Casino: Q2 results show positive sales performance

Date : 26 July 2019

France-based Casino has said its consolidated net sales rose by 1.1% in total, to €8.988 bn, with same-store sales up by 2.3%. The retailer’s performance was driven by the continued strength of its Latin America-based operations, with support coming from its stores in France and Cdiscount.

Separately the retailer highlighted several highlights it had generated in the first half. For our look at these, read our coverage here.

France: same-store sales rise 0.7%

Casino reported total sales fell by 2.4% to €4.6 bn, with organic growth contracting by 1.8%, but same-store sales up by 0.7%. The same-store growth was driven by its supermarkets, +1.2%, its convenience stores, +2.5%, and Geant hypermarkets, +1.6%. Almost all channels showed an improvement in same-store sales versus Q1.

The retailer said ‘Monoprix and Franprix maintained positive customer traffic trends and saw a gradual improvement in net sales, as the impact of the “yellow vests” in Paris came to an end’. It pointed out that it continued to see strong growth in organic ranges and within the grocery ecommerce channel.

Strength in Latin America operations continues

In Latin America, Casino reported total net sales rose 5.6% to €3.9 bn. Same-store sales increased by 3.8%, with Colombia-based Éxito driving the growth. Casino said Brazil-based GPA saw same-store growth of 3.4%, aided by its Assaí atacajero banner, where same-store sales increased by 8.1% and by a 23.2% on an organic basis. Assaí continued to perform strongly, helped by ‘ the success of its sales model and ongoing expansion’.

At its other banners, Casino said the performance of Multivarejo was affected by the comparison to the same period in 2018, when the World Cup was on. In relation to its ecommerce operations, it said revenue rose 37% aided by the introduction of new delivery services and the increased penetration for the Meu Desconto app.

Cdiscount drives strong growth in GMV sales

Finally, at Cdiscount Casino reported GMV sales, including tax, increased by 11.5% in total, to €847m. The site’s marketplace continued to outperform, with sales rising by 12.6% to €284m, which offset a fall of 2.9% in the value of direct sales through the site, to €416m. At the end of Q2 2019 the share of sales accounted for by the marketplace reached 40.1%, up from 36.6% at the end of Q2 2018. Casino said the growth of its marketplace was aided by ‘Fulfillment’s rapid progress (+57%).’ Cdiscount continued to internationalise, with delivery available in 25 countries.

First half performance sees Casino confirm 2019 outlook

As part of the results announcement, Casino said it remained committed to its ‘full-year profit and free cash flow objectives for France’. Under this heading the retailer aims to drive growth of 10% in its trading profit, generate at least €2.5 bn from its disposal plan by Q1 2020 and produce free cash flow of €500m. The various steps are intended to help Casino cut its net debt in France to less than €1.5 bn at the end of 2020.

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