Press - 2009

21 December 2009

Appointments – Finance Division


Bernard Petit appointed Deputy Finance Director of the Casino Group

49 years old, holder of a “DESCF” (Master’s level diploma in accountancy), Bernard Petit is appointed Deputy Finance Director, more specifically in charge of accounts and taxation on Group level. He reports to Antoine Giscard d’Estaing, Casino Group’s Finance Director.

Bernard Petit has dedicated his entire career to the Casino Group’s Finance Division since joining in 1983. Since 1997 he has been in charge of the accounts division, financial control and the “Overheads” central buying department.

Camille de Verdelhan appointed Finance Director of Casino France

32 years old and a HEC graduate, Camille de Verdelhan is appointed Finance Director of Casino France (Casino hypermarkets – supermarkets division, proximity branch, Easydis, CIT, EMC Distribution). She reports to Antoine Giscard d’Estaing, Group Finance Director.

Camille de Verdelhan started her career in 2000 as studies coordinator at the Rallye Investment Centre, before becoming a Project Coordinator in the Finance Division.

In 2005 she joined the Casino Group where she was successively Project Coordinator to the Chairman‐Chief Executive Officer, Deputy Director, then Strategy and Plan Director and secretary of the Executive Committee.

Saint Etienne, 21st December 2009

Press contact: Caroline Simon, 01 53 70 74 65, caroline.simon@image7.fr

 

21 December 2009

Appointments – Purchasing Division

Hervé Daudin, Merchandise and Flows General Manager 

Hervé Daudin, Merchandise and Flows General Manager of the Casino Group broadens his Purchasing responsibility to Non-Food Purchasing.

42 years old, Hervé Daudin is a former student of the Ecole normale supérieure (Ulm, sciences), Corps de Ponts et Chaussées, a Professor of Physics, has a PhD in Economics, and graduated from the London School of Economics.

In 1995, Hervé Daudin joined the Treasury of the Ministry of Economy and Finance where he was deputy to the head of the “Treasury and Monetary Affairs” office, deputy then head of the “Transport” office and secretary general of the Economic and Social Investments Committee.
In 1999 he joined the cabinet of the Ministry of Economy, Finance and Industry as advisor, namely in charge of overseeing the Banks, Insurances, Financial Markets, Transport and Housing sectors.

Hervé Daudin joined Euris in 2002 as Project Coordinator to the Chairman.

He joined the Casino Group in 2003 as Strategy and Plan Director. In 2005 he was appointed Deputy Merchandise and Flows Director before becoming Flows (logistics, supply chain, IT systems) Director in 2008.
Hervé Daudin has been the Merchandise and Flows Director (excluding non-food) since 2009.
He has also been the CDiscount chairman since March 2008.

Yannick Migotto, Food Purchasing Director

Yannick Migotto is appointed Food Purchasing Director.

36 years of age, Yannick Migotto graduated from HEC (Paris) and CEMS (Community of European Management Schools).

He started his career in the Mergers & Acquisitions Department of Paribas New York in 1997. With McKinsey & Company from 1998 to 2005, he conducted assignments in Europe and Asia and became their Associate Principal.
In 2005, Yannick Migotto joined the Casino Group as Strategy and Plan Director. Since 2008, Yannick Migotto has been the Flows (logistics, supply chain and IT systems) Director of Franprix – Leader Price.

Pierre Derouard, secretary general of EMC

Pierre Derouard is appointed secretary general of EMC Distribution, Groupe Casino’s Central Buying Department. This newly created job rounds up the quality, human resources, finance, legal and methods functions.
At 34, Pierre Derouard is a graduate of Ecole Centrale de Paris and has a Bachelor’s degree in Econometrics.

From 1998 to 2006, Pierre Derouard was a business analyst, consultant, manager and finally senior manager in the strategy consultancy department of Accenture.

He joined the Casino Group in January 2007, firstly as a Project Manager within the Strategy and Plan Division and then Deputy Merchandise and Flows Activities Director.

Saint Etienne, 21st December 2009

Press contact: Caroline Simon, 01 53 70 74 65, caroline.simon@image7.fr

21 December 2009

Appointments – “Casino Hypermarkets and Supermarkets” Division

André Lucas, “Casino Hypermarkets and Supermarkets” General Manager

André Lucas is appointed Casino Hypermarkets and Supermarkets General Manager. This newly created job groups the Géant Casino and Casino Supermarchés banners. He joins the Casino Group Executive Committee.

56 years old, André Lucas graduated from the Académie Commerciale Internationale (CCIP).

André Lucas started his career in 1977 with ED before joining Docks of France in 1999, then, after Docks de France was bought up by Auchan – Atac, he was put in charge of expansion and Regional Director.

André Lucas joined the Casino Group in 1999 firstly as a Sales Director and since 2005, he has been the Casino Supermarchés General Manager.

Gérard Walter, Géant Casino Executive Managing Director

Gérard Walter becomes the Executive Managing Director of Géant Casino. He reports to André Lucas, Casino Hypermarkets and Supermarkets General Manager.

47 years old, Gérard Walter joined the Casino Group in 1985.
He started as Department Manager, then Supermarket Director. In 1992 he joined the hypermarket branch as a store director, then as a regional director and then as a Profession Director.
In 2003 he was appointed General Manager of Géant Polska before becoming Executive Operations Manager of Géant Casino in France.
Since 2008 Gérard Walter has been the Food Purchasing Director of the Casino Group.

Jean Rubens, Executive Managing Director of Casino Supermarchés 

Jean Rubens becomes the Executive Managing Director of Casino Supermarchés. He reports to André Lucas, Casino Hypermarkets and Supermarkets General Manager.
At 48 Jean Rubens is a civil engineer from the Mines de Paris and has a DEA (diploma of advanced studies) in economics and international finance – Paris Dauphine.

In 1985 Jean Rubens joined the EXXON MOBIL group where he held various posts in the retail business in France, then from 1995, overseas (Asia, USA , the West Indies, Europe) where he was namely managing director of subsidiaries and marketing director.

He joined the Casino Group in 2003 as the Marketing Director of the Supermarkets Branch. Since 2007 he has been the Marketing Director of the Casino Group.

***

In addition, a unique hypermarkets and supermarkets management committee including the support functions of the two banners has been created and made up of the following:
Thierry Aouizerate is appointed Casino Hypermarkets and Supermarkets Marketing Director. Up until now he was the Casino Supermarchés Marketing Director.

Jean‐Claude Delmas is appointed Casino Hypermarkets and Supermarkets Human Resources Director, a newly created post. He was previously the Casino Supermarchés Human Resources Director.

Jean‐Jacques Chervet is appointed the Casino Hypermarkets and Supermarkets Concept and Project Management Director. He was previously the Géant Casino Concept Manager.

Franck Proux is appointed Casino Hypermarkets and Supermarkets Development Director. He was previously the Casino Supermarkets Development Director.

Laurence Bernillon is appointed Hypermarkets and Supermarkets Merchandise Flow and Information Services Director. She was previously Deputy Casino Information Technology Director.

Yann Wanes is appointed Hypermarkets and Supermarkets Franchise Operations Director. Up until now he was the Casino Supermarkets Franchise Operations Director.

Saint Etienne, 21st December 2009

Press contact: Caroline Simon, 01 53 70 74 65, caroline.simon@image7.fr

4 December 2009

CBD strengthens its leadership of the Brazilian retail market

CBD announced today the joint venture agreement of its subsidiary Globex Utilidades S.A. (“Ponto Frio”) with the retail business of Casa Bahia Comercial Ltda (“Casas Bahia”), the largest retailer of durable goods in Brazil.

Casas Bahia operates 513 stores, employs 57 thousand people and generated R$13.8 billion (€ 5.3 billion) in gross sales in 2008, with strong focus on white line goods, furniture, and electronics.

The current shareholders of Casas Bahia will contribute their retail business to Ponto Frio, in which they will hold a 49% stake, while CBD will continue to hold a majority ownership in the company. CBD and Casas Bahia are also contributing their respective internet operations to a new company in which CBD will hold 83% and Casas Bahia will have a 17% stake. This new entity will be the second largest Brazilian internet retailer.

The Joint Venture will allow the companies to synergize and offer benefits to consumers which will create a larger variety of products, better service and easier access to credit.

With 68,000 employees, the combination of Ponto Frio and Casa Bahia will generate gross revenues (2008-based) of R$ 18.5 billion (€ 7.1 billion) through 1,015 stores in 18 Brazilian states.

CBD will operate 1,807 stores with revenues of approximately R$ 40 billion (€15.4 billion) and, with more than 137,000 employees, will become the largest private employer in Brazil.

This transaction will be submitted to CBD’s general meeting approval on January 11, 2010 and its closing is expected to take place before end of April 2010.

Casino welcomes this strategic agreement that will allow CBD to consolidate its leadership of the Brazilian retail market, in both the food and consumer durables segments.
The Group thus confirms the priority given to expanding in Brazil, a country enjoying a fast growth in consumption, that will further increase its contribution to Group consolidated net sales.

Saint-Etienne, 4 December 2009

Press Contacts
Caroline Simon, +33 (0)1 53 70 74 65, caroline.simon@image7.fr
Karine Allouis, +33 (0)1 53 70 74 81, kallouis@image7.fr

Investors Contacts
Nadine COULM, +33 (0)1 53 65 64 17, ncoulm@groupe-casino.fr
Aline NGUYEN, +33 (0)1 53 65 64 85, anguyen@groupe-casino.fr

pdf Download the press release

3 December 2009

Exito successfully completes its rights issue and renegotiates the Carulla put option

Exito, Casino’s subsidiary, has successfully completed a COP 435 billion (€150 million) rights issue, placing 30 million shares at a price of COP 14,500 per share. The issue proceeds will enable Exito to pursue its expansion in Colombia, further consolidating its leadership, and to strengthen the company’s balance sheet. Casino invested €29 million in the issue, acquiring 5.8 million shares.

Exito has also renegotiated the put option on 22.5% of the capital of Carulla Vivero granted to its minority partners in this subsidiary. Under the revised terms, Exito will acquire the remaining shares for $222 million, payable half in cash and half in stock, through the issuance of 14.3 million new Exito shares to the minority shareholders. This issue will take place in mid-December, following approval of the Colombian securities regulator. Following this buyout, Exito will own 99.8% of Carulla.

After the two transactions, Exito will have 333 million outstanding shares and will be 54.8%-owned by Casino (versus 61.2% previously).

The increase in Exito’s free-float and the company’s recent inclusion in the MSCI emerging markets index will raise the company’s profile on the stock market.

Furthermore, the two transactions will enable to reduce Casino’s consolidated net debt by around €195 million.

About Exito
Exito is the leading food retailer in Colombia, the second most heavily populated country in South America. It is the undisputed market leader with around 260 stores and n°1 positions in every format (hypermarkets, supermarkets and discount).

Saint-Etienne, 3 December 2009

Press Contacts
Caroline Simon, +33 (0)1 53 70 74 65, caroline.simon@image7.fr
Karine Allouis, +33 (0)1 53 70 74 81, kallouis@image7.fr

Investors Contacts
Nadine COULM, +33 (0)1 53 65 64 17, ncoulm@groupe-casino.fr
Aline NGUYEN, +33 (0)1 53 65 64 85, anguyen@groupe-casino.fr

pdf Download the press release

17 November 2009

Casino announces plans to make changes to its organization in France and speed up deployment of its precision retailing strategy

Since 2005, Casino has been deploying a precision retailing strategy that focuses on proactively responding to emerging shopper expectations and leveraging its brand equity.

This strategy has driven strong growth in Casino-brand products, which play a key role in building customer loyalty. It has also led to the rebranding of the Group’s Géant hypermarkets, which were all renamed Géant Casino in late 2006, and the deployment since 2008 of an advertising strategy focused on the Casino brand and showcasing the Group’s unique positioning in the French retail industry.

In addition, the precision retailing strategy has been significantly enhanced by the partnership with dunnhumby, which enables the Group to analyse customer buying habits and tailor its product and service offering to each type of shopper in each store.

In line with these choices – which are all designed to drive a customer-centric strategy and support the related organisation –, at the end of November, Casino will present to employee representatives two projects, one to broaden and deepen cross-business relations between the Hypermarket and Supermarket divisions, and the other to create a single purchasing department responsible for both food and non-food procurement.

This would enable the Group to capitalize on the respective strengths of the Hypermarket and Supermarket businesses, and thus improve their marketing efficiency and raise the profile of the Casino brand-banner, while ensuring that the two networks retain their unique characteristics and competitive advantages.

Reflecting this process, the position of Chief Operating Officer, Hypermarkets and Supermarkets, would be created, to whom the two divisions’ General Executive Managing Directors would report.

The creation of a single Management Committee comprising representatives of the support functions (marketing, human resources, finance, logistics and information systems, project design and management, business development and franchising) would help to release marketing synergies between the two networks by improving coordination of:

–  Promotional campaigns

–  Loyalty programmes and customer services

–  Extension and development programmes

–  Food product assortments

–  Advertising and Communication.

As part of the project, André Lucas, General Executive Managing Director, Casino Supermarkets, would become Chief Operating Officer, Casino Hypermarkets and Supermarkets.

He would be assisted and supported by:

– Gérard Walter, currently Food Purchasing Director, who would become General Executive Managing Director, Géant Casino.

– Jean Rubens, currently Director, Group Marketing, who would become General Executive Managing Director, Casino Supermarkets.
Alain Bizeul, currently Brands Director, and Stephan Ralaimongo, currently Marketing Communication Director, would become joint acting Directors, Group Marketing.

Jean Duboc, who was appointed General Executive Managing Director, Géant Hypermarkets in 2007 for three years, has successfully launched the necessary in-depth transformation of the hypermarket format. In light of his skills and many years’ retailing experience in both South America and France, Mr Duboc will continue to partner the Group as Advisor to the Chairman.

With the same objective of increasing operational efficiency and optimising the Group’s purchasing strategy, the Non-Food Purchasing and Food Purchasing Departments would be combined under the leadership of Hervé Daudin, Merchandise and Supply Chain Director.

He would be assisted and supported by:

– Yannick Migotto, currently Supply Chain Director at Franprix-Leader Price, who would become Director, Food Purchasing.

– A Director, Non-Food Purchasing who is in the process of being hired.

– Pierre Derouard, currently Deputy Merchandise and Supply Chain Director, who would take responsibility for a Finance and Administration Department of EMC Distribution, comprising the human resources, finance, legal, engineering and quality functions.

The Group will also continue deploying responsive, precision category management practices based on the designation of a single manager for each product family.

Lastly, a dedicated Finance Department for Casino France (covering the convenience, hypermarket and supermarket formats, Easydis, CIT and EMC Distribution) would be created. Headed by Camille de Verdelhan, currently Strategy and Planning Director, it would help to ensure a more proactive approach to managing the sub-group’s performance.

By streamlining decision-making processes, the new organisation is designed to improve coordination between banners with targeted customer strategies and pooled support functions, thereby enhancing the effectiveness of the Group’s proprietary customer intelligence, purchasing and logistics systems.

Saint-Etienne – 17 November 2009

Press Contacts
Caroline Simon, +33 (0)1 53 70 74 65, caroline.simon@image7.fr
Karine Allouis, +33 (0)1 53 70 74 81, kallouis@image7.fr

Investors Contacts
Nadine COULM, +33 (0)1 53 65 64 17, ncoulm@groupe-casino.fr
Aline NGUYEN, +33 (0)1 53 65 64 85, anguyen@groupe-casino.fr

pdf Download the press release

13 November 2009

Casino buys out the Baud family’s minority interests in Franprix and Leader Price

On 12 November, Casino acquired the Baud family’s remaining stakes in Franprix and Leader Price, respectively 5% and 25%, for a total of €428.6 million. The Group now holds 100% of the two companies’ capital.

The price of €428.6 million was calculated by an independent expert based on the pricing formula agreed between the parties in 1998 and is thus close to the €413.4 million already recognised in financial liabilities in the Group’s interim balance sheet at 30 June.

The interest on the purchase consideration and the Baud family’s claims for compensation in lieu of dividends will be examined at a later date by the Court of Arbitration, in line with the ruling handed down on 2 July. They have been recognised under other liabilities in the Group’s accounts.

 

 

Saint-Etienne – 13 November 2009

Investor Relations
Nadine COULM
Aline NGUYEN
+33 (0)1 53 65 64 17
+33 (0)1 53 65 64 85

PDF Download the press release

19 October 2009

Sale of Super de Boer assets and liabilities to Jumbo at a price equivalent to €4.82 per share

Super de Boer, a 57%-owned subsidiary of Casino, has announced the signature, on Sunday, 18 October, of an agreement with Jumbo for the sale of its total assets and liabilities for approximately €550 million, representing the equivalent of €4.82 per share.
This price values the business at 13.9x estimated 2009 EBITDA* and generates a gross capital gain of some €60 million for Casino.

The transaction is subject to the customary conditions precedent and must be approved by a simple majority of Super de Boer shareholders at an Extraordinary Meeting to be held for this purpose before the end of the year. Casino has given an undertaking to Super de Boer and Jumbo to vote in favour of the sale.

Following the sale of its assets and liabilities to Jumbo, in principle before the end of the year, Super de Boer plans to distribute the sale proceeds to its shareholders. This is expected to be done by liquidating the company.

The transaction will allow Groupe Casino to reduce its debt by around €400 million. It represents a key milestone in the €1 billion asset disposal programme to be completed by the end of next year, which is designed to give the Group increased financial flexibility.

 

Investor Relations
Nadine COULM
Aline NGUYEN
+33 (0)1 53 65 64 17
+33 (0)1 53 65 64 85

Saint-Etienne, 19 October 2009

* Based on the consensus among brokers covering Super de Boer

 

PDF Download the press release

19 October 2009

Casino Signs the United Nations Global Compact and Undertakes to Uphold its Ten Fundamental Principles

(Paris – Monday, 19 October 2009) — Casino has chosen to support the United Nations Global Compact and to uphold and promote its ten fundamental principles* concerning human rights, labour, the environment and anti-corruption.

A member of the United Nations Global Compact since July, Casino has unveiled a detailed, results-oriented action plan, which includes the following commitments for 2010:

In France

–  Increase the hiring of people who are often victims of discrimination. This could involve, for example, taking on 100 young graduates from disadvantaged neighbourhoods, 50 employees and 50 interns with a disability, or 150 people over 50.

–  Educate at least 2,000 employees about discrimination and how to prevent it.

–  Pursue the voluntary discrimination-testing process.

–  Develop initiatives that help to keep older employees in the workforce.

Outside France

–  Step up the social audits conducted among suppliers of the Group’s private-label products in countries with a high risk of human rights abuses.

–  Finalize the Group Ethics Charter, which concerns 200,000 employees, so that it can be applied to all subsidiaries.
As part of its deep commitment to environmental protection, Casino has also undertaken to:

–  Reduce its energy consumption by 2.5% per year through the installation of photovoltaic panels.

–  Raise awareness among customers about its products’ environmental impact, particularly by adding the Casino Carbon Index label to 140 more products in 2010. This unique eco-label indicates the amount of carbon dioxide emitted by the product during the main stages of its life cycle.

–  Expand the Group’s range of organic products, by introducing 30 new Casino Bio references, and its line-up of fair trade products.

–  Continue to introduce products from sustainable fishing programmes certified by the Maritime Stewardship Council.

The signature of the Global Compact marks a new phase in Casino’s overall sustainable development program and has reaffirmed the Group’s resolve to act as a responsible retailer that contributes to a more sustainable, environmentally-friendly and transparent global economy.

To strengthen its commitment to corporate social responsibility and environmental protection, Casino has pledged to promote the Global Compact’s ten principles in its mass retailing environment and integrate them more effectively into the Group’s strategy, action plans and operating procedures. The Group has also committed to publishing an annual Communication on Progress.

Press Contact: Karine Allouis
Tel.: +33 (0)1 53 70 74 81
kallouis@image7.fr


The Global Compact
was created in 2000 under the aegis of the United Nations. It is designed to bring together businesses worldwide to promote and implement universally recognized social and environmental principles. The Global Compact is based on collective action to nurture the responsibility and civic-mindedness of businesses and actively combat the unwelcome effects of globalization.

*The Global Compact is based on ten principles:
Human Rights
1. Businesses should support and respect the protection of internationally proclaimed human rights; and
2. Make sure that they are not complicit in human rights abuses.

Labour Standards
3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
4. The elimination of all forms of forced and compulsory labour;
5. The effective abolition of child labour; and
6. The elimination of discrimination in respect of employment and occupation.

Environment
7. Businesses should support a precautionary approach to environmental challenges;
8. Undertake initiatives to promote greater environmental responsibility; and
9. Encourage the development and diffusion of environmentally friendly technologies.

Anti-Corruption
10. Businesses should work against corruption in all its forms, including extortion and bribery.

PDF Download the press release

14 October 2009

Third quarter sales almost stable on an organic basis excluding petrol (down 1.0%)

PDF Download the press release
QS 3rd T
(1) International Financial Reporting Standard IFRS 8 “Operating Segments” and IFRIC Interpretation 13 “Customer Loyalty Programmes” have been applied by the Group from 1 January 2009. 2008 data were adjusted accordingly (see details in appendix).
(2) Based on constant scope of consolidation and exchange rates.

QS 3rd T

Consolidated net sales contracted by a reported 1.4% in the third quarter of 2009, on the back of a 2.6% decline in the first half. Reported sales in France were down 5.3%, a performance in line with the first-half trend. In International markets, the reported growth came to 6.0% from 2.4% in the first half, reflecting strong momentum in emerging markets, led by Brazil, and the consolidation of Ponto Frio by Grupo Pão de Açúcar (previously CBD and thereafter “GPA”) from July 1st 2009.

The consolidation of this company, partly offset by the deconsolidation of two Franprix-Leader Price franchisees as of end December 2008, explains most of the 1.2% positive effect of changes in consolidation scope during the period.
Super de Boer announced on September 18th and October 5th that it had received two offers from local competitors for the acquisition of the entire business. At this stage, reported sales include Super de Boer’s contribution.
The currency effect was a negative 0.7%, caused mainly by the decline in the Brazilian real and the Argentine peso against the euro.
Lower petrol prices had a 0.9% negative impact. The calendar effect was neutral both in France and in International markets.
Excluding petrol sales, organic growth for the period was a negative 1.0%.

* * *

In France, organic growth was a negative 3.2% excluding petrol sales, in a persistently lacklustre consumer environment.

–  In this context, the convenience formats (Monoprix, Casino Supermarkets and Franprix) continued to demonstrate strong resilience over the period.

–  Franprix’s same-store sales were almost stable (down 0.7%) in the quarter. This solid performance, combined with faster expansion at both Franprix and Leader Price, enabled the two banners to post a combined negative organic growth of 0.6%, in line with the first half trend.

–  In an increasingly competitive environment, Géant Casino reported a 6.3% decline in same-store sales excluding petrol, continuing the trend observed in the first half. During the period, the hypermarket banner kept up its strategy of targeted price cuts.

–  Cdiscount maintained its strong momentum, attesting to the attractiveness of its business model.

International operations continued to perform well, with organic growth at 2.9% excluding petrol, lifted by the performance of the emerging markets (up by 4.0%), which now represent more than 30% of the Group’s sales vs 26% in 2008(1).

–  In South America, organic growth excluding petrol came to 5.5%, led by another double-digit increase in Brazil.

–  The consolidation, from July 1st, of Ponto Frio, the second largest player in the very buoyant household and electronic appliance segment, lifts GPA’s sales by around 20% and significantly strengthens the company’s leadership on the Brazilian market.

–  In Asia, sales were down by just 0.9% on an organic basis. Business in Thailand was affected by the gloomy economic environment and the decline in the number of tourists visiting the country. Vietnam experienced another period of strong same-store growth and kept up its expansion strategy with the opening of a new hypermarket in July.

Consolidated sales for the first nine months of 2009 were stable on an organic basis excluding petrol, reflecting the good positioning of the business portfolio characterised by:

–  A favourable mix of formats in France, weighted towards the convenience and discount formats,

–  Leadership in online non-food sales,

–  An international presence focused on high potential countries.

The Group is stepping up its action plans with the objective to enhance its banners’ shopper appeal and effectively maintain margins, in particular by moving up a gear in the implementation of programmes to cut costs and optimizing both its food and non-food product mixes.

Financial flexibility will be enhanced by the improvement in free cash flow(2) generation and a €1 billion asset disposal programme to be implemented by the end of 2010.

The Group therefore confirms its objective of improving the net debt/EBITDA ratio at the end of 2009 and of reducing the ratio to less than 2.2x by the end of 2010.

 

(1) The 2009 percentage was computed excluding Super de Boer.
(2) Free cash flow = current operating cash flow before tax, less capital expenditure, changes in WCR, income tax paid and net interest paid

FRANCE

Sales in France fell by 5.3% in the third quarter, due in particular to the 1.0% negative impact of changes in the scope of consolidation concerning Franprix-Leader Price and the 1.2% negative effect of lower petrol prices.
On an organic basis and excluding petrol, sales were down 3.2% over the period. Part of the decline was due to the termination of affiliate contracts, mainly with Coop de Normandie, which had a 0.6% negative impact on sales growth.

QS 3rd T

 (1) International Financial Reporting Standard IFRS 8 “Operating Segments” and IFRIC Interpretation 13 “Customer Loyalty Programmes” have been applied by the Group from 1 January 2009. 2008 data were adjusted accordingly (see details in appendix)
(2) Negative impact of affiliate contract terminations: respectively 1.3% on hypermarket sales and 1.0% on Casino Supermarkets sales in Q3 2009, and 1.4% on hypermarket sales and 1.3% on Casino Supermarkets sales in the first nine months of 2009.

QS 3rd T

Franprix-Leader Price
Franprix’s same-store sales were almost stable, declining by just 0.7% over the quarter. The 2.2% growth in footfalls during the period attests to the robustness of the banner’s retail model whose shopper appeal was further enhanced by the deployment of the new concept. Franprix pursued its assertive expansion strategy, adding 46 stores to the network in the first nine months of the year (including 39 new stores and 7 conversions).

Leader Price’s same-store sales contracted by 10.3%, primarily due to an 8.3% decline in the average basket. While all retailers in the discount segment were affected by customer efforts to reduce their spending, at Leader Price the impact was accentuated by the higher contribution of fresh products to total sales.

The banner opened 27 new stores during the first nine months, with notably the conversion of 2 Casino Supermarkets into Leader Price outlets. In the third quarter, further action was taken to rationalize the store base by converting in particular three Leader Price stores in urban or semi-urban areas to the Franprix banner.
The banner’s market share remained unchanged over the period.

In all, and excluding the impact of deconsolidating two franchisees, Franprix-Leader Price sales for the period were stable, at just 0.6% below the year-earlier figure.

Hypermarkets
Géant Casino sales contracted by 6.3% on a same-store basis, excluding petrol. Footfalls and the average basket were both down by 3.2%.
Food sales declined by 4.7%. The product mix continued to shift towards private labels, which gained 1.9 points over the quarter, confirming Géant’s competitive edge in this segment.
The banner scaled back its promotional activity compared with the second quarter in order to give priority to targeted price cuts, a strategy that will be pursued in the fourth quarter.
The 10.3% fall in non-food sales was in line with the trend observed in the first half, in an environment unfavourable to discretionary spending.

Géant Casino stepped up the refocusing of its offer on the highest volume and highest margin categories, such as apparel and home & leisure, and scaled back the lower-margin white and brown product offerings. The subsequent margin gains give the banner the flexibility to price its food offerings more competitively.
Convenience stores

Supermarkets
Casino Supermarkets’ same-store sales declined by 4.4% excluding petrol, reflecting fruit and vegetable price deflation and lower average baskets in stores located in tourist areas. Footfalls were in line with the first half of the year.
Total sales excluding petrol were down 2.2%, after taking into account the impact of store openings over the last twelve months.
The banner’s market share was stable in the third quarter.

Monoprix
Monoprix’s same-store sales contracted by 2.7% during the quarter. Food sales performance was in line with the first-half trend, attesting to the success of the banner’s differentiated positioning. Sales of personal care products were satisfactory, while total non-food sales were adversely affected by lower apparel sales.
The network expansion strategy continued, with six Monop’ stores and one Naturalia store opened during the period.
In all, reported sales were down by a slight 1.5% in the third quarter.

Superettes
Superettes sales were down 5.2%. Further steps were taken to optimise the store base, with 102 store closures and 70 openings during the period.

Other businesses
Cdiscount’s sales grew at a satisfactory pace during the period.
Casino Restauration enjoyed a notable upturn in its business trend, leading to an increase in sales in the quarter.
In all, sales by the other businesses (Cdiscount, Mercialys, Casino Restauration and Banque Casino) rose by 5.1% in the third quarter.
INTERNATIONAL

International sales grew 6.0% in the third quarter. Changes in the scope of consolidation had a positive impact of 5.4%, primarily reflecting the consolidation of Ponto Frio by GPA from July 1st 2009. The currency effect was a negative 2.1%, due mainly to the decline in the Brazilian real and Argentine peso against the euro, partly offset by the appreciation of the Thai baht during the period.

Organic growth stood at 2.8%, lifted by a solid performance in South America (up 5.2%), led by Brazil, and almost stable sales in Asia (down 0.9% on an organic basis).

QS 3rd T

In South America, same-store sales continued to grow at a healthy pace, rising 3.9% in the third quarter.
GPA enjoyed another period of very strong growth, in line with the first-half trend, with same-store sales up 12.9%. This excellent performance was attributable in particular to the success of the anniversary promotional campaign conducted across all the sub-group’s banners during September. Total sales in Brazil rose 30.8%, lifted by the consolidation of Ponto Frio, the second largest player in the very buoyant household and electronic appliance segment. This acquisition has enhanced GPA’s leadership on the Brazilian retail market.
Exito’s same-store sales followed the same trend as in the first half.
Same-store sales improved in Venezuela compared with the second quarter, and remained very satisfactory in Argentina and Uruguay.

In Asia, same-store sales were down 5.2%. Business in Thailand was adversely affected by the gloomy economic environment and the fall-off in tourist numbers due to the unstable political situation, while same-store sales in Vietnam were very strong.
In all, sales in Asia were stable on an organic basis, dipping by just 0.9%, thanks to the expansion of the store base.

Operations in the Indian Ocean performed satisfactorily, with sales up 0.3% on a same-store basis and down 0.4% on an organic basis.

Main changes in the scope of consolidation
• Deconsolidation of two franchisees in the Franprix-Leader Price sub-group as of end December 2008.
• Consolidation of Ponto Frio by GPA since July 1st 2009.
• Subsequent capital increase by GPA which had the effect of reducing Group Casino’s stake in this subsidiary from 35.0% at end June 2009 to 33.7% as of September 21st 2009.

QS 3rd T

QS 3rd T

QS 3rd T

 

Appendix: Application of IFRS 8 and IFRIC 13

International Financial Reporting Standard 8 “Operating Segments” and IFRIC Interpretation 13 “Customer Loyalty Programmes” were applicable by the Group as from January 1st 2009. This has resulted in two changes in accounting method, with 2008 data adjusted to reflect retrospective application for comparison purposes.

–  IFRS 8 replaced IAS 14 “Reporting Financial Information by Segment.” While the standard does not have any impact on the Group’s performance or financial situation, it has led to a change in the way the reported data are presented. In practice, the main change in the 2008 sales figures concerns the presentation of net sales to external customers, primarily by Easydis, which are now recognised in “Other businesses” instead of being allocated among the various French banners as previously.

–  IFRIC Interpretation 13 requires entities to recognise the fair value of the consideration granted to customers under loyalty programmes (such as award credits or purchase coupons) as a separately identifiable component of the sales transaction in which they are granted. In practice, this leads to revenue being reduced at the time of the grant and increased when the award credits are redeemed. Until 2008, the cost of these loyalty programmes was deducted from trading profit.

 

QS 3rd T

* Adjusted to take into account the consolidation of Naturalia.
QS 3rd T

* Adjusted to take into account the consolidation of Naturalia.