Carrefour, the strongest increase in the CAC 40 at the close of Wednesday, November 9, 2022 – 11/09/2022 at 5:51 pm

(AOF) –

crossroads

(+ 1.47% to 16.52 euros)

The French distributor recognized itself in the Parisian square on the opposite side of its day yesterday (-1.75%) where Carrefour announced its 2026 strategic plan.

AOF – LEARN MORE

Main points

– First food distributor in Europe and second in the world;

– Activity of €78.1 billion concentrated in four main markets, France for 45% of sales, the rest of Europe -Belgium, Spain, Poland, Romania and Italy, Latin America -Brazil and Argentina-then Taiwan;

– Ambition to be a world leader in the food transition with a focus on fresh and organic products through the global Act for food program (food that is healthy, local and accessible to all);

– The capital marked by the strong presence of 5 shareholders: the Moulin family, also owner of Galeries Lafayette (12.91% of shares and 17.75% of voting rights), Peninsula Europe (7.61% and 11.83%) ) , Cervina Europe (4.99% and 7.67%) and Bunt (3.17%), the 16-member Board of Directors led by Alexandre Bompart, Chairman and Chief Executive;

– Financial position with €11.3 billion in equity and stable net debt at €2.6 billion Record free self-financing of €1.3 billion.

Challenges

– 2023 strategy based on 2 pillars: global Act for food program and the ambition to be a world leader in e-commerce with twice raised goals: productivity through investments of €1.7 billion per year in competitiveness commercial and own brand (30% of sales) / omnichannel universe: opening of convenience stores, expansion of Promocash in France, acceleration of the Cash&Carry format with 20 new Atacadão per year in Brazil, etc. / additional savings of €2.7 billion;

– “Data-centric, digital first” innovation strategy around 4 axes: acceleration of e-commerce (tripling in 2026 vs 2021), ramp-up of data and retail media, digitalization of financial services and traditional operations distribution channel: €2.8 billion in investments in information systems/strategic partnerships for the Carrefour Links platform;

– “Act for food” 2025 environmental strategy for carbon neutrality by 2040: reduction of indirect emissions by 35% by 2025 and 40% of direct emissions / circular economy: 100% reusable packaging / food transition: 45,000 partner producers in the organic, local or quality sector, 300 suppliers committed to the food transition pact (vs. 114 in 2021) / launch of a “green” loan;

– Accelerating disposal of non-strategic assets (disposal rumors about Taiwan activities) and opening convenience stores;

– Continued gains in market share in France, Brazil and Spain, the 3 main countries of the group with 8/10ths of the current operating profit.

Challenges

– Negative impact of currencies, especially the Brazilian real;

– Continued increase in inflation in transport, energy and food, offset by cost savings and strengthening of Carrefour brand products;

– Merger of Grupo BIG, 3

th

Brazilian food distributor, and 172 stores and Supersol supermarkets in Spain;

– 2022 goals: €4.8 billion in organic, 1/3 of sales under the Carrefour brand.

Urban transformation to enhance real estate heritage

Some initiatives are intended to increase the land around the hypermarkets and/or to play with the mix of uses (commerce, offices, housing and even urban logistics). Nhood, the company launched by the Mulliez family, has the mission of transforming mixed neighborhood sites owned by property companies Auchan, Ceetrus and Nodi, and the real estate assets of other companies in group. This will speed up this business of urban regeneration. The Mulliez family plans to invest 1.8 billion euros between 2022 and 2026 in its real estate projects. This goal should be revised upwards. Carrefour, for its part, joined forces with promoter Altarea in early 2021 to turn commercial areas into mixed neighborhoods.

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