Key Takeaways
Supermarket chain Carrefour reported first-quarter sales of €21.141 billion, missing analyst estimates as declining performance in Brazil and slower-than-expected growth in its home market of France weighed on results.
"In Brazil, in a macroeconomic context marked by consistently negative food volumes, the group delivered a resilient performance," Chief Financial Officer Matthieu Malige said in a statement.
The quarterly revenue figure fell short of the €21.83 billion consensus compiled by Visible Alpha. In France, Carrefour’s largest market, like-for-like sales grew 1.4%, slightly below expectations. The more significant drag came from Brazil, where the company saw a 0.8% decline in comparable sales.
The retailer attributed the weakness in Brazil to very high interest rates that have constrained consumers' purchasing power. The results highlight the challenges facing the company as it navigates difficult macroeconomic conditions in key emerging markets.
Adding to the pressure, Carrefour faces higher costs across its markets as the Iran war has driven energy prices up sharply, a shock that could translate into higher food prices for consumers. Malige, however, downplayed the immediate effects, stating he expects food inflation in France to remain low this year and that the retailer saw no change in consumer behavior in March.
The weaker-than-expected sales report raises concerns about Carrefour's growth trajectory and is likely to put downward pressure on its stock. Investors will be watching closely to see how the company manages inflationary pressures and revives growth in its core markets in the upcoming quarters.
This article is for informational purposes only and does not constitute investment advice.
