Earnings Release • Jan 17, 2018
Earnings Release
Open in ViewerOpens in native device viewer
Full-year 2017 sales amounted to €37.8bn, up +5.0% in total, +3.2% on an organic basis and +2.4% on a same-store basis
In France, Q4 same-store sales showed a slight increase (+0.3%), with food sales posting same-store growth of +1.3%
Including the performance of Cdiscount, sales recorded same-store growth of +1.5% in France
| Q4 2017/Q4 2016 change | 2017/2016 change | |||||||
|---|---|---|---|---|---|---|---|---|
| Sales without tax (in €m) |
Q4 2017 |
Total growth |
Organic growth |
Same-store growth |
2017 | Total growth |
Organic growth |
Same-store growth |
| France Retail | 4,878 | -0.8% | +0.1% | +0.3% | 18,903 | -0.2% | +0.1% | +0.8% |
| Cdiscount | 637 | +9.2% | +9.1% | +9.2% | 1,995 | +8.3% | +8.7% | +9.5% |
| Total France | 5,515 | +0.3% | +1.1% | +1.5% | 20,898 | +0.6% | +0.8% | +1.7% |
| Latam Retail | 4,493 | -1.0% | +5.5% | +2.4% | 16,923 | +11.0% | +6.4% | +3.1% |
| TOTAL GROUP | 10,008 | -0.3% | +3.2% | +2.0% | 37,822 | +5.0% | +3.2% | +2.4% |
Based on the decision to sell Via Varejo (including Cnova Brazil) taken at end-2016, 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 on continuing operations in 2016 and 2017.
Note: - Organic and same-store changes exclude fuel and calendar effects
| Q3 2017/Q3 2016 change | Q4 2017/Q4 2016 change | |||||||
|---|---|---|---|---|---|---|---|---|
| Sales (without tax) by banner in €m |
Q3 2017 |
Total growth |
Organic growth(1) |
Same-store growth(1) |
Q4 2017 |
Total growth | Organic growth(1) |
Same-store growth(1) |
| Monoprix | 1,007 | +3.7% | +4.0% | +3.1% | 1,161 | +0.6% | +1.2% | -0.5% |
| Casino supermarkets | 874 | -3.2% | -0.3% | +0.5% | 797 | -3.9% | -0.7% | +0.6% |
| Franprix | 370 | +0.0% | -0.1% | -0.5% | 415 | +3.4% | +2.7% | +0.5% |
| Convenience Stores & Other(2) |
656 | -4.3% | -4.5% | -1.4% | 611 | -1.7% | -0.1% | +2.3% |
| o/w Convenience Stores(3) |
371 | -3.3% | -2.8% | -2.0% | 285 | +1.0% | +2.0% | +2.0% |
| Leader Price | 610 | +2.1% | -3.2% | -0.2% | 637 | -2.9% | -1.9% | +0.3% |
| Hypermarkets(4) | 1,247 | +1.2% | +0.8% | +0.5% | 1,257 | +0.3% | +0.2% | +0.0% |
| o/w Géant food | 802 | +1.8% | +2.0% | +2.0% | 820 | +2.2% | +2.8% | +2.8% |
| o/w Géant non-food | 160 | -6.2% | -6.0% | -6.0% | 174 | -10.2% | -9.6% | -9.6% |
| France RETAIL TOTAL | 4,764 | +0.1% | -0.2% | +0.6% | 4,878 | -0.8% | +0.1% | +0.3% |
Total sales in the France Retail segment came to €4,878m, up +0.1% on an organic basis and +0.3% on a same-store basis. Total growth was down -0.8%, notably including a calendar effect of -0.7% and a scope effect of -0.3% (mainly related to past transfers to franchises of Supermarkets). Kantar's market share was stable throughout 2017.
Growth came out at +0.8% on a same-store basis and +0.1% on an organic basis in 2017. Gross non-food (including Cdiscount) and food sales under banners grew +5.6% and +1.7%, respectively.
Monoprix saw organic sales climb +2.8% over the full year, including +1.2% in Q4. On a same-store basis, growth was +2.0% over the full year, with a slight drop of -0.5% in Q4 and stable customer traffic. Food sales performed well throughout the year and in Q4, with online sales recording double-digit growth still above 20%. In non-food categories, home products delivered a good performance in Q4. Textile sales, which significantly outperformed the sector over the year, were impacted in Q4 by milder weather in October. The new loyalty card confirmed its success, with 66% of sales now generated by card-holding customers. The banner expanded further by ramping up the Naturalia organic format (24 stores opened in 2017).
Casino Supermarkets recorded an increase of +0.6% in same-store sales in the fourth quarter (after +0.5% in Q3) and +1.5% over full-year 2017, thanks to good performances in fresh and organic food sales, and by the roll-out of the new concept. Same-store sales growth over two years was +3.8%. The launch of the new customer loyalty programme in September enabled the number of cards to increase sharply, with a share of sales generated by card-holding customers up +25% compared to 2016. The banner gained +0.1pt market share in the fresh market corners (Fruits & Vegetables and Service Counters) over the last measured Kantar period on that item (P12).
Franprix posted Q4 sales growth of +2.7% on an organic basis and +0.5% on a same-store basis (after -0.1% and -0.5%, respectively, in Q3). Same-store growth came out at +1.3% over the full year, notably driven by the roll-out of the Mandarine concept and by new initiatives undertaken by the banner, including new delivery options, fresh snacking and the Franprix mobile app. Downloaded nearly 400,000 times (primarily in the Paris area), the Franprix mobile app was named "e-commerce app of the year" by specialist magazine LSA. Customer traffic rose +1.8% in Q4 and +3.1% over full-year 2017. As of end-2017, 30% of sales were generated by Franprix loyalty card-holding customers, with double the average cart of other customers. Expansion was especially dynamic in 2017, with 51 new stores; three stores were opened in Paris under the new "Noé" concept-incubator format and 20 more openings are scheduled for 2018.
(1) Excluding the fuel and calendar effects
(2) Other: mainly Vindémia and Cafeterias
(3) Same-store sales for Convenience Stores includes the same-store sales earned by franchised stores, excluding LPE
(4) Including Géant Casino and primarily the business of the four Codim stores in Corsica
Same-stores sales recorded by Convenience Stores improved by +2.0%(1) , a marked improvement on Q3 2017, as streamlining efforts continued. The roll-out of the new Le Petit Casino concept across integrated stores generated a good performance for converted stores. Franchised stores posted strong same-store sales growth of +3.4% (versus +0.9% in Q3 2017).
Leader Price same-store sales grew +0.2% in full-year 2017 and +0.3% in Q4. Organic sales were partially impacted by changes in the store network. The banner continued its renovations, notably developing the Next concept, which significantly outperforms the rest of the network. New stores offer an expanded range of fresh and organic food, improved non-food corners and a new Leader Price health and beauty private label, Sooa.
Géant Casino same-store sales increased slightly over the quarter (+0.3%), with food sales up +2.8% on a same-store basis, led by groceries, fresh produce and service counters. Organic ("bio") items posted double-digit growth in 2017, accelerating towards the end of the year. Food retail areas delivered higher sales per m2 in Q4. Adjacent drive sales were up +10% over the full year. Loyalty enhancement - through special initiatives for loyalty card-holders - boosted the percentage of sales generated by card-holding customers, with sales from these customers also on the rise. Géant continued to reduce non-food retail space (total retail space down -0.6% vs. Q4 2016 and -6.8% vs. 2011), with still declining sales in these categories. The good performance of major household appliances was driven by the partnership with Cdiscount and the success of the Black Friday.
(1) Same-store sales for Convenience Stores includes the same-store sales earned by franchised stores, excluding LPE
Cdiscount recorded in Q4 a good performance of its sales which amounted to €701m(1), up +9.2% on a same-store basis, after. +7.8% in Q4 2016. GMV grew +15.9%, o/w +7.9% on a same-store basis. With 282 million visits in Q4, Cdiscount's customer traffic was up +11.4%. Over the year, the traffic increased by +12.4% to 946 million visits.
These performances benefited from market and price developments, competitive promotions and the success of the "Cdiscount à volonté" (CDAV) loyalty programme, which enjoyed strong growth. The assortment was broadened, the number of products eligible for free express delivery under the CDAV programme tripled over the year, and the number of marketplace references increased by more than 80% in 2017. In the fourth quarter, three new Cdiscount corners were opened in Géant hypermarkets, bringing the total number to four, in-store interactives terminals were deployed and synergies with Casino banners were reinforced (offers, promotions). Hypermarket sales €108m in full-year 2017. Finally, same-day delivery was extended to Lille and Lyon, and will be rolled out to other cities in 2018.
The quarter was marked by a record-breaking Black Friday in November (GMV up +80% compared to 2016) with a record traffic growth of nearly +40% vs. 2016. On the website, the top contributors to sales growth were household appliances, TV and audio devices, household products and video games.
Cdiscount also diversified its revenues with the successful launch of the "Coup de pouce" instant credit service and the least expensive electricity offer on the market, "Cdiscount Energie". The Fulfillment-by-Cdiscount service ramped up growth, nearly doubling the number of references in 2017, while also implementing a complete ecosystem tailored to marketplace vendors including value-added services such as targeted advertising offers, financial services and transportation.
Cdiscount has consistently increased its market share since April 2017. According to GfK, Cdiscount posted in November market share gains (2) of +1.4 point in value terms and +1.7 point in volume terms on the technical goods segment. Cdiscount also consolidated its leadership in terms of visibility and social media engagement, among the top e-tailers in France.
| Key figures(3) | Q4 2016 | Q4 2017 | Total growth |
Same-store growth(4) |
|---|---|---|---|---|
| GMV(5) (gross merchandising volume), with tax |
943 | 1,093 | +15.9% | +7.9% |
| Sales (€m) | 584 | 701 | +20.1% | +9.2% |
| Traffic (millions of visits) | 253 | 282 | +11.4% | |
| Mobile traffic share (%) | 55.1% | 61.3% | +629 bp | |
| Active customers(6) (millions) |
8.2 | 8.6 | +6.0% | |
| Units sold (millions) | 17.1 | 17.3 | +1.1% | |
| Orders(7) (millions) | 8.2 | 8.4 | +2.3% |
Cdiscount issued a detailed report on its Q4 2017 sales on 12 January 2018
(2) GfK market share
(3) Data published by the subsidiary. Cnova NV data have not been audited and were adjusted for all periods in respect of: i) the Cnova Brazil-Via Varejo merger on 31 October 2016, ii) the sale or closing of Cdiscount's international sites and iii) the sale of MonShowroom. In accordance with IFRS 5, these businesses were classified under discontinued operations as from 1 January 2016.
(4) Same-store data have been adjusted for: i) operating data related to the specialty sites Comptoir des Parfums, Comptoir Santé and MonCornerDéco due to their sale or closure in 2016, ii) B2B operating data due the voluntary pullback of their sales initiated in the 3rd quarter of 2016 and iii) Cdiscount sales made to Casino clients in France in relation with the multichannel agreement with Casino effective since June 19, 2017 (+6.6 pts and +8.9 pts on GMV and net sales growth, respectively over the quarter).
(5) GMV includes sales of merchandise, other revenues and marketplace business volume (based on validated and shipped orders), all tax included.
(6) Active customers at the end of December having purchased at least once through Cdiscount sites and app during the previous 12 months.
(7) Total number of orders placed before cancellation due to detection of fraud and/or lack of customer payment.
(1) Sales as published by Cnova NV. This figure includes €52 million of sales generated in hypermarkets in Q4.
Group sales in Latin America (Exito Group excluding Brazil and GPA Food) grew +5.5% on an organic basis in Q4, in a context of decelerating food inflation.
Exito Group (excluding GPA Food) continued to roll out the Cash & Carry format, with nine Surtimayorista stores opened at end-2017 (o/w five conversions) based on the Assai model in Brazil.
GPA Food sales increased +7.5% on an organic basis and +3.9% on a same-store basis in Q4, posting a sequential improvement in a context of food deflation:
Multivarejo same-store sales grew +0.7%(1) in 2017, with continuous market share gains throughout the year. In Q4, same-store sales were slightly down (-0.6%(1)), in relation with deflation in the "food at home" categories (-5.1% in Q4 2017 vs. -4.5% in Q3 2017). Buoyed by the "Meu Desconto" programme, the loyal customer base currently totals 14 million profiles as opposed to 12 million previously.
Extra hypermarkets delivered a good quarterly and full-year performance. Its Q4 same-store sales were impacted by a slowdown in the non-food categories, which nevertheless maintained double-digit growth.
Pao de Açucar volumes improved for the second quarter in a row, despite renovations (50 stores renovated at end-2017 - i.e. 35% of the banner's sales - and at least 20 renovations scheduled for 2018). Same-store sales were still penalized by food deflation over the quarter. Extra Supermarkets sales were especially affected by deflation in the basic perishables category.
GPA issued a detailed report on its Q4 2017 sales on 15 January 2018.
***
(1) Data published by the subsidiary, not restated for the fuel effect
The definitions of non-GAAP indicators is available on the Casino Group website: www.groupe-casino.fr/en
Organic growth is presented at constant scope of consolidation and exchange rates, excluding fuel and calendar effects, unless otherwise indicated.
| Change (excluding calendar | ||||
|---|---|---|---|---|
| ESTIMATED GROSS FOOD SALES | effect) | |||
| BY BANNER (€m, excluding fuel effect) | Q4 2017 | Q4 2017 | FY 2017 | |
| Monoprix | 1,202 | +1.1% | +2.7% | |
| Casino Supermarkets | 742 | -0.6% | +1.1% | |
| Franprix | 461 | +2.9% | +2.2% | |
| Convenience Stores & Other | 695 | +0.7% | -1.5% | |
| o/w Convenience Stores | 347 | +3.4% | +1.4% | |
| Hypermarkets | 883 | +2.5% | +2.1% | |
| Leader Price | 727 | -2.4% | +3.0% | |
| TOTAL FOOD | 4,711 | +0.5% | +1.7% | |
| ESTIMATED GROSS NON-FOOD SALES | Change (excluding calendar effect) |
|||
| BY BANNER (€m, excluding fuel effect) | Q4 2017 | Q4 2017 | FY 2017 | |
| Hypermarkets | 187 | -9.8% | -10.5% | |
| Cdiscount | 1,015 | +7.9% | +9.6% |
TOTAL NON-FOOD 1,202 +4.6% +5.6%
| AVERAGE EXCHANGE RATES | Q4 2016 | Q4 2017 | Currency effect |
|---|---|---|---|
| Argentina (EUR/ARS) | 16.6773 | 20.6372 | -19.2% |
| Uruguay (EUR/UYP) | 30.7338 | 34.2994 | -10.4% |
| Columbia (EUR/COP) (x 1000) | 3.2561 | 3.5169 | -7.4% |
| Brazil (EUR/BRL) | 3.5548 | 3.8196 | -6.9% |
| FRANCE | 30 June 2017 | 30 September 2017 | 31 December 2017 |
|---|---|---|---|
| Géant Casino hypermarkets | 121 | 121 | 122 |
| o/w French affiliates | 7 | 7 | 7 |
| International affiliates | 4 | 4 | 5 |
| Casino supermarkets | 430 | 430 | 431 |
| o/w French franchised affiliates | 104 | 104 | 104 |
| International franchised affiliates | 16 | 16 | 17 |
| Monoprix | 763 | 774 | 789 |
| o/w Franchises/Affiliates | 204 | 207 | 211 |
| Naturalia | 146 | 151 | 161 |
| Naturalia franchises | 7 | 7 | 7 |
| Franprix | 880 | 885 | 893 |
| o/w Franchises | 405 | 406 | 399 |
| Leader Price | 791 | 789 | 777 |
| o/w Franchises | 387 | 385 | 377 |
| Total supermarkets and discount stores | 2,864 | 2,878 | 2,890 |
| Convenience stores | 5,502 | 5,444 | 5,392 |
| Other businesses (Cafeterias, Drive-up, | 627 | 621 | 606 |
| etc.) Indian Ocean |
193 | 201 | 209 |
| TOTAL France | 9,307 | 9,265 | 9,219 |
| INTERNATIONAL | 30 June 2017 | 30 September 2017 | 31 December 2017 |
|---|---|---|---|
| ARGENTINA | 29 | 29 | 29 |
| Libertad hypermarkets | 15 | 15 | 15 |
| Mini Libertad and Petit Libertad supermarkets | 14 | 14 | 14 |
| URUGUAY | 82 | 83 | 88 |
| Géant hypermarkets | 2 | 2 | 2 |
| Disco supermarkets | 29 | 29 | 29 |
| Devoto supermarkets | 24 | 24 | 24 |
| Devoto Express supermarkets | 27 | 28 | 33 |
| BRAZIL | 1,108 | 1,073 | 1,081 |
| Extra hypermarkets | 119 | 118 | 117 |
| Pão de Açúcar supermarkets | 185 | 185 | 186 |
| Extra supermarkets | 194 | 188 | 188 |
| Assaí (Cash & Carry) | 110 | 115 | 126 |
| Mini Mercado Extra & Minuto Pao de Acucar supermarkets | 276 | 265 | 265 |
| Drugstores | 147 | 130 | 127 |
| + Service stations | 77 | 72 | 72 |
| COLOMBIA | 1,823 | 1,810 | 1,852 |
| Exito hypermarkets | 90 | 90 | 90 |
| Exito and Carulla supermarkets | 163 | 161 | 162 |
| Super Inter supermarkets | 67 | 71 | 71 |
| Surtimax (discount stores) | 1,391 | 1,373 | 1,409 |
| o/w "Aliados" | 1,255 | 1,243 | 1,278 |
| B2B(1) | 2 | 4 | 9 |
| Exito Express and Carulla Express supermarkets | 110 | 111 | 111 |
| TOTAL International | 3,042 | 2,995 | 3,050 |
(1) previously included in the Surtimax 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]
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.
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.