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Groupe Casino Posts Strong Home Performance In H1

By Steve Wynne-Jones
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Groupe Casino Posts Strong Home Performance In H1

Groupe Casino has posted a trading profit of €121 million in its home market of France in the first half of its financial year. This is up from the €85 million it posted in the same period in 2016.

Some €83 million worth of this trading profit was accounted for by food retail activities, compared to €36 million in H1 2016.

Overall, group trading profit was €466 million in H1 (or €336 million if a tax credit in Brazil is excluded), up from €281 million in the same period last year (€211 million ex-Brazil).

Consolidated net sales stood at €18.6 billion, a 9.7% increase on the same period last year (€16.95 billion), or a 3.1% increase on an organic basis. EBITDA was €814 million, a 35.7% increase (€600 million).

Regional Performance

In France, the retailer said that ‘growth stood at +0.1% on an organic basis and +0.9% on a same-store basis, with a good performance in food retail, up +1.9% in the first half.’

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Its Monoprix, Casino Supermarkets and Franprix banners ‘saw the pace of same-store sales accelerate over the period. Same-store sales at franchises in the convenience segment rose sharply.’

In Latin America, Casino’s business rose by 7.1% during the period, ‘ led by the sound development of cash & carry, the success of hypermarket revitalisation programmes in Brazil and growth in overall sales at Éxito.’

Its E-commerce business, Discount, posted a 10.5% increase in sales on a same store basis.

Looking Ahead

For the full year, Groupe Casino anticipates consolidated trading profit to be up by around 20%, based on closing exchange rates as of 30 June. In France, it is forecasting 15% of above in food retail trading profit.

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Commenting on its performance, Barclays European Food Retail Equity Research said, ‘Casino’s better 1H17 results were mainly driven by the Latam Retail division that includes €130mn of tax credits by GPA (vs €70mn in 1H16). These higher tax credits explain why Casino raises its FY17 EBIT growth guidance at the group level, but leaves its French EBIT guidance broadly unchanged (c+15%).

© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.

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