 793      6.2       3.8      10.0          6.8   16.7
AMERICA  

Brazil       1 827      4.7       2.2       6.9         11.0   17.9
Total    

Argentina      688     11.7       0.1      11.8         -5.1    6.7
Total    

Colombia       278      0.1      28.3      28.4         12.0   40.4
Total    

* Pro forma

Sales in Latin America increased 8.5% on constant currency on a pro forma basis,
stripping out the contribution of Mexico, which deconsolidated at the beginning
of the year. Like for like sales in the region increased 3.6%.

Like for like sales growth in Argentina accelerated versus Q1 (+12.9% versus
+10.4%). This reflects the strengthening of the commercial model in Argentine
supermarkets as well as the on going evolution of the hypermarket concept. Like
for like sales growth in supermarkets and hypermarkets was 18.0% and 9.3%
respectively. Dia also showed strong like for likes, up 10.1%.

Like for like sales in Brazil increased by 0.6%. Despite a more difficult
economic environment, hypermarkets grew like for likes 1.7% and won market share
while supermarket like for likes fell by 10.6%, reflecting a significant decline
in customer transactions taking into account the timing of Easter, which is a
particularly important trading period in Brazil. In June, we acquired 10
hypermarkets currently operating under the BIG banner and located in the Sao
Paulo area from Sonae. The sales from these hypermarkets have been consolidated
on transfer to the Carrefour banner.

Colombia grew constant currency sales by 23.6%, reflecting accelerating organic
growth in the country (5 stores have been opened in the last 12 months. We
expect to open a further 4 between now and the rest of the year). Like for like
sales fell by 2.1%, in part as a result of the short term impact of new stores
cannibalising the sales of existing ones.

Sales overall in the region were again impacted by the divestment of 23
supermarkets in Argentina and 16 in Brazil in 2004.

2 hypermarkets and 11 hard discount stores were opened in Latin America in the
quarter.


-ASIA

                        SECOND QUARTER 2005

              Sales    Like   Expansion   Total    Currencies  Total
                        for               Ex.
              (mEUR)   like        (%)    Currency       (%)     (%)
                         (%)               (%)*    

ASIA          1 426     3.0       13.3     16.3        -0.1     16.2

China           438     2.1       23.3     25.4        -5.6     19.8
Total   

Taiwan          301     0.8        6.2      6.9         1.9      8.8
Total   

Korea           374     4.9        5.6     10.6        11.4     22.0
Total   

                               FIRST HALF 2005

              Sales    Like   Expansion   Total    Currencies  Total
                        for               Ex.
              (mEUR)   like        (%)    Currency       (%)     (%)
                         (%)               (%)*    

ASIA          2 993     5.5       14.5     20.0        -0.6     19.4

China           989     5.4       28.0     33.4        -6.1     27.2
Total   

Taiwan          647     4.1        7.7     11.7         1.6     13.3
Total   

Korea           741     8.3        2.8     11.1        11.0     22.0
Total   

* Pro forma

In Asia pro forma sales grew 16.3% on constant exchange rates, stripping out the
contribution of Japan, which has been deconsolidated following the franchise
agreement with Aeon in March.

Like for like sales growth was 3.0%.

All the main countries in the region recorded positive like for like growth
following a strong start to the year and good trading over Chinese New Year.

Efforts to strengthen the commercial model in countries such as Korea and Taiwan
continue to drive like for like sales growth, up 4.9% and 0.8% respectively. The
number of customer transactions increased in both countries.

China grew like for likes by 2.1%. An increase in the value of the average
basket, although less important than in Q1, compensated for a small decline in
customer transactions.

Like for like sales in Indonesia and Thailand grew 3.8% and 4.0% respectively.

5 hypermarkets and 18 hard discount stores were opened in Asia in the quarter.



- NETWORK OF STORES UNDER BANNERS - Q2 2005


                    March  Openings   Additions   Disposals/    June
                     2005                         Transfers     2005

HYPERMARKETS          869         8          10                  887

France                216                                        216

Europe ex Fce         351         1           2                  354

Latin America         129         2           8                  139

Asia                  173         5                              178


SUPERMARKETS        2 403        12           6          17    2 404

France              1 023         2           6           7    1 024

Europe ex Fce       1 161        10                      10    1 161

Latin America         211                                        211

Asia                    8                                          8


HARD DISCOUNT       4 985       129           4          30    5 088

France                644        11           4           1      658

Europe ex Fce       3 608        89                      24    3 673

Asia                  184        18                       1      201

Latin America         549        11                       4      556


CONVENIENCE STORES  2 805        54           3          12    2 850

France              1 647         9           2           8    1 650

Europe ex Fce       1 158        45           1           4    1 200


CASH AND CARRY        199         5                       1      203

France                154         2                              156

Europe ex Fce          45         3                       1       47


TOTAL COUNTRIES    11 261       208          23          60   11 432

Total France        3 684        24          12          16    3 704

Total Europe ex 
Fce                 6 323       148           3          39      112

Total Americas        889        13           8           4       17

Total Asia            365        23           0           1       22


Investor relations: David Shriver, Etienne Humbert Tel : (33) 01 53 70 19 00
Shareholders information: Veronique Kretz No vert : 0805 902 902
Press relations: TBWA Corporate Tel : (33) 01 49 09 26 66


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