- Casino 2012 Sales: €42 billion, up +22.1 %, and +4 % in organic* terms
- Q4 2012 sales: €13 billion, UP +35.2 %
- 2012 was a year of strong growth for the group, primarily abroad. international activities accounted for 63 % of group sales in Q4
In the fourth quarter, strong growth in sales at €12.9 billion (+35.2 %), driven by International subsidiaries and by sustained organic growth* at 3.2 %
- Internationally, very good performance (+8.5 %), in line with previous quarters
- In France (-2.2 %), the quarter was marked by a proactive policy of price reductions and the ongoing decline in hypermarkets’ multimedia sales, offset by Cdiscount’s excellent performance (+16.1 %), and Leader Price and Monoprix’s solid results.
Consolidated net sales | Q4 2011 | Q4 2012 | Change Q4 2012/Q4 2011 | |
---|---|---|---|---|
in €m | in €m | Total growth | Organic growth* | |
Total continuing operations | 9,512 | 12,856 | +35.2% | +3.2% |
France | 4,909 | 4,757 | -3.1% | -2.2% |
International | 4,604 | 8,098 | +75.9% | +8.5% |
In the fourth quarter of 2012, the Group’s consolidated sales were up +35.2 %. Organic growth* was steady at +3.2 % (+2.2 % including petrol and calendar effect).The effect of changes in scope was +36.3 %, primarily due to the full consolidation of GPA as of 2 July 2012. Foreign-exchange rates had an impact of -3.3 %. The petrol effect was -0.3 % for the quarter. Average calendar effect was -0.6 % in France and -0.7 % internationally.
Consolidated net sales2011 2012Change 2012/2011 in €m in €mTotal
growthOrganic growth*Total continuing
operations34,36141,971+22.1%+4%France18,74818,447-1.6%-0.8%International15,61323,524+50.7%+9%
* Excluding petrol and calendar effect; organic growth is growth at constant scope of consolidation and exchange rates
Q4 2012 sales
In France, trading was marked by price drops,
Cdiscount’s excellent performance (+16.1 %)
and robustness of convenience formats
In France, total household consumption was soft in the fourth quarter of 2012, except for online sales of non-food products.
In order to better meet client expectations, several Group banners (Casino hypermarkets and supermarkets and Franprix) dropped prices significantly for private label and entry price products, which account for more than 40 % of sales volume. This proactive policy, funded by lower promotional activity, had a negative impact on same-store sales in the year’s final quarter.
During the fourth quarter, organic growth in France totalled -2.2 % excluding petrol and calendar effect. Overall growth was -3.1 % at €4,757 million.
- Convenience formats posted generally satisfactory growth in sales on an organic basis (excluding petrol and calendar effect): +1 % for Monoprix, +0.3 % for Franprix – Leader Price, due to a more efficient management of the store network that led to the closure of unprofitable stores; superettes (-0.5 %) and Casino supermarkets (-1.2 %) declined slightly.
- Géant’s same-store sales fell by -9.9 % excluding calendar effect due to the combined impact of price drops, lower promotional activity and reductions to retail space.
- In contrast, Cdiscount’s growth was particularly steady (+16.1 %), benefiting from its leading position in online sales of technical products and the rapid development of its marketplace. This performance enables to post a slight progression (+0.3 %) in the annual cumulative non-food sales of Géant and Cdiscount.
International: continued strong organic growth: +8.5 % excluding petrol and calendar effect
In keeping with previous quarters, international subsidiaries posted another quarter of strong organic growth at +8.5 % excluding petrol and calendar effect. Total sales for International subsidiaries, which rose +75.9 % to €8,098 million, also benefited from the full consolidation of GPA as of 2 July 2012. The foreign-exchange effect had a negative impact of -6.8 % on international sales in the fourth quarter 2012.
- Latin America posted strong organic growth of +7.8 % excluding petrol and calendar effect, driven by high same-store growth in Brazil and dynamic expansion in Brazil and Colombia.
- Organic growth excluding petrol and calendar effect for Asia was still very significant at +15.9 %, up from the third quarter, due to the sustained pace of expansion and same-store growth that improved markedly compared to the third quarter.
Total International sales accounted for 63 % of Group sales over the period, compared with 48 % in the fourth quarter 2011.
France: Sales Analysis – Q4 2012
Sales in France came to €4,757 million in the fourth quarter of 2012, a decline of -2.2 % in organic growth, excluding petrol and calendar effect.
In €mTotal growthOrganic
growth* Q4 2011Q4 2012 Q4 2012 Q4 2012 Q3 2012Net sales before tax – France 4,908.6 4,757.4-3.1%-2.2%+0.2%Casino France 3,261.1 3,095.2-5.1%-3.8%+0.1%Géant Casino hypermarkets1,522.31,340.1-12%-11.7%-7%Casino supermarkets905.3885.8-2.2%-1.2%+3.5%Superettes343.1339.2-1.1%-0.5%+0.6%Cdiscount & Other businesses490.4530.1+8.1%+10.8%+14.2%Franprix – Leader Price 1,106.7 1,117.4+1%+0.3%+0%Monoprix 540.7 544.7 +0.7%+1%+1.4%
excluding calendar effect | |||
---|---|---|---|
Q4 2012 | Q4 2012 | Q3 2012 | |
Géant Casino hypermarkets | -10.5% | -9.9% | -5.4% |
Casino supermarkets | -7% | -6.1% | -1.7% |
Franprix | -3.3% | -2.8% | -2.6% |
Leader Price | -1.5% | -0.2% | +0.1% |
Monoprix | -1.3% | -0.9% | +0.2% |
* Excluding petrol and calendar effect.
- Casino France
Géant Casino’s same-store sales fell by -9.9 %* excluding petrol.
In a context of soft consumption for Q4 2012, same-store food sales were down -7.6 %*. This change was due primarily to a proactive policy of prices’ reductions initiated by the banner on its private-label and entry- price products. Price cuts were funded by reducing promotional activities.
According to the latest price data collected by consumer panels, Géant Casino has become the least expensive food banner in France for the private-label and entry-price products for convenience goods, fresh products and industrial products (“PGCFI”). Géant Casino is thus positioning itself below all French hypermarkets and supermarkets competitors.
Private-label brands | Entry price | |
---|---|---|
Géant Casino | 95.1 | 96.6 |
1 Panel methodology: convenience goods, fresh products and industrial products, unweighted indices including promotions, using checkout data from 5,830 stores.
The banner has been continuing this price-cutting initiative for the national brands since the end of the fourth quarter.
Same-store non-food sales declined in a backdrop of a firm reduction of multimedia categories: surfaces, as well as assortment, number of references and promotions were significantly reduced in 2012.
In 2013, Géant will continue to refocus on the most buoyant categories (luggage, household linen, DIY, etc.), and to roll out Cdiscount pick-up points in drive-through. The banner will adapt its surfaces to the evolution of its assortment.
Excluding petrol and calendar effect, Casino Supermarket organic sales declined -1.2 % vs. Q4 2011. Like Géant, the banner readjusted the prices of its private-label and entry-price products – funded by a sustained reduction in promotional activities – with a negative impact on same-store sales in Q4. The banner has kept up its strategy of excellence in fresh goods and rollout of local products. Expansion was robust, with 3 openings during the fourth quarter, bringing the number of stores opened in 2012 to 7.
Sales in superettes posted a -0.5 % decline (excluding calendar effect). The banner completed reworking its assortment, with emphasis on its private label. 181 stores joined the network over the quarter, bringing their total number to 422 for the year. The stores under the new Casino Shop and Shopping concepts (11 Casino Shopping and 77 Casino Shop stores open at the end of 2012) posted good results.
*Excluding calendar (-0.6 % over Q4) and restated for the transfer of 4 hypermarkets to Casino Supermarkets.
Cdiscount sales rose +16.1 % because of an excellent December in which Toys and High-Tech products performed well.
Business volume rose by 22.9 % in the fourth quarter, thanks notably to the strong growth of the marketplace, which accounted for nearly 10 % of the site’s business volume at the end of December. The total number of offers posted by the site surpassed 1 million references.
Finally, c. 10 % of the site’s sales are now made via smartphones and tablets.
Cdiscount remains a key tool in the Group’s multi-channel strategy, which continued to roll out physical pick-up points within stores. At the end of 2012, there were nearly 3,000 pick-up points.
- Franprix – Leader Price
Total Franprix-Leader Price sales were up +1 % despite the impact of reorganising the store network, which entailed the closure of unprofitable locations.
Leader Price same-store sales excluding calendar effect declined slightly by -0.2 % with footfall improving since Q3 2012. Sales initiatives begun early in the year (assortment and pricing policy) continued to bear fruits in the fourth quarter, with a value proposition that fits the current climate of consumption. The selection of fresh products (renovated for fruits and vegetables) and year-end festive products proved very successful. Renovation of stores continued with more than half of the network switched to the new concept. In addition, six stores were opened in the fourth quarter, bringing the total number of openings over the whole year to 18.
Franprix sales declined by -2.6 % on an organic basis excluding calendar effect over the quarter, due to the impact of accelerated reorganisation of the store network. The banner continued repositioning its private label pricing and working on its assortment during the quarter. The banner opened 17 stores over the period, bringing the number of stores opened in 2012 to 39.
Negotiations are well advanced between the Group and the German group Norma, specialist in German hard discount stores, to take over 38 convenience stores with high growth potential in southeast France. This acquisition will enable Leader Price and Franprix to speed up their development in a particularly dynamic region and place the Casino Group on a stronger footing for the most buoyant formats in the strategic region around Lyon and the Mediterranean coast. It will be submitted to the French Antitrust Authority and is expected to come into force by the end of the first half of 2013.
- Monoprix
Sales at Monoprix rose +1 % on an organic basis excluding petrol and calendar. Thanks to successful promotions and limited-edition and designer collections, apparel sales continued to outperform the market. With regard to food, fresh products posted satisfactory performance and same-store growth excluding calendar effect was -0.9 %. There was very active expansion over the fourth quarter with 16 store openings, bringing the number of openings to 36 in 2012.
International: SALES ANALYSIS – Q4 2012
Consolidated sales at International subsidiaries rose substantially by +75.9 %.
Scope effects had a positive impact of +74.8 %, related to the full consolidation of GPA.
Exchange rates had an unfavourable impact of -6.8 %, resulting primarily from the Brazilian real’s sharp depreciation against the euro.
Once again, organic growth was very high at +8.5 %*, in keeping with previous quarters, driven by solid performance in both Latin America and Asia.
Total growth | Organic growth* | Same-store growth* | |
---|---|---|---|
Latin America | +93.1% | +7.8% | +5.5% |
Asia | +21.2% | +15.9% | +9.2% |
In Latin America, same-store sales grew by +5.5 %, excluding petrol and calendar effect, notably reflecting GPA’s solid performance in Brazil. Organic growth was +7.8 %*, boosted by continued rapid expansion, particularly in Colombia. Total sales rose +93.1 %, primarily under the impact of the full consolidation of GPA.
- GPA in Brazil
In Brazil, GPA posted same-store sales up +6.6 % excluding petrol.
With respect to food, same-store sales for GPA Food were up +6.4 % (+5.6 %** gross same-store sales published by GPA) driven by strong promotional activities, including this year’s expansion of the Black Friday campaign to supermarkets and convenience stores. They also benefited from the excellent performance of Assaí cash & carry stores and Minimercado stores. The Minimercado banner sped up its expansion with 30 stores opening during the quarter. Five other stores were also opened: 1 hypermarket, 2 supermarkets and 2 Assaí stores, bringing the total number of GPA Food openings to 55 for 2012.
As for non-food, Viavarejo same-store sales continued to grow quickly at +6.9 % (+6 %** gross same-store sales published by GPA), driven by significant sales initiatives and the extension of tax incentives on purchases of household appliances and furnishings. They also benefited from Ponto Frio stores repositioning and improved product assortment. Expansion continued in the fourth quarter with the opening of 12 Casas Bahia and 4 Ponto Frio stores.
* Excluding petrol and calendar effect.
** Data published by GPA on 11 January 2013.
- Exito in Colombia
Total sales for Exito grew strongly in the fourth quarter, under the combined influence of positive organic growth and a favourable foreign-exchange effect. Exito benefited from the rapid expansion of its store network, the strengthening of private labels in its assortment, and continued development of activities complementary to retail (notably credit and insurance).
The expansion of Exito was focused on the development of convenience and discount stores, with 35 store openings, including 4 hypermarkets, including one with a shopping mall, as well as 2 Carulla Express, 1 Carulla Super, 3 Exito Express and 25 Surtimax.
Exito’s Q4 earnings will be released end – January 2013.
In Asia, same-store sales growth excluding calendar effect totalled +9.2 %. Organic growth in sales excluding calendar effect maintained a high level of +15.9 %. Total sales grew +21.2 %.
- Big C Thailand
Big C posted organic sales growth excluding calendar effect of +17.5 %. Big C’s same-store performance was robust at +12.4 % excluding calendar effect (with a favourable comparison basis). Significant investments in marketing and promotions were made, with a new coupon policy being rolled out and the extremely successful launch of the first Golden Week, modelled after Black Friday.
The highly dynamic expansion also contributed to organic growth, with the opening of 1 hypermarket, 1 supermarket, 36 Mini Big C and 7 Pure. 129 stores were opened in 2012.
- Big C Vietnam
Big C Vietnam continued its dynamic expansion policy, allowing the banner to post positive sales growth on an organic basis. There was active expansion with the opening of 2 hypermarkets and shopping malls and 1 C Express over the quarter.
Schedule of Financial Disclosures
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 communication 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, 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 judgement. Any opinions expressed herein are subject to change without notice.
APPENDICES
- Change in GPA stake, fully consolidated since 2 July 2012. GPA was consolidated at 40.1% as of 31 December 2011
- – Full consolidation of companies owning 21 stores within the Franprix – Leader Price Group as of July 2012
- – Full consolidation of BARAT into Franprix – Leader Price from 8 March 2012
Fourth quarterChange12 monthsChange 2011
€m2012
€mReportedAt
constant
exchange
rates2011
€m2012
€mReportedAt
constant
exchange
ratesFRANCE4,908.64,757.4-3.1%-3.1%18,747.718,446.7-1.6%-1.6%Of which :Casino France3,261.13,095.2-5.1%-5.1%12,364.812,158.3-1.7%-1.7%Géant Casino
hypermarkets1,522.31,340.1-12%-12%5,622.85,246.4-6.7%-6.7%Casino supermarkets905.3885.8-2.2%-2.2%3,618.83,686.7+1.9%+1.9% Superettes343.1339.2-1.1%-1.1%1,485.21,479.7-0.4%-0.4%Other businesses490.4530.1+8.1%+8.1%1,6381,745.6+6.6%+6.6%Franprix – Leader Price1,106.71,117.4+1%+1%4,4104,278.6-3%-3%Monoprix540.7544.7+0.7%+0.7%1,9732,009.8+1.9%+1.9%INTERNATIONAL 4,603.68,098.3+75.9%+82.7%15,613.123,523.9+50.7%+54.2%Of which :Latin America3,596.76,944.3+93.1%+103%11,826.319,250.6+62.8%+69.1%Asia755.8916.4+21.2%+15.6%2,895.23,407.3+17.7%+10.8%Other sectors251.1237.6-5.4%-5.2%891.6866-2.9% -3%-3%NET SALES FROM CONTINUING
OPERATIONS9,512.212,855.7+35.2%+38.4%34,360.841,970.7+22.1%+23.7%
If Casino group had become sole controlling shareholder of GPA on 1 January 2012 (full consolidation at 100 % of GPA from this date), Latin American total sales under the period ended on 31 December 2012 would have been €24,994 million, bringing total Group sales to €47,712 million.
Average exchange rates9-month
20119-month
2012Change12-month
201112-month
2012ChangeArgentina (ARS / EUR)0.1740.175+0.5%0.1740.171-1.8%Uruguay (UYP / EUR)0.0370.038+2.5%0.0370.038+3.1%Thailand (THB / EUR)0.0230.025+6.6%0.0240.025+6.2%Vietnam (VND / EUR) (x1,000)0.0350.038+7.5%0.0350.037+6.5%Colombia (COP / EUR) (x1,000)0.3900.435+11.4%0.3890.433+11.1%Brazil (BRL / EUR)0.4360.407-6.6%0.4300.399-7.3%
Organic growth: the organic growth is at constant scope of consolidation and exchange rates.
FRANCE31 Dec. 201130 Sept. 201231 Dec. 2012Géant Casino hypermarkets127125125Of which French Affiliates899 International Affiliates566+ service stations1019797Casino supermarkets422439445Of which French Affiliates515558 International Franchise Affiliates323941+ service stations170172173Franprix supermarkets897894891 Of which Franchise outlets379387390Monoprix supermarkets514527542 Of which Naturalia556171 Of which Franchise outlets/Affiliates130133137Leader Price discount stores608601604 Of which Franchise outlets271238231Total supermarkets and discount stores2,4412,461 2,482 Of which Franchise outlets/Stores operated under business leases863852857Petit Casino superettes1,7581,6571,575 Of which Franchise outlets292626Casino Shopping superettes61011Casino Shop superettes162977Eco Services superettes111Coop Alsace superettes 48144 Of which Franchise outlets 48144Spar superettes956969963 Of which Franchise outlets755747739Vival superettes1,7521,6991,705 Of which Franchise outlets1,7501,6981,704Casitalia and C’Asia superettes111Other Franchise stores1,1341,1041,105 Corner, Relay, Shell, Elf, Carmag…1,1341,1041,105Wholesale activity937935935TOTAL CONVENIENCE STORES6,5616,453 6,517 Of which Franchise outlets/Stores operated under business leases/Wholesale4,6064,5594,654Other Affiliate stores262929 Of which French Affiliates181920 International Affiliates8109Other businesses295308304 Cafeterias293306302 Cdiscount222TOTAL France9,4509,376 9,457 Hypermarkets (HM)127125125 Supermarkets (SM)1,8331,8601,878 Discount (DIS)608601604 Superettes (SUP) and other stores (MAG)6,5876,4826,546 Other (DIV)295308304
International | 31 Dec. 2011 | 30 Sept. 2012 | 31 Dec. 2012 |
---|---|---|---|
ARGENTINA | 24 | 23 | 24 |
Libertad hypermarkets | 15 | 15 | 15 |
Other businesses | 9 | 8 | 9 |
URUGUAY | 52 | 52 | 52 |
Géant hypermarkets | 1 | 1 | 1 |
Disco supermarkets | 27 | 27 | 27 |
Devoto supermarkets | 24 | 24 | 24 |
BRAZIL | 1,571 | 1,589 | 1,640 |
Extra hypermarkets | 132 | 137 | 138 |
Pao de Açucar supermarkets | 159 | 160 | 162 |
Extra Perto supermarkets | 204 | 207 | 207 |
Assai discount stores | 59 | 59 | 61 |
Extra Facil and Minimercado Extra superettes | 72 | 77 | 107 |
Casas Bahia discount stores | 544 | 556 | 568 |
Ponto Frio | 401 | 393 | 397 |
THAILAND | 221 | 304 | 348 |
Big C hypermarkets | 108 | 112 | 113 |
Big C supermarkets | 12 | 18 | 18 |
Mini Big C superettes | 51 | 90 | 126 |
Pure | 50 | 84 | 91 |
VIETNAM | 23 | 30 | 33 |
Big C hypermarkets | 18 | 19 | 21 |
New Cho superettes | 5 | 7 | 7 |
C Express superettes | 0 | 4 | 5 |
INDIAN OCEAN | 53 | 53 | 57 |
Jumbo hypermarkets | 11 | 11 | 11 |
Score/Jumbo supermarkets | 22 | 22 | 25 |
Cash and Carry supermarkets | 5 | 5 | 5 |
Spar supermarkets | 8 | 7 | 6 |
Other businesses | 7 | 8 | 10 |
COLOMBIA | 351 | 395 | 427 |
Exito hypermarkets | 80 | 85 | 87 |
Pomona, Carulla, Exito supermarkets | 130 | 134 | 136 |
Surtimax discount stores | 78 | 94 | 119 |
Exito Express and Carulla Express superettes | 54 | 74 | 77 |
Ley and others | 9 | 8 | 8 |
TOTAL INTERNATIONAL | 2,295 | 2,446 | 2,581 |
Hypermarkets (HM) | 365 | 380 | 386 |
Supermarkets (SM) | 591 | 604 | 610 |
Discount (DIS) | 137 | 153 | 180 |
Superettes (SUP) | 182 | 252 | 323 |
Other (DIV) | 1,020 | 1,057 | 1,082 |