Groupe Casino's first-half results have beaten analyst expectations, as cost-cutting measures and international sales offset declining French sales.
The Saint Etienne-based retailer's second-quarter sales 'rose sharply', with a 40.4% increase to €12.09 billion while trading profit rose by 51.9% to hit €969 million, boosted by Casino's buyout of the Monoprix banner.
The grocery giant's international operations jumped by 9.7% to €7.2 billion, despite negative currency impacts. In Latin America, Casino's sales reached €6.06 billion during the quarter, with the Group's Colombian sales rising by 3.2% due to network expansions along with 'excellent performances' in Brazil.
Casino's Asian sales also increased, with a 9.5% climb to €932 million and an 8.9% rise in sales at its 'Big C' Thai operations, owing to new store openings during the quarter. As of 30 June 2013, Casino held a total of 441 stores in the region, compared to 386 at last quarter end on 31 March 2013.
Domestic sales fell, however, with the retailer recording a 3.3% drop to €4.89 billion. Trading profit in France totalled €254 million.
Casino's French supermarkets and hypermarkets were impacted by a difficult competitive environment and aggressive competition on price, with sales at its Géant Casino chain falling by 7.9% to €1.15 billion. Casino's supermarkets recorded a 5.7% fall in sales to €849 million, while the retailer's domestic convenience formats struggled also. Growth in e-commerce was 'sustained', according to Casino.
Only Monoprix managed to post positive sales for the quarter, recording a 2.6% increase in its French sales to €1.01 billion.
© 2013 - ESM: European Supermarket Magazine by Ellen Lunney
