*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
PARIS -- February 21, 2013
Jean-Charles Naouri, Chairman and Chief Executive Officer of Casino Group
"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, RESILIENCE OF ORGANIC SALES AND OF MARGIN
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).
STRONG INTERNATIONAL ORGANIC GROWTH
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
* 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.
SOLID FINANCIAL STRUCTURE
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
CASINO IS CONFIDENT IN ITS ABILITY TO INCREASE ITS ACTIVITY AND RESULTS IN
*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
*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%
Net profit from
discontinued (9) (2)
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
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.
SIMPLIFIED 2012 BALANCE SHEET
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
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
OPERATING 1,391 157 1,548 2,379 (377) 2,002
Finance (472) 0 (472) (519) 0 (519)
financial 68 (57) 11 20 (24) (4)
Income tax (228) (105) (333) (323) (155) (478)
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
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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