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    Carrefour S.A.: Ruskin Lisa Crystal Wei

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    Thái Hoàng Nguyên
    Carrefour S.A. is a France-based food and non-food retailer established in 1959 and famous for pioneering the hypermarket concept. The document discusses Carrefour's competitors Casino and Tesco, providing timelines of Carrefour's leadership and strategies, summaries of accounting policies, and comparisons of financial performance and store presence between the three retailers. It addresses a concern about Carrefour cutting dividends in 2017 by examining factors like profit, impairment loss, internationalization, and refurbishment plans.

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    Carrefour S.A.: Ruskin Lisa Crystal Wei

    Uploaded by

    Thái Hoàng Nguyên
    97 views16 pages
    Carrefour S.A. is a France-based food and non-food retailer established in 1959 and famous for pioneering the hypermarket concept. The document discusses Carrefour's competitors Casino and Tesco, providing timelines of Carrefour's leadership and strategies, summaries of accounting policies, and comparisons of financial performance and store presence between the three retailers. It addresses a concern about Carrefour cutting dividends in 2017 by examining factors like profit, impairment loss, internationalization, and refurbishment plans.

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    Business analysis

    Original Title

    Carrefour SA

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    Carrefour S.A. is a France-based food and non-food retailer established in 1959 and famous for pioneering the hypermarket concept. The document discusses Carrefour's competitors Casino and Tesco, providing timelines of Carrefour's leadership and strategies, summaries of accounting policies, and comparisons of financial performance and store presence between the three retailers. It addresses a concern about Carrefour cutting dividends in 2017 by examining factors like profit, impairment loss, internationalization, and refurbishment plans.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    97 views16 pages

    Carrefour S.A.: Ruskin Lisa Crystal Wei

    Uploaded by

    Thái Hoàng Nguyên
    Carrefour S.A. is a France-based food and non-food retailer established in 1959 and famous for pioneering the hypermarket concept. The document discusses Carrefour's competitors Casino and Tesco, providing timelines of Carrefour's leadership and strategies, summaries of accounting policies, and comparisons of financial performance and store presence between the three retailers. It addresses a concern about Carrefour cutting dividends in 2017 by examining factors like profit, impairment loss, internationalization, and refurbishment plans.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 16

    CARREFOUR S.A.

    Ruskin Lisa
    Crystal Wei
    Agenda
    1. Introduction
    2. Company background
    3. Competitors
    4. Question and conclusion

    2
    1

    Introduction
    Introduction

    ● A France-based food and nonfood retailer Carrefour.


    ● Establish in 1959.
    ● Carrefour is famous for the hypermarket concept.
    ● In 1979 Carrefour opened its first hard discount store.
    4
    2. Company
    background

    5
    Timeline
    2005 - 2008: CEO Jose Luis Duran
    ● Redesigned the store layout, widened product offering.

    2009 - 2011: CEO Lars Olofsson


    ● The spin off the retailer’s hard discount division (Dia) in 2011.

    2012 - 2017: CEO George Plassat


    ● Plan to cut costs, withdraw from international markets, and respond to local demand.

    2017: CEO Alexandre Bompard


    ● New cost-cutting programme, targeting a cost saving of €2 billion.

    6
    Summary of significant
    accounting policies
    Segment information Banking Activities
    ● Its business through consolidated ● Offer banking and insurance
    stores. services through its subsidiary
    ● Four geographical segments: Carrefour Banque.

    - France
    - Rest of Europe
    - Latin America
    - Asia

    7
    3

    3. Competitors
    Competitors

    CASINO TESCO
    ● Headquarters location: French ● Headquarter location: UK
    ● Business: Retailor ● Business: Retailor, Banking,
    ● Recent strategy: multi-format strategy Insurance services
    (hypermarkets, supermarkets, and ● Recent strategy: similar with
    convenience stores, etc) Carrefour

    9
    Comparison
    Carrefour Casino Tesco
    Almost located in France, but Lower presence in non
    Focus more on creating a
    Strategy reputation for low prices
    half of its revenue outside European markets than
    France or online Carrefour
    ● NOPAT margin is lower
    than Tesco (due to the
    engagement in price The PPE/revenue ratio suggests
    ● Casino’s low inventories
    competition) that Tesco has invested a larger
    turnover (relative to
    Financial ● Low inventories turnover amount in PPE
    Tesco and Carrefour)
    performance (relative to Tesco) ->
    ->improve logistics
    improve logistics
    ● Not good at using of
    ● Better use of vendor
    vendor financing
    financing (trade payables
    turnover is higher than
    Tesco)

    10
    Data difference of competitors

    Carrefour Casino Tesco

    Revenue(2017)(Billions) 78.9
    € € 37.8 €62.7

    Inventory turnover(2017) 9.13% 7.41% 27.15%

    Store space outside of country(2016) 64.8% 25% 50%

    Return on Equity (2016/2017) 7.8/-2.5% 6.5/7.3% 6.3/8.6%

    11
    4.
    Question
    &
    Conclusion

    12
    Chrystelle Moreau’s concern
    In 2017, Carrefour’s
    management proposed to cut
    the company’s dividends by a
    third, and it resulted in the drop
    of stock. Chrystelle Moreau
    wondered which factors
    explained this decision, and
    whether the stock could
    become attractive again in the
    near term.

    13
    Income statement of Carrefour

    2017 216 2015 2014 2013 2012

    Total revenue 80,281 78,018 78,275 75,952 76,272 78,210

    Operating profit 2,123 2,437 2,598 2,536 2,391 2,407

    Impairment losses (1,039) (130) (115) (77) (128) (236)

    Profit before 254 1,428 1,717 2,010 1,690 624


    taxes

    Profit after tax (533) 786 977 1,183 958 153


    Exibit 3

    14
    Conclusions

    ● Profit
    ● Impairment loss
    ● Internationalization
    ● Refurbishment

    15
    Thanks!

    16

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