Q2 2015 SALES
- Improved activity in France:
Return to growth at Géant and recovery at Leader Price
- Increase in food sales in Brazil
- Strong growth of the E-commerce business
- In France, improved activity: growth in organic sales (+0.4%) and in same-store sales (+0.1%); customer traffic up +2.4% and volumes up +1.8%
- Return to growth at Géant: same-store sales up +2.0%(1) driven by increased traffic (+4.0%) and volumes (+5.0%)
- Recovery at Leader Price: same-store sales by -0.9% compared with -7.1% in Q1; growth in traffic (+7.0%) and market share gain since the beginning of the year (+0.2pt over the most recent Kantar period)
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- Internationally:
- In Latin America:
- Food sales up by +6.1% on an organic basis: good performance by food banners in Brazil (GPA Food) (+7.3% in organic sales after +7.1% in Q1) supported by traffic growth
- Via Varejo: decline in sales explained partly by the high comparison base related to the World Cup and partly by the difficult macroeconomic environment in which, Via Varejo made market share gains (+0.7pt to 26.1% year-to-date at the end of May 2015(2))
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- In Asia, increased volumes and good traffic performance in Thailand, with continued expansion
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- E-commerce: GMV increase of +25.8% at constant exchange rates(3)
Jean-Charles Naouri, Chairman and Chief Executive Officer of Casino group stated:
"This 2015 second quarter was marked by the return to growth at Géant after almost two years of price cuts. Leader Price anchored its recovery through continued market share gains since the beginning of the year. Regarding Brazil, GPA food sales increased in a lackluster economic environment which affected durable goods sales. Cnova recorded strong growth of it sales."
In the second quarter of 2015, the Group's consolidated sales were impacted by a negative currency effect of -2.8% and a calendar effect of -0.7%. Excluding changes in scope of consolidation (+2.6%) and the calendar effect, organic growth was virtually unchanged compared with 2014, despite the macroeconomic environment in Brazil.
SALES TRENDS BY SECTOR
| BY SECTOR | Q1 2015 / Q1 2014 change | Q2 2015 / Q2 2014 change | |||||||
| in €M | Q1 2015 | Total growth | Organic growth | Same-store growth | Q2 2015 | Total growth | Organic growth | Same-store growth | |
| France Retail | 4,426 | -2.1% | -1.3% | -1.6% | 4,710 | -0.4% | +0.4% | +0.1% | |
| Latam Retail | 3,870 | +10.2% | +6.1% | +2.6% | 3,933 | +3.7% | +6.1% | +2.4% | |
| Latam Electronics | 1,666 | -0.8% | -1.3% | -2.7% | 1,258 | -30.0% | -21.8% | -23.6% | |
| Asia | 1,043 | +25.4% | +3.7% | +0.3% | 1,032 | +20.0% | -1.6% | -2.9% | |
| E-commerce | 906 | +17.7% | +17.3% | +17.0% | 824 | +9.0% | +15.7% | +15.7% | |
| TOTAL GROUP | 11,911 | +5.3% | +2.7% | +1.2% | 11,757 | -1.5% | -0.4% | -2.2% | |
| Note: Organic and same-store changes exclude petrol and calendar effects |
- France Retail
| Q1 2015 / Q1 2014 change | Q2 2015 / Q2 2014 change | |||||||
| BY BANNER | Organic growth | Same-store growth | Organic growth | Same-store growth | ||||
| Sales | Sales | Customers | Volumes | Sales | Sales | Customers | Volumes | |
| Hypermarkets(1) | -1.5% | -1.5% | -0.4% | +2.4% | +1.7% | +1.7% | +3.9% | +4.7% |
| o/w Géant Casino | -1.5% | -1.5% | -0.5% | +2.6% | +2.0% | +2.0% | +4.0% | +5.0% |
| SM Casino | -3.7% | -1.4% | -1.5% | -0.2% | -3.7% | -2.3% | -0.6% | -0.8% |
| Monoprix | +0.9% | +0.3% | -0.5% | +0.9% | +2.3% | +0.7% | +0.4% | +0.8% |
| FP-LP | -2.4% | -5.6% | -3.3% | -3.6% | -0.6% | -1.8% | +2.2% | -0.6% |
| o/w Franprix | -6.6% | -3.2% | -4.3% | -5.5% | -7.0% | -3.0% | -1.6% | -4.2% |
| o/w Leader Price | +0.8% | -7.1% | -1.9% | -2.6% | +4.2% | -0.9% | +7.0% | +1.3% |
| Convenience & Other(2) | -0.3% | +1.3% | +5.2% | +6.5% | +1.6% | +2.4% | +7.5% | +9.9% |
| o/w Convenience | +0.4% | +5.4% | +9.1% | +15.3% | +4.2% | +7.5% | +13.0% | +25.1% |
| FRANCE RETAIL | -1.3% | -1.6% | -0.5% | +0.3% | +0.4% | +0.1% | +2.4% | +1.8% |
In France, activity improved in Q2 2015 with growth of organic and same-stores sales of +0.4% and +0.1% respectively.
The two banners in which prices were cut significantly, Géant and Leader Price, confirmed their commercial recovery.
· At Géant, a store renovation programme was initiated in Q2 2015. This included the introduction of new concepts and innovative business operations ("Round Prices", "What's New" etc.) and the strengthening of synergies with other Group companies (Cdiscount, Éxito apparel, etc.).
· The gain in new customers and increased purchasing frequency allowed Leader Price to gain in market share: +0.1pt year-to-date at 14 June 2015, +0.2pt of which was over the last Kantar period. The banner, which strengthened the attractiveness of its stores through numerous sales initiatives during the quarter, continued to increase its network in the territory with 1,225 stores at the end of June 2015 (including affiliates and Leader Price Express stores).
· Monoprix posted good sales with increased volumes and traffic growth in Q2 2015. Expansion continued, with 11 store openings. The Naturalia banner opened stores at a highly satisfactory rate and unveiled its 100th store in May 2015.
· Total sales at Franprix continued to be impacted by store disposals at the request of the French Competition Authority. Same-store sales improved as a result of the banner's recovery in traffic. This trend is expected to continue over the coming quarters with the deployment of the new Mandarine ("Tangerine") concept.
· Traffic improved in Casino supermarkets. Sales still included a residual effect from price cuts.
· Convenience stores continued to improve their performance in Q2 2015 with same-store growth (+7.5%). The quarter was marked by a steady rate of openings, demonstrating the attractiveness of the banners. The shops continued to benefit from network renewal measures and new concepts.
| (1) Including Géant Casino and mainly activities of 4 Codim stores in Corsica |
- Latin America
Food sales in Latin America remained at a good level (+6.1% organic growth and +2.4% same-store growth, after +6.1% and +2.6% respectively in Q1), driven by all subsidiaries.
· In Brazil, GPA food sales performed well in Q2 2015, with sustained growth in organic sales (+7.3%) and increased traffic and volumes (+4.8% and +6.9% respectively) despite a high base and the challenging macroeconomic environment. The store-remodelling programme initiated in Q2 provided encouraging results that are expected to continue in the next quarters.
| Q1 2015 / Q1 2014 change | Q2 2015 / Q2 2014 change | |||||||||
| GPA Food (Multivarejo and Assai) | Organic growth | Same-store growth | Organic growth | Same-store growth | ||||||
| Sales | Clients | Volumes | Sales | Sales | Clients | Volumes | Sales | Clients | Volumes | |
| +7.1% | +0.2% | +1.6% | +2.8% | +7.3% | +4.8% | +6.9% | +2.4% | +0.4% | +0.0% | |
· Éxito sales continued to be satisfactory, with same-store growth of +0.2% and organic growth of +1.2%, supported by an increase in traffic of +0.7% and in volumes of +0.1% on an organic basis.
The total growth of the Latam Retail sector was impacted by a negative currency effect of -8.2%.
GPA published its Q2 2015 sales on 13 July 2015.
Éxito will publish its Q2 2015 earnings on 29 July 2015.
- Latam Electronics
In Brazil, the sharp decline in Via Varejo sales is explained partly by the base effect related to the World Cup and partly by an environment affected by the strong recession in the durable goods sector. Total sales were impacted by the store closures requested by the Brazilian Competition Authority (CADE) and the negative foreign exchange effect. In this challenging environment, Via Varejo continued to gain market share from its competitors (+0.7pt to 26.1% year-to-date at the end of May 2015(1)). The base effect related to the World Cup is ending in July 2015.
Note that the Group's economic interest in Via Varejo amounts to 18%.
Via Varejo published its Q2 2015 sales on 13 July 2015.
- Asia
| Q1 2015 / Q1 2014 change | Q2 2015 / Q2 2014 change | |||||||
| Big C Thailand | Organic growth | Same-store growth | Organic growth | Same-store growth | ||||
| Sales | Sales | Sales | Clients | Volumes | Sales | Clients | Volumes | |
| +2.2% | -0.2% | -1.6% | +3.6% | +3.7% | -2.4% | -0.3% | +1.1% | |
In Thailand, Big C volumes grew and customer traffic was sustained. The banner continued to increase its operational efficiency gains and to roll out its store network.
Big C Vietnam continued its expansion.
Big C Thailand published its Q2 2015 sales on 13 July 2015.
| (1) Independent panelists and institutes |
- E-commerce
In Q2 2015, Cnova recorded strong growth of its activity. GMV totalled €1,154 million, up +25.8% at constant exchange rates(1). The increase in marketplaces remained high for both geographic regions, France and Brazil. Traffic increased by +38.9% with 396 million visits during the quarter.
Cnova published its Q2 2015 sales on 10 July 2015.
| E-COMMERCE (CNOVA) | Q2 2014 | Q2 2015 | Total growth | Growth at constant exchange rates |
| GMV(1) including tax | 968 | 1,154 | +19.2% | +25.8% |
| Traffic (visits in millions) | 285 | 396 | +38.9% | |
| Active customers(2) (in millions) | 12.3 | 15.0 | +22.8% | |
| Orders(3) (in millions) | 6.9 | 8.8 | +27.3% | |
| Units sold (in millions) | 11.6 | 14.7 | +26.3% |
***
(1) GMV: Gross Merchandise Volume, data published by the subsidiary
(2) Active customers at the end of June having purchased at least once through our sites over the last 12 months
(3) Total orders placed before cancellation due to fraud or customers not paying for their order
APPENDICES
Details and sales trends in Q2 2015
Organic growth is growth at constant scope of consolidation and exchange rates, excluding petrol and calendar effect, unless otherwise mentioned.
Main changes in the scope of consolidation
- Full consolidation of Super Inter from 16 October 2014
- Full consolidation of Disco at 1st January 2015
Evolution of sales by banner in France
| BY BANNER | Q1 2015 / Q1 2014 change | Q2 2015 / Q2 2014 change | |||
| in €m | Q1 2015 | Total growth | Q2 2015 | Total growth | |
| Hypermarkets(1) | 1,053 | -3.8% | 1,156 | +0.0% | |
| o/w Géant Casino | 995 | -3.9% | 1,088 | +0.1% | |
| SM Casino | 741 | -5.7% | 801 | -4.5% | |
| Monoprix | 1,016 | +0.6% | 1,031 | +2.1% | |
| FP-LP | 1,013 | -1.8% | 1,087 | -1.3% | |
| o/w Franprix | 418 | -6.3% | 424 | -7.1% | |
| o/w Leader Price | 595 | +1.6% | 663 | +2.8% | |
| Convenience & Other(2) | 602 | +0.8% | 635 | +2.2% | |
| o/w Convenience | 325 | +2.1% | 352 | +5.4% | |
| FRANCE RETAIL | 4,426 | -2.1% | 4,710 | -0.4% | |
Exchange rates
| average exchange rates | Q2 2014 | Q2 2015 | Currency effect |
| Argentina (EUR/ARS) | 11.0456 | 9.8982 | +11.6% |
| Uruguay (EUR/UYP) | 31.4623 | 29.3754 | +7.1% |
| Thailand (EUR/THB) | 44.5102 | 36.8000 | +21.0% |
| Vietnam (EUR/VND) (x 1,000) | 28.8788 | 23.8682 | +21.0% |
| Colombia (EUR/COP) (x 1,000) | 2.6224 | 2.7623 | -5.1% |
| Brazil (EUR/BRL) | 3.0583 | 3.3981 | -10.0% |
(1) Including Géant Casino and mainly activities of 4 Codim stores in Corsica
(2) Others: mostly Vindémia and Cafeterias
Period-end store network
| FRANCE | 31 Dec. 2014 | 31 Mar. 2015 | 30 June 2015 | ||||
| Géant Casino Hypermarkets | 127 | 127 | 127 | ||||
| of which French Affiliates | 7 | 7 | 7 | ||||
| International Affiliates | 10 | 10 | 10 | ||||
| Casino Supermarkets | 444 | 443 | 437 | ||||
| of which French Franchised Affiliates | 63 | 65 | 60 | ||||
| International Franchised Affiliates | 32 | 33 | 33 | ||||
| Monoprix | 632 | 639 | 647 | ||||
| of which Franchises/Affiliates | 186 | 188 | 191 | ||||
| Naturalia | 90 | 93 | 99 | ||||
| Naturalia franchises | 2 | 3 | 3 | ||||
| Franprix | 860 | 856 | 864 | ||||
| of which Franchises | 323 | 320 | 326 | ||||
| Leader Price(1) | 801 | 832 | 835 | ||||
| of which Franchises | 207 | 208 | 187 | ||||
| Total Supermarkets and Discount | 2,737 | 2,770 | 2,783 | ||||
| Convenience | 6,825 | 6,884 | 6,949 | ||||
| Other businesses (Cafeterias, Drive, etc.) | 598 | 605 | 611 | ||||
| Indian Ocean(2) | 129 | 129 | 137 | ||||
| TOTAL France | 10,416 | 10,515 | 10,607 | ||||
| INTERNATIONAL | 31 Dec. 2014 | 31 Mar. 2015 | 30 June 2015 | ||||
| ARGENTINA | 27 | 27 | 27 | ||||
| Libertad Hypermarkets | 15 | 15 | 15 | ||||
| Other | 12 | 12 | 12 | ||||
| URUGUAY | 54 | 54 | 56 | ||||
| Géant Hypermarkets | 2 | 2 | 2 | ||||
| Disco Supermarkets | 28 | 28 | 28 | ||||
| Devoto Supermarkets | 24 | 24 | 24 | ||||
| Devoto Superettes | 0 | 0 | 2 | ||||
| BRAZIL | 2,143 | 2,159 | 2,182 | ||||
| Extra Hypermarkets | 137 | 137 | 137 | ||||
| Pao de Açucar Supermarkets | 181 | 181 | 180 | ||||
| Extra Supermarkets | 207 | 206 | 204 | ||||
| Assai discount stores | 84 | 87 | 87 | ||||
| Mini Mercado Extra | 256 | 270 | 288 | ||||
| Casas Bahia | 663 | 666 | 683 | ||||
| Ponto Frio | 374 | 371 | 364 | ||||
| Drugstores | 158 | 158 | 157 | ||||
| + Service stations | 83 | 83 | 82 | ||||
| COLOMBIA | 1,258 | 1,397 | 1,582 | ||||
| Exito Hypermarkets | 82 | 81 | 81 | ||||
| Exito and Carulla Supermarkets | 153 | 153 | 153 | ||||
| Super Inter | 46 | 52 | 57 | ||||
| Surtimax (discount) | 874 | 1,007 | 1,187 | ||||
| of which "Aliados" | 721 | 858 | 1,038 | ||||
| Exito Express and Carulla Express | 102 | 103 | 103 | ||||
| Other | 1 | 1 | 1 | ||||
| THAILAND | 636 | 643 | 665 | ||||
| Big C Hypermarkets | 123 | 123 | 124 | ||||
| Big C Supermarkets | 37 | 37 | 40 | ||||
| Mini Big C Superettes | 324 | 328 | 342 | ||||
| Pure | 152 | 155 | 159 | ||||
| VIETNAM | 40 | 40 | 41 | ||||
| Big C Hypermarkets | 30 | 30 | 31 | ||||
| Convenience | 10 | 10 | 10 | ||||
| TOTAL International | 4,158 | 4,320 | 4,553 | ||||
(1) 1,225 stores at the end of June 2015, including affiliates and Leader Price Express stores
(2) Before 30 September 2014, this line was included in the International total
ANALYST AND INVESTOR CONTACTS
Régine GaggioliI - 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
