Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on CASINO GUICHARD PERRACHON. We currently have 11 research reports from 1 professional analysts.
Frequency of research reports
Research reports on
CASINO GUICHARD PERRACHON
CASINO GUICHARD PERRACHON
GPA harms Casino’s margins
08 Mar 17
The group’s EBITDA amounted to €1,762m and the underlying operating profit stood at €1,080m. As expected, the margin collapse at GPA negatively impacted the group’s despite the enhancement in France’s profitability. The e-commerce activity has started to deliver a positive performance driven by the developments in the marketplace but mainly by the disposal of the loss-making asset, Cnova Brazil. The net result increased to €2,679m, taking into account a substantial gain on asset disposals. Adjusted, it attained only €341m, i.e. a 4.5% decline compared to 2015. The deleveraging plan has allowed Casino to reduce its net debt, to €3,032m (halved compared to 2015). Casino maintains its €3.12 dividend per share. Regarding the 2017 outlook, management expects margins to rise, driven by the French operations.
Robust LatAm, not the core business
17 Jan 17
Growth in the domestic market has slowed over the last quarter (-0.5%). Total French sales were impacted by the transfer of stores to franchise. Only Monoprix and Casino supermarkets have posted positive growth and did better than in Q3. In LatAm, GPA and Exito performed well with 7.5% same-store-growth. Benefiting from a positive FX impact, total sales came in at €15,247m, i.e. +22.5%. Casino’s group sales stood at €36,030m as Via Varejo (LatAm non-food) and Nova Brazil (its online business) have been reclassified under discontinued operations. Casino reiterated its €500m trading profit target for the French operations.
Sales slowdown in France and currency gains in Brazil
13 Oct 16
Q3 sales progressed by 6.7% yoy to €10,425m, mainly driven by the LatAm retail business accounting for 37.14% of group sales (vs. 35.1% in Q2 16 and 30.0% in Q3 15). Casino derives 45.7% of its sales from its domestic market where growth slowed due to an underperforming non-food business hit by unfavourable weather conditions and the decline in tourist activity in Paris. The transfer of stores to franchisees and the closure of loss-making ones have remarkedly pulled down Leader Price, Franprix and Convenience’s total sales. Casino’s e-commerce business was hammered by Cnova Brazil (negative sales momentum for non-food products) while Cdiscount France is delivering strong results (+5.6% net sales growth).
Confirmed recovery in the domestic market
29 Jul 16
H1 sales reached €19,673m, driven by solid growth in the domestic market and the resilient food business in LatAm, while Electronic and E-commerce operations remained frugal. The non-food business underperformance offset the recovery in French profitability, bringing the group’s trading profit to €317m. Net profit took advantage of the capital gain through the disposal of the Asian assets, reaching €2,581m. The deleveraging plan brings the net debt to €6,343m, of which 63% is controlled by the parent company. The interim dividend is set at €1.56 per share vs. the €3.12 dividend in our model for the full year. The share price follows a positive trend this morning.
Electronic business returns to positive territory
13 Jul 16
Casino announced negative growth for this Q2 16, although this was an improvement compared to the beginning of the year. Q2 revenue growth was up by 3.8% on an organic basis vs. 1.5% in Q1 16. All divisions experienced organic and same stores growth except for e-commerce. On same stores growth, all banners helped to sustain the positive trend in its domestic market, while Monoprix took a wrong step. LatAm food experienced a strong improvement, driven by double-digit growth in the Assai banner and proximity. The sharp contraction in Cnova (e-commerce in Brazil) hammered the online business, while French Cdiscount continued to deliver strong results. Hypermarkets are doing better than convenience and the improvement in Via Varejo sales was unexpected. H1 revenues amounted to €19,673m, i.e. an 8.9% decline on a comparable basis (excluding Asian Food).
LatAm pulls down Casino's Q1 16 sales
14 Apr 16
Q1 16 sales (with the Asian asset disposal accounted under discontinued operations) reached €9,707m vs. €10,807m in Q4 15. Q1 sales displayed -0.7% same store growth, affected by negative sales momentum in LatAm Electronics and an underperforming E-commerce business. Q1 was also impacted by a negative foreign exchange effect of -14.3%, in part offset by a positive scope effect of +0.9%. The improving French Non-food business and LatAm Food operations moderated the downward trend in sales. Accounting for 47% of group sales, all French banners experienced same store growth, except for Monoprix. Assaí, the Brazilian cash & carry format, stood out, driven by its strong value perception in a rising inflation context.
Retail sales still in trouble
17 Mar 17
Excluding fuel, Sainsbury’s Q4 retail sales were down on a lfl basis vs. a 0.1% uptick over the Q3. Following this disappointing quarter, FY 2016/17 retail revenues declined by 0.6% on a lfl basis. Including fuel, this came in at 0.2%. Argos’s sales delivered strong 4.3% lfl growth. Together, Sainsbury’s and Argos’s lfl sales were by up 0.3%. Sainsbury continues to lag behind Morrisons, the latter’s sales impressed with 2.5% lfl growth over the last quarter and 1.7% over the whole year. Regarding the outlook, management remains cautious about the highly competitive market and the cost price pressure impact.
Argos and broader non-food offer to defend market share
28 Sep 16
Q2 total sales fell by 0.4% and by 1.1% on a lfl basis. The retail business (excluding Argos) generated almost flat sales compared to Q2 15 but was still experiencing a negative trend on a lfl basis. The good news came from Argos’s recovering business, where revenues impressed with 2.8% growth in H1 following a promising Q2. Sainsbury strengthened its network by opening nine new convenience stores and one supermarket. Sales of groceries online showed an 8% increase (in line with last quarter’s) despite the decrease in both customer orders and basket size. The stock lost 3.27% this morning.
More convincing on its home turf
19 Oct 16
Q3 16 sales including VAT came in at €21,781m, leading the total sales from the beginning of the year to €62.33bn. Q3 revenues progressed by 3.2% on a lfl basis driven by accelerated growth on its home turf (1.2%) and resilient business in Brazil (12.4%). In France, the supermarkets and convenience stores are the main growth drivers. In China, struggling operations witnessed a continuous fall in sales of 7.8% on a lfl basis. Carrefour faces also a difficult time in Poland where sales were slightly down.
Lower than expected margin
24 Oct 16
Jeronimo Martins released strong Q3 sales growth leading to a 5.5% rise over the last nine months. Total sales reached €10,738m and EBITDA stood at €626,9m, i.e. an EBITDA margin at 5.8%, flat compared to 2015. The 9M net result came in at €501.6m, including gains from the Monterroio disposal for €224m. Adjusted net profit amounted to €266m, 5.6% yoy, boosted by a lower cost of debt. Biedronka remains the main driver for both the group’s top-line and profitability which offset a slight decrease in the Polish business margin (10bp). The underperformance of Ara and Hebe is more pronounced this year due to Ara’s network expansion (expected to be above 2015’s level). Despite the substantial capex, JM continues to enjoy a solid balance sheet with a lower debt burden (reaching €326m vs. €658m in 2015).
On the right track
05 Oct 16
THe Q2 figures witnessed a third consecutive lfl positive growth leading to a H1 16 sales improvement of 1.0% on a lfl basis. H1 sales stood at £24.4bn (£27,338m including fuel) following a promising Q2 (0.9% in the UK and 2.1% for international markets). Tesco’s sales have benefited from the increase in both volume and transactions in all markets. All formats – including the largest and the Extra formats – saw an improving trend in lfl sales performance throughout the half. H1 operating profit came in at £596m, i.e. a 2.2% operating margin and management expects £1.2bn for the whole year. This positive trend in the margin will continue according to management and reach 3.5-4.0% by 2019/20. Net debt decreased to £4,352m but total indebtedness surged by £3,400m with a ballooning pension deficit due to low UK bond yields, in the aftermath of Brexit.