Casino: 2012 Results

  Casino:2012 Results

  *Very strong Group sales growth, + 22.1%
  *Continued sustained organic growth internationally, + 8.5%
  *Sales almost stable in France, - 0.8%*
  *Trading Profit + 29.3%
  *Net profit from continuing operations, Group share, up +84.4% at €1,065m
  *Net underlying profit, Group share, at €564m
  *Net debt/EBITDA ratio fell to 1.91x
  *Recommended dividend of €3

Business Wire

PARIS -- February 21, 2013


Jean-Charles Naouri, Chairman and Chief Executive Officer of Casino Group
(Paris:CO), stated:

"The Group underwent some major transformations in 2012, notably with the
control of GPA in Brazil and the agreement with Galeries Lafayette on the
acquisition of 50% of Monoprix, hence strengthening its profile on
international businesses and buoyant formats. For the first time, it has
generated operating income in excess of €2 billion. In 2013, confident in the
growth of its activity and results, Casino will pursue its strategy of
back-to-basics in France and organic growth internationally, while working to
maintain its financial structure."

The 2012 consolidated financial statements were approved by the Board of
Directors on 20 February 2013. The Statutory Auditors have completed their
audit and are in the process of issuing their report.


Continuing operations (€m)            2011      2012      Change  
SALES                                    34,361       41,971       +22.1%
EBITDA                                2,287     2,853     +24.7%
EBITDA margin                         6.7%      6.8%      +14bp
Trading profit                        1,548     2,002     +29.3%
Trading margin                        4.5%      4.8%      +26bp
Net profit, Group share               577       1,065     +84.4%
Net underlying profit, Group share    565       564       
Net financial debt                    5,379     5,451     
Net financial debt/EBITDA             2.35x     1.91x     

* Organic growth excluding petrol and calendar effect

The Group recorded sound organic growth in 2012, up 4% excluding petrol and
calendar effect, driven by a continuously buoyant environment abroad and in a
backdrop of soft consumption in France.

Trading profit grew by 29.3%, driven by the GPA control and organic growth

Thanks to the full consolidation of GPA starting in H2, international
operations increased their contribution to Group’s sales and trading profit to
56% and 66% respectively (versus 45% and 52% in 2011).


In France, sales were resilient in a context of soft consumption. Buoyant
convenience and discount formats performance, which represent 64% of Group
sales in France (excluding petrol effect), was satisfactory, while Géant's
sales were impacted by reductions in non-food retail space and price cuts
initiated at the end of Q3. Cdiscount had another year of very robust growth,
up 16.3%. Full-year organic growth, excluding petrol and calendar effect,
declined by 0.8%.

Trading profit declined by 8.6%, with the trading margin remaining resilient
thanks to the format mix, coming out to 3.7%, a 28bp drop.

In 2012, Géant Casino's sales fell by 7.7% on an organic basis, excluding
petrol and calendar effect. In food, Géant realigned its price indices for
entry-price and private-label products at the end of Q3. Non-food business was
down due to the sharp reduction in non-food shelf displays in 2012. The
multi-channel approach was rolled out to stores. Total same-store non-food
sales (Géant + Cdiscount) slightly increased over the year to €2.3bn (up

Casino Supermarchés' sales growth (up 1.8% on an organic basis excluding
petrol and calendar effect) was satisfactory. Price indices were repositioned
in entry-price and private-label products. Roll-out of "Le Meilleur d'ici"
(local products) continued.

Superettes’ sales were almost stable vs. 2011 (down 0.6% on an organic basis
excluding petrol and calendar effect). A common assortment around Casino
private-label products was implemented. The number of Cdiscount pick-up points
increased sharply over the year. Expansion continued with the opening of 422
stores, including 144 "Coop d'Alsace" stores that joined the network.

Other businesses (Cdiscount, Mercialys and Casino Restauration) maintained
buoyant sales growth (up 10.6% on an organic basis), driven by Cdiscount's
very strong momentum (up 16.3%). Cdiscount's total business volume increased
by 22% over the year, including the marketplace (10% of the site's business
volume at the end of December). The multi-channel strategy continued to be
rolled out, with 3,000 physical pick-up points deployed. Finally, sales
through mobile apps accounted for 8% of sales at the end of the year.

Casino France's operating margin was 3.3%, down 41bp.

Leader Price's sales declined by 0.8% on an organic basis (excluding calendar
effect). The banner confirmed its turnaround in 2012 with repositioned price
indices. The new Leader Price products, with which Jean-Pierre Coffe (famous
French gourmet icon) was heavily involved, were a success. Finally, store
renovations continued. 18 stores were opened in 2012. Thanks to stores network
optimisation and costs reduction, the banner's profitability increased over

Franprix's performance stabilised in 2012 (sales fell by 1% on an organic
basis, excluding calendar effect). Private-label products were relaunched in
stores, with more Leader Price products under €1. Targeted price cuts also
contributed to the banner's solid performance. The stores network continued to
be upgraded and 39 stores opened in 2012.

Franprix-Leader Price's operating margin was 3.8%, up 8bp compared to 2011.

Monoprix's sales were well oriented, growing by 1.7% on an organic basis
excluding petrol and calendar effect, thanks to strong performance by food
sales, growth in textile that was superior to the market over the full year,
and continuing expansion on all formats.

Monoprix's operating margin was still high at 6.1% thanks to the quality of
mix (food, perfume, textile, home equipment).


International businesses experienced very strong growth (50.7%) this year,
driven by the full consolidation of GPA starting in H2, as well as by highly
satisfactory organic growth of 8.5%. Trading profit increased by 64.9%

  *Latin American sales rose by 8.8% on an organic basis.

       *In Brazil, GPA maintained its excellent performance in 2012, with
         high organic growth in food sales, driven by the performance of Assaí
         and the new Minimercado convenience concept, whose expansion
         continued at a sustained pace. In non-food, Viavarejo's same-store
         sales growth was sustained (7.5%^1) and its operating margin
         improved. GPA's EBITDA stood at 7.2%.
       *In Colombia and in Uruguay, Exito Group had an excellent 2012 year,
         with sales up sharply by 18.3%, with a marked strengthening of
         Exito’s market share in Colombia. Rapid expansion was focused on
         discount and convenience formats. The EBITDA margin rose by 8.4%^*,
         sustained by reduced operating costs. Finally, Exito's best practices
         were gradually rolled out to Uruguay, whose performance was excellent
         in 2012.

* Based on reported company data

  *Asia posted strong growth (+10.8%) in sales on an organic basis, thanks to
    excellent performance in both Thailand and Vietnam, where Big C continues
    to establish a leading position. The operating margin, still very high,
    stood at 7.1%.

       *In Thailand, Big C's sales climbed by 16.1%, demonstrating excellent
         performance. Sales growth on an organic basis rose sharply (9.3%^2)
         despite the aftermath of the floods, driven notably by the success of
         innovative sales initiatives and the development of the loyalty card,
         as well as by sustained expansion, particularly in small formats and
         shopping centres. The EBITDA margin was very high at 11.1%^*.
         Finally, the financial structure was strengthened by debt refinancing
         and the success of private placement.
       *In Vietnam, organic growth was very high, despite the backdrop of
         economic slowdown. The dual expansion model was maintained in 2012,
         with three hypermarkets and three adjacent shopping malls opened.


In 2012, Casino engaged on a €1.5bn asset disposal and capital increase plan,
of which €1.45bn was achieved in 2012:

  *Mercialys operation: exceptional distribution and TRS settlement: €0.7bn
  *Successful payment of dividends in shares: €0.1bn
  *Capital increase and shares disposal: €0.4bn
  *Disposal of financial and real-estate assets: €0.2bn

A second exceptional interim dividend is planned by Mercialys in H1 2013.

These disposals do not include the €0.5bn Mercialys assets disposals or assets
under firm offer.

Net financial debt totalled €5.451 billion. The Net Financial Debt/EBITDA
ratio therefore stood at 1.91x at the end of 2012, in accordance with our
target of less than 2.2x. The Casino Group is rated BBB- Outlook Stable by S&P
and Fitch Ratings.

At the Annual General Meeting on 22 April 2013, Casino will recommend a
dividend of €3 per share. The dividend will be paid on 29 April 2013, with an
ex-dividend date on 24 April 2014.

* Based on reported company data


  *Internationally: growth

       *Growth should continue in 2013, sustained by the emergence of
         numerous middle classes whose purchasing power is growing
       *The Group banners, which benefit from a very good price image and are
         very active in their expansion policy on buoyant formats and
         commercial real estate, should then see a continued increase in
         activity and results

  *France: stabilising or reviving retail

       *Price cuts, notably in hypermarkets
       *Costs reduction
       *Expansion in key formats

  *For 2013 therefore, the Group is targeting:

       *Strong growth in reported sales
       *Organic sales and trading profit growth
       *Solid financial structure with a Net Financial Debt / EBITDA below


Continuing              2011      2012      Change    Organic  
operations (€m)                                                   growth
SALES                      34,361       41,971       +22.1%       +3.5%
of which France         18,748    18,447    -1.6%     -0.8%
of which                   15,613       23,524       +50.7%       +8.5%
EBITDA^(2)                 2,287        2,853        +24.7%       +2.8%
of which France         1,164     1,062     -8.7%     
of which                   1,123        1,791        +59.4%
Trading profit             1,548        2,002        +29.3%       +3%
of which France         750       685       -8.6%     
of which                798       1,316     +64.9%    
Other operating         (157)     377                
income and expense
Operating profit        1,391     2,379     +71.0%    
Finance costs, net      (472)     (519)     -9.9%     
Other financial         68        20        -70.7%    
income and expense
Income tax expense      (228)     (323)     -41.7%    
Share of profits of     (7)       (21)               
Net profit from
continuing              577       1,065     +84.4%    
operations, Group
Net profit from
discontinued            (9)       (2)                
operations, Group
Net profit, Group          568          1,062        +87.1%
PROFIT, GROUP              565          564

(1) Based on a comparable scope of consolidation and constant exchange rates,
excluding the impact of asset disposals

(2) EBITDA: Earnings before interest, taxes, depreciation and amortisation

(3) See details in appendix

Financial calendar
Thursday, 18 April 2013   (after the close of trading): 2013 first quarter
Monday, 22 April 2013       Annual General Meeting


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



in €m                                2011      2012    
Non-current assets                   18,770    26,823
Current assets                       11,002    15,990
TOTAL ASSETS                         29,772    42,813
Equity                               9,383     15,201
Non-current financial liabilities    6,423     9,394
Other non-current liabilities        1,495     3,028
Current liabilities                  12,472    15,190
TOTAL EQUITY AND LIABILITIES         29,772    42,813


Net underlying profit corresponds to net profit from continuing operations
adjusted for the impact of other operating income and expense (as defined in
the “Significant Accounting Policies” section of the notes to the annual
consolidated financial statements), non-recurring financial items and
non-recurring income tax expense/benefits.

Non-recurring financial items include fair value adjustments to certain
financial instruments at fair value whose market value may be highly volatile.
For example, fair value adjustments to financial instruments that do not
qualify for hedge accounting and embedded derivatives indexed to the Casino
share price are excluded from net underlying profit.

Non-recurring income tax expense/benefits correspond to tax effects related
directly to the above adjustments and to direct non-recurring tax effects. In
other words, the tax on underlying profit before tax is calculated at the
standard average tax rate paid by the Group

Underlying profit is a measure of the Group’s recurring profitability.

in € millions    2011     Adjust-    2011          2012     Adjust-    2012        
                                ments         underlying                   ments         underlying
TRADING             1,548                     1,548            2,002                     2,002
operating           (157)       157           0                377         (377)         0
income and
OPERATING           1,391       157           1,548            2,379       (377)         2,002
Finance          (472)    0          (472)         (519)    0          (519)
costs, net
financial        68       (57)       11            20       (24)       (4)
income and
Income tax       (228)    (105)      (333)         (323)    (155)      (478)
Share of
profit of           (7)         0             (7)              (21)        0             (21)
CONTINUING          751         (5)           747              1,535       (556)         979
to minority         174         7             182              470         (55)          415
GROUP SHARE         577         (12)          565              1,065       (501)         564

(1) Other financial income and expense is stated before discounting deferred
tax liabilities in Brazil (-€22m in 2011 and -€22m in 2012), exchange losses
on receivables on the state of Venezuela in USD (-€25m in 2011 and -€2m in
2012), fair value adjustments from financial instruments that do not qualify
for hedge accounting (+€87m in 2011 and n/a in 2012), and fair value
adjustments from Total Return Swaps related to shares in Exito, GPA, Big C and
Mercialys (+€17m in 2011 for Exito alone and +€48m in 2012)

(2) Income tax expense is stated before the tax effect of the above
adjustments and non-recurring income tax expense/benefits

(3) Minority interests are stated before the above adjustments.


Analyst and Investor Contacts
Régine GAGGIOLI, +33 (0)1 53 65 64 17
+33 (0)1 53 65 64 18
Group External Communication Department
Press Contacts
Aziza BOUSTER, +33 (0)1 53 65 24 78
Mob: +33 (0)6 08 54 28 75
Grégoire LUCAS, +33 (0)6 71 60 02 02
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