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Casino sales still down, caution on the annual goals

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Casino sales still down, caution on the annual goals

Despite a slight improvement compared to the first quarter, sales of the Casino group have continued to decline in the second quarter year on year, still penalized by the exchange and Brazil, while France saw its slow performance.
In this context, the group prudence, refusing for now to any comment on analysts’ forecasts in terms of annual results.

Unlike the first quarter, it has also not wish to confirm or deny its own objectives in France, referring to his comments in late July, when the full publication of its interim results.

Casino announced in March expect a 1.5% increase at comparable scope of its sales in France in 2016, with an operating profit of 500 million euros and an EBITDA of about 900 million euros.

Between March and the end of June, the group’s turnover amounted to 9.96 billion euros, down 7% from the same period last year. Excluding currency effects, the performance was up by 3.8%.

This is higher than the forecasts of analysts who had forecast Factset 9.815 billion euros.
It is also better than that of the first quarter when sales fell by 10.6% (+ 1.5% excluding currency effects).”This is our best performance since organic two years,” said Wednesday the CFO of Casino, Antoine Giscard d’Estaing, in a telephone points with AFP.

First-half revenue however was down by 8.8% (+ 2.7% excluding foreign exchange), to 19.67 billion euros.
At the Paris Stock Exchange, after opening up the title Casino fell back to 0.28% just before 10:00 (0800 GMT), to 52.78 euros.

The best in Brazil, France slows

In Latin America, struggling for several months, sales for the second quarter are affected by a negative currency effect and by the economic crisis in Brazil.

The performance stand down 11.1% (+ 11.8% organic) food, to 3.49 billion euros, while electronic business posted a fall of 13.1% (+ 0.3% ), to 1.09 billion euros.

This decline, however, appears less marked than in the first quarter (-34.6% on electronics, 13.7% on food).
This results in both a reduction of negative impact of foreign exchange and the initial results of the recovery plans in Brazil. Regarding the food, the setting group including holders of the cash & carry formats (store-warehouse) and proximity and urged a renewal plan of its hypermarkets. For electronics, a sector that suffers most from the crisis, Casino closed some stores and refocused its offer.

In the quarter, “the performance of our cash & carry stores in thought by almost 40% in local currency, and hypermarkets in renovation plans begin to take effect,” said Giscard.
Argentina, Uruguay and Colombia, growth accelerates, he added.

In France, Casino sees his dynamic slow compared to the beginning of the year. Between March and late June, the sales trend virtually stable (+ 0.1%) to 4.71 billion euros, against 2.8% in Q1.

This is due “mainly to external factors to the group, such as bad weather and social movements, and we are reasonably confident of an improvement for the future,” said the financial director, adding that the “trends appear early July good enough, can give hope a delayed impact “on the summer.

First-half performance is still up 1.4%.

Moreover, in the second quarter “Casino outperformed the market, gaining 0.1 points of market share,” he added.
Géant hypermarkets and supermarkets Leader Price discount, where prices have been fallen sharply since 2013, still marking time (-0.2% against + 2.9% in Q1 to Giant; -0.6% against 6, 2%) “in the difficult consumer environment” in the second quarter, while Franprix and Monoprix also suffered in Paris.

In e-commerce, the group’s performance appear always misguided, with a business volume decreased by 9% to 1.03 billion euros, still penalized by Brazil, even if the activity in France of CDiscount increased by 12.6%.

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