Q3 2013 sales: Strong growth in Brazil and Recovery of Géant Hypermarkets
- Acceleration in organic growth* excluding petrol at+6.6%
- Sales of €11.8 billion, stable given foreign-exchange effects
- Internationally, sustained organic growth excluding petrol at +12.4%,notably driven by excellent performances in Brazil
- In France, over the third quarter:
- Géant’s traffic and food** volumes have turned positive again(+1.3% and +1.5% respectively)
- All French banners were in sequential improvement
- Over the 9 months 2013, Group sales totalled €35.5 billion, up +22.1%
Evolution of the Group’s consolidated net sales in the 3rd quarter of 2013
In the third quarter of 2013, the Group’s consolidated sales remained stable at €11,777m compared to the third quarter of 2012. Changes in scope, particularly the full consolidation of Monoprix, had an impact of +3.8%, while foreign exchange rates had an impact of -9.9%. Average calendar effect was +0.7% in France and -0.1% internationally.
Over the 9 months 2013, the Group’s consolidated sales totalled €35.5 billion, up +22.1%.
*organic growth is growth at constant scope of consolidation and exchange rates
** FMCG
Q3 2013 SALES
In France, activity was marked by improved traffic and food volumes at Géant, where they both became positive again
In France, organic growth excluding petrol was in line with previous quarters at -2.9% during Q3 2013. Total sales were €5,043 million, growing by +8.1%.
- Géant and Casino Supermarkets sales improved markedly compared to Q2. Géant’s traffic and food volumes were positive (+1.3% and +1.5% respectively). In Casino supermarkets, traffic also became positive again (+0.6%).
- All French banners posted higher sales compared to the second quarter.
- Cdiscount’s growth, which was higher than the market average, remained satisfactory with business volume up by +14.3% thanks to the marketplace and net sales growth.
Internationally, organic growth in all Group markets was very strong (+12.5% excluding petrol and calendar effect) and accelerating compared to previous quarters
International subsidiaries posted another quarter of strong organic growth at +12.5% excluding petrol and calendar effect. Organic growth was particularly strong in Brazil, due to the combined effects of strong same-store sales and rapid expansion. When translated in euros, international sales were €6,734 million (-5.2%) given unfavourable foreign-exchange effects.
- Latin America posted strong organic growth of +13.5% excluding petrol and calendar effect, up compared to Q2 2013 (+10.3%), driven by strong performance of stores in Brazil and the dynamic expansion of cash-and-carry in Brazil and discount formats in Colombia.
- Organic growth in Asia, excluding petrol and calendar effect, was very robust at +8.5%, due to rapid expansion in Thailand and Vietnam.
FRANCE: SALES ANALYSIS – Q3 2013
Sales in France came to €5,043 million in the third quarter of 2013, up +8.1%
* Excluding petrol and calendar effect
Although price cuts had greater impact in Q3 2013 than in Q2 2013, Géant and Casino supermarkets sales rose significantly over the third quarter.
Géant Casino same-store salesimproved markedly in Q3 2013 compared to Q2 2013 (-4.7% versus -7.8% excluding calendar effect). During the quarter, its traffic and food volumes (FMCG) were positive (+1.3% and +1.5% respectively). This trend was confirmed as traffic rose by +2.4% and food volumes by +7.7% over a four-week period ending on 14 October.
Casino supermarkets same-store sales also improved in Q3 2013 compared to Q2 (-5.5% versus -6.3% excluding calendar effect). Over the quarter, traffic was positive (+0.6%) This trend was also confirmed as traffic and food volumes were both positive (+0.4% and +1% respectively) over a four-week period ending on 14 October.
Proximity sales almost stabilised, declining by -0.8% on an organic basis excluding calendar effect, versus -3.3% in Q2 2013.
Cdiscount business volume continued to grow significantly by +14.3% in Q3 2013, driven by the marketplace, which now accounts for 14% of business volume, and by net sales, which rose by +7.1%, remaining above the market average.
The marketplace now has 4.5 million offers available.
Cdiscount relies on a network of 14,000 pick-up points.
13% of site sales were made via smartphones or tablets at the end of Q3 2013.
Total Franprix-Leader Price sales posted an increase of +2.3% thanks to the continued expansion of the network with the consolidation of Norma stores and master franchises.
Leader Price same-store sales excluding calendar effect declined by -2.6%, in sequential acceleration compared to Q2 2013 (-3.4%).
Over the quarter, Franprix same-store sales fell by -1.8% excluding calendar effect (versus -2% in Q2 2013).
Sales at Monoprix rose +1.6% on an organic basis excluding petrol and calendar effect in Q3. Food sales were well-oriented, while the performance of the banner’s smaller formats (Monop’, Naturalia and Beauty) was particularly satisfying. Expansion was dynamic with the opening of 9 stores during the quarter.
INTERNATIONAL: SALES ANALYSIS – Q3 2013
Reported sales for international operations fell by -5.2%, taking into account the impact of unfavourable foreign-exchange rates (-16.5%).
Organic growth was very robust at +12.5% excluding petrol and calendar effect, an acceleration compared to previous quarters, driven by strong performance in Latin America and Asia. This illustrates the very strong performance of the Group’s major subsidiaries.
Latin American same-store sales grew by +9.6%, excluding petrol and calendar effect, a strong increased compared to Q2 2013 (+6.7%) reflecting notably GPA’s solid performance in Brazil. Organic growth totalled +13.5% excluding petrol and calendar effect (versus +10.3% in Q2), boosted by ongoing rapid expansion.
In Brazil, GPA posted same-store sales excluding petrol and calendar effect up +12%, up from Q2 2013 (+10.1%).
In the food segment, all GPA banners performed well. GPA Food same-store sales rose by +8.9%*. Assaí’s performance was particularly remarkable. Expansion was marked in Q3 2013 with the opening of 12 Minimercado, 2 Assaí and 1 Pão de Açúcar stores.
In the non-food segment, Viavarejo same-store sales continued to grow very strongly at +15.4%. E-commerce performed extremely well, driven by the successful sales strategy of Nova’s websites. Three Ponto Frio and two Casas Bahia opened over the quarter.
*as a reminder, GPA releases gross sales
Against a backdrop of softening consumption, Exito’s organic growth continued in the 3rd quarter due notably to the expansion in Colombia and overall solid performance in Uruguay. Surtimax’s market share rose during the quarter thanks to the expansion on this discount format. Exito also increased the share of its activities that complement its retail business – particularly commercial real estate.
Exito’s Q3 earnings will be released on 24 October 2013.
In Asia, same-store growth excluding calendar effect totalled +0.6%. Organic sales growth excluding calendar effect maintained a high level of +8.5%.
Big C posted organic sales growth excluding calendar effect of +6.9%, despite a backdrop of softening consumption.
Big C Vietnam’s organic growth continued, due in particular to the opening of a hypermarket and shopping mall, bringing the total number of hypermarkets to 25.
ANALYST AND INVESTOR CONTACTS
Régine GAGGIOLI – Tel:+33 (0)1 53 65 64 17
rgaggioli@groupe-casino.fr
or
+33 (0)1 53 65 64 18
IR_Casino@groupe-casino.fr
GROUP EXTERNAL COMMUNICATIONS DEPARTMENT
PRESS CONTACT
Aziza BOUSTER
Tel: +33 (0)1 53 65 24 78
Mob: +33 (0)6 08 54 28 75
abouster@groupe-casino.fr
Disclaimer
This press release was prepared solely for informational purposes and should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Similarly, it does not and should not be treated as giving investment advice. It has no connection with the specific investment objectives, financial situation or needs of any receiver. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. It should not be regarded by recipients as a substitute for the exercise of their own judgement. All opinions expressed herein are subject to change without notice.
Appendices
Main changes in the scope of consolidation
- Full consolidation of Monoprix since 5 April 2013
- Deconsolidation of Mercialys on 21 June 2013, the date of the Annual General Meeting during which Casino’s loss of control was noted. As of this date, results have been accounted for using the equity method.
- Full consolidation of DSO and CAFIGE into Franprix-Leader Price from 1 February 2013
- Full consolidation of PFD (FABRE) into Franprix – Leader Price from 31 December 2012
- Full consolidation of HDRIV (RIVIERE) into Franprix – Leader Price from 1 December 2012
- Full consolidation of NORMA into Franprix – Leader Price from 31 July 2013
- Full consolidation of GUERIN into Franprix – Leader Price from 30 June 2013
- Full consolidation of Monshowroom from 2 September 2013
