Good performance by the convenience formats in France
Double-digit growth in International operations
Consolidated net sales rose by a sustained 5.6% in the first quarter of 2010.
* *
In France, the sales trend improved in the first quarter, with organic sales excluding petrol slightly down (0.9%) versus a 2.7% decrease in fourth-quarter 2009.
– All of the convenience formats (Casino Supermarkets, Monoprix, Superettes and Franprix) reported a tangible improvement in performance, with a gain in total sales for the period.
– Cdiscount maintained its strong sales momentum.
– The sales trend at Géant Casino and Leader Price gradually improved over the quarter, reflecting the initial impact of reinvesting the gains from the pooled purchasing of private-label and value-line products.
International operations, which represented 36% of sales, saw a sharp acceleration in organic growth, to 10.6% from 4.8% in fourth-quarter 2009.
– Operations in South America reported double-digit (13.3%) growth, impelled notably by the very strong gains in Brazil.
– In Asia, organic growth remained brisk, rising 7.3% on the back of firm sales in Thailand and sustained strong growth in Vietnam.
In all, the solid first-quarter performance attested to the good positioning of the Group’s business portfolio:
– A favourable business mix in France, weighted towards the convenience and discount formats, and leadership in the non-food e-commerce segment.
– In international markets, leadership positions in countries with high growth potential.
Internationally, the quality of the Group’s assets should drive further strong and profitable growth.
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Excluding petrol, sales ended the period down a slight 0.9%, compared with a 2.7% decline in fourth-quarter 2009.
The first quarter therefore saw a tangible improvement in the sales trend, led by a good performance across all of the convenience formats.
Franprix/Leader Price
Franprix’s same-store sales rose 0.6%, driven by a 0.8% increase in footfalls. The banner’s attractiveness has been enhanced by the faster deployment of the new store concept, with 34 units upgraded during the quarter versus 39 in all of 2009. The impact has been highly satisfactory, with double-digit sales gains at the renovated stores.
Géant Casino sales declined by 4.7% on a same-store basis, excluding petrol.
The average basket was stable, up 0.2%, footfalls were down 4.9%.
Convenience stores
Casino Supermarkets’ same-store sales improved tangibly over the quarter, declining by 1% year-on-year, compared with a 3.4% decrease in fourth-quarter 2009. Average spend rose by 0.7%, led by the banner’s expertise in fresh and chilled food products.
Excluding petrol, total sales were up 1.2%.
Led by growth in both food and non-food business, Monoprix reported a solid 2.3% increase in same-store sales, an excellent performance that once again demonstrated the success of the banner’s differentiated positioning.
A Citymarché unit and two Naturalia stores were opened during the period.
Total sales were up 3.4%.
Superette sales eased back a limited 1.2% in the first quarter, as the favourable impact of new franchisees was offset by sustained rationalisation of the store base.
Other businesses
Cdiscount maintained strong sales growth. New initiatives are being planned to strengthen the company’s growth momentum, such as the possibility of picking up purchases in Géant Casino and superette stores and the development of private label products.
In all, sales by the other businesses (Cdiscount, Mercialys, Casino Cafeteria and Banque Casino) rose by 6.4% over the quarter.
The favourable impact of Ponto Frio’s consolidation by Grupo Pão de Açúcar (GPA) was offset by the deconsolidation of Venezuelan operations as of 1 January 2010, leading to a negative 4.5% impact from changes in the scope of consolidation.
In South America, same-store sales rose 10.5% over the quarter (versus 4.4% in 2009), lifted by double-digit growth in Brazil and improved sales both in Colombia and Argentina.
– GPA’s same-store sales rose 18.1%*, led by both food and non food. All of the banners contributed to this excellent performance. E-business sales increased by a very strong 65.3% including VAT. Reported sales surged 50.2%* on the consolidation of Ponto Frio, which saw a sustained turnaround with sales up more than 50% over the period.
– In Colombia, Exito saw a tangible 2.6% improvement in same-store sales, while expansion drove a 3.7%* increase as reported.
• Ponto Frio has been consolidated by the Grupo Pão de Açúcar (GPA) since 1 July 2009.
• Following the acquisition, GPA launched a rights issue, which had the effect of reducing Groupe Casino’s stake from 35.0% at 30 June to 33.7% as of 21 September 2009.
• On 17 January 2010, President Hugo Chavez announced the nationalisation of the Exito hypermarkets operated in Venezuela. Talks are still underway with the government with a view to selling a majority stake in Cativen, the company which consolidates all the Group operations in Venezuela. Venezuelan operations have no longer been fully consolidated since 1 January 2010.
Press Contacts
Caroline Simon, +33 (0)1 53 70 74 65, caroline.simon@image7.fr
Karine Allouis, +33 (0)1 53 70 74 81, kallouis@image7.fr
Investors Contacts
Nadine COULM, +33 (0)1 53 65 64 17, ncoulm@groupe-casino.fr
Aline NGUYEN, +33 (0)1 53 65 64 85, anguyen@groupe-casino.fr
Saint-Etienne –14 April 2010
