PARIS: World number-two retailer Carrefour said on Wednesday that sales growth accelerated in the third quarter, reflecting robust sales in Brazil and an improving performance in its biggest market, France, despite a difficult environment there.
In China, where Carrefour is restructuring its operations, slowing consumer consumption remained a challenge, but the rate of decline in sales slowed to 7.8% like-for-like from 9.3% in the second quarter.
"This was a good third quarter. It confirms our good start to the year and the pursuit of the momentum initiated in 2012," its finance chief Pierre-Jean Sivignon told a conference call.
Market estimates for full-year 2016 earnings before interest and tax (EBIT) of around 2.45 billion euros were "achievable", he added.
Carrefour, which makes 73% of its sales in Europe, is pursuing a global revival initiated by chief executive Georges Plassat in 2012 by focusing on price and cost cuts, and expansion into smaller convenience stores, while also renovating its chain of hypermarkets.
Europe's largest retailer said third-quarter sales were 21.78 billion euros (US$23.91 billion), above the median analyst estimates for 21.71 billion in a Thomson Reuters poll.
Stripping out fuel and calendar effects, like-for-like revenue grew 3.2% year-on-year, an acceleration from the 2.7% growth achieved in the second quarter.
In France, like-for-like sales rose 1.2%, beating consensus expectations of 0.6% growth, a performance Citi analysts said would be "supportive to the shares".
Its smaller rival Casino reported a sales slowdown in the quarter.
Both retailers face weak consumer demand, low food inflation and poor weather in France as well intense price competition.
In Brazil, Carrefour's second-largest market, like-for-like sales rose 12.4%. - Reuters
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