Casino’s Q2 and H1FY21 performance was a mixed bag – the top line declined but profit improved strongly. While the LatAm performance remains healthy, the sharp slump in French retail sales was an unpleasant surprise, raising concerns about if and when this segment will return into the black. Management needs to continue improving the FCF and reduce the debt in order to strengthen the investor confidence. We will trim the earnings downwards but maintain the positive stock recommendation.
03 Aug 2021
Q2 mired by poor top-line performance
Sign up to access
Get access to our full offering from over 30 providers
Get access to our full offering from over 30 providers
Q2 mired by poor top-line performance
- Published:
03 Aug 2021 -
Author:
Nishant Choudhary -
Pages:
4
Casino’s Q2 and H1FY21 performance was a mixed bag – the top line declined but profit improved strongly. While the LatAm performance remains healthy, the sharp slump in French retail sales was an unpleasant surprise, raising concerns about if and when this segment will return into the black. Management needs to continue improving the FCF and reduce the debt in order to strengthen the investor confidence. We will trim the earnings downwards but maintain the positive stock recommendation.