- Total Group first-quarter 2013 sales of €11.7 billion, up sharply by +33.7%
- Solid organic growth* up+2.5% :
- Internationally, organic growth* was very robust (+8.3%),driven by all of the Group’s markets
- In France, sales fell due to the impact of a proactive price-cutting policy
- Dynamism of Cdiscount
Evolution of the Group’s consolidated net sales in the 1st quarter of 2013| Consolidated net sales | Q1 2012 | Q1 2013 | Change Q1 2013/Q1 2012 |
|---|
| in €m | in €m | Total
growth | Organic
growth* |
| Total continuing operations | 8,739 | 11,681 | +33.7% | +2.5% |
| France | 4,495 | 4,315 | -4% | -3.4% |
| International | 4,244 | 7,366 | +73.6% | +8.3% |
In the first quarter of 2013, the Group’s consolidated sales rose by +33.7%, primarily thanks to the full consolidation of GPA in Brazil. Organic growth* stood at +2.5% (+1.5% including petrol and calendar effect).The effect of changes in scope was +40.1%. Foreign-exchange rates had an impact of -7.9%, while the petrol effect was -0.5%. Finally, the average calendar effect was -1.2% in France and -0.1% internationally.
* Excluding petrol and calendar effect. Organic growth is growth at constant scope of consolidation and exchange rates
Q1 2013 SALES
In France, activity was marked by price drops, Cdiscount’s strong growth (+11.9%) and the resilience of convenience formats
In France, first-quarter organic growth was -3.4% excluding petrol and calendar effect, with total sales of €4,315 million against a backdrop of soft consumption in which Casino continued the price-cutting policy it initiated in Q4 2012.
- Overall, convenience formats posted satisfactory sales growth.
- Géant’s same-store sales fell by -9.7% excluding calendar effect (vs. -9.9% in Q4 2012) due to the combined effect of price-cutting initiatives, less promotional activity and reallocations of retail space.
- In contrast, Cdiscount once again showed strong growth (+11.9%), which was higher than the market’s.
International organic growth remained strong (+8.3% excluding petrol and calendar effect) for all of the Group’s markets, in keeping with previous quarters
International subsidiaries posted another quarter of strong organic growth at +8.3% excluding petrol and calendar effect. Overall, international sales increased by +73.6% to €7,366 million, particularly due to the full consolidation of GPA as of the second half of 2012, despite the negative foreign exchange effect of -16.3%, primarily related to the real’s depreciation.
- Latin America posted strong organic growth of +8.7% excluding petrol and calendar effect, up from Q4 2012 (+7.8%), driven by strong same-store growth in Brazil and dynamic expansion in Colombia.
- Organic growth in Asia, excluding petrol and calendar effect, remained substantial at +8.5%, due to rapid expansion and sustained same-store growth in Thailand.
Total International sales accounted for 63% of Group sales over the period, compared with 49% in Q1 2012.
FRANCE: SALES ANALYSIS – Q1 2013
Sales in France came to €4,315 million in the first quarter of 2013, a decline of -3.4% in organic growth, excluding petrol and calendar effect.
In €m Total growth Organic
growth* Q1 2012 Q1 2013Q1 2013Q1 2013Net sales before tax – France4,495.14,314.7 -4%-3.4%Casino France 2,921.42,731.4-6.5%-4.7%Géant Casino hypermarkets1,271.11,122.3-11.7%-11.5%Casino supermarkets 865.1821.1-5.1%-3%Superettes353.6340.7-3.7%-2.6%Cdiscount & Other businesses431.5447.2+3.6%+6.4%Franprix – Leader Price1,0621,078.9+1.6%-2%Monoprix511.7504.5-1.4%+0.5%
* Excluding petrol and calendar effect
Evolution in same-store sales, excluding petrol| In €m | | excluding calendar effect |
|---|
| Q1 2013 | Q1 2013 | Q4 2012 |
| Géant Casino hypermarkets | -10.2% | -9.7% | -9.9% |
| Casino supermarkets | -8.3% | -7.6% | -6.1% |
| Franprix | -4% | -1.7% | -2.8% |
| Leader Price | -2.5% | -0.5% | -0.2% |
| Monoprix | -3.3% | -1.3% | -0.9% |
Same-store sales excluding petrol for Géant Casino were down -9.7%* in Q1 2013.
In a context of soft consumption for Q1 2013, same-store food sales were down ‑7.7%*. This change is primarily the result of the continuation during the first quarter of the year of the proactive price-cutting policy begun in Q4 2012, funded by improvements in operational efficiency and optimisation of promotional activity. In addition, the banner continued to roll out and expand its “Le Meilleur d’Ici” (“the Best of our region”) and entry-price corners, which are showing good results.
Same-store non-food sales fell due to the proactive reduction of Multimedia, price cutting and unfavourable weather conditions for seasonal products. Géant is continuing to refocus on the most buoyant categories as well as on rolling out its multichannel strategy by installing Cdiscount pick-up points in drive-through stores and Cdiscount corners in stores.
Organic sales growth for Supermarchés Casino excluding petrol and calendar effect declined by -3% compared to Q1 2012 and by -7.6%* for same-store sales, particularly due to continued price cuts initiated in Q4.
The banner has kept up its strategy of excellence in fresh goods and rollout of local products, as well as relaunching its loyalty programme in stores. One supermarket opened during the quarter.
Superette sales declined by -2.6% on an organic basis excluding petrol and calendar effect. The banner successfully converted 31 of its stores to the Casino Shop and Shopping formats in the city of Lyon, and continued streamlining the stores network with 18 store openings and 78 closures.
Cdiscount sales rose by +11,9%, driven by the performance of toys and high-tech products (IT, household appliances, etc.). The private label’s share doubled compared to Q1 2012. Total business volume grew by +18% in Q1 2013, supported by the strong performance of the marketplace, which now accounts for more than 10% of the site’s business volume, with the number of vendors and offers increasing rapidly. Finally, 10% of site sales were made via smartphones or tablets at the end of Q1 2013.
Cdiscount remains a key tool in the Group’s multi-channel strategy, which drew on 2,700 in-store physical pick-up points at the end of the first quarter.
* Excluding calendar effect and restated for the transfer of 4 hypermarkets to Casino supermarkets.
Total Franprix-Leader Price sales posted an increase of +1.6% due to the continued network expansion and the consolidation of master franchises.
Leader Price’s same-store sales decreased slightly by -0.5% excluding calendar effect. Sales initiatives begun in 2012 (assortment and pricing policy) continued to produce results in Q1 2013, with a value proposition that fits the current consumption climate. Fresh product selection produced excellent results and the banner continued to work on its fresh-product channels. Renovation of existing stores continued throughout the quarter.
Over the quarter, Franprix same-store sales fell by -1.7% excluding calendar effect, with footfall improving since Q4 2012 (-2.8%). The banner benefited from changes to its assortment (development of the “Marché Franprix” product line) and rolled out its loyalty programme in 170 stores.
Monoprix sales increased by +0.5% on an organic basis excluding petrol and calendar effect, due to its ongoing dynamic expansion and positive food sales trend, underpinned by the performance of fresh products and a still-favourable average basket. Among the various banners, Naturalia showed positive performance.
Non-food sales posted a decline related to the impact of unfavourable weather conditions on seasonal apparel sales.
INTERNATIONAL: SALES ANALYSIS – Q1 2013
Consolidated sales at International subsidiaries rose substantially by +73.6%.
Scope effects had a positive impact of +81.5%, related to the full consolidation of GPA.
Exchange rates had an unfavourable impact of -16.3%, resulting primarily from the Brazilian real’s sharp depreciation against the euro.
Once again, organic growth was very high at +8.3%*, in keeping with previous quarters, driven by solid performance in both Latin America and Asia.
Evolution of International sales growth in the 1st quarter of 2013
Total growthOrganic
growth*Same-store
growth*Latin America+94%+8.7%+5.4%Asia +10.8% +8.5% +2.3%
* Excluding petrol and calendar effect.
In Latin America, same-store sales grew by +5.4% excluding petrol and calendar effect, in keeping with previous quarters, reflecting GPA’s solid performance in Brazil. Organic growth was +8.7%*, increasing from Q4 2012 (+7.8%*), boosted by continued rapid expansion, particularly in Colombia. In all, sales rose +94% primarily under the impact of the full consolidation of GPA.
In Brazil, GPA posted same-store sales excluding petrol effect up +7.1%, increasing from Q4 2012 (+6.6%).
As for food, same-store sales by GPA Food rose by +6.9%. They were driven by excellent performance by the Assaí cash & carry banner, which continued to show impressive double-digit growth due to an overhaul of its product selection. Excluding Assaí, GPA Food posted very strong performance, particularly in the Minimercado convenience format. Expansion in these two formats was marked in Q1 2013 with the opening of 12 Minimercados and 3 Assaí stores.
As for non-food, Viavarejo same-store sales continued to grow quickly at +7.3%, driven by significant sales initiatives and the very strong performance by electronics. E-commerce also performed well at the end of the period: Extra.com.br launched its marketplace. Expansion continued in the first quarter.
Exito’s total sales grew above retail sales growth in the first quarter due to the impact of sustained organic growth that particularly benefited from the rapid expansion of the stores network and from the good performance of Surtimax, leader in the discount format. In the first quarter, Exito continued the reinforcement of its private labels in its assortments and the development of complementary businesses to retail. Exito’s expansion in the first quarter was sustained.
Exito’s Q1 earnings will be released at the end of April 2013.
In Asia, same-store growth excluding calendar effect totalled +2.3%. Organic growth in sales excluding calendar effect maintained a high level of +8.5%. Total sales grew +10.8%.
Big C posted organic sales growth excluding calendar effect of +9,2%, boosted by a very dynamic expansion policy and a healthy level of same-store sales (+2,4%).Significant marketing and promotional operations were realised over the quarter. Convenience banners performed particularly well.
Big C Vietnam’s organic growth continued, due in particular to the impact of the openings of a hypermarket and shopping mall.
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
IMAGE 7
Grégoire LUCAS
Tel: +33 (0)6 71 60 02 02
glucas@image7.fr
Financial calendar
22 April 2013 Annual General Meeting
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
Main changes in the scope of consolidation
- Full consolidation of GPA since 2 July 2012. GPA was consolidated at 40.1% as of end of March 2012
- Full consolidation of companies owning 21 stores into Franprix-Leader Price from July 2012
- Full consolidation of BARAT within Franprix-Leader Price from 8 March 2012 (22 stores)
- Full consolidation of DSO and CAFIGE within Franprix-Leader Price from 1 February 2013 (120 stores)
Changes un the scope of consolidation
in €mQ1 2012Q1 2013ChangeChange €m €m Reported
At constant
exchange rates
FRANCE4,495.14,314.7-4%-4%Of which: Casino France2,921.42,731.4-6.5%-6.5%Géant Casino hypermarkets1,271.11,122.3-11.7%- 11.7%Casino supermarkets865.1821.1-5.1%-5.1%Superettes353.6340.7-3.7%-3.7%Other businesses431.5447.2+3.6%+3.6%Franprix – Leader Price1,062 1,078.9+1.6%+1.6%Monoprix511.7504.5-1.4%-1.4%INTERNATIONAL 4,2447,366+73.6%+89.9%Of which: Latin America3,225.16,257.4+94%+116.2%Asia 808 895.610.8%+7.9%Other sectors211.1213.5+1.1%+1.5%NET SALES FROM CONTINUING
OPERATIONS8,739.311,681.2+33.7%+41.6%
Exchange rates| Average exchange rates | Q1 2012 | Q1 2013 | Change |
|---|
| Argentina (ARS / EUR) | 0.1757 | 0.1511 | -14% |
| Uruguay (UYP / EUR) | 0.0391 | 0.0395 | +0.9% |
| Thailand (THB / EUR) | 0.0246 | 0.0254 | +3.3% |
| Vietnam (VND / EUR) (x 1,000) | 0.0367 | 0.0364 | -0.8% |
| Colombia (COP/EUR) (x 1,000) | 0.4236 | 0.4228 | -0.2% |
| Brazil (BRL / EUR) | 0.4317 | 0.3796 | -12.1% |
Period-end store network: France| FRANCE | 31 March 2012 | 31 Dec. 2012 | 31 March 2013 |
|---|
| Géant Casino hypermarkets | 126 | 125 | 126 |
| Of which French Affiliates | 8 | 9 | 9 |
| International Affiliates | 5 | 6 | 7 |
| + service stations | 100 | 97 | 97 |
| Casino supermarkets | 425 | 445 | 446 |
| Of which French Affiliates | 51 | 58 | 61 |
| International Franchise Affiliates | 35 | 41 | 39 |
| + service stations | 169 | 173 | 173 |
| Franprix supermarkets | 892 | 891 | 875 |
| Of which Franchise outlets | 377 | 390 | 347 |
| Monoprix supermarkets | 518 | 542 | 555 |
| Of which Naturalia | 58 | 71 | 74 |
| Of which Franchise outlets/Affiliates | 131 | 137 | 143 |
| Leader Price discount stores | 595 | 604 | 600 |
| Of which Franchise outlets | 245 | 231 | 149 |
| Total supermarkets and discount stores | 2,430 | 2,482 | 2,476 |
| Of which Franchise outlets/Stores operated under business leases | 839 | 857 | 739 |
| Petit Casino superettes | 1,745 | 1,575 | 1,500 |
| Of which Franchise outlets | 28 | 26 | 26 |
| Casino Shopping superettes | 7 | 11 | 13 |
| Casino Shop superettes | 19 | 77 | 112 |
| Of which Franchise outlets | | | 1 |
| Eco Services superettes | 1 | 1 | 1 |
| Coop Alsace superettes | | 144 | 144 |
| Of which Franchise outlets | | 144 | 144 |
| Spar superettes | 955 | 963 | 956 |
| Of which Franchise outlets | 743 | 739 | 735 |
| Vival superettes | 1,699 | 1,705 | 1,698 |
| Of which Franchise outlets | 1,697 | 1,704 | 1,697 |
| Casitalia and C’Asia superettes | 1 | 1 | 1 |
| Other Franchise stores | 1,115 | 1,105 | 1,098 |
| Corner, Relay, Shell, Elf, Carmag… | 1,115 | 1,105 | 1,098 |
| Wholesale activity | 935 | 935 | 934 |
| TOTAL CONVENIENCE STORES | 6,477 | 6,517 | 6,457 |
| Of which Franchise outlets/Storesoperated under business leases/Wholesale | 4,519 | 4,654 | 4,635 |
| Other Affiliate stores | 28 | 29 | 29 |
| Of which French Affiliates | 20 | 20 | 20 |
| International Affiliates | 8 | 9 | 9 |
| Other businesses | 297 | 304 | 301 |
| Cafeterias | 295 | 302 | 299 |
| Cdiscount | 2 | 2 | 2 |
| TOTAL France | 9,358 | 9,457 | 9,389 |
| Hypermarkets (HM) | 126 | 125 | 126 |
| Supermarkets (SM) | 1,835 | 1,878 | 1,876 |
| Discount (DIS) | 595 | 604 | 600 |
| Superettes (SUP) and other stores (MAG) | 6,505 | 6,546 | 6,486 |
| Other (DIV) | 297 | 304 | 301 |
Period-end store network: International| International | 31 March 2012 | 31 Dec. 2012 | 31 March 2013 |
|---|
| ARGENTINA | 24 | 24 | 20 |
| Libertad hypermarkets | 15 | 15 | 15 |
| Other businesses | 9 | 9 | 5 |
| URUGUAY | 52 | 52 | 52 |
| Géant hypermarkets | 1 | 1 | 1 |
| Disco supermarkets | 27 | 27 | 27 |
| Devoto supermarkets | 24 | 24 | 24 |
| BRAZIL | 1,570 | 1,640 | 1,661 |
| Extra hypermarkets | 133 | 138 | 138 |
| Pao de Açucar supermarkets | 158 | 162 | 163 |
| Extra supermarkets | 204 | 207 | 209 |
| Assai discount stores | 60 | 61 | 64 |
| Minimercado Extra superettes | 71 | 107 | 119 |
| Casas Bahia discount stores | 544 | 568 | 572 |
| Ponto Frio | 400 | 397 | 396 |
| THAILAND | 240 | 348 | 386 |
| Big C hypermarkets | 108 | 113 | 114 |
| Big C supermarkets | 14 | 18 | 19 |
| Mini Big C superettes | 62 | 126 | 158 |
| Pure | 56 | 91 | 95 |
| VIETNAM | 23 | 33 | 32 |
| Big C hypermarkets | 18 | 21 | 22 |
| Superettes | 5 | 12 | 10 |
| INDIAN OCEAN | 53 | 57 | 57 |
| Jumbo hypermarkets | 11 | 11 | 11 |
| Score/Jumbo supermarkets | 22 | 25 | 25 |
| Cash and Carry supermarkets | 5 | 5 | 5 |
| Spar supermarkets | 8 | 6 | 6 |
| Other businesses | 7 | 10 | 10 |
| COLOMBIA | 366 | 427 | 454 |
| Exito hypermarkets | 82 | 87 | 88 |
| Pomona, Carulla, Exito supermarkets | 131 | 136 | 134 |
| Surtimax discount stores | 84 | 119 | 144 |
| Exito Express and Carulla Express superettes | 60 | 77 | 81 |
| Ley and others | 9 | 8 | 7 |
| TOTAL INTERNATIONAL | 2,328 | 2,581 | 2,662 |
| Hypermarkets (HM) | 368 | 386 | 389 |
| Supermarkets (SM) | 593 | 610 | 612 |
| Discount (DIS) | 144 | 180 | 208 |
| Superettes (SUP) | 198 | 323 | 370 |
| Other (DIV) | 1,025 | 1,082 | 1,083 |
