UPDATE 3-Casino Q4 sales rise, France remains a worry

* Q4 revenues 7.32 billion euros, in line

* Casino "comfortable" with revised EBIT consensus-CFO

* Net debt/EBITDA ratio targets confirmed

* French hypermarket sales down 6 pct (Adds sales data)

By Lionel Laurent

PARIS, Jan 18 (Reuters) - Fast-growing emerging markets like Latin America helped boost French retailer Casino's (CASP.PA) fourth-quarter sales by 2.2 percent, it said, adding the worst seemed to be over in its struggling home market of France.

Sales in France dropped 3.3 percent, however, and analysts's forecasts for full year operating profits are slipping.

The French retailer also said the imminent nationalisation of its Exito stores in Venezuela would have little impact on earnings. The chain is on the brink of nationalisation according to statements made by Venezuelan President Hugo Chavez on Sunday. [ID: nLDE60H0SI]

Casino also said it was "comfortable" with current analyst forecasts for its 2009 EBIT of 1.21 billion euros, revised down from forecasts of 1.25 billion in the third-quarter.

Casino announced fourth-quarter sales of 7.32 billion euros ($10.5 billion) after the market closed on Monday, in line with the forecast in a Reuters poll. [ID:nLDE60E0Q7]

The fall in EBIT forecast was a result of fourth-quarter revenues that were below Casino's own expectations, the retailer's chief financial officer, Antoine Giscard d'Estaing, said on a conference call.

But he seemed to say the worst was over, adding: "Our current assessment of the macroeconomic environment this year is that growth should resume in emerging economies and that consumption patterns in France should not deteriorate further."

Casino also confirmed its objective of improving its net debt/EBITDA ratio for year-end 2009 and of reducing this ratio to less than 2.2 by the end of 2010.

The sales rise was largely from international markets like Latin America rather than Casino's home market of France, where the retailer posted a revenue drop of 3.3 percent year-on-year, to 4.6 billion euros.

LARGE FRENCH STORES FALL 6 PCT

Sales in France have suffered from consumer weakness and deflationary pressures, hurting large, out-of-town hypermarkets in particular. Casino's French hypermarkets posted a 6 percent sales drop excluding petrol in the fourth quarter.

Retailers across the board have responded by cutting prices in France, and Giscard d'Estaing said Casino would step up this policy in 2010 using savings from pooling purchasing of private-label goods.

But the weaker-than-expected quarter in France, which saw Casino's hard-discount label Leader Price post an 11 percent fall in sales, could hurt the stock on Tuesday, analysts said.

"I expect (the sales figures) to weigh on the share tomorrow," said one analyst who did not wish to be named, describing the French revenue figure as "pretty poor."

France's weakness was offset by Casino's sales in South America, which grew 18.9 percent in the fourth quarter, or by 4.9 percent on an organic basis.

Ironically, Venezuela was the weak link in the chain, with Casino saying revenues had "slumped" against a backdrop of economic recession and currency crisis.

Larger rival Carrefour (CARR.PA) posted a 1 percent rise in fourth-quarter sales earlier this month, in line with analyst expectations, but warned the trading environment was still challenging. [ID:nLDE60D130]

Casino shares closed up 0.5 percent at 62.04 euros after an 1.28 percent decline this year.

The stock is trading at a price-to-earnings ratio of 13.74, below the sector average of 18.18.

(Additional reporting by Mark Potter and Noelle Mennella; Editing by David Cowell and Martin Golan)