Earnings Release • Oct 30, 2019
Earnings Release
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THIS ANNOUNCEMENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE OR FORM PART OF ANY OFFER OR INVITATION TO SELL OR ISSUE, OR ANY SOLICITATION OF AN OFFER TO PURCHASE OR SUBSCRIBE FOR, ANY SECURITIES.
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN OR ANY OTHER JURISDICTION IN WHICH IT WOULD BE UNLAWFUL TO DO SO. PLEASE SEE THE IMPORTANT NOTICES AT THE END OF THIS ANNOUNCEMENT. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.
Paris, 30 October 2019,
As part of its refinancing plan announced on 22 October, the Group brings the following information to the attention of the market:
In addition to the information contained in our press release of 17 October 2019, the Group specifies that, during the third quarter of 2019, it continued to implement the action plans in France previously announced, in particular the cost reduction plan, the rationalization of the store network and the development of its new activities. These plans continued to have a positive impact on profitability.
The evolution of net financial debt in France (France retail and e-commerce) between the end of June and the end of September is in line with the seasonality observed historically over the last three years. The Group continued to implement its initiatives to improve cash flow generation and accelerate debt reduction. The Group observed an additional reduction in its inventory levels in France and continued its asset disposal plan (notably with the signature of the sale of Vindemia in July 2019).
As part of the refinancing plan, the Group discloses additional information regarding its real estate assets in France. After giving effect to certain reorganization transactions1 , Immobilière Groupe Casino's assets are valued (on the basis of valuation reports at the end of December 2018) at €1.026m (including transfer taxes) and €966m (excluding transfer taxes) at 10/30/2019.
The table below shows a breakdown of this portfolio by type of assets (post-reorganisation operations1):
1 As part of the refinancing plan, certain assets which are owned as of today by IGC will be transferred to other entities of the Group, including assets that are currently being sold as part of the €2.5bn disposal plan, assets identified for the continuation of the Rocade plan and assets held in joint ventures with third parties.
| €M | Value (incl. transfer taxes) |
As a % of total value |
Value (excl. Transfer taxes |
As a % of total value |
|---|---|---|---|---|
| Hypermarkets | 366 | 36% | 343 | 35% |
| Supermarkets | 72 | 7% | 67 | 7% |
| Convenience stores | 13 | 1% | 12 | 1% |
| Total stores (A) | 451 | 44% | 421 | 44% |
| Shopping malls | 142 | 14% | 132 | 14% |
| Parking lots, service stations and land | 306 | 30% | 288 | 30% |
| Restaurants | 14 | 1% | 13 | 1% |
| Total other operating assets (B) | 461 | 45% | 432 | 45% |
| Total operating assets (A) + (B) | 913 | 89% | 854 | 88% |
| Other non-operating assets | 21 | 2% | 19 | 2% |
| Shares in joint-ventures | 26 | 3% | 26 | 3% |
| Shares in real estate investment vehicles | 67 | 6% | 67 | 7% |
| Total | 1026 | 100% | 966 | 100% |
The Group's strategy is based on the following main pillars:
In the context of its refinancing plan and the different debt instruments to be incurred in connection therewith, the Group has reviewed the content of its public disclosure related to the risk factors identified in its 2018 Registration Document. The following elements have been identified:
Additional risks associated with potential conflicts of interest between the Group's reference shareholder and investors in new financing, particularly in the context of the safeguard procedure of the reference shareholder;
Additional risks associated with the Group's ability to implement its strategy;
* * *
This press release constitutes a public disclosure of inside information by the Company under Regulation (EU) 596/2014 (16 April 2014) and Implementing Regulation (EU) No 2016/1055 (10 June 2016).
This press release may include forward looking statements. These forward looking statements can be identified by the use of forward looking terminology, including the terms as "believe", "expect", "anticipate", "may", "assume", "plan", "intend", "will", "should", "estimate", "risk" and or, in each case, their negative, or other variations or comparable terminology. These forward looking statements include all matters that are not historical facts and include statements regarding the Company's or any of its affiliates' intentions, beliefs or current expectations concerning, among other things, the Company's or any of its affiliates' results of operations, financial condition, liquidity, prospects, growth, strategies and the industries in which they operate. By their nature, forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Readers are cautioned that forward looking statements are not guarantees of future performance and that the Company's or any of its affiliates' actual results of operations, financial condition and liquidity, and the development of the industries in which they operate may differ materially from those made in or suggested by the forward looking statements contained in this press release. In addition, even if the Company's or any of its affiliates' results of operations, financial condition and liquidity, and the development of the industries in which they operate are consistent with the forward looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods.
The forward-looking statements and information contained in this announcement are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Régine GAGGIOLI – +33 (0)1 53 65 64 17 [email protected]
or
+33 (0)1 53 65 24 17 IR\[email protected]
Casino Group – Direction of Communication
Stéphanie ABADIE - [email protected] - +33 (0)6 26 27 37 05
or
+33(0)1 53 65 24 78 - [email protected]
Karine ALLOUIS - +33(0)1 53 70 74 84 - [email protected] Grégoire LUCAS - [email protected]
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