SECOND QUARTER
2014 SALES
Total Group sales of €11.9 billion, with organic growth(1) of +6.5%
In France, sales improved on an organic basis(1) of +160 bp sequentially (-0.2% in Q2 vs. -1.8% in Q1 2014) with a positive traffic
+2.1% growth in Géant same-store sales with volumes (excluding calendar) up +6.3% increase in food volumes - FMCG and +3.5% in non-food
Sequential improvement in proximity and Franprix-Leader Price sales
Internationally, strong organic growth(1) of +10.9% in sales, driven by strong growth activity in Brazil (+12.7%)
E-commerce activities sales in very strong growth; Cdiscount: +18%, Nova Pontocom: +38% (in BRL)
CHANGE IN THE GROUP'S CONSOLIDATED NET SALES IN THE 2ND QUARTER OF 2014
| CONSOLIDATED NET SALES (BEFORE TAX) | Change Q2 2014/Q2 2013(2) | Q1 2014 | |||
| In €m | Q2 2014(2) | Current exchange rates | Constant exchange rates | Organic growth(1) | Organic growth(1) |
| Total continuing operations | 11,932.6 | -1.3% | +6.3% | +6.5% | +6.6% |
| France | 4,847.2 | -0.8% | -0.8% | -0.2% | -1.8% |
| International | 7,085.3 | -1.6% | +11.1% | +10.9% | +11.0% |
The Group posted consolidated net sales of €11.9 billion in the second quarter of 2014, down relative to the second quarter of 2013 due to a negative foreign-exchange effect of -7.6%, linked mainly to the Brazilian real. At constant exchange rates, sales grew +11.1% at international level and +6.3% at Group level. Excluding changes in scope and calendar effect, organic growth was +6.5%. The average calendar effect was +0.4% in France and +1.1% internationally.
(1)Excluding petrol and calendar effect: Organic growth is growth at constant scope of consolidation and exchange rates.
(2)2013 restated net sales, resulting from retrospective application of IFRS 11 (elimination in 2013 of proportional consolidation of the Group's joint ventures), are shown on page 8.This restatement is not taken into account in the changes which are expressed in relation to Q2 2013 figures as published in 2013. The figures published in 2014 take into account the elimination of proportional consolidation.
***
France: growth in Géant food sales (+3% excluding calendar
effect) and substantial improvement in non-food volumes
positive traffic
Total sales in Q2 stood at €4,847 million. The organic growth (1) improved by +160 bp sequentially (-0.2% vs. -1.8% in Q1 2014).
- Same-store sales excluding petrol at the Géant hypermarkets grew by 2.1% (+1.1% vs. -0.1% in Q1 2014 excluding calendar effect) buoyed by strong growth in volumes (+6.3% in food - FMCG) and traffic (+2.1%). Food sales grew by +3%. Non-food volumes were up by +3.5%.
- Casino Supermarket same-store sales, reflecting the price cuts, marked an improvement relative to Q1 2014. Traffic was positive.
- Monoprix sales remained almost stable despite the 9 p.m. closing time for some stores, which had a -0.8% impact on same-store sales.
- Convenience stores sales recorded a sequential improvement.
- Franprix-Leader Price organic (1) sales improved sequentially (-2.9% in Q2 vs. -5.3% in Q1 2014). Sales were still affected by the price cuts at Leader Price where traffic turned positive in June.
International: continued strong organic growth (1) driven
IN PARTICULAR BY BRAZIL
International subsidiaries posted another quarter of strong organic growth at +12%. Same-store sales increased by +8.1% (+7% excluding calendar effect).
Latin America posted very strong organic growth of +13.7% (+12.3% excluding calendar effect) thanks to strong same-store performances and GPA's expansion in Brazil. Food organic sales of GPA (at constant exchange rate) grew +15%. Exito's promotional operations were also a success.
Organic growth (1) in Asia remained strong at +5.1% despite the macroeconomic and political situation in Thailand.
Converted into euro, total sales were slightly down, with a less negative foreign exchange effect than in Q1 2014 (-12.7%).
Very strong growth E-commerce activities sales;
Cdiscount: +18%, Nova Pontocom: +38% (in brl)
(1) Excluding petrol and calendar effect
***
France: BANNERS' PERFORMANCE - q2 2014
Sales in France stood at €4,847 million in Q2 2014, down 0.8%.
| SALES GROWTH | Total growth | Organic growth(1) | Organic growth (1) | ||
| (in €m) | Q2 2013(2) | Q2014 | Q2 2014 | Q2 2014 | Q1 2014 |
| Net sales before tax - France | 4,886.2 | 4,847.2 | -0.8% | -0.2% | -1.8% |
| o/w Géant Casino hypermarkets | 1,148.5 | 1,157.9 | +0.8% | +1.1% | +0.1% |
| o/w Casino supermarkets | 849.4 | 839.0 | -1.2% | -0.8% | -2.9% |
| o/w Proximity stores | 348.3 | 333.7 | -4.2% | -4.2% | -6% |
| o/w Franprix - Leader Price | 1,130.2 | 1,101.5 | -2.5% | -2.9% | -5.3% |
| o/w Monoprix | 1,013.4 | 1,009.6 | -0.4% | -0.6% | +0.6% |
| CHANGE IN SAME-STORE SALES, EXCL. PETROL | Excluding calendar effect | |||
| (in €m) | Q2 2014 | Q2 2014 calendar effect | Q2 2014 | Q1 2014 |
| Géant Casino hypermarkets | +2.1% | +1.0% | +1.1% | -0.1% |
| Casino supermarkets | -1.2% | +0.9% | -2.1% | -2.5% |
| Franprix | -3.0% | -0.9% | -2.1% | -3.7% |
| Leader Price | -8.8% | -0.2% | -8.6% | -9% |
| Monoprix | -1.0% | +0.2% | -1.2% | -0.8% |
(1)Excluding petrol and calendar effect
(2)2013 restated net sales, resulting from retrospective application of IFRS11(elimination in 2013 of proportional consolidation of the Group's joint ventures), are shown on page 8.This restatement is not taken into account in the changes presented in this table which are expressed in relation to Q2 2013 figures as published in 2013. The figures published in 2014 take into account the elimination of proportional consolidation.
- Géant Casino
Géant same-store sales excluding petrol grew by +2.1% in Q2 2014, marking an improvement relative to Q1 (+1.1% vs. -0.1% excluding calendar effect). Volumes and traffic continued to grow and are now up compared with the same period in 2012.
Same-store food sales grew by +3% excluding calendar effect buoyed by strong growth in volumes (+6.3%). Non-food volumes increased strongly relative to Q1 2014 (+3.5% vs. -1.1%).
- Casino Supermarkets
Same-store sales at Casino Supermarkets continued to be affected by the price cuts. They were down -1.2% (-2.1% excluding calendar effect), in improvement relatively to Q1. Traffic increased.
- Convenience stores
The sales performance of Convenience stores improved sequentially (-4.2% vs. -6% in Q1 2014) boosted by a better traffic. The banner successfully continued with the openings of franchised stores and accelerated its conversion of existing stores to the new formats.
- Franprix - Leader Price
Same-store sales(1) at Franprix improved sequentially in Q2 2014 (-2.1% vs.
-3.7% in Q1 2014). The banner has completed the rollout of its loyalty card throughout its store network.
Same-store sales(1) at Leader Price were down -8.6% (vs. -9% in Q1). The sales trend reflects the full impact of the price cuts implemented since the end of 2013. Volumes increased gradually during the quarter and traffic turned positive in June.
Total sales of Franprix-Leader Price improved sequentially in the second quarter (-2.5% vs. -4.4% in Q1 2014).
- Monoprix
Total sales at Monoprix stores remained almost stable in Q2 2014 despite the 9 p.m. store closing time for some stores, which had a -0.8% impact on same-store sales. The trend in food volumes remained satisfactory and textile performed well. Expansion continued at a dynamic pace with the opening of 6 integrated stores and 6 franchised stores.
(1) Excluding petrol and calendar effect
INTERNATIONAL: PERFORMANCE OF INTERNATIONAL SUBSIDIARIES IN THE SECOND QUARTER OF 2014
International organic growth was very strong at +12%.
Changes in average exchange rates had a negative effect of -12.7% compared with -18.4% in Q1 2014.
Growth in international sales in the 2nd quarter of 2014
| Total growth | Organic growth excl. petrol | Organic growth excl. petrol and calendar effect | Same-store growth excl. petrol | Same-store growth excl. petrol and calendar effect | |
| Latin America(2) | -0.7% | +13.7% | +12.3% | +10.0% | +8.6% |
| Asia | -7.6% | +4.3% | +5.1% | -2.3% | -1.5% |
In Latin America, same-store sales(1) grew by +8.6%. Organic growth excluding petrol was up to +13.7% compared to Q1 (+12.3% excluding calendar effect).
- GPA
In Brazil, GPA posted +9.8% growth in same-store sales excluding petrol (+8.7% excluding calendar effect).
At GPA, same-store sales of food banners posted a strong growth excluding petrol effect of +8.5% (+6.5% excluding calendar effect) and +15% in organic (at constant exchange rate), boosted by the strong performance of the supermarkets and very strong performance of Assaí.
Viaverejo same-store sales were up by +6.4% (vs. +3.8% in Q1 2014).
GPA continued its expansion in the second quarter, with the opening of 25 stores and in particular the first Minuto Pão de Açúcar (convenience format).
(1) Excluding petrol and calendar effect
(2) Changes calculated with Q2 2013 net sales as published; 2013 net sales adjusted for retrospective application of IRFS 11 (elimination of proportional consolidation of the Group's joint ventures) are shown on page 8.
- Exito Group
Organic (1) growth in Exito sales was positive. The growth benefited from the success of the key yearly promotional operations in Q2 2014 and a sustained pace of expansion, particularly through affiliates ("Aliados") in the Surtimax format (508 such stores had been opened at the end of Q2 2014).
Exito will publish its Q2 results on 23 July 2014.
In Asia, organic sales growth(1) stood at +5.1%, despite the macroeconomic and political situation in Thailand. Total sales were affected by a negative foreign exchange effect of -11.9%.
- Big C Thailand
Big C posted stronger organic growth (1) in Q2 2014 at (+4.6% vs. +3.3% in Q1 2014). Same-store sales (1) improved sequentially (-1.2% in Q2 2014 vs. -2.1% in Q1 2014).
Big C continued to expand both in terms of stores and shopping malls.
- Big C Vietnam
Big C Vietnam organic sales (1) were up by +9.4%. The banner continued to expand at a robust pace.
(1)Excluding petrol and calendar effect.
***
E-COMMERCE: STRONG GROWTH OF ACTIVITIES IN THE SECOND QUARTER OF 2014
- Cdiscount + Monshowroom
The volume of Cdiscount grew by +23.9% in the second quarter 2014. This strong growth is notably related to the marketplace where business grew by +85%.
| Total growth | |||
| Q2 2013(2) | Q2 2014 | Q2 2014 | |
| CHANGE IN NET SALES OF Cdiscount (in €m) | 278.0 | 326.6 | +17.5% |
| GMV(1) (Business volume) | 376.2 | 466.1 | +23.9% |
| Units sold | +27.0% |
- Nova Pontocom
Nova Pontocom's GMW grew 44.1% in the second quarter 2014 and sales increased by 37.5% in BRL.
| Total growth | |||
| Q2 2013(2) | Q2 2014 | Q2 2014 | |
| change in net sales(1) of Nova pOntocom (IN BRLM) | 950.3 | 1 306.9 | +37.5% |
| GMV(1) (Business volume) | 1,064.7 | 1,534.2 | +44.1% |
| Units sold | +37.0% |
(1) GMV: Gross Merchandise Volume (including tax)
(2) The sales are now recorded on receipt of the goods by customers instead of on shipment. The Q2 2013 figures have been adjusted accordingly.
***
APPENDICES
DETAILS AND SALES TRENDS
The 2013 net sales figures presented below ("Q2 2013 adjusted") have been restated for retrospective application of IFRS 11 eliminating 2013 proportional consolidation. The Group's joint-ventures are now accounted in equity. The main companies impacted by the application of IFRS 11 and now accounted in equity are:
- In France : Geimex (Leader Price international brand) in Q2 2013 and Q2 2014
- In Uruguay : Disco in Q2 2013 and Q2 2014
The adjusted Q2 2013 net sales figure presented below is €66.1 million lower than the published Q1 2013 net sales figure. The change concerns Disco and Geimex.
E-commerce activities sales are now recorded on receipt of the goods by customers instead of on shipment. The Q2 2013 figures have been adjusted accordingly, as well as rental income from GPA's malls.
2013 SALES ADJUSTED FOR IMPACT OF RETROSPECTIVE APPLICATION OF IFRS 11 AND 2014/ADJUSTED 2013 CHANGES
| In €m | Q2 2013 published | Q2 2013 adjusted | Q2 2014 | Change Q2 2014/adjusted Q2 2013 | |||
| Total growth | |||||||
| Total continuing activities | 12,085.5 | 12,019.4 | 11,932.6 | -0.7% | |||
| France | 4,886.2 | 4 864,0 | 4 847,2 | -0.3% | |||
| o/w Géant Casino hypermarkets | 1,148.5 | 1,148.5 | 1,157.9 | +0.8% | |||
| o/w Casino supermarkets | 849.4 | 849.5 | 839.0 | -1.2% | |||
| o/w Proximity stores | 348.3 | 347.6 | 333.7 | -4.0% | |||
| o/w Franprix - Leader Price | 1,130.2 | 1,119.0 | 1,101.5 | -1,6% | |||
| o/w Monoprix | 1,013.4 | 1,013.4 | 1,009.6 | -0.4% | |||
| o/w Cdiscount and Monshowroom | 288.4 | 278.0 | 326,6 | +17.5% | |||
| o/w Mercialys | 30.8 | 30.7 | 0,0 | n.s. | |||
| International | 7,199.3 | 7,155.5 | 7 085,3 | -1.0% | |||
| Latin America | 6,057.1 | 6,013.2 | 6 017,1 | +0.1% | |||
| Asia | 932.4 | 932.4 | 861.6 | -7.6% | |||
| Other sectors | 209.8 | 209.8 | 206.6 | -1.6% | |||
MAIN CHANGES IN THE SCOPE OF CONSOLIDATION
- Full consolidation of Monshowroom as of 2 September 2013.
Main changes in scope within the Franprix-Leader Price group in France following integration of regional networks:
- Full consolidation of GUERIN as of 30 June 2013
- Full consolidation of NORMA stores as of 31 July 2013
- Deconsolidation of Volta 10 as of 30 September 2013
EXCHANGE RATES
| Average exchange rates | Q2 2013 | Q2 2014 | Change effect | |||
| Argentina (EUR/ARS) | 6.7345 | 10.7101 | -37.1% | |||
| Uruguay (EUR/UYP) | 25.4438 | 30.9096 | -17.7% | |||
| Thailand (EUR/THB) | 39.2025 | 44.6170 | -12.1% | |||
| Vietnam (EUR/VND) (x 1000) | 27.3568 | 28.8474 | -5.2% | |||
| Colombia (EUR/COP) (x 1000) | 2.3995 | 2.6856 | -10.7% | |||
| Brazil (EUR/BRL) | 2.6688 | 3.1499 | -15.3% | |||
PERIOD-END STORE NETWORK: FRANCE
| France | 31 Dec. 2013 | 31 March 2014 | 30 June 2014 | |||
| Géant Casino hypermarkets | 126 | 126 | 126 | |||
| Of which French Affiliates | 7 | 7 | 7 | |||
| International Affiliates | 9 | 9 | 9 | |||
| + service stations | 97 | 97 | 97 | |||
| Casino supermarkets | 444 | 444 | 444 | |||
| Of which French Franchise Affiliates | 60 | 58 | 60 | |||
| International Franchise Affiliates | 34 | 34 | 32 | |||
| + service stations- | 176 | 176 | 177 | |||
| Monoprix | 584 | 593 | 601 | |||
| Of which Franchise outlets/Affiliates | 162 | 172 | 174 | |||
| Naturalia | 77 | 78 | 79 | |||
| Naturalia Franchise outlets | 1 | 1 | 2 | |||
| Franprix | 885 | 882 | 886 | |||
| Of which Franchise outlets | 344 | 340 | 345 | |||
| Leader Price | 619 | 673 | 728 | |||
| Of which Franchise outlets | 120 | 129 | 189 | |||
| Total supermarkets and discount stores | 2,532 | 2,592 | 2,659 | |||
| CONVENIENCE | 7,347 | 7,147 | 6,821 | |||
| Other businesses (Cafeterias, Drive, etc.) | 512 | 534 | 549 | |||
| TOTAL France (excluding service stations) | 10,517 | 10,399 | 10,155 | |||
| International | 31 Dec. 2013 | 31 March 2014 | 30 June 2014 | |||||
| ARGENTINA | 22 | 22 | 26 | |||||
| Libertad hypermarkets | 15 | 15 | 15 | |||||
| Other businesses | 7 | 7 | 11 | |||||
| URUGUAY | 54 | 54 | 54 | |||||
| Géant hypermarkets | 2 | 2 | 2 | |||||
| Disco supermarkets | 28 | 28 | 28 | |||||
| Devoto supermarkets | 24 | 24 | 24 | |||||
| BRAZIL | 1,999 | 2,008 | 1,992 | |||||
| Extra hypermarkets | 138 | 141 | 137 | |||||
| Pao de Açucar supermarkets | 168 | 166 | 166 | |||||
| Extra supermarkets | 213 | 213 | 213 | |||||
| Assai discount stores | 75 | 77 | 78 | |||||
| Extra Facil and Mini Mercado Extra superettes | 164 | 168 | 184 | |||||
| Casas Bahia | 602 | 608 | 611 | |||||
| Ponto Frio | 397 | 393 | 361 | |||||
| Drugstores | 157 | 159 | 159 | |||||
| + service stations | 85 | 83 | 83 | |||||
| COLOMBIA | 739 | 851 | 982 | |||||
| Exito hypermarkets | 85 | 85 | 85 | |||||
| Exito and Carulla supermarkets | 145 | 145 | 146 | |||||
| Surtimax discount stores | 415 | 528 | 658 | |||||
| o/w "Aliados" | 269 | 379 | 508 | |||||
| Exito Express and Carulla Express | 91 | 90 | 90 | |||||
| Other | 3 | 3 | 3 | |||||
| THAILAND | 559 | 580 | 616 | |||||
| Big C hypermarkets | 119 | 121 | 123 | |||||
| Big C supermarkets | 30 | 30 | 32 | |||||
| Mini Big C superettes | 278 | 295 | 313 | |||||
| Pure | 132 | 134 | 148 | |||||
| VIETNAM | 35 | 36 | 38 | |||||
| Big C hypermarkets | 25 | 26 | 28 | |||||
| Proximity stores | 10 | 10 | 10 | |||||
| INDIAN OCEAN | 131 | 129 | 131 | |||||
| TOTAL International | 3,539 | 3,680 | 3,839 | |||||
