In July 2023, compared to June 2023, the number of slaughters and carcass weight increased for pigs and sheep and goats, while it decreased for cattle and poultry.

Compared to July 2022, the number of slaughters increased for poultry and decreased for cattle, pigs, and sheep and goats; the carcass weight increased for sheep and goats and poultry, while it decreased for cattle and pigs.

The term "carcass" is defined as follows:

a) For cattle, carcass weight represents the weight of the slaughtered animal's entire body, after the removal of the skin, blood, and internal organs, excluding the head, udder, tail, kidney fat, and feet (separated at the metacarpal and metatarsal joints).

b) For pigs, carcass weight represents the weight of the slaughtered animal's body, either whole or divided equally along the spine, after bleeding, excluding internal organs, hair, hooves, tongue, bones, and diaphragm.

c) For sheep and goats, carcass weight represents the weight of the slaughtered animal's body after bleeding and skin removal, excluding internal organs, head, and feet (separated at the metacarpal and metatarsal joints). Kidneys and kidney fat are included in the carcass.

d) For poultry, carcass weight represents the weight of the slaughtered bird after bleeding, excluding feathers, down, internal organs (intestines, liver, heart, gizzard), head, neck, and claws.

Average carcass weight: This represents the ratio of carcass weight to the number of slaughtered animals or birds.

The French group Carrefour has announced solid financial performance for the first half of the year 2023, with a sales increase of 11.2% compared to the same period last year, a 20% increase in e-commerce, and a ROI of 700 million euros in H1 2023.

In terms of local market values, in comparable terms (LFL), Carrefour Romania ranks second in terms of revenue growth in Europe. Sales of private-label products continue to grow rapidly, accounting for over 35% of half-yearly food sales, an increase of 3 points compared to H1 2022.

Alexandre Bompard, Chairman and CEO of Carrefour Group, stated: "The first half was marked by the rapid implementation of Carrefour 2026 Plan, particularly through the sustained growth of our private labels, the launch of the 'Maxi' method in our European stores, and the launch of Unlimitail, our retail media partnership.

This transformation is the result of the sustained efforts of our teams. In France, the Group delivered outstanding performance with a strong increase in operational margin. With the signing of the Cora and Match acquisition, our first major transaction in France in twenty years, Carrefour reaffirmed its position as a leader in the French market.

The good performance in France was replicated in most of our European zones, where signs of slowing inflation emerged in the second quarter. In Latin America, the situation is more nuanced, with Argentina continuing its exceptional growth trajectory, while Brazil was affected by the completion of the Grupo BIG store conversions and challenging market conditions.

In this context, Carrefour maintains confidence in its second-half performance and confirms its objectives for the full year regarding EBITDA growth, recurring operating income, and net free cash flow."

H1 2023: Rapid Progress in Carrefour 2026 Plan

Carrefour's results for the first half of 2023 reflect the rapid implementation of the Group's strategy, amid record food inflation in Europe, which appears to have peaked in the second quarter.

In this environment, marked by declining volumes in most of its markets, the Group's results once again demonstrate the strength of its model, thanks to the mobilization of all its teams and consistent cost management. In Europe, recurring operating revenues remained stable.

In this context, several key areas of the Carrefour 2026 plan are already delivering excellent results. Sales of Carrefour private label products continue to grow rapidly, accounting for over 35% of food sales by mid-year, an increase of 3 points compared to H1 2022. E-commerce GMV continues to grow, contributing to omnichannel development, with a 20% increase compared to H1 2022.

Other Carrefour 2026 initiatives have also been implemented during the first half:

• The "Maxi" method, whose implementation in hypermarkets and supermarkets in Europe began early in the year, is generating very encouraging performance, with market share increases and rapid productivity improvements in these stores.
• Carrefour and Publicis announced the launch of Unlimitail, a joint venture aimed at becoming the European leader in retail media, already with 13 clients.
• Carrefour has intensified its Artificial Intelligence (AI) and data solutions, with positive impacts on operations. In the first half, the new assortment builder AI solution significantly reduced assortments while improving profitability, and the promo optimizer tool was implemented in France to assist sales teams in promotions and margin optimization through algorithms.

Carrefour also pioneered the use of genAI by launching the "Hopla" chatbot, the first integration of chatGPT on a retailer's website, and a "marketing studio" in partnership with Google AI to automate the production of thousands of marketing campaigns.

• The mutualization of European operations has begun. The Eureca procurement platform is now active and producing initial optimizations, and the reorganization and optimization of head office teams have commenced.
• All asset monetization projects of the Group have been initiated.
• Carrefour continues to make progress in CSR, particularly in sustainable agriculture, combating climate change, reducing packaging, and fighting deforestation. The CSR and food transition index reached 108% in the first half of the year.

Additionally, on July 12th, the Group signed an agreement with Louis Delhaize to acquire Cora and Match in France, thus reaffirming its leadership position in the French food retail market.

Carrefour remains committed to strengthening its business model through careful management of its commercial strategy and cost reduction policy, including initiatives related to the goal of saving 1 billion euros in 2023 (490 million euros achieved in H1 2023) and specific measures to accompany the decline in sales volumes.

Annual capex is expected to be close to the previous year's levels, between 1.8 and 1.9 billion euros. The Group is moving forward with confidence and confirms its objectives for the full year 2023, as communicated to the market in February: EBITDA growth, recurring operating income, and net free cash flow growth.

In the first half of 2023, Carrefour exceeded its CSR goals once again, with an achievement rate of 108% in the CSR and food transition index. This index evaluates Carrefour's performance in implementing its CSR commitments.

Strong Results for Romania in the Region

Recurring operating revenues for Europe are stable at 164 million euros, compared to 163 million euros in H1 2022. Romania improved its profitability, and sales dynamics remained strong on a high comparable basis, with a growth of 9.8% for H1 and 7.5% for Q2 LFL.

Régis Moratin, CFO of Carrefour Romania, stated: "We move forward with confidence, and Romania's remarkable position as the second in European sales in H1 is proof of our efforts to become the leading retailer for Romanians.

At the same time, we are encouraged by the 5% growth in traffic in H1 2023 compared to H1 2022, confirming Romanians' appreciation for our products and services, as well as the shopping experience in our stores.

Carrefour Romania's growth is driven by the success of our private labels and attractive promotional campaigns like Top 100 HIT and Weekend Voucher, which strike a perfect balance between accessibility and quality. With a strong commitment to the Romanian market, we strategically invest to sustain this momentum and connect with our customers wherever they are.

We anticipate new store openings in various formats in the coming months while continuing our efforts to provide exceptional service and meet our customers' needs."

Ongoing Expansions

Carrefour Romania continues its expansion plans, ending H1 with 405 stores, along with an expanded digital footprint through its e-commerce partners, Bringo and Glovo.

Additionally, in April 2023, Carrefour announced an agreement with the Louis Delhaize Group involving the acquisition of Cora's activities in Romania, including 10 hypermarkets and 8 Cora Urban stores, as well as the acquisition of approximately 2,400 employees.

This transaction will strengthen Carrefour's presence in Romania through hypermarkets and proximity formats acquired in key locations, which will then be transformed into Carrefour-branded stores and adapted to its formats. The transaction is subject to approval from relevant competition authorities and is expected to be finalized by the end of 2023.

Carrefour is mobilizing for its new energy efficiency program, with increased investments in modernizing store equipment and reducing consumption compared to 2022.

Energy consumption has gradually decreased in H1 2023, continuing the plan initiated in 2022 and following an ambitious energy policy to contribute to the Group's target of a 20% reduction by 2026.

Carrefour will double its investments to reduce energy consumption, with a plan to invest over 4 million euros this year in energy efficiency.