French retail group Auchan Holding, the parent company of Auchan Retail and Immochan, has posted 'solid and improving results' for 2016.
Its increase in consolidated revenue (excluding taxes) went up 0.7% to €52.8 billion, excluding currency fluctuations. It also saw its EBITDA rise 2.1% to €2.6 billion.
The company said that volatile exchange rates in the Russian ruble and the Chinese yuan, among other currencies, had a negative impact on revenue of 2.5%, for a loss of more than €1.3 billion.
In a statement, the company said, 'While 2016 was a year of re-foundation for the Auchan Holding companies, organic sales grew by 0.9%.
'This increase was principally driven by the expansion of the worldwide stores network under the banners (126 points of sale were opened, including 53 hypermarkets, mainly in China, Russia and France) but also by the three companies maintaining their sales activity'.
The company sunk €560 million of investment funds in France alone, and €1.79 billion world-wide, to accelerate physical and digital growth, modernise assets, and begin the process of banner convergence.
At the end of 2016, Auchan Holding began the disposal of Alinéa, its furniture and home decor arm.
As for the company's Auchan Retail subsidiary, it experienced a revenue increase of 0.7%, and was crowned the cheapest banner in 12 countries.
It also announced a €1.3 billion rebranding strategy that would consolidate outlets under one banner per country.
In Russia and France, it ramped up the number of cross-channel shopping options, and launched its e-commerce business in Ukraine and Hungary.
The Immochan arm saw growth in its pro forma revenue (+3.4%) and EBITDA (2.8%), excluding disposal impacts. Its consolidated revenue was €634 million (+1.8% in constant currency).
It added six new shopping centres to its operations and modernised 45 assets, equalling 10% of its network.
Wilhelm Hubner, chairman of the management board of Auchan Holding, commented on the 2016 results, “The year that has just finished was a year of major changes for the three Auchan Holding companies. As a result of the new structure that was put in place at the end of 2015, Auchan Retail, Immochan and [financial institution] Oney have become more independent, more successful and more focused on their core businesses".
"In a fast-changing global landscape, Auchan Holding has posted solid and improving results, in line with its expectations, and showing potential for the future.”
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Karen Henderson. Click subscribe to sign up to ESM: The European Supermarket Magazine.