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Research Tree provides access to ongoing research coverage, media content and regulatory news on CASINO GUICHARD PERRACHON. We currently have 10 research reports from 1 professional analysts.
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CASINO GUICHARD PERRACHON
CASINO GUICHARD PERRACHON
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.
First deficit after €640m average gain over last nine years
10 Mar 16
Casino released its FY2015 consolidated net sales at €46.1bn, up +1.6% at constant exchange rates. Affected by the economic slowdown in Brazil (mainly for non-food businesses), the sharp decline in foreign currency (Brazilian and Colombian respectively by -13% and -15.7%) and the disappointing result in H1 in the French market, the EBITDA margin fell to 5% vs. 6.5% in 2014. The currency impact on EBITDA is about €-156m. As part of its dual business model, Casino generated €167m from its property development activities, contributing 7% to consolidated EBITDA. Financial costs and other expenses accounted for 56% of trading profit, leading to a negative net profit (€-43m vs. €640m gains on average over 2006-14).
17 Jan 17
Greggs' trading update confirmed that it delivered a stronger than expected finish to FY16, leaving it well placed to face the margin pressures that will affect the entire industry in FY17. We expect only modest changes to FY17 estimates when FY16 results are released and therefore continue to value the shares at 1,189p.
In line with expectations
12 Oct 16
Greggs enjoys a differentiated position in the growing food-to-go market. Its strategy to enhance its offer and improve the efficiency with which it delivers that offer has yielded good results so far and remains on track. Although the industry faces input cost headwinds in FY17, Greggs has the financial strength to withstand them and the benefit of the continuing strategic initiatives to offset them.
More in the oven
26 Feb 16
The investment case remains quite compelling given further internally driven top-line and margin enhancement potential. Greggs is now entering year 3 of a 5 year ransformation programme, so there is still a lot more to do. Whilst an FY16 P/E of 18x looks up with events, we feel there is good momentum for upgrades to flow through as 2016 progresses and for the shares to outperform.
N+1 Singer - Northern lights - Shining prospects for 2017
16 Jan 17
As the birthplace of Stephenson, Armstrong and Swan, the North East of England has a proud history of industrial and technological innovation. Despite local economic challenges, the region’s industrial heritage lives on through continuing success in high end engineering and technology. The recent takeovers of private equity backed SMD (subsea robotics) and Nomad Digital (wi-fi on the railways) are testament to this. The North East has also emerged as a leader in genetics and genomics with an enviable life sciences and healthcare infrastructure. Against this backdrop, we expect the region to continue to throw up attractive IPO candidates to build on the six new listings in the past three years. We expect 2017 to be far kinder to the existing portfolio of North East plcs than 2016 (a year to forget) with recent management changes one important theme for the new year. Our top picks are Hargreaves Services, Quantum Pharma and Zytronic (all N+1 Singer Corporate clients) and we are Buyers of Northgate and Grainger.