Nitheesh NH
3Q19 Update
Casino Group reported the following for 3Q19:
- Group same-store sales were up 1.5%, slowing from 2.3% in the second quarter, fueled by Latin America.
- French same-store sales grew 0.2%, in line the consensus estimate recorded by StreetAccount and compared to 0.7% in the second quarter. On a same-store basis, French sales were:
- Up 0.3% at Monoprix versus 0.2% last quarter and the (0.9)% consensus.
- Up 0.4% at supermarkets, versus 1.2% in the prior quarter and the 0.8% consensus.
- Down 0.3% at Franprix, versus up 0.1% last quarter and consensus of down 0.5%.
- Up 0.7% at hypermarkets, versus 1.4% last quarter and in line with expectations.
- Down 1.1% at Leader Price, versus a 1.6% drop in the prior quarter and consensus of (1.5)%.
- Latam same-store sales were up 3.0%, compared to 3.8% in 2Q19 and the consensus of 2.7%.
- Cdiscount comparable sales were down 0.3%, compared to flat last quarter and expectations of a 0.8% rise. Cdiscount gross merchandise volume climbed 9.0% on an organic basis, driven by marketplace sales.
- An 8.2% rise in sales of organic products. The company’s year-to-date sales of organic products in France totaled €697 million, it is aiming for €1.5 billion in 2021.
- Technological innovations, including 240 autonomous stores across various banners, extended opening hours and scan & go services in 50% of its super- and hypermarkets.
- A new subscription-based loyalty program.
- A 16.3% increase in food e-commerce, led by the extension of its partnership with Amazon to include more Casino and Monoprix products. Monoprix e-commerce sales were up by 30.1% in the quarter.
- E-commerce accounted for a 16% share of sales in France during 3Q19, versus 14% in the prior quarter and the company’s 2021 target of 30%.
- The sale of two hypermarkets, bringing the total number of hypermarkets disposed of year to date to 17.
- Opening 27 premium and convenience stores under franchises.
- To expand EBITDA and trading margins in retail by 0.2 percentage points per year.
- Latin America: to expand EBITDA margin by over 30 bps in Brazil and 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.