Carrefour, the strongest rise in the CAC 40 index, mid-session Monday, May 9, 2022-05/09/2022 at 12:23

(AOF) –

Crossroads

(+0.53% to €20.70)

In a market environment still burdened by the war in Ukraine, the blockade in China and sharp rises in inflation, defensive stocks are in the spotlight.

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the main points

– The first European food distributor and the second in the world.

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

Ambition to become a global leader in nutritional transformation with a focus on fresh and organic produce via the global Act for food program (eating healthy, local and accessible to all);

The capital has a strong presence of five shareholders: the Moulin family, which is also the owner of Galeries Lafayette (12.91% of the shares and 17.75% of the 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 is chaired by Alexandre Bombart, Chairman and CEO;

A financial position of 11.3 billion euros in equity and a stable net debt of 2.6 billion euros, a free self-financing record of 1.3 billion euros.

Challenges

Strategy 2023 is built on two pillars: the Global Food Action Program and the ambition to be the global leader in e-commerce with dual goals: productivity through investments of €1.7 billion per year in business competitiveness and private branding (30% of sales) / the omnichannel universe : Opening of convenience stores, Expansion of Promocash in France, Acceleration of Cash & Carry coordination with 20 new Atacadão annually in Brazil, etc. / Additional savings of 2.7 billion euros;

– “Data-centric, digital first” innovation strategy around 4 axes: e-commerce acceleration (tripled in 2026 vs 2021), data and retail media intensification, digitization of financial services and traditional distribution channel operations: €2.8 billion in investments in information systems / Carrefour Links Strategic Partnerships;

Action for Food 2025 Environmental Strategy for Carbon Neutrality by 2040: Reduce indirect emissions by 35% in 2025 and 40% in direct emissions / Circular economy: reusable packaging / 100% food transition: 45,000 Partner producer in the organic, local or quality sector, 300 suppliers committed to the Food Transformation Pact (compared to 114 in 2021) / launch of a “green” loan;

Accelerate the disposal of non-strategic assets (rumors of disposing of Taiwanese activities) and store opening;

– Continuing gains in market share in France, Brazil and Spain, the three main countries of the group which achieve 8/10 current operating profit.

Challenges

– the negative impact of currencies, in particular the Brazilian real;

– the constant rise in inflation rates in transport, energy and food, which will be offset by cost savings and the promotion of Carrefour brand products;

– Grupo BIG integration, 3

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Brazilian food distributor and 172 stores and supermarkets in Spain;

2022 targets: 4.8 billion euros in organic form, a third of sales under the Carrefour brand.

Explosion of the “dark warehouses”

Eight players entered the Express Delivery niche. The pioneers – French Cashew, British Deja or Germans Flink and Gorilla – must now face the Turkish Jeter and the Russian Yango Deli. These players quickly compete to open “dark shops”, with an area of ​​300 to 400 meters

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On the ground floor where orders are prepared. A sign of the vitality of this activity, the Turkish company Getir raised in June 2021 460 million euros, which is estimated at 6.3 billion, or almost half the value of Carrefour … Conventional distributors interact: Carrefour has acquired a stake in Cajoo and 900 of its stores also offer Express shopping service (between 20 and 40 minutes).

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