French retail group Auchan Holding, the parent company of the Auchan Retail, Immochan and Oney, has recorded 2.1% growth in revenue in the first half of 2017, rising to €26.5 billion.
Growth in operating profit from continuing operations increased by 4.3% year-on-year to €326 million, while net profit for the period was up 23.2% to €145 million, and EBITDA rose 1.9% to €1.07 billion.
In particular, Auchan Retail's consolidated revenue excluding taxes rose by 2.1% at current exchange rates to €25.9 billion. However, at constant exchange rates, the retailer's revenue remained almost stable (+0.1%). Meanwhile, Immochan and Oney experienced 5.1% and 7.7% growth, respectively.
"Following the deep reorganisation of our three companies at the end of 2015, Auchan Retail, Immochan and Oney each wrote their own corporate vision and defined their new strategies along with ambitious objectives," said Wilhelm Hubner, chairman of Auchan Holding's management board, and general manager of Auchan Retail.
"This will enable them to better anticipate the requirements of their markets, which are undergoing profound evolution."
Hubner added that the first half results are an "encouraging sign", and the overall financial structure of the company is "very healthy".
In the first half of the year, Oney, Immochan and Auchan Retail invested €505 million in the countries in which they operate to modernise and digitalise their activities.
The company invested €147 in France, and €89 million in the rest of Western Europe, mainly to modernise stores and shopping centres, and to consolidate banners under the Auchan brand.
Meanwhile, €147 million was allocated to Eastern Europe and €118 million to Asia, the main regions where the group is expanding, and €4 million was invested in Africa as part of Auchan Retail's development plan for the continent.
Hubner added that the company's investment and expansion is paying off in most regions.
"Auchan Retail's half-year results, and notably its revenue, did not meet our expectations," he said. "They were mainly impacted by France, Italy and Russia."
"Nevertheless, the vast majority of the countries saw revenue growth in local currency, notably China, the most emblematic of retail markets today."
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.