1Q19 Update Casino Group reported 1Q19 group comparable sales growth (excluding fuel and calendar effects) of 3.0%, compared to 3.6% in the prior quarter. A soft performance in France was offset by a strong, Brazil-fueled rise in sales in Latin America. Total net sales were down 0.5% year over year, impacted by currency effects.

• In France, Casino saw flat comparable sales versus consensus of a 0.4% increase and up 0.5% in the prior quarter. Same-store sales were flat at Monoprix, Casino Supermarkets and Geant Casino; down 0.5% at Franprix; down 1.9% at Leader Price; and up 0.9% at convenience and other formats.
• Cdiscount comparable sales were down 1.0% versus up 4.0% in the prior quarter. However, gross merchandise volumes climbed 9.2% on an organic basis as the company continued to expand its marketplace of third-party sellers.
• Same-store sales in Latin America were up 6.0% versus consensus of 5.8% and 6.0% in the prior quarter. Brazil drove Latam sales growth, with 13.8% organic sales growth.

In France, total sales rose 0.8%; the company grew both organic product sales and online sales by 11%. Monoprix and Franprix grew in-store shopper traffic. Monoprix’s food e-commerce sales were up 11.8%, driven by the chain’s partnership with Amazon Prime Now, which was extended to additional cities. E-commerce sales including Cdiscount accounted for 16% of the company’s French sales; the company is working toward a 30% target by 2021. In France, sales of organic products reached €230 million; the company has a €1.5 billion target for 2021. The company established these and other targets in its FY18 results in March. Outlook Management offered no guidance. In March, Casino Group set the following financial targets for 2019-2021:

• To expand EBITDA and trading margins in the retail business by 0.2 percentage points per year.
• Latin America: to expand EBITDA margin by over 30 bps in Brazil and an improve EBITDA margin in Colombia.
• To grow trading profit for the retail business by 10% per year.
• To dispose of at least €2.5 billion worth of non-strategic assets in France by 1Q20.
• To generate free cash flow of €500 million per year with gross retail CAPEX below €350 million per year.