Groupe Casino: Fourth Quarter 2007 Sales up a Strong 18.4% (at Constant Exchange Rates)
Sustained Organic Growth of 6.5%
Good Performance in France (Up 5%)
Continued Strong Trend in International Markets (Up 11.7%)
SAINT-ETIENNE, France--(Business Wire)--Regulatory News:
Groupe Casino (Paris:CO)
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Consolidated Q4 2007 12 months % change QoQ % change 12Mo12Mo
net sales EUR m 2007 ----------------- -----------------
EUR m reported organic* reported organic*
--------------- -------- --------- -------- -------- -------- --------
Continuing
operations 7, 022.9 24, 972.9 18.6% 6.5% 11.0% 3.8%
France 4,810.9 17,915.6 5.0% 5.0% 1.8% 1.8%
International 2,212.1 7,057.2 65.4% 11.7% 43.8% 11.2%
--------------- -------- --------- -------- -------- -------- --------
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*Based on constant scope of consolidation and exchange rates
Consolidated net sales for the fourth quarter of 2007 rose a
strong 18.6% thanks to sustained organic growth of 6.5% and the full
consolidation of Exito in Colombia.
Sales growth in France accelerated to 5%, reflecting a return to
growth at Franprix-Leader Price (up 2.2%) and another robust
performance from Casino supermarkets (up 9.5%) and Monoprix (up 4.5%).
The recovery plans deployed at Franprix and Leader Price began to
produce results in the fourth quarter. As expected, Franprix recorded
positive growth in same-store sales, of 3.2%. Leader Price experienced
a significant trend improvement, with same-store sales down only 3.8%
compared with 12.4% in the first nine months of the year.
Casino supermarkets and Monoprix are benefiting from the success
of their competitively differentiated positioning. Casino supermarkets
turned in an excellent performance, with a 7.2% increase in same-store
sales. After several quarters of robust growth, this led to a
0.1-point gain in market share for the full year. Monoprix also
recorded satisfactory same-store sales growth, of 3.3%.
In international markets, organic growth remained high at 11.7%,
reflecting continued strong momentum in the Group's two priority
growth regions of Latin America (up 15.4%) and Asia (up 10.5%). All
countries reported increased same-store sales.
Consolidated net sales for full year 2007 increased by a
substantial 11%, or 10.8% at constant exchange rates. Organic growth
came to 3.8%, led by an 11.2% gain in international markets.
In France, the Group took advantage from a favourable format mix,
which features strong market positions in convenience stores (Casino
supermarkets, Monoprix, superettes and Franprix) and in discount
stores, as well as the deployment of tailored marketing strategies for
each banner. Excluding Franprix-Leader Price, sales rose 3.1% in 2007.
The Group took over day-to-day management of Franprix and Leader Price
in the spring, and the two banners already showed noticeable signs of
recovery in the fourth quarter. This turnaround will continue in 2008.
Remodelling of the asset portfolio in the international markets
significantly improved the Group's growth profile. Casino now has a
geographical platform comprising countries with high growth potential
and refocused on two priority regions: South America and South East
Asia. International operations, which account for 30% of Group sales,
are a key growth driver.
The Group's fourth-quarter performance demonstrates the
effectiveness of its operating action plans and the quality of its
asset portfolio in France and the international markets. Casino is now
poised to deliver sustainable growth.
The Group confirms its targets for full year 2007:
-- Further growth in trading profit.
-- Strengthening of the balance sheet to reach a net debt to
EBITDA ratio of less than 2.5 by end-2007.
The annual results will be published on 13 March 2008.
FRANCE
Sales in France rose 5% in the fourth quarter, including a 1% gain
from the higher number of selling days in relation to the year-earlier
period.
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In EUR millions Fourth Quarter 12 months
------------------------ ---------------------------
2006 2007 % change 2006 2007 % change
----------------- ------- ------- -------- --------- -------- --------
Net sales, France 4,582.8 4,810.9 5.0% 17, 598.6 17,915.6 1.8%
Géant Casino
hypermarkets 1,697.8 1,746.1 2.8% 6,294.4 6,299.8 0.1%
Convenience
stores 1,600.8 1,697.0 6.0% 6,325.8 6,569.2 3.8%
Casino
supermarkets 759.3 831.3 9.5% 3,047.2 3,224.0 5.8%
Monoprix 473.3 494.9 4.5% 1,714.5 1,779.7 3.8%
Superettes 368.2 370.7 0.7% 1,564.1 1,565.5 0.1%
Franprix/Leader
Price 1,017.5 1,040.1 2.2% 4,020.7 3,916.1 -2.6%
Other businesses 266.8 327.7 22.8% 957.7 1,130.5 18.1%
----------------- ------- ------- -------- --------- -------- --------
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Same-stores sales Fourth quarter 12 months
2007
------------------ ------------------
Excluding Excluding
% change gasoline % change gasoline
-------------------------------- -------- --------- -------- ---------
Géant Casino hypermarkets 2.7% 0.9% 0.0% 0.1%
Casino supermarkets 7.2% 5.4% 3.2% 3.1%
Monoprix 3.3% 3.3% 2.7% 2.7%
Franprix 3.2% n/a -0.7% n/a
Leader Price -3.8% n/a -10.3% n/a
-------------------------------- -------- --------- -------- ---------
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Hypermarkets
Géant Casino hypermarket sales rose 2.7% on a same-store basis.
Excluding gasoline, sales increased by 0.9%, as the average basket
expanded by 2.6%.
Food sales grew by a satisfactory 2.5% on the back of double-digit
growth in private labels, the expansion of fresh produce, cooperation
with dunnhumby and other strategic measures.
Non-food sales declined by 2.1%, reflecting, in particular, the
impact of continued efforts to refocus the portfolio on the most
promising product families.
Géant Casino's market share held firm during the quarter and over
the year as a whole.
Convenience stores
Supermarkets
Casino supermarkets had an excellent fourth quarter, with sales up
9.5%. Excluding gasoline, same-store sales were up a strong 5.4%,
reflecting a 2.2% increase in the average basket and a 3.1% rise
in checkout flowthroughs. These good results, especially for
customer traffic, demonstrate the attractiveness of this banner,
which has successfully applied an appropriate marketing strategy.
Cooperation with dunnhumby has helped optimise this strategy,
notably in the areas of pricing and product offering.
Casino supermarkets increased their market share by 0.1 point over
the year, both in volume and euros.
Monoprix
Monoprix's same-store sales rose 3.3%, with a satisfactory
performance in both food and non-food items. Monoprix is
benefiting from its refocusing on four areas of expertise (food,
personal care/cosmetics, apparel and household goods) and from the
development of a high-quality, contemporary merchandise selection.
One Citymarché and seven Monop' outlets were opened during the
fourth quarter. Over the full year, the banner demonstrated its
assertive expansion strategy by opening 23 stores (including eight
Citymarchés).
Monoprix's total sales increased by 4.5% over the quarter.
Superettes
Superette sales rose by 0.7%, reflecting stepped up measures to
optimise the store base.
Franprix/Leader Price
Sales at Franprix-Leader Price were up 2.2% in the fourth quarter
after being down 4.2% at the end of September. Action plans to
revitalise sales at both banners by focusing on promotions, pricing
policy, product line-up and advertising have proven effective.
As expected, Franprix recorded positive growth in same-store
sales, of 3.2% in the fourth quarter.
Leader Price experienced a significant trend improvement, with
same-store sales down only 3.8% compared with 12.4% in the first nine
months of the year.
Other Businesses
Sales by the other businesses (Cdiscount, Mercialys, Casino
Cafétéria and Banque Casino) were up 22.8%, led by strong growth at
Cdiscount, which reported a more than 30% gain in revenue.
INTERNATIONAL
International sales surged 65.4% in the fourth quarter, with the
full consolidation of Exito and Assai (within CBD) accounting for 52.8
points of growth. The currency effect was a positive 0.9% due to the
appreciation of the Brazilian real and Thai baht against the euro
during the period.
Organic growth remained very strong in Latin America and Asia,
with a total increase from international operations of 11.7%.
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Consolidated Reported Organic Same-store
net sales -------------- ------------- -------------
Q4 12 Q4 12 Q4 12
2007 months 2007 months 2007 months
--------------------------- ------ ------- ----- ------- ----- -------
South America 107.5% 77.7% 15.4% 14.8% 13.1% 13.2%
Asia 15.0% 6.2% 10.5% 9.8% 1.4% 2.0%
Indian Ocean 1.1% 1.4% 1.1% 1.7% 1.3% 0.8%
--------------------------- ------ ------- ----- ------- ----- -------
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In South America, organic growth was a robust 15.4%, including
same-store growth of 13.1%. In Brazil, same-store sales at CBD were up
1.4% over the period. Total sales rose 9.8%, reflecting the company's
assertive expansion strategy and the acquisition of a controlling
interest in Assai, which provided access to the very promising cash
and carry market.
Operations in Argentina, Venezuela and Uruguay continued to
deliver very high same-store growth.
In Colombia, Exito continued to integrate Carulla Vivero and to
leverage synergy, notably by converting Vivero and Ley stores into
Exito outlets.
Organic growth in Asia came to 10.5%, including same-store growth
of 1.4%. In Thailand, Big C opened three hypermarkets during the
fourth quarter, for a total of five new stores over the full year.
In the Indian Ocean, organic growth stood at 1.1%, with same-store
sales up 1.3%.
In the Netherlands (businesses accounted for by the equity
method), Super de Boer recorded same-store growth of 4% in the fourth
quarter and 3.7% for the full year, up from 2.5% in 2006.
In accordance with IFRS accounting standards, Super de Boer will
be fully consolidated as from 1 January 2008, date on which the
exercise period begins for the call option held by Casino on 6.2% of
the company's capital.
Main changes in the scope of consolidation
-- Exito (Colombia), which was previously accounted for by the
equity method, has been fully consolidated since 1 May 2007.
-- Disco (Uruguay) was proportionately consolidated on a 55%
basis from 1 April 2006 (compared with 50% previously), on a
58% basis from 1 October 2006 and on a 62.5% basis from 1
August 2007.
-- Assai has been fully consolidated within CBD since 1 November
2007.
-- In accordance with the provisions of IFRS 5 relating to
proportionately consolidated companies, sales by FEG (Taiwan)
have not been included in consolidated net sales since 14
September 2006, when the Group's interest in the company was
classified under "Assets held for sale".
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4th Quarter Change
--------------- ------------------
2006 2007 Reported At
EUR m EUR m constant
ex.rates
---------------------------------- ------- ------- -------- ---------
FRANCE 4,582.8 4,810.9 5.0% 5.0%
Of which :
Géant Casino HM 1,697.8 1,746.1 2.8% 2.8%
Convenience 1,600.8 1,697.0 6.0% 6.0%
Casino SM 759.3 831.3 9.5% 9.5%
Monoprix 473.3 494.9 4.5% 4.5%
Superettes 368.2 370.7 0.7% 0.7%
Franprix-Leader Price 1,017.5 1,040.1 2.2% 2.2%
Other businesses 266.8 327.7 22.8% 22.8%
INTERNATIONAL 1,337.3 2,212.1 65.4% 64.5%
Of which :
South America 762.7 1,582.9 107.5% 107.8%
Asia 346.7 398.9 15.0% 10.7%
Indian Ocean 227.7 230.1 1.1% 1.1%
Other (Poland) 0.3 0.3 10.2% 4.4%
---------------------------------- ------- ------- -------- ---------
NET SALES - CONTINUING OPERATIONS 5,920.2 7,022.9 18.6% 18.4%
---------------------------------- ------- ------- -------- ---------
NET SALES DISCONTINUED OPERATIONS 610.2 0.6 ns ns
CONSOLIDATED NET SALES 6,530.3 7,023.5 ns ns
---------------------------------- ------- ------- -------- ---------
12 months Change
------------------ ------------------
2006 2007 Reported At
EUR m EUR m constant
ex.rates
-------------------------------- -------- --------- -------- ---------
FRANCE 17,598.6 17, 915.6 1.8% 1.8%
Of which :
Géant Casino HM 6,294.4 6,299.8 0.1% 0.1%
Convenience 6,325.8 6,569.2 3.8% 3.8%
Casino SM 3,047.2 3,224.0 5.8% 5.8%
Monoprix 1,714.5 1,779.7 3.8% 3.8%
Superettes 1,564.1 1,565.5 0.1% 0.1%
Franprix-Leader Price 4,020.7 3,916.1 -2.6% -2.6%
Other businesses 957.7 1, 130.5 18.1% 18.1%
INTERNATIONAL 4,906.1 7,057.2 43.8% 43.0%
Of which :
South America 2,636.7 4,686.0 77.7% 79.7%
Asia 1,445.4 1,535.7 6.2% -0.5%
Indian Ocean 823.0 834.3 1.4% 1.7%
Other (Poland) 1.1 1.2 14.8% 11.5%
-------------------------------- -------- --------- -------- ---------
NET SALES - CONTINUING
OPERATIONS 22,504.7 24,972.9 11.0% 10.8%
-------------------------------- -------- --------- -------- ---------
NET SALES DISCONTINUED ns ns
OPERATIONS 2,410.2 625.6
CONSOLIDATED NET SALES 24,915.0 25,598.4 ns ns
-------------------------------- -------- --------- -------- ---------
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Average exchange rates 12 12 Change
months months
2006 2007
----------------------------------------------- ------- ------- ------
Argentina (ARS / EUR) 0.259 0.234 -9.6%
Uruguay (UYP / EUR) 0.033 0.031 -5.8%
Venezuela (VEB / EUR) (x1000) 0.371 0.340 -8.4%
Thailand (THB / EUR) 0.021 0.023 7.6%
Vietnam (VIND/EUR) (X1000) 0.050 0.045 -9.3%
Colombia (COP / EUR) (x1000) 0.337 0.353 4.5%
Brazil (R$ / EUR) 0.366 0.375 2.6%
----------------------------------------------- ------- ------- ------
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France Dec Sept Dec
31, 30, 31,
06 07 07
==================================================== ===== ===== =====
Géant Casino HM 128 128 129
Of which French Affiliates 6 6 6
International Affiliates 10 10 11
+ Service stations 99 99 99
==================================================== ===== ===== =====
Casino supermarkets 367 376 379
Of which French Franchise Affiliates 73 74 71
International Franchise Affiliates 12 17 17
+ Service stations 136 137 140
Franprix supermarkets 637 641 652
Of which Franchise outlets 299 289 289
Monoprix-Prisunic supermarkets 310 322 330
Of which Franchise outlets/Affiliates 56 53 53
Leader Price discount stores 471 486 489
Of which Franchise outlets 209 219 221
==================================================== ===== ===== =====
Total Supermarkets and discount stores
Of which Franchise outlets/Stores operated under 1,785 1,825 1,850
business leases 649 652 651
==================================================== ===== ===== =====
Petit Casino superettes 2,017 1,985 1,947
Of which Franchises 31 32 25
Eco Services superettes 42 17 14
Of which Franchises 35 16 13
Spar superettes 862 882 893
Of which Franchises 684 704 716
Vival superettes 1,553 1,659 1,620
Of which Franchises 1,553 1,659 1,620
Casitalia and C'Asia superettes 17 20 22
Other Franchises stores 1,161 1,209 1,133
Casino supermarkets 13 6 5
Corners, Relay, Shell, Elf, Carmag, etc. 1,148 1,203 1,128
Wholesale activity 69 423 411
==================================================== ===== ===== =====
TOTAL CONVENIENCE STORES
Of which Franchise outlets/Stores operated under 5,721 6,195 6,040
business leases 3,533 4,043 3,918
==================================================== ===== ===== =====
Other affiliates stores 105 100 100
Of which France Affiliates 103 98 98
International Affiliates 2 2 2
---------------------------------------------------- ----- ----- -----
Other businesses 292 284 278
Imagica 31 21 21
Cafeterias 261 263 257
---------------------------------------------------- ----- ----- -----
TOTAL France 8,031 8,532 8,397
==================================================== ===== ===== =====
Hypermarkets (HM) 128 128 129
Supermarkets (SM) 1,314 1,339 1,361
Discount (DIS) 471 486 489
Superettes (SUP) + other stores 5,826 6,295 6,140
Other 292 284 278
==================================================== ===== ===== =====
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HM: hypermarkets SM: supermarkets DIS: discount SUP: superettes
MAG: stores DIV: other LGA: stores opened under business leases
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International Dec Sept Dec
31, 30, 31,
06 07 07
=================================================== ===== ===== ======
ARGENTINA 62 62 62
Libertad hypermarkets 13 13 13
Leader Price discount stores 25 25 25
Other businesses 24 24 24
--------------------------------------------------- ----- ----- ------
URUGUAY 48 52 52
Géant hypermarkets 1 1 1
Disco supermarkets 25 27 27
Devoto supermarkets 22 24 24
--------------------------------------------------- ----- ----- ------
VENEZUELA 65 63 62
Exito hypermarkets 6 6 6
Cada supermarkets 40 38 38
Q Precios discount stores 19 19 18
--------------------------------------------------- ----- ----- ------
BRAZIL 551 546 575
Extra hypermarkets 84 87 91
Päo de Açucar supermarkets 165 159 153
Sendas supermarkets 62 62 62
Assai (other businesses) 15
CompreBem discount stores 186 179 178
Extra Facil 4 11 19
Extra Perto supermarkets 6 15
Eletro (other businesses) 50 42 42
--------------------------------------------------- ----- ----- ------
THAILAND 55 55 58
Big C hypermarkets 49 51 54
Leader Price discount stores 6 4 4
--------------------------------------------------- ----- ----- ------
VIETNAM 5 6 7
Big C hypermarkets 5 6 7
--------------------------------------------------- ----- ----- ------
INDIAN OCEAN 45 46 49
Jumbo hypermarkets 11 11 11
Score/Jumbo supermarkets 19 19 19
Cash and Carry supermarkets 5 5 5
Spar supermarkets 6 6 6
Other businesses 4 5 8
--------------------------------------------------- ----- ----- ------
COLOMBIA 255 257
Exito hypermarkets 111 59 74
Ley, Pomona and other supermarkets 47 51 48
Q Precios discount stores 58 4 4
Other Carulla 6 141 131
--------------------------------------------------- ----- ----- ------
NETHERLANDS 380
Konmar supermarkets 2 331 331
Super de Boer supermarkets 357 1 1
Edah discount stores 21 330 330
--------------------------------------------------- ----- ----- ------
TOTAL INTERNATIONAL 1,322 1,416 1 ,453
=================================================== ===== ===== ======
Hypermarkets 216 234 257
Supermarkets 761 728 728
Discount stores 263 231 229
Other businesses 82 223 239
=================================================== ===== ===== ======
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www.groupe-casino.fr
Groupe Casino
Investor Relations
Nadine Coulm
ncoulm@groupe-casino.fr
+33 (0)1 53 65 64 17
or
Aline Nguyen
anguyen@groupe-casino.fr
+33 (0)1 53 65 64 85
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