Groupe Casino - First quarter 2020 sales
- Consolidated net sales at €8.3bn, up +7.9% on an organic basis1
and +6.4% on a same-store basis1, including the impact on food
consumption of the Covid-19 epidemic since mid-March
- In France, same-store growth of +5.8% for the quarter (+9% over
4 weeks2), driven by urban formats, convenience and E-commerce. At
Cdiscount, acceleration of GMV growth to +40% since beginning of
April3
- In France, total EBITDA up +€67m vs. Q1 2019, reflecting the
growth in business since mid-March
- In Latin America, organic growth of +14.0%, with an
acceleration since mid-March in all geographies
Highlights
The first quarter of 2020 was marked by the
Covid-19 epidemic, which impacted all geographies and businesses,
resulting in an unprecedented growth in demand directed for
food retailing, and particularly for the Group’s formats
(convenience, urban stores and E-commerce).
Several specific measures were
introduced to meet the Group’s core mission of securing food supply
for people:
- Employee protection, including mass
distribution of face masks, gloves and hydro-alcoholic gels to
employees in stores and warehouses;
- Customer protection and adaptation of
service to meet their specific needs: protective measures
in stores, accelerated deployment of automated check-outs (45% in
hypermarkets and 36% in supermarkets in February-March 2020),
capacity uplift for home delivery, click & collect and Drive to
reach 20,000 orders per day versus 6,500 at the beginning of the
quarter;
- Secured logistics organisation, in cooperation
with suppliers, to meet demand without significant shortages.
In France, urban formats, convenience
and E-commerce, which constitute the core of the Group’s business
model, have seen particularly high levels of demand since
mid-March.
Current trading
- In the food banners, growth stood at
9% (12% excluding hypermarkets)
over the last four weeks2;
- Cdiscount recorded a +40%
increase in GMV since 1 April3, of which +19% in direct
sales and +69% in marketplace
sales, raising the marketplace contribution to
50.7% of GMV.
Apart from the initial stockpiling effect, this
growth is attributable to a shift in food
consumption towards home consumption, leading to
additional demand for food retailers, more
specifically towards convenience and urban store
formats, as well as E-commerce.
Sales in the last four weeks2 grew
+24% on average at Franprix, Casino
Supermarkets, and Convenience stores, which have seen
a surge in new customers, and
triple-figure growth in food E-commerce,
especially in home delivery by Monoprix
(Monoprix.fr and Amazon Prime Now).
After a difficult start to the year for the
market as a whole, Cdiscount4 has seen a
major acceleration in its business since March,
with GMV growth reaching +40%3 for April, with an
assortment adapted to customer demand in the non-food segment and
the development of a new basic food offering. This growth has come
with improved profitability, driven by the rise in
the marketplace contribution to 50.7% of GMV3 in
April, and an increase in the margin on
direct sales of +9.9 points3,
driven by an improved product mix.
In Q1 2020, EBITDA for the combined
France and Cdiscount scope rose by +€67m from Q1 2019,
notably driven by the additional business generated since
mid-March. Over a rolling 12-month period, EBITDA
for this scope totalled €1,602m (€948m net of rent
paid).
As communicated on 20 March 2020, the Casino
Group has signed an agreement with Aldi France for the sale
of Leader Price stores and warehouses in mainland France, for 735
million euros (including a €35 million earn-out).
Preparatory work for the closing have been initiated and are
ongoing.
In Latin America, the Group saw
an acceleration in business in Brazil and Colombia as well as
across all formats, with organic growth of +14.0 for the
quarter.
In view of the uncertainty regarding the
macroeconomic and social impact of Covid-19 over the next year, and
as a precautionary measure, the Group is no longer formulating
quantified objectives for 2020-2021, while remaining mobilised on
all the priorities already communicated to the market (cf. press
release of 26 March 2020).
The financial indicators defined in the bond
documentation (EBITDA, gross debt and net cash at 31 March in
France and Latin America) will be communicated in a dedicated press
release to be published following GPA’s publication of its
first-quarter results
Change in net sales
Net sales (in €m) |
Q1 net sales2020 |
Total net sales growth |
Organic net sales growth5 |
Same-store sales growth1 |
France Retail |
3,885 |
-0.6% |
+3.1% |
+5.8% |
Cdiscount |
449 |
-5.8% |
-5.8% |
-5.8% |
Total France |
4,334 |
-1.2% |
+2.0% |
+4.0% |
Latam Retail |
3,960 |
-0.4% |
+14.0% |
+8.5% |
TOTAL GROUP |
8,294 |
-0.8% |
+7.9% |
+6.4% |
Cdiscount GMV6 |
900 |
-0.7% |
+0.0% |
n.a. |
In first-quarter 2020, the currency effect was -6.9% and the
fuel effect came to -0.6%. Changes in scope of consolidation had a
negative impact of -1.8%. The calendar effect was +0.6%.
Business review
France Retail
|
Q4 2019/Q4 2018 change |
Q1 2020/Q1 2019 change |
NET SALES BY BANNER |
Q4 2019 |
Total growth |
Organic growth1 |
Same-store growth1 |
Q1 2020 |
Total growth |
Organic growth7 |
Same-store growth1 |
|
Monoprix |
1,232 |
0.0% |
+0.9% |
+0.2% |
1,156 |
+3.3% |
+2.3% |
+3.6% |
|
Supermarkets |
775 |
-2.9% |
-2.5% |
+0.4% |
747 |
+3.2% |
+4.9% |
+7.4% |
|
o/w
Casino Supermarkets8 |
737 |
-3.3% |
-2.7% |
+0.4% |
711 |
+3.2% |
+5.0% |
+7.5% |
|
Franprix |
386 |
-4.9% |
-3.3% |
+0.6% |
412 |
+8.0% |
+7.8% |
+12.6% |
|
Convenience & Other9 |
607 |
-9.6% |
-4.8% |
-1.0% |
622 |
-1.5% |
+3.0% |
+9.5% |
|
o/w
Convenience10 |
297 |
-1.3% |
-1.4% |
-0.3% |
336 |
+8.8% |
+7.8% |
+11.5% |
|
Hypermarkets |
1,164 |
-6.3% |
-0.2% |
-0.5% |
948 |
-10.0% |
-0.7% |
+1.7% |
|
o/w
Géant2 |
1,110 |
-6.6% |
-0.2% |
-0.7% |
900 |
-10.9% |
-1.3% |
+1.5% |
|
o/w food |
720 |
-12.7% |
n.a. |
-0.5% |
631 |
-9.1% |
n.a. |
+2.9% |
|
o/w non-food |
158 |
-3.4% |
n.a. |
-4.2% |
97 |
-18.8% |
n.a. |
-8.1% |
|
FRANCE RETAIL |
4,164 |
-4.3% |
-1.2% |
0.0% |
3,885 |
-0.6% |
+3.1% |
+5.8% |
|
In France, total sales for the quarter
came to €3,885m, an increase of +5.8% on a same-store
basis. In France, urban banners,
convenience and E-commerce have been in particularly high
demand since the lockdown began on 17 March. The
E-commerce business recorded same-store growth of
+43% for the quarter, and a threefold increase in
activity over the last four weeks11, particularly led by
home delivery, Drive and click & collect solutions.
In the context of the Covid-19 epidemic, the
banners are mobilising their resources to meet the food supply
needs of communities while also protecting the health of employees
and customers:
- A significant number of hygiene measures have
been implemented in stores: distribution of face masks and
hydro-alcoholic gels to employees, installation of plexiglas
screens at check-outs, distancing between customers and promotion
of automatic payment solutions;
- E-commerce solutions in particular have been
strengthened, allowing the Group to address very strong customer
demand;
- Lastly, initiatives to help the most vulnerable and
exposed populations have been launched: donation of 2
million masks for the benefit of caregivers, shopping hours
reserved for over‑65s and healthcare professionals, toll-free
telephone orders for home deliveries, ready-to-deliver baskets, and
a programme for donating spare change to non-profit Secours
Populaire and the AP-HP university hospital foundation.
Business review by banner:
- Monoprix reported same-store sales
growth of +3.6%. The E-commerce segment
was particularly strong, buoyed by Amazon Prime Now and a sharp
increase in orders in March through Monoprix.fr, with rapid growth
in click & collect solutions. The banner has developed a
priority delivery service for orders by hospital professionals,
which has benefited more than 1,000 people. Expansion continued
with the opening of eight new stores during the quarter (Monop’ and
Naturalia). The O'logistique warehouse in Fleury-Mérogis - based on
Ocado's robotic technology - went into service in a test version on
18 March 2020. The service will be open to the public in the coming
weeks.
- Casino Supermarkets, which benefit from their
urban positioning, reported growth of +7.5% on a same-store
basis, with an acceleration since the end of March that lifted
growth to +15% over the last 4 weeks12.
The E-commerce business was boosted by an
acceleration in the Drive segment, with 35 new locations opened
during the quarter, the roll-out of home delivery in more
than 65 cities (i.e., an additional 15 over the period),
and a new partnership with Uber Eats. In addition, the banner
continued to develop autonomous stores, with 142
such stores to date, of which 42 new deployments in Q1.
- Sales at Franprix, which benefits from a very
dense urban network and a well-adapted offering, rose by
+12.6% on a same-store basis, accelerating to
+26% over the last 4 weeks1. The banner enhanced
its E-commerce solutions with click & collect and home delivery
services. A toll-free telephone number was set up to deliver
baskets of basic necessities to people in difficulty.
- Sales in the Convenience segment, which
benefits from the densest store network in France, rose by
+11.5% on a same-store basis over the quarter, accelerating
to +40% over the last four weeks1. E-commerce solutions
were deployed within the different networks, with a click &
collect service available in 364 stores.
- Géant Hypermarkets sales grew by +1.5%
on a same-store basis, of which +2.9% in
food. In an environment that has been more challenging in
France for large hypermarkets since the lockdown13, the banner
benefited in relative terms from stores with adapted retail space
and the acceleration in the Drive segment. A home delivery solution
was also developed in around 41 cities (i.e., an additional 12 over
the period) and a partnership with Uber Eats was established.
Lastly, the development of autonomous stores continued, with 39
such stores to date, of which 20 deployed in Q1.
GreenYellow
First-quarter 2020 confirmed
GreenYellow’s growth momentum in its photovoltaic and energy
efficiency businesses, with further diversification of its
customer portfolio in all geographies (including Groupe SEB in
Colombia, Valeo in Thailand, and four new projects in
Madagascar).
Data & Data Center
RelevanC (Data) continued to
enjoy good momentum. Its gross sales under banner reached €20m, an
increase of +92% for the quarter led by advertising. The Retail
Tech business notably rolled out its paperless catalogue
offering.
ScaleMax (Data Center) acquired
new customers during the quarter, signing contracts with startups
Flying Whales and Ascendance Flight Technology. In addition, Casino
took part in the €6m fundraising of Qarnot computing, its partner
in the ScaleMax joint venture and a high-performance computing
specialist.
Cdiscount
In the current environment, Cdiscount is
fully operational and has reported solid current trading
in recent weeks:
- The subsidiary is fully operational: head
office staff are working from home and all of the 10 warehouses are
operational, with strict sanitary measures in place;
- Cdiscount launched initiatives to quickly meet customer
demand in terms of both home delivery terms and the
product offerings, where the focus during this period has been
placed on essential products (home-working
equipment, home-based activities, non-perishable grocery items,
personal & beauty care, childcare, home cleaning products, and
pet products);
- Strong business in recent weeks, with a sharp
improvement in GMV and profitability lifted by growth in the
marketplace and higher margin categories:
- Since the beginning of April14: GMV grew by
+40%, of which +19% in direct sales and +69% in
marketplace sales, which represent 50.7% of GMV (up +8.7 points vs.
2019). The direct sales margin is up +9.9 points, driven by product
mix improvement.
- Cdiscount launched solidarity campaigns, with
(i) the order of 60 million face masks dedicated
to local authorities and SMEs, (ii) the
donation of 60,000 face masks to medical
establishments and of tablets and computers to people under
lockdown, and (iii) assistance to French SMEs,
with the simplification of the marketplace sign-up procedure and
six months' free membership.
In Q1, Cdiscount’s GMV totalled €900m,
which was stable for the quarter15. Business
rebounded in March after a difficult start to the year for
the market as a whole due to the shorter winter sales season and a
slowdown in the marketplace over the first two months following
containment measures, first in China and then in Europe.
- Over the quarter, the marketplace contribution
continued to grow to 38.3% of GMV (an increase of +2.4
points on 2019), led by the Fulfillment by Cdiscount service, which
advanced +30% on the back of a +6.3 pt increase in its GMV
share.
- GMV from services increased 2.4-fold over the
first two months of the year, led by travel (3.3-fold increase in
January-February) and energy (+50% in Q1), which now has more than
100,000 customers.
The international platform continued to
expand, with GMV up +57%. Cdiscount has 73 connected
websites, i.e., 26 more than at end-2019, and delivers in 25
European countries.
Key figures16 |
Q1 2019 |
Q1 2020 |
Reportedgrowth3 |
Organic growth2 |
GMV total including tax17 |
906 |
900 |
-0.7% |
0.0% |
o/w
direct sales |
493 |
452 |
-8.3% |
|
o/w
marketplace sales |
280 |
285 |
+1.5% |
|
Marketplace contribution (%) |
35.9% |
38.3% |
+2.4
pts |
Net sales (in €m) |
527 |
493 |
-6.4% |
-5.7% |
Traffic (millions of visits) |
255 |
247 |
-3.2% |
Mobile
traffic contribution (%) |
68.4% |
72.2% |
+3.8
pts |
Active customers (millions)18 |
9.1 |
9.1 |
+0.9% |
Cnova provided a detailed report on its Q1 net
sales on 17 April 2020.
Latam Retail
Sales19 at the Group's businesses in
Latin America (GPA Food and Éxito) rose by +8.5%
on a same-store basis and +14.0% on an organic
basis this quarter, marked by an acceleration in sales in the last
two weeks of March in all formats due to the Covid-19 epidemic.
In this context, the Group has implemented
measures in all of its geographies and banners to protect
its customers and employees, including at GPA the
distribution of face masks and hydro-alcoholic gels to employees,
and the installation of panels and distance lines at checkouts.
- Net sales in Brazil (GPA
Food)20 advanced +15.0%
on an organic basis this quarter:
- Assaí reported strong organic growth of
+23.8% driven by the format’s attractiveness and
successful expansion strategy, with 40 new stores
opened during the past 24 months. The banner’s same-store growth
was +7.1% despite the high basis of comparison (+10.7% in Q1 2019).
Openings are set to continue, with 14 stores under construction and
three hypermarkets in the process of conversion;
- Multivarejo, up +6.6% on a
same-store basis, was led by renovated formats:
- Pão de Açúcar benefited from +14% growth at 46
renovated stores, which represented 40% of the banner’s net
sales;
- The Compre Bem and Mercado
Extra banners delivered very strong same-store growth of
+42% and +11%, respectively;
- The Convenience formats confirmed their
success with same-store growth of +22.5% despite a high basis of
comparison (+20% in Q1 2019);
- The 70 most dynamic Extra Hypermarkets
reported a strong performance lifted by promotional campaigns for
private-label brands and the attractiveness of the Clube Extra app.
The banner continued to optimise its store base with the closure of
five stores, of which three for conversion to the Assaí
format;
- The subsidiary continued to pursue its digital strategy and
reported +82% growth in food E-commerce and a
rising penetration rate, particularly at Pão de Açúcar.
The Covid-19 epidemic has had an impact
on sales across all geographies and banners from mid-March
(14-31 March). In-store sales increased by +16%
and food E-commerce saw a +150% increase in orders
over the period. Food delivery solutions James
Delivery and Cheftime recorded very
strong levels of business, with increases in the number of orders
of +862% and +90%, respectively.
The banner reaffirmed its store
expansion, renovation and conversion plan, whose schedule will be
adjusted depending on the Covid-19 crisis.
- Net sales of Éxito Group2 rose by
+12.1% on a same-store basis this quarter:
- Colombia: +9.7% growth on a
same-store basis, led by Éxito’s anniversary campaign and an
increase in business since mid-March across all banners further to
lockdown;
- Uruguay: +11.8% growth on a
same-store basis, thanks to a dynamic tourism sector and an
increase in sales from mid-March due to the Covid-19 epidemic;
- Argentina: +46.0% growth on a same-store basis
despite a difficult economic environment, with growth beating
inflation in the Hiper and Convenience formats and a buoyant
E-commerce segment.
GPA released a detailed report on its Q1 net
sales on 22 April 2020. The Éxito Group will provide a detailed
report on its results on 4 May 2020.
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 – Direction of
CommunicationStéphanie ABADIE – sabadie@groupe-casino.fr –
+33 (0)6 26 27 37 05
or
+33 (0)1 53 65 24 78 –
directiondelacommunication@groupe-casino.fr
Agence IMAGE 7Karine ALLOUIS –
+33(0)1 53 70 74 84 – kallouis@image7.frFranck PASQUIER –
fpasquier@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.
1 Organic and same-store changes exclude fuel and calendar
effects. Net sales and total and organic growth are impacted by the
store disposals and closures carried out in 2019
2 Data over the last 4 weeks, as at 20 April 2020, excluding
Vindémia
3 Data since the beginning of April, as at 20 April 2020, based
on placed orders
4 Cnova provided a detailed report on its Q1 net sales on 17
April 2020
5 Excluding fuel and calendar effects
6 Data published by the subsidiary
7 Excluding fuel and calendar effects
8 Excluding Codim stores in Corsica: 8 supermarkets and 4
hypermarkets
9 Other: mainly Vindémia, Geimex and Cafeterias
10 Net sales on a same-store basis include the same-store
performance of franchised stores
11 Data over the last 4 weeks, as at 20 April 2020
12 Data over the last 4 weeks, as at 20 April 2020
13 See data from Nielsen and Kantar panelists
14 Data since the beginning of April, as at 20 April 2020, based
on placed orders
15 Organic growth: the figures include showroom sales and
services but exclude sales of technical goods and home category
sales made in Casino Group hypermarkets and supermarkets (total
exclusion impact of +0.7 pts on GMV growth)
16 Unaudited data published by Cnova NV. The reported figures
present all revenues generated by Cdiscount, including its
technical goods sales in the Casino Group’s hypermarkets and
supermarkets
17 Gross merchandise volume (GMV) includes sales of merchandise,
other revenues and the marketplace’s sales volume based on
confirmed and shipped orders, including tax, and the sales volume
of services
18 Active customers at the end of March having purchased at
least once through Cdiscount sites and app during the previous 12
months
19 Consolidated net sales was impacted by a -14,5% currency
effect
20 Data published by the subsidiary
- Communiqué - CA T1 2020 VA
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