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110 2014 Registration Document
Comments on 2014 fiscal year
4
Sales and earnings performance
4.1
Sales and earnings performance
4.1.1
Main earnings indicators
(in € millions)
2014
2013 *
% change
% change
at constant
exchange rates
Net sales
74,706
74,888
(0.2)%
2.9%
Recurring operating income
2,387
2,238
6.7%
10.6%
Recurring operating income after net income from
companies accounted for by the equity method
2,423
2,267
6.9%
10.8%
Non-recurring operating income and expenses, net
149
144
na
na
Finance costs and other financial income and expenses, net
(563)
(722)
(22.0)%
(12.9)%
Income tax expense
(709)
(631)
12.4%
13.0%
Net income from continuing operations - Group share
1,182
949
24.6%
37.4%
Net income from discontinued operations - Group share
67
314
Net income - Group share
1,249
1,263
Free cash flow (including non-recurring items)
306
26
Net debt at 31 December
4,954
4,117
* The comparative information for 2013 presented in this document has been restated to reflect the early adoption of IFRIC 21 – Levies, and the reclassification
of “Net income from companies accounted for by the equity method” in the consolidated income statement. These restatements are described in Note 4 to the
Consolidated Financial Statements.
Carrefour’s 2014 performance reflected the sustained growth momentum
enjoyed by the Group, with faster organic sales growth and an increase
in earnings at constant exchange rates.
■
sales were up 2.9% at constant exchange rates, reflecting gains across
all formats in France, significantly improved trends in Europe and strong
organic growth in emerging markets, led by Brazil and Argentina;
■
recurring operating income totaled €2,387 million, up 10.6% at
constant exchange rates with increases of 7.0% in Europe (including
France) and 14.9% in emerging markets (Latin America and Asia);
■
non-recurring income and expenses represented a positive
€149 million, corresponding mainly to the gain recognized on the asset
contribution to the new Carmila joint venture. In 2013, non-recurring
items consisted for the most part of the capital gain realized on the
sale of the Group’s 25% stake in Majid Al Futtaim Hypermarkets;
■
finance costs, net amounted to €563 million. This was €159 million less
than the 2013 figure which included the €119 million cost of the bond
buyback program. In addition, the net cost of debt was lower in 2014;
■
income tax expense amounted to €709 million, representing an
effective tax rate of 35.3%;
■
the Group ended the year with net income from continuing operations
of €1,182 million, compared with €949 million in 2013;
■
the €67 million net income from discontinued operations recorded
during the year corresponded primarily to the settlement of a dispute
that arose in a prior year;
■
taking into account all of these items, the Group ended the year with
net income (Group share) of €1,249 million, versus €1,263 million
in 2013;
■
free cash flow came to €306 million versus €26 million in 2013.