by Dominique Vidalon

PARIS (Reuters) – Carrefour said on Tuesday that it was on track to meet its annual targets after sales growth accelerated in the first quarter, despite high inflation.

The European leader in food distribution reported first-quarter sales of 22.071 billion euros, representing growth of 12.3% on a comparable basis, driven by solid results in France, where hypermarkets , which are closely watched, have benefited from their positioning in terms of discounts.

In comparison, revenue had increased by 10.9% in the fourth quarter of 2022.

Carrefour also confirmed its financial objectives for 2023, namely the continued growth of its three main indicators – earnings before interest, taxes, depreciation and amortization (Ebitda), current operating income and net free cash flow.

“In a context of very high food inflation in the majority of its markets, Carrefour is staying the course and maintaining a strong commercial momentum, with solid performance in terms of market share in all its key countries”, declared the CEO of the group, Alexandre Bompard, in a press release.

As inflation pushes consumers to cut spending, Carrefour says it has benefited from a focus on private labels, which account for 35% of sales, as well as promotions and accelerated store expansion.” discount” and savings.

Sales in French hypermarkets, the group’s main activity in France, increased by 6% in the first quarter of 2023, compared to an increase of 3.7% in the fourth quarter of 2022.

In Brazil, Carrefour’s second largest market, the integration of Grupo BIG continued apace with 23 additional store conversions in the first quarter. All of the conversions will be completed in the second quarter, the group said, six months earlier than planned.

Carrefour also said it launched its €800 million share buyback plan, of which €200 million has been completed to date.

(Report Dominique Vidalon, Kate Entringer, edited by Matthieu Protard)

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