Groupe Casino : Third-quarter 2023 – France
Third-quarter 2023 – France
Sales:
- France
Retail sales were down -5.6% on a same-store basis,
reflecting:
- The effect of
price readjustment measures in Supermarkets/Hypermarkets taken in
Q1. The commercial turnaround in historic supermarkets is
confirmed, with customer traffic and volumes now positive1
at +8% and +3% respectively in 4H, while hypermarkets are seeing a
gradual improvement in customer traffic
- Growth
of +0.4% in Parisian and convenience banners, penalized by
unfavorable weather conditions which impacted non-food sales. Food
sales were up +1.3%
- At
Cdiscount, the deliberate reduction in
unprofitable direct sales is continuing, while GMV marketplace
sales are back on an upward trend at +1%, and service revenues are
up by 7%. All in all, sales were down -25%
- Overall,
sales in France were -8.3% on a reported basis and
-8.2% on a like-for-like basis
Financial indicators:
- France
EBITDA at €136m (-€12m after lease payments), impacted by
price-cutting measures. The year-on-year decline was smaller than
in Q2, driven by a sequential improvement in Supermarkets and
Hypermarkets
- France
net debt at €5.6bn at 30 September 2023, +€0.2bn higher
than at 30 June 2023
- At September 30,
2023, liquidity stood at €1.3 billion, including
€945 million in available cash (including proceeds from the ITM
disposal)
Asset disposals:
- Sale of
61 stores to ITM for at least €160m net and
collection of a further
€140m in deposits for the sale of around 70 stores
over the next three years
- Signing
of a preliminary agreement with Grupo Calleja for the
sale of Casino's direct stake in Grupo Éxito for
$400m, which is expected to close around the end of the
year
Restructuring plan
agreement
- Lock-up
agreement reached on 5 October and accelerated
safeguard proceedings opened on 25
October 2023
Updated 2023 outlook
- Given the price investments
required to continue driving the recovery in customer
traffic and volumes in hypermarkets and supermarkets in an
increasingly competitive environment, the Group now
estimates that full-year 2023 EBITDA after lease payments, which
was forecast at €214m last July2, will be lower
than the level achieved over the 12-month rolling period to
end-September 2023, i.e., €100m
France Retail
Same-store change in
sales3
|
Q3 2022 |
Q2 2023 |
Q3 2023 |
Franprix |
+8.4% |
+4.3% |
+2.2% |
Monoprix |
+4.1% |
+2.2% |
0.0% |
Monoprix City |
+4.5% |
+2.5% |
-0.2% |
Monop’ |
+12.4% |
+5.3% |
+1.6% |
Convenience |
+6.3% |
+2.7% |
+0.4% |
Parisian and convenience banners |
+5.2% |
+2.6% |
+0.4% |
Supermarkets |
+1.6% |
-13.9% |
-11.5% |
o/w long-standing supermarkets4 |
+2.1% |
-12.5% |
-10.0% |
Hypermarkets |
+2.2% |
-17.1% |
-18.6% |
Supermarkets/Hypermarkets |
+1.9% |
-15.3% |
-14.4% |
FRANCE RETAIL |
+3.9% |
-4.2% |
-5.6% |
In France Retail, sales for the quarter
came to €3,396m, down -5.6% on a same-store basis,
reflecting slight growth in Parisian and convenience banners
(+0.4%), with non-food sales adversely affected by the weather, and
a negative quarter in Supermarkets/Hypermarkets (-14.4%) due to the
implementation of price adjustment measures, nevertheless
demonstrating a sequential improvement, particularly in
long-standing Supermarkets, where customer traffic and volumes are
now positive.
The expansion strategy continued during the
quarter, with the opening of 91 stores in
convenience formats (Franprix, Spar, Vival, etc.), mainly
under franchise.
Casino Group has also stepped up
initiatives designed to support purchasing power,
including:
Monoprix:
- Price cuts on more than 760
products in all stores since May (on more than 3,100
products in total, particularly for the largest stores and
e-commerce)
- Price freeze
extended until the end of the year on more than 260
products
- Cost-price offers on fresh
produce since the beginning of September.
Franprix:
- Price cuts on
150 essential products since the end of May,
price freeze on TLJ products in all Franprix
stores since Q2
- Development of the Leader
Price product range (257 additional SKUs and roll-out of
Leader Price shop-in-shops in 12 stores in Q3)
- Dedicated end-of-month
promotions, with immediate reductions on 50 SKUs on top of
standard offers.
Hypermarkets/Supermarkets/Convenience:
- Continuation of the
anti-inflation basket with prices frozen on 500
products (extended to 1,000 products at less than €2 from the
beginning of October)
- Introduction of cost-price
fuel at hypermarkets and some supermarkets at weekends
from the end of August and every day since 29 September
- Featured low prices with
the Leader Price range (7% share of volumes)
- Roll-out of the multiple
discount system on all Casino brand products
The partnership with Prosol is also
continuing to develop, with the roll-out of Fresh outlets
in Montpellier hypermarkets on 6 December 2023 and in Montpellier
supermarkets scheduled on 13 December 2023.
Consolidated net sales in France by
banner
|
Q2 2023/Q2 2022 change |
Q3 2023/Q3 2022 change |
Net sales by banner (in €m) |
Q2 2023 net sales |
Total growth |
Organic growth5 |
Same-store growth1 |
Q3 2023 net sales |
Total growth |
Organic growth1 |
Same-store growth1 |
Hypermarkets |
582 |
-24.9% |
-17.5% |
-17.1% |
636 |
-16.4% |
-20.0% |
-18.6% |
Supermarkets |
789 |
-8.0% |
-12.2% |
-13.9% |
873 |
-8.9% |
-10.7% |
-11.5% |
Convenience & Other6 |
461 |
+1.2% |
-0.8% |
+2.8% |
513 |
-1.9% |
-0.8% |
+0.7% |
o/w Convenience7 |
380 |
-1.9% |
-1.9% |
+2.7% |
437 |
-1.6% |
0.0% |
+0.4% |
Monoprix |
1,088 |
-2.1% |
+2.2% |
+2.2% |
1,012 |
-2.7% |
-1.1% |
0.0% |
Franprix |
396 |
+2.9% |
+3.9% |
+4.3% |
362 |
+2.9% |
+2.9% |
+2.2% |
FRANCE RETAIL |
3,316 |
-7.5% |
-4.8% |
-4.2% |
3,396 |
-6.5% |
-6.5% |
-5.6% |
- Monoprix
sales for the quarter were stable on a same-store basis,
reflecting satisfactory sales in Food (+1.6%)
compared with Non-Food (-3.8%), which was mainly impacted by
unfavourable weather conditions that weighed on sales in the
clothing segment and on customer traffic. Naturalia posted
another quarter of growth (+1.9% ) in a still difficult
organic market, confirming the positive momentum seen in recent
months. The banner further expanded its store network
during the quarter, with seven international store
openings. In addition, the Amazon Prime/Monoprix
partnership8 is bearing fruit, attracting and retaining new
customers for the Monopflix subscription (30% new
subscribers).
-
Franprix reported same-store sales growth
of +2.2% for the quarter, with a sequential slowdown due
to a difficult basis for comparison (very good performance in
July-August 2022) and a summer impacted by riots in early July and
unfavourable weather. September saw a clear upturn in the
trend, with same-store growth of +3.4% and customer
traffic up +4.2% (vs +0.5% for the quarter). Franprix posted
double-digit growth in e-commerce and continued
its expansion strategy, with 22 new stores opened during
the quarter, for a total of 98 stores opened since the
beginning of the year.
- The
Convenience business posted same-store
growth of +0.4% in net sales over the quarter. The
store network expansion and independent retailer absorption
strategy continued, with 65 new convenience store
openings recorded during the quarter.
- Casino
Supermarkets and Hypermarkets once again reported lower
sales (-14.4% on a same-store basis), due in particular to
significant price cuts (-10% on average).
Customer traffic and volume trends continue to
improve.
- The recovery
trajectory for long-standing Supermarkets has been
confirmed over the quarter, and the last few weeks show an
increase in customer traffic of around +7% and
volumes that are now positive (+3%), consolidating
the stores' commercial turnaround.9
|
|
Graph available in attached pdf |
Graph available in attached pdf |
- For Hypermarkets
and former hypermarkets operating under the Supermarkets banner,
the change in price adjustments remains more gradual than for
supermarkets, as hypermarkets require more time and advertising
effort in the face of increased competition since the start of the
school year. Customer traffic improved, standing at around -10%
over the quarter (roughly -4% over the last two weeks). Volumes
remain below market levels, but the gap is gradually closing.
Graph available in attached pdf |
Graph available in attached pdf |
Cdiscount10
In line with its strategy, Cdiscount
continued to reduce its direct sales this quarter, in favor of
developing services, notably related to the
marketplace,
Advertising11, B2C services and
B2B activities.
Improved mix in line with the
plan to transform to a more profitable model:
- 35%
decrease in direct sales
- Evolution of the
mix in favor of the marketplace: marketplace GMV
recorded a return to growth this quarter (+1%
year-on-year, +9% vs. 2019), with a share that reached a
new record level of 63% (+11 pts year-on-year, +23 pts vs.
2019)
- Good
performance by B2C Services GMV at €38 million (+12%
year-on-year), mainly driven by Travel activities in a favorable
market context.
Growth in services (+7%) led to a +7 pts
improvement in gross margin:
- Revenues from the
marketplace reached €46m (+1.4% year-on-year, +29.4% vs. 2019)
- Revenues
from Advertising Services were €18m for the quarter (up +8% year on
year, double the 2019 figure), still led by the
momentum of Retail Media (revenues up +11% year on
year) with a continued improvement in the GMV take rate12, to 4%
(up +1 pt year on year and up +2.5 pts vs. 2019)
- B2B
activities continued to develop, with Octopia's
B2B revenues up +54% and C-Logistics’
B2B revenues up four-fold over one
year.
- Octopia's momentum
was driven by its Merchants-as-a-Service and
Marketplace-as-a-Service activities, where revenues tripled over
the past year, driven by the successful launch of two marketplaces
in the third quarter, and also by its Fulfilment-as-a-Service
activities, with the number of parcels shipped up +28% year on
year;
- C-Logistics' B2B
growth benefited from the growing number of parcels
shipped to external customers (up six-fold year on year).
Cost savings plan:
The cost savings plan to
recalibrate the operating cost structure and level of capital
expenditure by end-2023 is ahead of the target to achieve
€90m in full-year savings vs 2021 (initial target of €75
million in full-year savings announced in July 2022, revised
upwards in April 2023 to include an additional €15 million).
Key figures |
Q3 2022 |
Q3 2023 |
Change |
Total GMV including tax13 |
772 |
668 |
-13.5% |
o/w direct sales |
304 |
198 |
-35.0% |
o/w marketplace sales |
333 |
336 |
+0.7% |
Marketplace contribution (%) |
52.3% |
62.9% |
+10.6 pts |
Services revenues |
66.9 |
71.5 |
+6.9% |
Marketplace revenues14 |
45.4 |
46.1 |
+1.4% |
Revenues from Advertising Services2 |
16.5 |
17.7 |
+7.8% |
Octopia B2B revenues2 |
5.0 |
7.7 |
+54.0% |
Net sales (in €m) |
373 |
281 |
-24.8% |
Cnova published its Q3 2023 sales figures
this morning.
Financial indicators – France
EBITDA: third-quarter
EBITDA15 was €136m, and -€12m
after lease payments, mainly due to margin investing in
Casino hypermarkets and supermarkets.
- Due to the
sequential improvement in volume trends at Distribution Casino
France, the year-on-year decline in France EBITDA was -€196m in Q3,
lower than in Q2, when it stood at -311 M€
On this basis, EBITDA for the last 12
months before lease payments was €694m and €100m after lease
payments.
Net debt: At
30 September 2023, net debt16 stood at €5.6bn (+€0.2bn higher than
at 30 June 2023).
Liquidity: At 30
September 2023, the Group's liquidity in France was
€1.3bn, including €945m in available cash and €311m in
cash that is either not available or in transit.At 30 September
2023, the Group had received proceeds from the sale of the first
ITM stores and deposits on the sale of around 70 additional stores
to be completed within three years.
Updated 2023 outlook
Net sales and EBITDA for the first nine months
of 2023 continued to be impacted by price readjustment measures and
the more gradual than expected recovery of Hypermarkets and
Supermarkets.
Given the price investments required to continue
driving the recovery in customer traffic and volumes in today’s
increasingly competitive environment, the Group now estimates that
full-year EBITDA will be lower than the level achieved over the
12-month rolling period to end-September 2023 (€100m after lease
payments compared with the €214m forecast in July 2023).17
Asset disposals
France
At the end of September 2023, Groupement
Les Mousquetaires and Casino Group completed the sale of a set of
61 Casino France outlets (hypermarkets, supermarkets,
Franprix and convenience stores) with net store sales of €563m for
2022.
The sale was based on an enterprise value of
€209m, including service stations. After working capital
adjustments and provisions that will depend on the stores’ final
financial statements, the net sale price is expected to represent
at least €160m, with the Group having collected the
provisional sale proceeds at the end of September. Groupement Les
Mousquetaires has already taken possession of 58 of the 61 sales
outlets sold. At the same time, the Group received €140m in
deposits for the second wave of store disposals (to be
completed within three years).
Latam
Following the spin-off of GPA and Grupo Éxito at
the end of August 2023, Casino Group has also decided to
begin the process of selling Grupo Éxito. On Friday 13
October 2023, its Board of Directors approved the signing of a
preliminary agreement with Grupo Calleja, which
owns the leading food retail group in El Salvador, for the
sale of Casino's entire stake in Grupo Éxito, i.e.,
34.05% of Grupo Éxito's share capital. GPA, which
holds 13.31% of Grupo Éxito's shares, is also party to the
preliminary agreement and has agreed to sell its stake as
part of the takeover bid.The price, which will be paid in cash,
represents a total of $400m for Casino Group’s direct
stake and $156m for GPA’s stake. The
all-cash tender offer is expected to close around the end of the
year.(see press release dated 16 October 2023)
CSR commitments
In the third quarter, Casino Group pursued its
social, societal and environmental commitments in a number of
areas:
The fight against climate
change
- The Executive Committee reaffirmed
its commitment to the fight against climate change by taking part
in a Climate Fresk workshop.
- More than 180
employees are already familiar with the Fresk.
- In September,
Casino Group received two LSA “La conso s’engage” awards for its
climate-focused CSR initiatives.
More responsible trade
- On France’s national anti-food
waste day, a number of banners highlighted their commitments:
- Franprix has saved 2.4 million
meals since the beginning of the year, with 840 tonnes of products
donated to non-profits, 300,000 anti-waste baskets sold on the
Phenix and Too Good To Go platforms, and 47,000
anti-waste fruit and vegetable/pastry boxes sold in stores.
- Monoprix donates its unsold goods
to over 400 non-profits working to help vulnerable people through
its partners Banques Alimentaires, the French Red
Cross, and Secours populaire français (18.5 million meals were
distributed in 2022).
- Casino now offers 80 Max
Havelaar/Fairtrade-certified private-label products.
- Cdiscount supports responsible
products, which accounted for 18.6% of product GMV in third-quarter
2023 (+5 pts vs. 2022).
Workplace equality
- Launch of the first Fresque de
l’Equité (gender equality workshop) to continue raising employee
awareness of the issues surrounding gender inequality.
- The Group obtained
a score of 94/100 on the Equality Index in 2023.
Community outreach
- The Casino, Franprix, Monoprix and
Cdiscount banners raised €225,000 during Gustave Roussy’s
“Septembre en Or” campaign to fund medical research to help cure
childhood cancer in the 21st century.
Conciliation procedure
On 25 May 2023, the President of the Paris
Commercial Court opened a conciliation procedure for Casino Group
for an initial period of four months, which was extended by a
further month until 25 October 2023. The purpose of this procedure
was to enable the Group to engage in discussions with its financial
creditors within a legally secure framework.
With a view to strengthening the Group’s equity
and restructuring its debt, on 27 July 2023, the Group entered into
an agreement in principle with EP Global Commerce a.s., Fimalac and
Attestor (“the Consortium”) and certain secured creditors, and then
on 18 September 2023, with the ad hoc group of holders of the notes
issued by Quatrim representing a majority of the noteholders.
On 5 October 2023, a lock-up agreement was
signed with the Consortium and the creditors. As of 17 October
2023, the following creditors had acceded to the agreement:
- creditors
economically holding 98.6% of Term Loan B;
- principal
commercial banking groups and some of the above-mentioned creditors
economically holding 90.0% of the RCF;
- holders of notes
issued by Quatrim representing 78.0% of these notes;
- 51.0% of unsecured
financial creditors (high yield bonds, EMTN notes and NEU CP);
and
- 44.3% of perpetual
subordinated noteholders.
On 25 October 2023, the Casino group announced
the opening of accelerated safeguard procedures for Casino,
Guichard-Perrachon and certain of its subsidiaries18 in order to
implement the Group's restructuring plan in accordance with the
terms of the lock-up agreement concluded on October 5, 2023 as part
of the conciliation procedures.
All of the information regarding the
conciliation procedure and the accelerated safeguard proceedings is
available on the Company’s website: Link
The Group will publish its Q3 2023
consolidated net sales figures on 31 October 2023, before the start
of trading.
APPENDICES – OTHER
INFORMATION
Main changes in scope in
France
- Sale of Sarenza on 1
October 2022 (Monoprix)
- Disposal of CChezVous
on 31 December 2022 (Cdiscount)
- Sale of stores to ITM
on 30 September 2023
- Sale of Sudeco on 31
March 2023
|
Gross sales under banner in
France
TOTAL ESTIMATED GROSS SALES UNDER BANNER (in €m, including
fuel) |
Q3 2023 |
Change (incl. calendar
effects) |
|
|
Monoprix |
|
1,076 |
-1.8% |
Franprix |
|
438 |
+4.6% |
Supermarkets |
|
905 |
-9.9% |
Hypermarkets |
|
713 |
-14.1% |
Convenience & Other |
|
804 |
+2.5% |
o/w Convenience |
|
727 |
+3.2% |
TOTAL FRANCE RETAIL |
|
3,935 |
-4.8% |
Cdiscount |
|
553 |
-14.5% |
TOTAL FRANCE RETAIL AND CDISCOUNT |
|
4,488 |
-6.1% |
Store network
France |
30 Sept. 2022 |
31 Dec. 2022 |
31 March 2023 |
30 June 2023 |
30 Sept. 2023 |
Géant Casino/Hyper Frais HM |
77 |
77 |
78 |
78 |
67 |
o/w French franchised |
3 |
3 |
3 |
3 |
3 |
International affiliates |
9 |
9 |
10 |
10 |
9 |
Casino Supermarkets |
461 |
474 |
476 |
478 |
441 |
o/w Franchised / LG France |
63 |
63 |
62 |
60 |
60 |
International affiliates |
23 |
24 |
26 |
29 |
33 |
Monoprix (Monop’, Naturalia, etc.) |
849 |
858 |
852 |
855 |
862 |
o/w Affiliates / LG France ex Naturalia |
235 |
255 |
265 |
271 |
285 |
Naturalia
integrated stores France |
183 |
181 |
177 |
175 |
170 |
Naturalia
franchises / LG France |
63 |
65 |
66 |
63 |
65 |
Franprix |
1,069 |
1,098 |
1,123 |
1,155 |
1,159 |
o/w franchises / LG France |
747 |
775 |
795 |
831 |
840 |
Franprix banner |
836 |
864 |
876 |
888 |
881 |
Other banners (Marché d’à côté, etc.) |
233 |
234 |
247 |
267 |
278 |
Convenience o/w Vival o/w
Spar o/w Petit Casino and
similar o/w oil companies o/w affiliates o/w other convenience
outlets19 |
6,0601,7869131,0431,41494810 |
6,3131,9789511,0481,422100814 |
6,4342,0029511,0471,478100856 |
6,4482,0079511,0481,464102876 |
6,3921,9839471,0301,485103844 |
Leader Price20 |
63 |
66 |
66 |
63 |
40 |
Other businesses21 |
218 |
221 |
202 |
200 |
179 |
Total France |
8,797 |
9,107 |
9,231 |
9,277 |
9,14022 |
Analyst and investor
contacts-
Christopher Welton+33 (0)1 53 65
64 17 – cwelton.exterieur@groupe-casino.fror+33 (0)1 53 65 24 17 –
IR_Casino@groupe-casino.fr
Press
contacts-
Casino Group – Communications
Department
Nicolas Boudot+33 (0)6 79 61 40
99 – nboudot@groupe-casino.frBéatrice MANDINE+ 33
(0)6 48 48 10 10 - bmandine@groupe-casino.fror+33(0)1 53 65 24 78 –
directiondelacommunication@groupe-casino.fr
-
Agence IMAGE 7
Karine Allouis +33 (0)6 11 59 23
26 – kallouis@image7.frLaurent Poinsot +33(0)6 80
11 73 52 – lpoinsot@image7.frFranck Pasquier
+33(0)6 73 62 57 99 – fpasquier@image7.fr
Disclaimer
This press release was prepared solely for
information purposes, and should not be construed as a solicitation
or an offer to buy or sell securities or related financial
instruments. Likewise, it does not provide and should not be
treated as providing 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. Recipients should
not consider it as a substitute for the exercise of their own
judgement. All the opinions expressed herein are subject to change
without notice.
1 Data for the past 4 weeks2 Cf. press releases of
27 July and 20 September3 Excluding fuel and calendar effects4
Long-standing SM (excluding ex-HM), including Corsican SM5
Excluding fuel and calendar effects6 Miscellaneous: mainly Geimex7
Convenience segment net sales on a same-store basis include the
same-store performance of franchised stores8 -10% discount at
Monoprix for 6 months, in store and online, for all Amazon Prime
subscribers in France9 Data presented over four weeks with the
exception of the last week (data for the current week)10 Unaudited
data published by Cnova NV. The reported figures present all
revenues generated by Cdiscount.11 Advertising and digital
marketing12 Calculated as revenues excluding tax divided by product
GMV excluding tax13 Gross merchandise volume (GMV) includes,
including tax, sales of merchandise, other revenues and the
marketplace’s sales volume based on confirmed and shipped orders
and the sales volume of B2C services and the Octopia and
C-Logistics activities14 Excluding tax15 Scope as defined in bond
refinancing documentation, with mainly Segisor and Wilkes accounted
for within the France Retail + E-commerce scope (including
GreenYellow)16 France Retail + E-commerce scope (including Segisor,
excluding GreenYellow); gross financial debt at 30/09/23: €6.9 bn
of which unsecured bonds for €2.2 bn, RCF for €2.1 bn, Term Loan B
for €1.4 bn and Quatrim for €0.6 bn17 See press releases dated 27
July and 20 September18 Casino Finance, Distribution Casino France,
Casino Participations France, Quatrim, Ségisor, et Monoprix
19 Outlets under specific banners with a Casino
supply contract20 Leader Price stores in France. Leader Price
international franchises are recorded in “Other businesses”21 Other
businesses include Leader Price international franchises and 3C
Cameroon stores22 The number of stores in France at 30 September
2023 has been restated to account for the outlets sold to
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