Casino reports slowdown in Q3

Date : 15 October 2014

Casino has reported total group sales of €12bn for the third quarter of 2014, up 1.6% overall and +2.8% on an organic basis. In France, net sales were down 2.6% (-1.6% on an organic basis). Internationally performance was better with organic sales growth of 6.1% and total growth of 5%.

Casino's CFO Antoine Giscard d'Estaing commented: "In the third quarter we faced a challenging environment with a deceleration of the Brazilian economy and a weaker France."

France affected by weak summer season

Casino's food retail business in France reported sales down 2.7% on an organic basis. The retailer blamed price deflation on fresh produce, price cuts at Géant and Leader Price, and high exposure to tourist areas which were affected by a poor season. It has since seen improvement in September and early October across all banners. M. Giscard d'Estaing said the new purchasing partnership with Intermarché should help boost Casino's margins in France, but did not provide any detail on expected synergies.

Strong food sales in Latin America

Food sales in the region showed strong organic growth during the quarter, with a marked improvement in currency effect (-0.3% vs -13.3% in Q2 2014). In Brazil, Pão de Açúcar and Minimercado Extra performed well, with Assaí the standout format as previously. Hypermarkets were affected as customers got non-food sales in early ahead of the World Cup. Commenting on Brazil's performance, M. Giscard d'Estaing said: "We have a premium market which is doing nicely but the hypermarkets feel more pain and that is where we are focusing our efforts." Click here for more on GPA's results, reported earlier this week.

In Colombia, Casino said sales continued to improve in line with better household consumption and good expansion. Éxito will report Q3 results on 29 October.

Thailand: good growth despite economy

In Asia, sales were up 3.1% on an organic basis, and posted +3.6% organic growth in Thailand despite the difficult economy. A negative currency effect also hit sales. Find more detail on Big C's results here.

E-commerce sales up 24%

E-commerce sales totalled €841m in Q3. The segment comprises the activities of Cnova, including Cdiscount and its speciality and international websites launched in H1, as well as Cnova Brazil.