NET SALES - Q1 2018
Ongoing strong growth dynamic for the Group:
+3.1% organic growth and +1.8% on a comparable basis
Good performance of the France Retail segment:
+1.3% organically and +1.3% on a comparable basis
In Brazil, GPA Food posted organic growth of +5.7%
CHANGE IN NET SALES
|BY SEGMENT||Q4 2017 / Q4 2016 change||Q1 2018 / Q1 2017 change|
|(€M)|| Q4 |
| Total |
|Organic growth(5)||Growth on a comparable basis(5)|| Q1 |
| Total |
|Organic growth(5)||Growth on a comparable basis(5)|
Pursuant to the 2016 decision to dispose of Via Varejo and in accordance with IFRS 5, Via Varejo activity (including Cnova Brazil) is maintained as a discontinued operation.
In Q1 2018, net sales totalled €8.9 billion, down -3.8% on Q1 2017, and strongly impacted by an unfavourable exchange effect of -7.7%. Sales increased +3.1% in organic terms and +1.8% on a comparable basis. The scope and fuel effects each come at -0.1%, and the calendar effect was +1.1%.
|Q4 2017 / Q4 2016 change||Q1 2018 / Q1 2017 change|
|BY BANNER||Q4 2017(1)||Total growth||Organic growth(2)||Growth on a comparable basis(2)|| Q1 |
|Total growth||Organic growth(2)||Growth on a comparable basis(2)|
|Including SM Casino(3)||754||-3.8%||-0.5%||+0.4%||711||-0.4%||+1.2%||+1.4%|
| Convenience |
Total sales in France came to €4,551m in Q1 2018, growing +1.3% in organic terms and +1.3% on a comparable basis, of which +2.2% in food. The activity was buoyed by the progression of Hypermarkets Géant, dynamic performance of Monoprix, Supermarkets Casino and Franprix, and by the improvement of Convenience. Géant and Casino Supermarkets together gained +0.2 point in market share over the last reporting period(6). The Casino Max application is ramping up with more than 650,000 downloads to date and more than 200,000 active users in March. In addition to the first functions offered since the launch (personalised discount coupons, smart shopping list, loyalty card and electronic catalogue), it is now possible to pay with the mobile application in the Géant and Casino Supermarket stores. During Q1, more independent retailers joined the franchise network with 7 new stores: 4 stores (1 hypermarket and 3 supermarkets) have already opened under banner and 3 further rallying, that will open during the year, are already signed.
· Casino Supermarkets(1) confirmed their very good commercial trend with growth of +1.2% in organic terms and +1.4% on a comparable basis. This continuous growth was driven in particular by the strengthening of its private label and a more targeted customer policy. The banner is continuing the upmarket move of its stores, with 54 renovations around a concept oriented toward services and fresh products ("Bijou" - "jewel") and aims to position itself as a reference on these segments. The franchise business recorded strong growth of +5.0% in sales compared to the previous year.
· Franprix's sales grew by +1.9% in organic terms and +1.0% on a comparable basis. The banner is continuing the development of innovative initiatives; the opening of a 24/7 Paris store thanks to a new technology will make it possible to increase the opening hours of nearly 50 other Paris stores by the end of H1. E-commerce sales continue to benefit from the success of the Franprix mobile application with 635,000 downloads as of the end of March. The banner is continuing its expansion momentum with 10 openings in Q1 in the Paris region. It also opened its first international store in Brussels.
Convenience posted sales growth of +4.0% in organic terms and +1.1% on a comparable basis(2). Franchisees are delivering very good performance with net sales up +9.2%. The banner's ongoing offer restructuring and development of qualitative services (bulk, juice machines, fresh cutting of fruits and vegetables) is designed to enhance the integrated stores. Casino Proximités also rolled out the new "A walk in the Garden" concept, which is being tested in two stores in Lyon, and aims to broaden the stores' Fruits & Vegetables offer, in particular in large urban areas.
· Sales at Géant (1) picked up this quarter with total growth of +4.2% and +2.1% on a comparable basis, +4.2% of which in food, driven by organic products (up more than 30%), Fresh and the Drive. Non-food sales, down -8.9% versus -9.6% in Q4 2017, benefited in particular from the good results of the omni-channel strategy with the rollout of the Cdiscount corners (11 to date). Net sales per sqm increased by +2.7% against a backdrop of a -0.6% reduction in surface area. The banner gained +0.1 point in market share over the last reporting period (3).
· Leader Price's sales increased by +0.9% on a comparable basis this quarter, driven by the good performance of groceries and Fresh. The banner is continuing to renovate its store network by converting to the Next concept (35 stores as of the end of March), which significant performance has been confirmed out. The banner is continuing to develop more qualitative and innovative products, still at low prices, notably with better organic and deep-frozen lines, and the rollout of its Sooa private label.
Cdiscount's gross merchandise volume (GMV) totalled €854 million(1), increasing by +6.1%(1) in organic terms(2). Net sales rose +5.1%(1) in organic terms(2), driven by data monetisation revenues, which increased +30%. The Home Furnishing and Household appliances categories represented 49% of direct sales while high-tech and IT products contributed 37%.
The marketplace resumed its expansion, driven by a broad assortment of 40 million products, up +81% over Q1 2017, with a 32.5% share of GMV, up +39 bp over Q1 2017.
The Cdiscount.com traffic logged 240 million visits this quarter, driven by the mobile growth, which accounted for 60% of the traffic and 41% of GMV (versus 36% in Q1 2017). The number of unique visitors reached 20 million for the first time(3).
Cdiscount now have 8.6 million active customers. The number of subscribers in the "Cdiscount à Volonté" ("CDAV") loyalty programme grew +33% on an annual basis over March 2017 and accounts for more than one-third of the GMV, driven by the launch of an unlimited press offer for these loyal customers.
Cdiscount is continuing its multi-channel strategy with 11 corners in Géant hypermarkets to date and is targeting 20 corners by the end of June. The categories presented in these corners have regained traction with +25% growth over the quarter. The banner continues to develop its service offer, with "Cinstallé" ("It is installed") in particular covering nearly 90,000 references, "Coup de Pouce" ("A little nudge") granting more than 21,000 loans over Q1 2018 and Cdiscount Energie, which has increased its subscribers by 1.5 times since the end of December. Cdiscount has also just rolled out a competitive long-term rental solution covering more than 800 telephone, television and Household appliances products as well as a partnership with a major French fashion brand for a clearance store outlet. Moreover, Cdiscount is strengthening its development of data monetisation with the rollout of a digital platform allowing suppliers, marketplace sellers and advertisers to participate in auctioning advertising space on Cdiscount.com and other websites to extend their audience.
|Key figures(1)||Q1 2017||Q1 2018||Published growth(4)||Organic growth(2)|
|GMV(5)(6) including tax||753.3||853.9||+13.4%||+6.1%|
|Net sales(6) (in €M)||455.1||524.2||+15.2%||+5.1%|
|Traffic (millions of visits)||233.8||240.1||+2.7%|
|Share of mobile traffic (%)||56.9%||60.3%||+341 bp|
|Active customers(7) (millions)||8.3||8.6||+4.2%|
|Units sold (millions)||12.5||12.2||-2.4%|
Cnova commented on its Q1 net sales in detail on 12 April 2018
Sales at the Group's businesses in Latin America (Exito Group and GPA Food) increased +4.9% in organic terms and +1.9% on a comparable basis over Q1 2018, against a backdrop of slowing food inflation. Consolidated net sales were strongly impacted by an unfavourable exchange effect of
GPA commented on its Q1 net sales in detail on 13 April 2018.
The Exito Group will comment on its Q1 net sales in detail on 15 May 2018.
(1) Data published by the subsidiary.
Implementation of IFRS 15 norm
In the first quarter of 2018, Casino Group applied IFRS 15, "Revenue from ordinary activities from contracts with customers".
This accounting standard is mandatory starting 1 January 2018 and has no significant effect on the Group's net sales. The application of IFRS 15 leads to reclassifications between net sales, other revenues, costs of goods sold and cost of sales. This standard and its application are described in note 18 of the chapter 3 in the 2017 registration document.
|GROUP NET SALES (in €M)||Q1 2017 published||Q1 2017 restated|
Breakdown and change in Q1 2018 net sales
Organic growth is at constant scope and exchange rates, excluding fuel and calendar except mentioned otherwise.
| ESTIMATED TOTAL GROSS FOOD SALES UNDER BANNER |
(€M, excl. fuel)
|Q1 2018|| Change |
|Convenience and Misc.||676||-0.2%|
| ESTIMATED TOTAL GROSS NON-FOOD SALES UNDER BANNER |
(€M, excl. fuel)
|Q1 2018|| Change |
Main changes in consolidation scope
|Average exchange rates||Q1 2017||Q1 2018||Exchange rate effect|
|Colombia (EUR/COP) (x 1000)||3.1110||3.5118||-11.4%|
Store network at period end
|FRANCE||30 Sept. 2017||31 Dec. 2017||31 March 2018|
|HM Géant Casino||121||122||123|
|Including Affiliates Franchisees in France||7||7||8|
|Including Affiliates Franchisees France||104||106||108|
|International Affiliates Franchisees||16||17||17|
|Other activities (Restaurants, Drive, etc.)||621||606||609|
|INTERNATIONAL||30 Sept. 2017||31 Dec. 2017||31 March 2018|
|SUP Mini Libertad and Petit Libertad||14||14||14|
|SUP Devoto Express||28||33||31|
|SM Pão de Açúcar||185||186||186|
|Assaí (Cash & Carry)||115||126||127|
|SUP Mini Mercado Extra & Minuto Pão de Açúcar||265||265||265|
|+ Service Stations||72||72||71|
|SM Exito and Carulla||161||162||163|
|SM Super Inter||71||71||71|
|SUP Exito Express and Carulla Express||111||111||104|
ANALYST AND INVESTOR CONTACTS
Régine Gaggioli - +33 (0)1 53 65 64 17
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