Earnings Release • Apr 18, 2017
Earnings Release
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Total Group sales up +11.6%
| BY SECTOR Q4 2016/Q4 2015 change |
Q1 2017/Q1 2016 change | |||||||
|---|---|---|---|---|---|---|---|---|
| (in €m) | Q4 2016 |
Total growth |
Organic growth |
Same-store growth |
Q1 2017 |
Total growth |
Organic growth |
Same-store growth |
| France Retail | 4,915 | -0.5% | -0.6% | +0.2% | 4,504 | -1.0% | -0.5% | +0.2% |
| Cdiscount | 584 | +5.9% | +5.9% | +7.8% | 469 | +1.5% | +2.8% | +4.0% |
| Latam Retail | 4,539 | +22.5% | +12.3% | +7.5% | 4,348 | +30.2% | +7.7% | +4.6% |
| TOTAL GROUP | 10,039 | +9.1% | +5.1% | +4.2% | 9,321 | +11.6% | +3.1% | +2.5% |
Following the end-2016 decision to sell Via Varejo (including Cnova Brazil) and in accordance with IFRS 5, Via Varejo (including Cnova Brazil) has been reclassified under discontinued operations and is no longer included in the Group's consolidated sales in 2016 and 2017.
Sales for Q1 2017 totalled €9.3 billion, an increase of +11.6%, driven by +3.1% organic growth, a +10.1% currency effect and a +0.3% fuel effect, slightly offset by a -1.8% negative calendar effect due to a shift in Easter and a leap year in 2016. The scope effect was neutral over the quarter.
(2) Commercial trend over the last eight weeks up to April 11, based on placed B2C GMV.
NB: Organic and same-store changes exclude fuel and calendar effects.
| Q4 2016/Q4 2015 change | Q1 2017/Q1 2016 change | |||||||
|---|---|---|---|---|---|---|---|---|
| BY BANNER | Q4 2016 |
Total growth | Organic growth(1) |
Same-store growth(1) |
Q1 2017 |
Total growth | Organic growth(1) |
Same-store growth(1) |
| Monoprix | 1,154 | +2.4% | +2.5% | +0.4% | 1,066 | +1.6% | +2.4% | +2.1% |
| Casino Supermarkets | 829 | +4.1% | +5.2% | +3.2% | 765 | +1.6% | +4.1% | +1.9% |
| Franprix | 402 | -5.1% | -4.5% | -1.7% | 395 | -2.0% | -0.3% | +1.4% |
| Convenience & Other(2) |
621 | -6.5% | -6.9% | -4.8% | 593 | -5.5% | -5.6% | -3.3% |
| o/w Convenience | 313 | -6.4% | -6.3% | -6.1% | 321 | -6.1% | -5.3% | -4.0% |
| Hypermarkets(3) | 1,254 | -0.3% | +0.7% | +0.7% | 1,058 | -2.3% | -2.6% | -1.9 % |
| of which Géant Casino | 1,182 | -0.4% | +0.6% | +0.6% | 1,005 | -1.7% | -2.1% | -1.9% |
| Leader Price | 655 | -2.6% | -5.9% | +0.1% | 626 | -0.9% | -2.7% | +0.2% |
| FRANCE RETAIL | 4,915 | -0.5% | -0.6% | +0.2% | 4,504 | -1.0% | -0.5% | +0.2% |
In France, total sales amounted to €4,504 million in Q1 2017, up +0.2% on a same-store basis, including +0.9% growth in food sales. Monoprix's non-food sales were positive, driven by a good performance in apparel; those of Géant were affected by reductions in retail space and the positive impact in Q1 2016 of the mandatory move to digital TV in France. The -0.5% decrease in organic sales was due to transfers to franchises in 2016 and store renovation work. Traffic rose +1.1%, driven by better frequency and passing customers at supermarkets and urban banners. The Group gained +0.1pt market share in the last Kantar period (P03).
At Monoprix, same-store sales growth improved again as compared to the previous quarter, with a +2.1% increase. Traffic was up +2.9%, a record since 2011. The growth reflects a renewed commercial drive, particularly driven by food (fresh) and apparel. Online food sales enjoyed double-digit growth, driven mainly by the implementation of same-day delivery service. During the first quarter, nine stores were opened and two large stores were closed temporarily for renovation work (Champs-Elysées and Parly II). Market share was stable over the last P03 Kantar period.
At Supermarchés Casino, performance was in line with the excellent trends seen in 2016, with organic sales up +4.1% in Q1 and same-store sales up +1.9% driven by +2.4% growth in food sales. Fresh sales were extremely buoyant, especially in service counters developed under the new, more qualitative, concept. Customer traffic was up +1.9%. Market share gained +0.1pt over the cumulative year-to-date Kantar P03 period.
At Franprix, same-store sales kept growing (+1.4%). Customer traffic rose +4.1% over the quarter, driven by store renovations. 65% of all stores now offer a renewed assortment ("Mandarine"); all integrated stores will have moved over to the new concept by the end of H1 2017. Franprix market share resumed stability over the last Kantar P03 period.
In Convenience, same-store sales growth improved sequentially in Q1. The banner continues to update its offering by rolling out its new Petit Casino concept in the integrated stores. Franchise sales rose +6.1% in the first quarter. Their contribution to total gross sales under banners rose from 52% in Q1 2016 to 58% in Q1 2017.
(1) Excluding fuel and calendar effects.
(2) Other: mainly Vindémia and Cafeterias.
(3) Including Géant Casino and mainly the business of the four Codim stores in Corsica.
At Géant Casino, same-store sales were down -1.9% in Q1 2017 compared with +4.0% growth in Q1 2016. Same-store food sales were up +0.4% in the quarter (versus +4.7% in Q1 2016), and market share was stable, with no expansion and despite a -1.6% fall in total retail space. The banner delivered a very good performance in its fresh market and organic ranges. Growth in click-and-collect (Drive) was also very buoyant, driven by improved services and assortments. At end-March 2017, 103 of Géant's 106 integrated stores in France were equipped with an adjacent Drive. The decline in non-food sales was due to retail space cuts and the favourable effect in Q1 2016 of the mandatory move to digital TV and the Euro 2016 European football championship.
At Leader Price, same-store sales were up +0.2%, in line with Q4 2016 (+0.1%), with stable traffic and driven by a sequential improvement in volumes due to a renewed product offering and a more dynamic in-store commercial activity. At end-March, the banner had 791 stores, including 380 franchises. Market share was stable in P03 despite store closures in 2016.
At Cdiscount, GMV totalled €770 million in Q1 2017, up +7.7% on a like-for-like basis (1). Excluding TV category, which was boosted in Q1 2016 by the mandatory shift to digital television in France, growth would have been +9.7%. Commercial momentum improved over the quarter, with GMV up +12% in March, a trend that has continued over the last eight weeks to 11 April 2017 (with growth of about +10% based on placed B2C GMV). The marketplace share was 32.0% (+267bp vs Q1 2016), driven notably by a +38% increase in the number of product offerings and a continued improvement in quality of the dedicated customer service.
Traffic was up a sustained +11.4%, mainly due to the mobile channel, which delivered growth of 633bp and with a 57% share. Mobile visits increased by 25% and the conversion rate improved by more than 20bp. Average unique monthly desktop visitors were up +8.0% in January and February compared with the previous year, reaching 12.2 million according to Médiamétrie. On that basis, Cdiscount is the most dynamic site of the top five e-commerce sites in France and hence consolidates its number two position. Average unique monthly mobile visitors totalled 6.5 million in the first two months of 2017.
Cdiscount also continued to strengthen its social media presence. Its Facebook fan base grew significantly from end-March 2016 to end-March 2017, rising from 1.2 million to 1.4 million. According to the Sprinklr survey published in February 2017, Cdiscount ranks number two among 62 French retailers in social media engagement measured in terms of number of interactions (like, share, comment).
Cnova provided a detailed report on its Q1 sales on 13 April 2017.
| Key figures(1) | Q1 2016 | Q1 2017 | Total growth |
Same-store growth(1) |
|---|---|---|---|---|
| Gross merchandise volume (GMV)(2) including tax |
732.4 | 770.4 | +5.2% | +7.7% |
| Traffic (visits in millions) | 209.9 | 233.8 | +11.4% | |
| Mobile traffic share (%) | 50.6% | 56.9% | +633bp | |
| Active customers(3) (in millions) |
7.5 | 8.3 | +10.4% | |
| Units sold (in millions) | 11.2 | 12.5 | +11.7% | |
| Orders(4) (in millions) | 5.7 | 6.5 | +13.6% |
(1) Figures published by the subsidiary. Same-store data have been adjusted for i) the sale or closure in 2016 of specialised sites Comptoir des Parfums, Comptoir Santé and MonCornerDéco, ii) the planned reduction of B2B sales initiated in Q3 2016, and iii) restatement for the leap year impact (29 February 2016).
(2) GMV (gross merchandise volume): business volume including tax, figures provided by the subsidiary.
(3) Active customers at 31 March who made at least one purchase on our website in the last 12 months.
(4)Total number of orders placed before cancellation due to detection of fraud or the absence of customer payment.
Sales in Latin America (Exito and GPA Food) rose +7.7% on an organic basis and +4.6% on a same-store basis in a context of decelerating inflation (except for Argentina).
Exito (excluding GPA Food): organic growth was driven by good same-store performances in Uruguay and expansion in all regions.
GPA Food delivered +9.8% growth on an organic basis and +5.8%(1) on a same-store basis, driven by a recovery at Extra hypermarkets and continued growth at Assaí. Both formats outperformed the market(2) . Q1 sales included the impact of a sharp fall in inflation (about 5.2% in Q1 2017 versus 13.1% in Q1 2016). They also include the closure of 60 stores in the last 12 months and 20 during the quarter, of which five hypermarkets being converted into the Assaí format.
GPA provided a detailed report on its Q1 sales on 13 April 2017. Exito will provide a detailed report on its Q1 sales on 16 May 2017.
***
(1) Includes sales of two Extra Hyper stores converted to the Assaí format
(2) Data published by the subsidiary – Source: ABRAS, PMC (IBGE), Nielsen.
Organic growth corresponds to growth at constant scope of consolidation and exchange rates, excluding fuel and calendar effects, unless otherwise mentioned.
| ESTIMATED GROSS SALES UNDER BANNERS (in €m, excluding fuel) |
Q1 2016 | Q1 2017 | Change (excluding calendar effects) |
|---|---|---|---|
| Monoprix | 1,078 | 1,092 | +2.1% |
| Casino Supermarkets | 695 | 709 | +3.2% |
| Franprix | 440 | 443 | +1.9% |
| Convenience & Other | 703 | 676 | -3.6% |
| o/w Convenience | 401 | 384 | -3.4% |
| Hypermarkets | 922 | 880 | -2.6% |
| Leader Price | 690 | 672 | -1.5% |
| FRANCE RETAIL | 4,529 | 4,524 | +1.1% |
Press release available on: www.gpari.com.br
| NET SALES (in R\$ million) | Q1 2017 | Change |
|---|---|---|
| Offline | 4,891 | +4,2% |
| Online | 1,102 | -4,0% |
| Total | 5,993 | +2,6% |
| SAME STORE SALES GROWTH | Q1 2016 | Q1 2017 |
| Offline | -11,8% | +2,5% |
| Online (GMV) | -10,5% | +2,0% |
| AVERAGE EXCHANGE RATES | Q1 2016 | Q1 2017 | Currency effect |
|---|---|---|---|
| Argentina (EUR/ARS) | 15.9531 | 16.6866 | -4.4% |
| Uruguay (EUR/UYP) | 34.7434 | 30.2801 | +14.7% |
| Colombia (EUR/COP) (x 1,000) | 3.5885 | 3.1110 | +15.4% |
| Brazil (EUR/BRL) | 4.3041 | 3.3468 | +28.6% |
| FRANCE | 30 Sept. 2016 | 31 Dec. 2016 | 31 March 2017 |
|---|---|---|---|
| Géant Casino Hypermarkets | 129 | 129 | 129 |
| o/w French affiliates | 7 | 7 | 7 |
| International Affiliates | 12 | 12 | 12 |
| Casino Supermarkets | 445 | 447 | 446 |
| o/w French Franchised Affiliates | 69 | 83 | 104 |
| International Franchised Affiliates | 32 | 33 | 32 |
| Monoprix | 738 | 745 | 750 |
| o/w Franchises/Affiliates | 196 | 196 | 200 |
| Naturalia | 137 | 141 | 144 |
| Naturalia franchises | 5 | 5 | 5 |
| Franprix | 853 | 858 | 869 |
| o/w Franchises | 375 | 392 | 402 |
| Leader Price | 796 | 796 | 791 |
| o/w Franchises | 393 | 383 | 380 |
| Total Supermarkets and Discount | 2,832 | 2,846 | 2 856 |
| Convenience | 6,745 | 6,065 | 5 506 |
| Other businesses (Cafeterias, Drive, etc.) | 643 | 630 | 636 |
| Indian Ocean | 172 | 185 | 186 |
| TOTAL France | 10,521 | 9,855 | 9 313 |
| INTERNATIONAL | 30 Sept. 2016 | 31 Dec. 2016 | 31 March 2017 |
|---|---|---|---|
| ARGENTINA | 27 | 27 | 28 |
| Libertad Hypermarkets | 15 | 15 | 15 |
| Mini Libertad and Petit Libertad supermarkets | 12 | 12 | 13 |
| URUGUAY | 75 | 79 | 80 |
| Géant Hypermarkets | 2 | 2 | 2 |
| Disco Supermarkets | 29 | 29 | 29 |
| Devoto Supermarkets | 24 | 24 | 24 |
| Devoto Express mini-supermarkets | 20 | 24 | 25 |
| BRAZIL | 1 119 | 1 135 | 1 117 |
| Extra Hypermarkets | 134 | 134 | 129 |
| Pao de Açucar Supermarkets | 184 | 185 | 185 |
| Extra Supermarkets | 194 | 194 | 194 |
| Assaí (Cash & Carry) | 100 | 107 | 106 |
| Mini Mercado Extra and minute Pao de Acucar | |||
| mini-supermarkets | 276 | 284 | 274 |
| Drugstores | 155 | 155 | 152 |
| + Service stations | 76 | 76 | 77 |
| COLOMBIA | 1 805 | 1 873 | 1 899 |
| Exito Hypermarkets | 85 | 86 | 87 |
| Exito and Carulla Supermarkets | 167 | 166 | 164 |
| Super Inter Supermarkets | 67 | 67 | 67 |
| Surtimax (discount) | 1 381 | 1 443 | 1 471 |
| o/w "Aliados" | 1 246 | 1 307 | 1 336 |
| B2B(1) | 2 | 2 | 2 |
| Exito Express and Carulla Express | |||
| mini-supermarkets | 102 | 109 | 108 |
| Other supermarkets | 1 | 0 | 0 |
| TOTAL International | 3 026 | 3 114 | 3 124 |
(1) Previously included in the Surtimax's line
Régine Gaggioli – Tel: +33 (0)1 53 65 64 17 [email protected]
or
+33 (0)1 53 65 24 17 IR\[email protected]
Casino Group Tel.: +33 (0)1 53 65 24 78 [email protected]
Stéphanie Abadie, Press relations manager
Tel.: + 33 (0)6 26 27 37 05 – [email protected]
Simon Zaks – Tel: +33 (0)6 60 87 50 29 – [email protected] Karine Allouis – Tel: + 33 (0)6 11 59 23 26 – [email protected]
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.
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