Carrefour's sales in the country are below average in the AL

LONDON-The Brazilian subsidiary of Carrefour's sales were below the average of the remaining subsidiaries in Latin America. Sales report released on Thursday, 16, by the retailer in Paris shows that the movement in stores in Brazil grew 5.6% in the same stores concept (open for over a year) in the fourth quarter of 2013, well below the 11.9% expansion registered in the total result of Latin America.
The largest subsidiary of Carrefour outside of France pulled the result of Latin America down. According to the company's report, the rate of increase in sales in Brazil was a little below half of the observed in the rest of the region. Carrefour relates the result with the downturn of commodity inflation. The company CITES, however, as gainers performance of hypermarkets and shopping "Atacadão" in the country.
Even with the negative weight of Brazil, Latin America led the sales increase of the international branches of Carrefour in the fourth quarter. When considering the exchange rate stable, the Latin American movement grew 11.9% in euro. The retailer says the figures show "continued strong growth" from the branch. Among its subsidiaries, the movement fell 0.7% in Europe (excluding headquarters in France) and 1.3% expansion in Asia in the same same stores concept.
In Latin America, the highlight was the Argentina, whose sales jumped 29.7% in the same stores concept. The report cites that revenues grew rapidly amid the price freeze program in the neighboring country.
Carrefour's report is issued in euros and the retailer uses the concept of constant exchange to check the evolution of the operating subsidiaries. The company note, however, that the depreciation of Latin American currencies negatively affected the financial results. "Sales were significantly impacted by the increased depreciation of the Argentine peso and Brazilian real overall effect negative gearshift 18.8%," says the report.
In a teleconference to promote sales to the market, the Chief Financial Officer Pierre-Jean Sivignon announced that the company is considering a public offering of shares of Carrefour Brazil to finance the operation in the country. "We're going to grow in Brazil and an IPO is one of the items that we have in our toolbox to finance the expansion in the coming years," he said. Sivignon did not specify other possible funding options or the slice of the subsidiary that could be offered.
The Brazil is the second largest market of the Group and the company plans to continue growing in the country, especially with the opening of shops Atacadão.