Q1 2015 SALES
Improvement of sales momentum in France
Excellent performances internationally
Strong growth of E-commerce activities
· Group's total sales: €11.9 billion, up +5.3% and +2.7% on an organic basis
· Strong international commercial momentum: total growth of +9.2% and organic growth of +3.7%
- Southeast Asia: strong growth of +25.4%
- Latin America
o High growth in food sales: +10.2%
o Near stability in sales of electronic products: -0.8%
· France
- Continued improvement in organic sales (-1.3%) despite a price cuts' carry-over effect of -1.9% and volumes growth of +0.6%
- Solid progress in volumes in most formats
· E-commerce:
- Strong growth of Cnova sales: +17.7%
- Sharp increase in gross merchandise volume (GMV): +28.2%(1) driven by the rapid development of marketplaces
Paris, 15 April 2015 - Casino Group reports its sales at 31 March 2015.
| CONSOLIDATED NET SALES BEFORE TAX | Change Q4 2014 / Q4 2013 | Change Q1 2015 / Q1 2014 | ||||
| In €m | Q4 2014 | Total growth | Organic growth | Q1 2015 | Total growth | Organic growth |
| Total continuing operations | 13,278 | +1.3% | +3.1% | 11,911 | +5.3% | +2.7% |
| France Retail | 4,870 | -3.1% | -1.9% | 4,426 | -2.1% | -1.3% |
| International Retail | 7,310 | +2.2% | +4.1% | 6,579 | +9.2% | +3.7% |
| E-commerce | 1,098 | +19.0% | +22.2% | 906 | +17.7% | +17.3% |
In Q1 2015, the Group's consolidated net sales totalled €11.9 billion, posting a sustained increase of +5.3% compared to Q1 2014. This strong performance is driven by the robust growth of food sales in Asia and Latin America, and the rapid development of E-commerce activities, in addition to the continued recovery of sales on an organic basis in France (-1.3% vs. -1.9% in Q4 2014).
The Group benefited from a favourable currency effect (+1.9%) with the appreciation of the Thai Baht and a scope effect (+0.8%) with namely the acquisition of Super Inter in Colombia. Over the period, the calendar effect stood at +0.4% in total (-0.1% for France Retail and +0.8% for International Retail).
SALES TRENDS BY SECTOR
| BY SECTOR | Change Q4 2014 / Q4 2013 | Change Q1 2015 / Q1 2014 | ||||||
| In €m | Q4 2014 | Total growth | Organic growth | Same-store growth | Q1 2015 | Total growth | Organic growth | Same-store growth |
| France Retail | 4,870 | -3.1% | -1.9% | -2.7% | 4,426 | -2.1% | -1.3% | -1.6% |
| Latam Retail | 4,341 | +1.8% | +5.1% | +1.1% | 3,870 | +10.2% | +6.1% | +2.6% |
| Latam Electronics | 2,014 | -0.1% | +2.4% | +1.2% | 1,666 | -0.8% | -1.3% | -2.7% |
| Asia | 955 | +9.2% | +3.1% | -0.4% | 1,043 | +25.4% | +3.7% | +0.3% |
| E-commerce | 1,098 | +19.0% | +22.2% | +21.1% | 906 | +17.7% | +17.3% | +17.0% |
Note: Organic and same-store changes exclude petrol and calendar effects
(1) Data published by the subsidiary
| Paris, 15 avril 2015 |
- France Retail
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In France, the retailing business recorded sales of €4,426 million, impacted by a petrol effect of -1.1%. Organic growth stood at -1.3%, an improvement compared to Q4 2014 (-1.9%). Price cuts in 2014 continue to impact sales in France of -1.9%.
Same-store sales for all banners improved sequentially compared to the previous quarter. Volumes are up both in same-store sales (+0.3%) and organic (+0.6%).
| BY BANNER | Change Q4 2014 / Q4 2013 | Change Q1 2015 / Q1 2014 | ||||||
| In €m | Q4 2014 | Total growth | Organic growth | Same-store growth | Q1 2015 | Total growth | Organic growth | Same-store growth |
| Géant Casino | 1,255 | -4.4% | -2.3% | -2.3% | 1,053 | -3.8% | -1.5% | -1.5% |
| Casino Supermarkets | 808 | -4.9% | -3.3% | -2.9% | 741 | -5.7% | -3.7% | -1.4% |
| Monoprix | 1,094 | -0.5% | -0.7% | -1.4% | 1,016 | +0.6% | +0.9% | +0.3% |
| FPLP | 1,082 | -3.5% | -2.0% | -5.9% | 1,013 | -1.8% | -2.4% | -5.6% |
| Convenience & Other | 632 | -1.7% | -2.0% | +0.2% | 602 | +0.8% | -0.3% | +1.3% |
· At Géant, same-store sales continued to recover (-1.5% vs. -2.3% in Q4 2014) while still affected by the carry-over impact of price cuts implemented in 2014 (-3.8%, down compared to the previous quarter). Food sales recorded a positive performance for the second consecutive quarter (+1.1%). During the quarter, same-store volumes of the banner rose by +2.4%, with an increase of +2.9% in food.
· Casino Supermarkets' same-store sales have again improved (-1.4% vs. -2.9% in Q4 2014) with a residual impact from price cuts. The banner recorded almost stable volumes with namely FMCG volume growth of +0.9%. Organic growth was affected by the transfer of 6 stores to the Monoprix banner.
· Monoprix performed well during the quarter. Same-stores sales of all banners are now positive (+0.3%) with volumes up +0.9%. Food sales increased by +1.3% and non-food sales have also improved compared to Q4 2014. Organic growth benefited additionally from 7 net store openings(1), including 5 banner transfers.
· Same-store sales at Franprix were down -3.2%. Sales organic growth remains affected by the disposal of stores requested in 2014 by the French Competition Authority and by banners' transfers to the rest of the Group. Franprix, which will continue to develop its Marché Franprix private label products and its services, recorded an improvement in the average basket (+1.2%).
· Same-store sales for Leader Price were down, namely due to store renovations and price cuts carried out in 2014 with an impact of -4.6%. The banner now offers the best prices in the sector. Organically, in light of the continued expansion, volumes were up +5.7% and sales +0.8%. Total sales increased by +1.6% mainly due to the acquisition of Le Mutant stores, and the banner recorded overall market share gains(2).
· The increase in customer traffic (+9.1%) and volumes (+15.3%) contributed to same-store sales growth in Convenience (+5.4%). This strong performance is due to stores modernisation and to the transformation of Petit Casino stores into Leader Price Express stores, a new discount concept in urban area.
| (1) Including international affiliates and French overseas departments and territories |
- Latam Retail
In Q1 2015, food sales in Latin America showed strong growth at €3,870 million (+10.2%), due to an acceleration in organic growth (+6.1% vs. +5.1% in Q4 2014) and the integration of Super Inter in Colombia.
Food sales in Brazil recorded high organic growth (+8.0%(1)) driven by sustained expansion. Same-store sales growth reached +4.9% (1) (vs. +2.1%(1) in Q4 2014), reflecting the market share gains for the Extra banner(2). Sales at the Assai cash & carry banner rose by +26.3%(1) organically. GPA opened 17 food stores during the quarter.
Total sales at Exito were also up mainly due to the integration of the Super Inter discount stores located in the Cali and Coffee regions.
- Latam Electronics
Viavarejo sales totalled €1,666 million, broadly stable excluding the impact of the store closings requested by the French Competition Authority. In an economic downturn, the Viavarejo banners continue to gain market shares(2). During the quarter, 3 stores were opened under the Casas Bahia banner.
- Asia
Sales of the food retailing business in Asia totalled €1,043 million, up sharply by +25.4%, thanks partly to favourable currency effects. Benefitting from the economic recovery in this region, Group banners posted substantial improved organic growth compared to the previous quarter (+3.7% vs. +3.1% in T4 2014)). Same-store growth is now positive (+0.3% vs. -0.4% in Q4 2014).
At Big C Thailand, the quarter was marked by stability in same-store sales, with strong performances during the Chinese New Year. The improvement in traffic noted in Q4 2014 was confirmed and organic growth remains sustained by expansion.
In Vietnam, the banner maintained high organic growth. Growth in same-store sales is now positive with an improvement in traffic and volumes.
- E-commerce
In Q1 2015, Cnova recorded +17.7% growth in its net sales with an increase in customer loyalty. The rate of marketplace growth in both regions was very high. Overall, GMV stood at €1,248 million, a sharp increase of +28.2%.
| E-COMMERCE (CNOVA) | Q1 2014(i) | Q1 2015 | Total growth |
| GMV(ii) including tax | 974 | 1,248 | +28.2% |
| Net sales(iii) (in €m) | 770 | 906 | +17.7% |
| Active customers(iv) (in millions) | 11.6 | 14.8 | +27.6% |
| Orders(v) (in millions) | 6.8 | 9.3 | +38.2% |
| Units sold (in millions) | 11.5 | 16.0 | +38.9% |
(i) Sales are recorded on receipt of goods by customers. Q1 2014 figures have been adjusted accordingly.
(ii) GMV: Gross Merchandise Volume, data published by the subsidiary
(iii) The difference between the sales figures presented above and those published by Cnova on 10 April 2015 is mainly due to the elimination of intercompany transactions at Casino
(iv)Active customers at the end of March having purchased at least once through our sites over the last 12 months
(v) Total placed orders before cancellation due to fraud or customers not paying for their order
| (1) Figures published by the subsidiary |
OUTLOOK
For the entire 2015 fiscal year, the Group confirms its targets:
- In France(1), increased annual organic sales and higher annual EBIT over the previous year
- Internationally(1), sustained organic business growth and EBIT growth exceeding that of sales
- Overall, organic EBIT growth and a 0.2x improvement of its Net Debt / EBITDA ratio
Taking into account the price cuts carried out in 2014 which impacted Q1 sales of -1.9%, the EBIT in France in the first half of 2015 will be lower than in the first half of 2014.
***
(1) Excluding E-commerce
APPENDICES
Details and sales trends in Q1 2015
Organic growth is growth at constant scope of consolidation and exchange rates, excluding petrol and calendar effect, unless otherwise mentioned.
Sales of E-commerce activities are recorded on receipt of goods by customers. The consolidated Q1 2014 figures have been adjusted accordingly as have the rental revenues for GPA's shopping malls.
Main changes in the scope of consolidation
- Full consolidation of Mutant from 8 March 2014
- Full consolidation of Super Inter from 16 October 2014
Exchange rates
| AVERAGE EXCHANGE RATES | Q1 2014 | Q1 2015 | Currency effect |
| Argentina (EUR/ARS) | 10.3805 | 9.7447 | +6.5% |
| Uruguay (EUR/UYP) | 30.2755 | 27.8663 | +8.6% |
| Thailand (EUR/THB) | 44.7221 | 36.7655 | +21.6% |
| Vietnam (EUR/VND) (x 1000) | 28.8132 | 24.1567 | +19.3% |
| Colombia (EUR/COP) (x 1000) | 2.7477 | 2.7816 | -1.2% |
| Brazil (EUR/BRL) | 3.2400 | 3.2236 | +0.5% |
Period-end store network
| FRANCE | 30 Sept. 2014 | 31 Dec. 2014 | 31 March 2015 | |||
| Géant Casino Hypermarkets | 126 | 127 | 127 | |||
| of which French Affiliates | 7 | 7 | 7 | |||
| International Affiliates | 9 | 10 | 10 | |||
| Casino Supermarkets | 443 | 444 | 443 | |||
| of which French Franchised Affiliates | 61 | 63 | 65 | |||
| International Franchised Affiliates | 30 | 32 | 33 | |||
| Monoprix | 599 | 632 | 639 | |||
| of which Franchises/Affiliates | 178 | 186 | 188 | |||
| Naturalia | 80 | 90 | 93 | |||
| Naturalia franchises | 2 | 2 | 3 | |||
| Franprix | 872 | 860 | 856 | |||
| of which Franchises | 333 | 323 | 320 | |||
| Leader Price | 761 | 801 | 832 | |||
| of which Franchises | 204 | 207 | 208 | |||
| Total Supermarkets and Discount | 2,675 | 2,737 | 2,770 | |||
| Convenience | 6,800 | 6,825 | 6,884 | |||
| Other businesses (Cafeterias, Drive, etc.) | 567 | 598 | 605 | |||
| Indian Ocean(1) | 129 | 129 | 129 | |||
| TOTAL France | 10,297 | 10,416 | 10,515 | |||
| INTERNATIONAL | 30 Sep. 2014 | 31 Dec. 2014 | 31 March 2015 | |||
| ARGENTINA | 27 | 27 | 27 | |||
| Libertad Hypermarkets | 15 | 15 | 15 | |||
| Other | 12 | 12 | 12 | |||
| URUGUAY | 54 | 54 | 54 | |||
| Géant Hypermarkets | 2 | 2 | 2 | |||
| Disco Supermarkets | 28 | 28 | 28 | |||
| Devoto Supermarkets | 24 | 24 | 24 | |||
| BRAZIL | 2,036 | 2,143 | 2,159 | |||
| Extra Hypermarkets | 137 | 137 | 137 | |||
| Pao de Açucar Supermarkets | 171 | 181 | 181 | |||
| Extra Supermarkets | 208 | 207 | 206 | |||
| Assai discount stores | 80 | 84 | 87 | |||
| Extra Facil and Mini Mercado Superettes | 213 | 256 | 270 | |||
| Casas Bahia | 621 | 663 | 666 | |||
| Ponto Frio | 364 | 374 | 371 | |||
| Drugstores | 159 | 158 | 158 | |||
| + Service stations | 83 | 83 | 83 | |||
| COLUMBIA | 1,146 | 1,258 | 1,397 | |||
| Exito Hypermarkets | 82 | 82 | 81 | |||
| Exito and Carulla Supermarkets | 151 | 153 | 153 | |||
| Super Inter | 46 | 52 | ||||
| Surtimax (discount) | 816 | 874 | 1 007 | |||
| of which "Aliados" | 662 | 721 | 858 | |||
| Exito Express and Carulla Express | 94 | 102 | 103 | |||
| Other | 3 | 1 | 1 | |||
| THAILAND | 624 | 636 | 643 | |||
| Big C Hypermarkets | 123 | 123 | 123 | |||
| Big C Supermarkets | 35 | 37 | 37 | |||
| Mini Big C Superettes | 316 | 324 | 328 | |||
| Pure | 150 | 152 | 155 | |||
| VIETNAM | 38 | 40 | 40 | |||
| Big C Hypermarkets | 28 | 30 | 30 | |||
| Convenience | 10 | 10 | 10 | |||
| TOTAL International | 3,925 | 4,158 | 4,320 | |||
(1) Before 30 September 2014, this line was included in the International total
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
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 information purposes and should not be construed as a solicitation or an offer to buy or sell securities or related financial instruments. Similarly, it does not give and should not be treated as giving investment advice. It has no connection with the investment objectives, financial situation or specific needs of any recipient. No representation or warranty, either express or implicit, 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 exercise of their own judgement. All opinions expressed herein are subject to change without notice.
