- Strong growth in sales at €11.8 billion (+35.2%), driven by International, which now makes up 60.4% of the Group’s operations
- Sustained organic* growth up in Q3 over Q2 2012: +4.2% (vs. +3.4% in Q2 2012)
- Internationally, very good performance (+8.8%)in sequential acceleration over Q2 2012 (+7.7%)
- In France, business is resilient (+0.2%), boosted by the excellent performance of Cdiscount (+22.8%) and by the improved trends on convenience and discount formats.
Evolution of the group’s consolidated net sales in the 3th quarter of 2012
|Consolidated net sales
||Evolution Q3 2012/Q3 2011
|| in €m
In the third quarter of 2012, the Group’s consolidated sales were up +35.2%. Organic growth* was steady at +4.2% (+3.8% including petrol and calendar effect).Group same-store sales increased +2.2% excluding petrol.
Changes in scope positively contributed +33.9%, primarily under the impact of the full consolidation of GPA as of 2 July 2012. Foreign-exchange rates had an unfavourable impact of -2.5%. The petrol effect was minimal for the quarter. The calendar effect was negative in France (-0.8%) and nil internationally.
* Excluding petrol and calendar effect; organic growth is growth at constant scope of consolidation and exchange rates.
In France, resilient sales on an organic basis
In France, organic growth was +0.2% in the third quarter excluding calendar, up sequentially over Q2 (-0.5%). Reported sales declined by -1.6% after factoring in the deconsolidation of a master franchisee at Franprix-Leader Price.
- Despite a soft consumer environment, convenience formats posted satisfactory results. Sales for Monoprix, Casino supermarkets and superettes continue to grow on an organic basis. Total sales for superettes are improving (+0.1% and +0.6% excluding calendar effect), compared to a decline of -2.9% in Q2 2012.
- Franprix-Leader Price posted stable sales on an organic basis, excluding the calendar effect, an improvement over the previous quarter (-1.3%).
- Géant’s performance was affected by the decline in non-food, in particular on multimedia. The banner continues and accelerates the reduction of its non-food selling areas.
- Inversely, Cdiscount stepped up its growth (+22.8%), benefiting from excellent performance during the summer sales.
- In all, non-food sales by Géant and Cdiscount grew +2.2% in the third quarter.
International: continued strong organic growth: +8.8%
Casino Group’s international subsidiaries generated strong growth once again this quarter. Sales rose +8.8% on an organic basis excluding the calendar effect. Total sales for International subsidiaries, which rose +79%, also benefited from the full consolidation of GPA.
The foreign-exchange effect had a negative impact of -5.5% on international sales in the third quarter 2012.
- Latin America posted strong organic growth of +9.6%, driven by high same-store growth in Brazil and dynamic expansion in Colombia.
- Organic growth for Asia is still very significant at +10.2%, due to the sustained pace of expansion, especially in Thailand, where same-store growth improved in the third quarter.
Total International salesaccounted for 60.4% of Group sales over the period, compared with 46% in Q3 2011.
France: Sales AnalysisS – Q3 2012
Sales in France came to €4,663 million in the third quarter of 2012, an increase of +0.2% in organic growth, excluding petrol and the calendar effect.
|Net sales before tax – France
|Géant Casino hypermarkets
|Cdiscount & Other businesses
|Franprix – Leader Price
Evolution in same-store sales, excluding petrol
||excluding calendar effect
|Géant Casino hypermarkets
* Excluding petrol and calendar effect
Same-store sales* excluding petrol for Géant Casino were down -5.4%*. During the quarter, Géant suffered notably from the impact of unfavourable weather and from the ongoing trend on non-food.
In a context of soft consumption, same-store food sales were down -2.9%*.
Non-food same-store sales fell by -7.3%*, without multimedia, for which the banner pursues the reduction of sales areas at an accelerated pace.
At the end of Q3, the banner already reached its annual target by reducing by 7.5% the non-food sales area of 80 stores.
Total sales area of hypermarkets will decrease by 2.4% in 2012.
Excluding petrol and calendar effect, organic growth in sales in Casino Supermarkets was up +3.5%. The banner has kept up its strategy of excellence in fresh goods and rollout of local products labelled “Le Meilleur d’ici” (“the Best from Here”), as well as highlighting its own private label, whose performance over the quarter was satisfactory. Total sales grew +3.1%. Same-store sales excluding the calendar effect were down -1.7%.
Sales in superettes are posting +0.6% organic growth (excluding the calendar effect), marking an improvement over Q2 2012. This performance was sustained by expansion, with Casino having opened 61 stores. 2 Petit Casino have been converted into Casino Shop. Moreover, since July, 17 Coop d’Alsace stores have joined the Casino proximity network. In total 48 Coop d’Alsace are affiliated.
Cdiscountsales rose +22.8% because of excellent performances obtained during the most recent sales. All product categories are developing very dynamically. The market place continues its growth, in line with the plan, making it possible to expand the total number of offers available on the Cdiscount website to 900,000, of which 100,000 are sold directly by Cdiscount. It already represents more than 7% of total business volume, which is up by 30%. Sales via m-commerce (smartphones and tablets) have increased faster than activity.
The Group has continued to roll out its multi-channel strategy over the third quarter, completing the number of pick-up points in its stores. There are now a total of 2,450 points for packages under 30 kg, and 450 points for packages over 30 kg.
Total non-food sales (cumulative) in France by Géant and Cdiscount rose +2.2% over Q3.
Excluding calendar (-0.9% over Q3) and restated for the transfer of four hypermarkets to Casino Supermarkets
Leader Price posted an increase of +0.1% in its same-store sales, excluding the calendar effect, an improvement over H1 2012. Sales & marketing activities initiated since the start of the year, from the standpoint of both assortment and pricing, are ongoing, and their good results are validating Leader Price’s recent strategic trend. 12 stores have opened since the year began, of which 4 over the period. The rollout of Cdiscount pick-up points continues satisfactorily, with 150 pick-up points currently in place.
Sales for Franprix rose +0.1% on an organic basis excluding the calendar effect for the quarter, an improvement compared with the previous quarter. Sales benefited notably from the improvement in private label performance. The loyalty card is also being rolled out throughout the store network. The banner has opened 7 stores over the period. Same-store sales exclusive of the calendar effect were down ‑2.6%, compared with -2.9% in Q2 2012.
Total Franprix-Leader Price sales were down -3.9%after factoring in the deconsolidation of a master franchisee.
Sales at Monoprix rose +1.4% on an organic basis excluding the calendar effect. In a difficult market, the clothing, drugstore and beauty corners posted good performance in September. Online food sales also recorded very strong growth. Same-store growth excluding the calendar effect was +0.2%, in line with Q2 (+0.5%). Monoprix opened 7 stores over the period.
INTERNATIONAL: SALES ANALYSIS – Q3 2012
Consolidated sales at International subsidiaries rose substantially by +79%.
Scope effects had a positive impact of +75.6%, related to the full consolidation of GPA.
Exchange rates had an unfavourable impact of -5.5%, resulting primarily from the Brazilian real’s sharp depreciation against the euro.
Once again, organic growth was very high at +8.8%*, an improvement over Q2 (+7.7%), driven by good performance in both Latin America and Asia.
Change in International sales growth in Q3 2012
Reported growthOrganic growth*Same-store growthLatin America+98.7%+9.6%+7.5%Asia+19.9%+9.8%+3.5%
* Excluding petrol and calendar effect
In Latin America, same-store sales showed steady growth of +7.5%, reflecting especially GPA’s good performance. Organic growth was +9.6%, boosted by continued rapid expansion, particularly in Colombia. In all, sales rose 98.7%, primarily under the impact of the full consolidation of GPA.
In Brazil, GPA posted same-store sales up +8.1%.
Same-store sales for GPA Food were up +6.8%*, driven by the success of the new Assaí cash & carry format which shows excellent performance. Minimercado Extra proximity stores benefited from the latest effects of the conversion of Extra Facil stores to that format, while the other food banners benefited from the conversion of Sendas and Comprebem stores in Q3 2011. The group pursued its policy of innovation over the quarter, notably by launching its first virtual storefront in São Paulo. Expansion pace was accelerated with the opening of 15 new stores during the quarter (i.e. +2.4%* in square meters): 3 hypermarkets, 4 supermarkets and 8 Minimercado were opened.
Same-store sales for Viavarejo increased +7.5%*, driven by significant sales initiatives and the extension of tax incentives on purchases of household appliances and furnishings. The assortment in store also improved. The expansion continued in Q3, with the opening of 9 Casas Bahia stores.
Total sales for Exito grew strongly in the third quarter, under the combined influence of high organic growth and a favourable foreign-exchange and calendar effect. Exito benefited from the rapid expansion of its store network. The strengthening of private labels had a positive effect on sales, as did the continued development of activities complementary to retail (specifically credit and insurance).
The expansion of Exito was focused on the development of convenience and discount stores, with the opening of 5 Exito Express, 6 Surtimax, 1 Exito supermarket and 1 Exito hypermarket.
Exito’s Q3 earnings will be released on 24 October 2012.
*Gross same-store sales published by GPA.
In Asia, same-store growth came out at +3.5%. Organic growth in sales excluding the calendar effect maintained a high level of +9.8%. Total sales grew +19.9%.
Big C posted organic sales growth excluding calendarof +7.6%. Big C’s same-store performance was robust at +3.6%, thanks to the very good results of promotional operations during the quarter, including the 19th anniversary of the banner, the success of the Extra premium concept, and the roll-out of the loyalty card. The promotional operations contribute to reinforce the leadership of Big C on the low prices. The roll-out of the partnership with service-station operator Bangchak continues, with the opening of pilot stores in the area around Bangkok. Big C continues to finalise the resolution of logistical and procurement problems caused by the floods in late 2011.
Expansion has had an increased contribution to organic growth, with the opening of 3 hypermarkets and many convenience formats over the quarter: 3 supermarkets, 15 Mini Big C and 15 Pure.
Big C Vietnam continued to post very strong growth in its sales on an organic basis, driven by recent expansion efforts. The banner has opened 1 hypermarket and 1 shopping mall during the quarter. Sales from the latest stores and malls to open have been very satisfactory. Over the quarter, Big C launched a private label offering regional, in-season fresh goods, and continued to roll out its loyalty programme.
In the Indian Ocean,same-store sales were down due to an unfavourable economic context in La Réunion.
In France, in a backdrop of soft consumption, the Group will continue to deploy its actions plan aiming at controlling its costs and reinforcing its operating excellence, in particular in hypermarkets. Expansion will continue in buoyant formats and channels, i.e. convenience, discount and e-commerce.
Internationally, where the Group holds leading or co-leading positions on high-potential markets, organic growth should continue at a sustained pace, based upon a strong commercial dynamic and expansion.
ANALYST AND INVESTOR CONTACTS
Régine GAGGIOLI – Tel: +33 (0)1 53 65 64 17
+33 (0)1 53 65 64 18
Grégoire LUCAS – Tel: +33 (0)1 53 70 74 94
Karine ALLOUIS – Tel: +33 (0)1 53 70 74 81
This press release has been prepared for informational purposes only and should not be construed as a solicitation or an offer to buy or sell securities or related financial instruments. Similarly, it does not and should not be treated as giving investment advice. It has no connection with the investment objectives, financial situation or needs of any receiver. No representation or warranty, express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained in this document. It should not be regarded by recipients as a substitute for the exercise of their own judgments. All opinions expressed herein are subject to change without notice.
Main changes in the scope of consolidation
- Change in GPA stake, fully consolidated since July 2012. GPA was consolidated at 43.1% as of 30 September 2011.
- Full consolidation of DSO into Franprix – Leader Price from February 2011 to August 2011.
- Full consolidation of BARAT into Franprix – Leader Price from March 2012.
- Full consolidation of companies owning 21 stores within the Franprix – Leader Price Group as of July 2012.
Third quarterChange9 monthsChange 2011 €m2012 €mReportedAt constant
exchange rates2011 €m2012 €mReportedAt constant
exchange ratesFRANCE 4,737.0 4,662.9 -1.6% -1.6% 13,839.2 13,689.3 -1.1% -1.1%Of which: Casino France3,237.13,201.1-1.1%-1.1%9,103.79,063.1-0.4%-0.4%Géant Casino
hypermarkets1,463.11,358.0-7.2%-7.2%4,100.53,906.3-4.7%-4.7%Casino supermarkets970.91,001.3+3.1%+3.1%2,713.52,800.8+3.2%+3.2%Superettes426.9427.1+0.1%+0.1%1,142.01,140.4-0.1%-0.1%Other businesses376.2414.6+10.2%+10.2%1,147.61,215.5+5.9%+5.9%Franprix – Leader Price1,044.41,003.2-3.9%-3.9%3,303.33,161.2-4.3%-4.3%Monoprix455.5458.6+0.7%+0.7%1,432.21,465.1+2.3%+2.3%INTERNATIONAL 3,968.0 7 104,1 +79% +84.6% 11,009.5 15,425.6 +40.1% +41.8%Of which: Latin America3,0446,049.8+98.7%+108.2%8,229.612,306.2+49.5%+53.7%Asia708.6849.6+19.9%+10.2%2,139.42,491.0+16.4%+9.1%Other sectors215.4204.7-5%-5.2%640.5628.4-1.9%-2.2%NET SALES FROM
8,705 11,767.0 +35.2% +37.7% 24,848.6 29,114.9 +17.2% +17.9%
If Casino group had become sole controlling shareholder of GPA on 1 January 2012 (full consolidation at 100% of GPA from this date), Latin America total sales under the period ended on 30 September 2012 would have been €14,755.4m, bringing the total Group sales to €34,983.6m.
Average exchange ratesH1 2011H1 2012Change9-month
2012ChangeArgentina (ARS / EUR)0.1760.176-0.3%0.1740.175+0.5%Uruguay (UYP / EUR)0.0370.039+4.0%0.0370.038+2.5%Thailand (THB / EUR)0.0230.025+5.7%0.0230.025+6.6%Vietnam (VND / EUR) (x1,000)0.0350.037+5.5%0.0350.038+7.5%Colombia (COP / EUR) (x1,000)0.3880.430+10.8%0.3900.435+11.4%Brazil (BRL / EUR)0.4370.414-5.3%0.4360.407-6.6%
Organic growth: the organic growth is at constant scope of consolidation and exchange rates.
Period-end store network: France
FRANCE31 Dec. 201130 June 201230 Sept. 2012Géant Casino hypermarkets127123125 Of which French Affiliates889 International Affiliates556+ service stations1019797Casino supermarkets422434439 Of which French Affiliates515455 International Franchise Affiliates323539+ service stations170172172Franprix supermarkets897897894 Of which Franchise outlets379384387Monoprix supermarkets514523527 Of which Naturalia556061 Of which Franchise outlets/Affiliates130131133Leader Price discount stores608599601 Of which Franchise outlets271256238Total supermarkets and discount stores2,4412,4532,461 Of which Franchise outlets/Stores operated under business leases863860852Petit Casino superettes1,7581,7071,657 Of which Franchise outlets292626Casino Shopping superettes61010Casino Shop superettes162729Eco Services superettes111Coop Alsace superettes 3148 Of which Franchise outlets 3148Spar superettes956972969 Of which Franchise outlets755748747Vival superettes1,7521,7081,699 Of which Franchise outlets1,7501,7061,698Casitalia and C’Asia superettes111Other Franchise stores1,1341,1091,104Corner, Relay, Shell, Elf, Carmag…1,1341,1091,104Wholesale activity937935935TOTAL CONVENIENCE STORES6,5616,5016,453 Of which Franchise outlets/Stores operated under business leases/Wholesale4,6064,5564,559Other Affiliate stores262829 Of which French Affiliates181919 International Affiliates8910Other businesses295304308 Cafeterias293302306 Cdiscount222TOTAL France9,4509,4099,376Hypermarkets (HM)127123125Supermarkets (SM)1,8331,8541,860Discount (DIS)608599601Superettes (SUP) and other stores (MAG)6,5876,5296,482Other (DIV)295304308
Period-end store network: international
International31 Dec. 201130 June 201230 Sept. 2012ARGENTINA 242423Libertad hypermarkets151515Other businesses998URUGUAY525252Géant hypermarkets111Disco supermarkets272727Devoto supermarkets242424BRAZIL1,5711,5751,589Extra hypermarkets132134137Pao de Açucar supermarkets159159160Extra Perto supermarkets204204207Assai discount stores595959Extra Facil and Minimercado Extra superettes726977Casas Bahia discount stores544547556Ponto Frio401403393THAILAND221268304Big C hypermarkets108109112Big C supermarkets121518Mini Big C superettes517590Pure506984VIETNAM232430Big C hypermarkets181819New Cho superettes557C Express superettes014INDIAN OCEAN535353Jumbo hypermarkets111111Score/Jumbo supermarkets222222Cash and Carry supermarkets555Spar supermarkets887Other businesses778COLOMBIA351383395Exito hypermarkets808485Pomona, Carulla, Exito supermarkets130133134Surtimax discount stores788994Exito Express and Carulla Express superettes546974Ley and others988TOTAL INTERNATIONAL2,2952,3792,446Hypermarkets (HM)365372380Supermarkets (SM)591597604Discount (DIS)137148153Superettes (SUP)182219252Other (DIV)1,0201,0431,057