NET SALES - Q1 2018

Ongoing strong growth dynamic for the Group:  
+3.1% organic growth and +1.8% on a comparable basis

Good performance of the France Retail segment:
+1.3% organically and +1.3% on a comparable basis

In Brazil, GPA Food posted organic growth of +5.7%

  • In France, food retail sales posted growth of +1.5% in all, with gross sales under banner increasing +2.1%(1), of which +1.9%(1) for food:
  • Monoprix: growth rebounded +2.6% in organic terms and +1.2% on a comparable basis, driven by food sales
  • Casino supermarkets: sales rose +1.2% in organic terms and +1.4% on a comparable basis, driven by the rollout of the new concept
  • Franprix: net sales improved +1.9% in organic terms and +1.0% on a comparable basis thanks to the innovative initiatives of the banner
  • Convenience: organic sales growth of +4.0% and +1.1% on a comparable basis, driven by dynamic performance from the franchise activity
  • Géant Hypermarkets: very good performance with sales up +2.5% in organic terms and +2.1% on a comparable basis, driven by food (+4.2%). Market share gain of +0.1 point over the latest reporting period(2)
  • Leader Price: +0.9% growth in net sales on a comparable basis and continued rollout of the new Next concept
  • Cdiscount:  GMV growth of +6.1%(3) in organic terms and net sales growth of +5.1%(3) in organic terms. Ongoing good performance of Cdiscount corners in Géant hypermarkets (11 to date with a target of 20 by the end of June 2018).
  • In Latin America, sales up +4.9% in organic terms and +1.9% on a comparable basis
  • GPA Food: net sales growth of +5.7% in organic terms and +2.2% on a comparable basis, driven by continued buoyant performance from Assaí
  • Exito (excluding Brazil):  growth of sales both in organic and on a comparable basis.

CHANGE IN NET SALES

BY SEGMENT Q4 2017 / Q4 2016 change Q1 2018 / Q1 2017 change  
(€M) Q4
 2017
(4)
Total
growth
Organic growth(5) Growth on a comparable basis(5) Q1
2018
Total
growth
Organic growth(5) Growth on a comparable basis(5)  
France Retail 4,878 -0.8% +0.1% +0.3% 4,551 +1.5% +1.3% +1.3%  
Cdiscount 637 +9.2% +9.1% +9.2% 473 +4.5% +4.4% +4.7%  
Total France 5,515 +0.3% +1.1% +1.5% 5,024 +1.7% +1.6% +1.7%  
Latam Retail 4,493 -1.0% +5.5% +2.4% 3,876 -10.1% +4.9% +1.9%  
TOTAL GROUP 10,008 -0.3% +3.2% +2.0% 8,900 -3.8% +3.1% +1.8%  

Pursuant to the 2016 decision to dispose of Via Varejo and in accordance with IFRS 5, Via Varejo activity (including Cnova Brazil) is maintained as a discontinued operation.

  1. Gross sales under banner including Cdiscount for non-food, excluding fuel and calendar effects.
  2. Kantar market share in value measured on the P03 2018.
  3. Data published by the subsidiary. The organic changes exclude the sales generated with customers of Casino Group hypermarkets and supermarkets, except for sales generated by the corners (total impact of exclusion of -7.3 points and -10.1 points respectively in GMV growth and net sales).
  4. Q4 2017 is not restated under IFRS 15.
  5. Excluding fuel and calendar effects.

             

In Q1 2018, net sales totalled €8.9 billion, down -3.8% on Q1 2017, and strongly impacted by an unfavourable exchange effect of -7.7%. Sales increased +3.1% in organic terms and +1.8% on a comparable basis. The scope and fuel effects each come at -0.1%, and the calendar effect was +1.1%.

 France Retail

  Q4 2017 / Q4 2016 change Q1 2018 / Q1 2017 change
BY BANNER Q4 2017(1) Total growth Organic growth(2) Growth on a comparable basis(2) Q1
2018
Total growth Organic growth(2) Growth on a comparable basis(2)
Monoprix 1,161 +0.6% +1.2% -0.5% 1,110 +2.7% +2.6% +1.2%
Supermarkets 797 -3.9% -0.7% +0.6% 744 -0.8% +0.6% +1.3%
Including SM Casino(3) 754 -3.8% -0.5% +0.4% 711 -0.4% +1.2% +1.4%
Franprix 415 +3.4% +2.7% +0.5% 401 +1.5% +1.9% +1.0%
Convenience
& other
(4)
611 -1.7% -0.1% +2.3% 588 -0.2% -0.5% +0.7%
Including Convenience(5) 285 +1.0% +2.0% +2.0% 303 +4.1% +4.0% +1.1%
Hypermarkets 1,257 +0.3% +0.2% +0.0% 1,090 +4.5% +2.9% +1.6%
Including Géant(3) 1,187 +0.4% +0.3% +0.3% 1,040 +4.2% +2.5% +2.1%
  Including food 820 +2.2% +2.8% +2.8% 722 +6.0% +4.2% +4.2%
  Including non-food 174 -10.2% -9.6% -9.6% 123 -7.1% -8.9% -8.9%
Leader Price 637 -2.9% -1.9% +0.3% 618 -1.3% -1.0% +0.9%
FRANCE RETAIL 4,878 -0.8% +0.1% +0.3% 4,551 +1.5% +1.3% +1.3%

Total sales in France came to €4,551m in Q1 2018, growing +1.3% in organic terms and +1.3% on a comparable basis, of which +2.2% in food. The activity was buoyed by the progression of Hypermarkets Géant, dynamic performance of Monoprix, Supermarkets Casino and Franprix, and by the improvement of Convenience. Géant and Casino Supermarkets together gained +0.2 point in market share over the last reporting period(6). The Casino Max application is ramping up with more than 650,000 downloads to date and more than 200,000 active users in March. In addition to the first functions offered since the launch (personalised discount coupons, smart shopping list, loyalty card and electronic catalogue), it is now possible to pay with the mobile application in the Géant and Casino Supermarket stores. During Q1, more independent retailers joined the franchise network with 7 new stores: 4 stores (1 hypermarket and 3 supermarkets) have already opened under banner and 3 further rallying, that will open during the year, are already signed.

  • Monoprix posted a +2.6% organic increase in net sales and +1.2% on a comparable basis. This performance was driven by the good progression of food sales. Monoprix's ongoing differentiation strategy is particularly appreciated by its urban customers (especially via its own brands, Gourmet, Bio, etc.). The banner is expanding its food delivery system for Paris. After food delivery on foot (offered in more than 100 stores) and development of the click & collect service (rolled out in more than 170 stores), Monoprix's range of services is being enhanced by the broad partnership signed with Amazon to offer express delivery of Monoprix grocery to Prime Now customers in the second half of the year. Sales in omni-channel format continued to record double-digit growth this quarter. Development works in relation with the Ocado platform are in line with the roadmap. The loyalty programme maintained its momentum, with the ratio of net sales on which loyalty cards are used increasing +2 points this quarter. The banner is continuing its sustained pace of expansion with 7 openings already in Q1 (including 5 franchisees).
     

                   

  1. Q4 2017 is not restated under IFRS 15.
  2. Excluding fuel and calendar effects.
  3. Excluding Codim stores in Corsica:  Eight Supermarkets and four Hypermarkets.
  4. Other:  essentially Vindémia and Catering.
  5. Convenience net sales on a comparable basis includes the performance of franchised stores on a comparable basis, except LPE.
  6. Kantar data in value, measured over P03 2018.

       

                  
 

·          Casino Supermarkets(1) confirmed their very good commercial trend with growth of +1.2% in organic terms and +1.4% on a comparable basis. This continuous growth was driven in particular by the strengthening of its private label and a more targeted customer policy. The banner is continuing the upmarket move of its stores, with 54 renovations around a concept oriented toward services and fresh products ("Bijou" - "jewel") and aims to position itself as a reference on these segments. The franchise business recorded strong growth of +5.0% in sales compared to the previous year.
       

·          Franprix's sales grew by +1.9% in organic terms and +1.0% on a comparable basis. The banner is continuing the development of innovative initiatives; the opening of a 24/7 Paris store thanks to a new technology will make it possible to increase the opening hours of nearly 50 other Paris stores by the end of H1. E-commerce sales continue to benefit from the success of the Franprix mobile application with 635,000 downloads as of the end of March. The banner is continuing its expansion momentum with 10 openings in Q1 in the Paris region. It also opened its first international store in Brussels.

·                             

Convenience posted sales growth of +4.0% in organic terms and +1.1% on a comparable basis(2). Franchisees are delivering very good performance with net sales up +9.2%. The banner's  ongoing offer restructuring and development of qualitative services (bulk, juice machines, fresh cutting of fruits and vegetables) is designed to enhance the integrated stores. Casino Proximités also rolled out the new "A walk in the Garden" concept, which is being tested in two stores in Lyon, and aims to broaden the stores' Fruits & Vegetables offer, in particular in large urban areas.  


  

                   

·          Sales at Géant (1) picked up this quarter with total growth of +4.2% and +2.1% on a comparable basis, +4.2% of which in food, driven by organic products (up more than 30%), Fresh and the Drive. Non-food sales, down -8.9% versus -9.6% in Q4 2017, benefited in particular from the good results of the omni-channel strategy with the rollout of the Cdiscount corners (11 to date). Net sales per sqm increased by +2.7% against a backdrop of a -0.6% reduction in surface area. The banner gained +0.1 point in market share over the last reporting period (3).

·          Leader Price's sales increased by +0.9% on a comparable basis this quarter, driven by the good performance of groceries and Fresh. The banner is continuing to renovate its store network by converting to the Next concept (35 stores as of the end of March), which significant performance has been confirmed out. The banner is continuing to develop more qualitative and innovative products, still at low prices, notably with better organic and deep-frozen lines, and the rollout of its Sooa private label.
                         

                   

                   

  1. Excluding Codim stores in Corsica:  eight Supermarkets and four Hypermarkets
  2. Convenience net sales on a comparable basis includes the performance of franchised stores on a comparable basis, except LPE.
  3. Kantar market share in value, measured on P03 2018.

 

       

                  


  • Cdiscount

Cdiscount's gross merchandise volume (GMV) totalled €854 million(1), increasing by +6.1%(1) in organic terms(2). Net sales rose +5.1%(1) in organic terms(2), driven by data monetisation revenues, which increased +30%. The Home Furnishing and Household appliances categories represented 49% of direct sales while high-tech and IT products contributed 37%.

The marketplace resumed its expansion, driven by a broad assortment of 40 million products, up +81% over Q1 2017, with a 32.5% share of GMV, up +39 bp over Q1 2017.

The Cdiscount.com traffic logged 240 million visits this quarter, driven by the mobile growth, which accounted for 60% of the traffic and 41% of GMV (versus 36% in Q1 2017). The number of unique visitors reached 20 million for the first time(3).

Cdiscount now have 8.6 million active customers. The number of subscribers in the "Cdiscount à Volonté" ("CDAV") loyalty programme grew +33% on an annual basis over March 2017 and accounts for more than one-third of the GMV, driven by the launch of an unlimited press offer for these loyal customers.

Cdiscount is continuing its multi-channel strategy with 11 corners in Géant hypermarkets to date and is targeting 20 corners by the end of June. The categories presented in these corners have regained traction with +25% growth over the quarter. The banner continues to develop its service offer, with "Cinstallé" ("It is installed") in particular covering nearly 90,000 references, "Coup de Pouce" ("A little nudge") granting more than 21,000 loans over Q1 2018 and Cdiscount Energie, which has increased its subscribers by 1.5 times since the end of December. Cdiscount has also just rolled out a competitive long-term rental solution covering more than 800 telephone, television and Household appliances products as well as a partnership with a major French fashion brand for a clearance store outlet. Moreover, Cdiscount is strengthening its development of data monetisation with the rollout of a digital platform allowing suppliers, marketplace sellers and advertisers to participate in auctioning advertising space on Cdiscount.com and other websites to extend their audience.

Key figures(1) Q1 2017 Q1 2018 Published growth(4) Organic growth(2)
GMV(5)(6) including tax 753.3 853.9 +13.4% +6.1%
Net sales(6) (in €M) 455.1 524.2 +15.2% +5.1%
Traffic (millions of visits) 233.8 240.1 +2.7%
Share of mobile traffic (%) 56.9% 60.3% +341 bp
Active customers(7) (millions) 8.3 8.6 +4.2%
Units sold (millions) 12.5 12.2 -2.4%
Orders(8) (millions) 6.5 6.5 -0.6%

Cnova commented on its Q1 net sales in detail on 12 April 2018

  1. Data published by Cnova NV and not audited.
  2. The organic changes exclude the sales generated by customers at Casino Group hypermarkets and supermarkets, except the sales generated by the corners (total impact of exclusion by -7.3 pts and -10.1 pts respectively on the growth of GMV and net sales).
  3. Latest Médiamétrie studies published in November and December 2017.
  4. The data published include all the sales of Cdiscount, including Cdiscount's sales of technical products to the customers of the Casino Group hypermarkets and supermarkets, under to the multi-channel agreement in effect since 19 June 2017
  5. The GMV includes the tax-inclusive figures for sales of merchandise, the other revenues and the volume of business of the marketplace (on the basis of the validated and shipped orders) and, for the first time, includes the business volume of services that contributed to the growth of the GMV for 0.9 pt at Q1 2018 and 0.01 point at Q1 2017.
  6. After entry into effect of the new accounting standard on revenues, IFRS 15, the GMV and net sales of 2017 were restated respectively by -€20 million and -€17 million in order to present comparable data.
  7. Active customers at end March having made at least one purchase on the Cdiscount websites and application over the corresponding elapsed 12 months.
  8. Total orders placed before cancellation due to detection of frauds and/or absence of payment by customers.

       

  



  • Latam Retail

     

Sales at the Group's businesses in Latin America (Exito Group and GPA Food) increased +4.9% in organic terms and +1.9% on a comparable basis over Q1 2018, against a backdrop of slowing food inflation. Consolidated net sales were strongly impacted by an unfavourable exchange effect of
-16.5%.

  • GPA Food posted sales growth of +5.7% in organic terms and +2.2% on a comparable basis, driven by a +7.4%(1) increase in volumes and despite a -4.0% deflation on food categories.
    • Sales at Assaí rose +25.2%(1) in organic terms and +9.4%(1) on a comparable ex-calendar basis. Volumes and traffic increased +12%(1) and +8%(1) respectively. The banner gained +3.8 points in volume market share according to Nielsen, against a highly competitive backdrop. As of the end of March, 205,000 Passai credit cards had been issued at an average pace of 50,000 new cards per month. The 17 stores previously converted saw almost a 2.5-fold increase in sales(1). Assaí now accounts for 45% of GPA Food sales versus 38% in Q1 2017.
       
    • Multivarejo's comparable sales were impacted this quarter for 310 bp by the fire in a fresh products distribution centre. The sales trend reversed in March, with comparable growth of +3.9%(1) excluding the calendar effect; in addition to very robust Easter sales at Extra hypermarkets, the banners are benefitting from more targeted promotional operations and the success of the new digital "My rewards" loyalty programme in the "My discount" application (with an average ticket 75% higher for customers using the application). The management is finalizing the new concept to which 20 Extra Supermarkets will be converted. Pão de Açúcar benefits from volume growth on its seasonal sales (+9.3%) and from the success of the "Collect & Win" campaign.
       
    • This quarter, 1 Assaí store was opened and 4 Extra hypermarket conversions to Cash & Carry format are in progress. The banner is targeting 20 new stores in 2018, including 5 conversions. Multivarejo had 9 closures this quarter, including 4 Extra hypermarkets, 4 drugstores and 1 Extra supermarket. There were 874 stores in the Multivarejo network at the end of March.
       
  • Sales at Exito Group (excluding GPA Food) were up both in organic terms and on a comparable basis.

       

GPA commented on its Q1 net sales in detail on 13 April 2018.
The Exito Group will comment on its Q1 net sales in detail on 15 May 2018.

***

(1) Data published by the subsidiary.

 


APPENDICES


Implementation of IFRS 15 norm

In the first quarter of 2018, Casino Group applied IFRS 15, "Revenue from ordinary activities from contracts with customers".
This accounting standard is mandatory starting 1 January 2018 and has no significant effect on the Group's net sales. The application of IFRS 15 leads to reclassifications between net sales, other revenues, costs of goods sold and cost of sales. This standard and its application are described in note 18 of the chapter 3 in the 2017 registration document.

GROUP NET SALES (in €M) Q1 2017 published Q1 2017 restated
France Retail 4,504 4,485
E-commerce 469 453
Latam Retail 4,348 4,310
TOTAL 9,321 9,248

Breakdown and change in Q1 2018 net sales

Organic growth is at constant scope and exchange rates, excluding fuel and calendar except mentioned otherwise.

ESTIMATED TOTAL GROSS FOOD SALES UNDER BANNER
(€M, excl. fuel)
Q1 2018 Change

(excl. calendar)
Monoprix 1,142 +2.9%
Supermarkets 704 +0.4%
Franprix 456 +4.5%
Convenience and Misc. 676 -0.2%
  of/which Convenience 372 +5.0%
Hypermarkets 781 +5.4%
Leader Price 722 -0.6%
FRANCE RETAIL 4,482 +1.9%

ESTIMATED TOTAL GROSS NON-FOOD SALES UNDER BANNER
(€M, excl. fuel)
Q1 2018 Change

(excl. calendar)
Hypermarkets 133 -7.9%
Cdiscount 781 +4.8%
FRANCE RETAIL 914 +2.7%

Main changes in consolidation scope

  • Via Varejo maintained as a discontinued operation
  • Transfer of 122 stores during Q1 2018, mostly under the Leader Price's banner, to an historical franchisee, in order to pursue the transformation and restructuring of the banner's store network.

Exchange rate

Average exchange rates Q1 2017 Q1 2018 Exchange rate effect  
Brazil (EUR/BRL) 3.3468 3.9887 -16.1%
Colombia (EUR/COP) (x 1000) 3.1110 3.5118 -11.4%
Uruguay (EUR/UYP) 30.2801 34.9841 -13.4%
Argentina (EUR/ARS) 16.6866 24.2149 -31.1%

Store network at period end

FRANCE   30 Sept. 2017 31 Dec. 2017 31 March 2018
HM Géant Casino   121 122 123  
  Including Affiliates Franchisees in France   7 7 8  
   International Affiliates   4 5 5  
SM Casino   430 433 435  
  Including Affiliates Franchisees France   104 106 108  
   International Affiliates Franchisees   16 17 17  
Monoprix   774 789 790  
  Including Franchisees/Affiliates   207 211 214  
Naturalia   151 161 162  
Naturalia franchisee   7 7 7  
Franprix   885 893 901  
  Including Franchisees   406 399 413  
Leader Price   789 777 773  
  Including Franchisees   385 377 449  
Convenience   5,444 5,392 5,362  
Other activities (Restaurants, Drive, etc.)   621 606 609  
           
Indian Ocean   201 209 214  
TOTAL France   9,265 9,221 9,207  
           
 

 

 

 

 

 

 

 

 

 

 

 

 

 
         
INTERNATIONAL   30 Sept. 2017 31 Dec. 2017 31 March 2018  
ARGENTINA   29 29 29  
HM Libertad   15 15 15  
SUP Mini Libertad and Petit Libertad   14 14 14  
URUGUAY   83 88 86  
HM Géant   2 2 2  
SM Disco   29 29 29  
SM Devoto   24 24 24  
SUP Devoto Express   28 33 31  
BRAZIL   1,073 1,081 1,072  
HM Extra   118 117 113  
SM Pão de Açúcar   185 186 186  
SM Extra   188 188 187  
Assaí (Cash & Carry)   115 126 127  
SUP Mini Mercado Extra & Minuto Pão de  Açúcar   265 265 265  
Drugstores   130 127 123  
+ Service Stations   72 72 71  
COLOMBIA   1,810 1,852 1,847  
HM Exito   90 90 90  
SM Exito and Carulla   161 162 163  
SM Super Inter   71 71 71  
Surtimax (discount)   1,373 1,409 1,410  
including "Aliados"   1,243 1,278 1,286  
B2B(1)   4 9 9  
SUP Exito Express and Carulla Express   111 111 104  
TOTAL International   2,995 3,050 3,034  

  1. Formerly included in the Surtimax line.


ANALYST AND INVESTOR CONTACTS
Régine Gaggioli - +33 (0)1 53 65 64 17

rgaggioli@groupe-casino.fr

or

+33 (0)1 53 65 24 17
IR_Casino@groupe-casino.fr

PRESS CONTACTS
Casino Group
+33 (0)1 53 65 24 78
directiondelacommunication@groupe-casino.fr

AGENCE IMAGE SEPT
Karine Allouis - +33 (0)6 11 59 23 26 - kallouis@image7.fr
Grégoire Lucas - gregoire.lucas@image7.fr

 

Disclaimer

 

This press release was prepared solely for information purposes and should not be construed as a solicitation or an offer to buy or sell securities or related financial instruments. Likewise, it does not provide and should not be treated as providing investment advice. It has no connection with the specific investment objectives, financial situation or needs of any receiver. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. It should not be regarded by recipients as a substitute for the exercise of their own judgement. All the opinions expressed herein are subject to change without notice.