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Casino, Guichard-Perrachon SA
Earnings Release • May 4, 2023
1183_10-q_2023-05-04_a78ce394-e2cd-4cfd-b372-f10c85842136.pdf
Earnings Release
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FIRST-QUARTER 2023
Consolidated net sales of €5.4bn1 , up +1.0% on a same-store basis:
- France Retail down -0.4% on a same-store basis, reflecting a sequential acceleration for the Parisian and convenience banners (+4.6% after +2.8% in Q4 2022) and hypermarket and supermarket net sales still down significantly pending the impact of price adjustments
- Continued strong growth in Latin America (+9.5% on a same-store basis), with good performances at GPA and Grupo Éxito
Significant events of first-quarter 2023:
- Consolidated net debt at €5.1bn, down by €1.3bn vs. end-2022 and by €2.4bn over the last 12 months
- Net debt in France at €4.5bn, stable vs. end-2022 and down by €0.8bn over 12 months
- Disposal of an 18.8% stake in Assaí for €723m1 and of several assets in France (Sudeco, stake in GreenYellow, real estate assets), bringing the total disposal plan completed in France to €4.2bn
France
France Retail
The Parisian and convenience banners reported a sequential acceleration in the first quarter, with same-store sales growth of +4.6% (after +2.8% in Q4 2022):
- Franprix's performance (+6% vs. +5.5% in Q4) was driven by good momentum in customer traffic, the development of the Leader Price product offer and double-digit growth in e-commerce;
- Monoprix showed a clear sequential improvement in sales (+4.2% vs. +1.8% in Q4), mainly driven by strong momentum in Monoprix City (+5.2%) and Monop' (+10%) stores, while business has been recovering at Naturalia for several weeks;
- Convenience recorded like-for-like sales growth of +4.9% (vs. +4.4% in Q4) while the expansion strategy continues.
The situation remained more difficult for Casino supermarkets and hypermarkets, which have seen significant price adjustments since the beginning of the year.
Same-store sales in the France Retail segment were down -0.4%.
| Change in same-store sales2 | ||||||
|---|---|---|---|---|---|---|
| Q3 2022 | Q4 2022 | Q1 2023 | ||||
| Franprix | +8.4% | +5.5% | +6.0% | |||
| Monoprix | +4.1% | +1.8% | +4.2% | |||
| Monoprix City | +4.5% | +2.5% | +5.2% | |||
| Monop' | +12.4% | +9.4% | +10.0% | |||
| Convenience | +6.3% | +4.4% | +4.9% | |||
| Parisian and convenience banners | +5.2% | +2.8% | +4.6% | |||
| Supermarkets | +1.6% | -4.0% | -7.8% | |||
| Hypermarkets | +2.2% | -6.2% | -12.4% | |||
| Supermarkets/Hypermarkets | +1.9% | -5.1% | -9.9% | |||
| FRANCE RETAIL | +3.9% | +0.1% | -0.4% |
Strategic priorities:
- Progress on the €190m inventory reduction plan in the first half of the year and the €250 million cost savings plan for the full year is on track.
- The Group opened 198 stores in convenience formats during the quarter, mainly under franchise. Newly opened stores and new affiliates in the convenience format over the quarter represented around €75m in fullyear gross sales under banner.
1 At 31 March 2023, the Group relinquished control of its Brazilian cash & carry business (Assaí). In accordance with IFRS 5, Assaí's activity is now presented within discontinued operations. 2022 data have been restated accordingly
2 Excluding fuel and calendar effects
Cdiscount
The transformation of the business model continues, with a sequential improvement in activity observed in the first quarter: (i) mix evolution in favor of GMV marketplace (record 57% share of total GMV) led to gross margin growth (+6 pts) and April current trading1 shows a return to marketplace growth at +5%, (ii) growth in Advertising services (+9% year-on-year, x2.1 vs 2019), supported by the dynamism of Retail Media (+19%), (iii) development of B2B activities, driven by Octopia (B2B revenues +42%) and C-Logistics (B2B revenues multiplied by 6).
In the first quarter, GMV (gross merchandise volume) was €712m (-15% on a comparable basis, -22% as reported including -3.7% for marketplace), while revenues were €324m (-24% on a comparable basis) primarily due to the decline in direct sales.
The cost savings plan has led to a significant improvement in profitability and cash flow over the quarter. It is on track to achieve the initial target of €75m in full-year savings by the end of 2023, with a target of €15m in additional full-year savings by the end of 2023, despite the inflationary environment.
Disposal plan in France
The disposal plan represents a total of €4.2bn in divestments signed or secured by the end of Q1 2023 out of a €4.5bn target (partial disposal of the GreenYellow stake, finalisation of the disposal of Sudeco to Crédit Agricole Immobilier and disposal of other real estate assets).
Financial indicators in France
EBITDA: EBITDA before lease payments for the last 12 months2 was €1,215m. EBITDA for the Parisian and convenience banners increased in the first quarter, but declined sharply for Casino hypermarkets and supermarkets, in line with their respective sales trajectories. In all, EBITDA excluding GreenYellow and property development fell by -€54m over the quarter.
Net debt:
At the end of Q1 2023, net debt3 stood at €4.5bn, down -€743m year on year and stable compared to end-2022. In the first quarter, net debt stability can be explained by:
- Cash flows net of financial expenses at -€673m (consistent with the seasonality of our business)4 , with an improvement in the change in working capital due to lower inventories offsetting the decline in EBITDA at Casino hypermarkets and supermarkets;
- The progress of the disposal plan in France with the sale of €0.1bn of assets5 in Q1;
- The sale of an 18.8% stake in Assaí for €0.7bn.
| In €m | Net debt (3-month period) |
Net debt (12-month period) |
|||||
|---|---|---|---|---|---|---|---|
| Q1 2022 | Q1 2023 | Change | End-2022 | Q1 2023 | Change | ||
| Net debt at start of period | (4,845) | (4,506) | Net debt at start of period | (4,845) | (5,246) | ||
| Change in net debt | (401) | +3 | +404 | Change in net debt | +339 | +743 | +404 |
| Net debt at end of period | (5,246) | (4,503) | Net debt at end of period | (4,506) | (4,503) |
As of March 31, 2023, gross financial debt included €15m in commercial paper, €170m in drawn unsecured Monoprix credit lines, a €120m unsecured Monoprix bond (maturing in March 2024) and €162m in bank overdrafts (vs. €289m in commercial paper, €170m in drawn credit lines and €114m in bank overdrafts at end-March 2022).
1 As of April 25th, 2023
2 Scope as defined in bond refinancing documentation, with mainly Segisor and Wilkes accounted for within the France Retail + E-commerce scope (including GreenYellow)
3 France Retail + E-commerce scope including Segisor (excluding GreenYellow)
4 The change in working capital is generally negative in the first quarter, positive in the second, negative in the third, and positive in the fourth quarter
5 The disposal of Sudeco had a scope impact on the cash on the balance sheet of -€90m, corresponding to the cash collected by Sudeco under its
management mandates. This cash, which was sequestered in accordance with IAS 7, was no longer available to the Group as of January 1, 2023, following a regulatory change
Liquidity: at 31 March 2023, the Group's liquidity in France amounted to €2.3bn, including:
- › €286m in cash and cash equivalents;
- › €2.1bn in confirmed undrawn credit lines, available at any time1 to cover intra-quarter financing needs related to changes in working capital. In the first quarter, the average drawdown was €1.65bn, while the maximum drawdown was €1.95bn2 .
RCF covenants: the secured leverage ratio is 3.16x (€211m headroom on debt versus a covenant of 3.50x), and the ratio of EBITDA after lease payments to net finance costs is 3.04x (€109m headroom on EBITDA versus a covenant of 2.50x).
Credit Ratings: the latest ratings assigned to the Group's long-term debt are as follows: (i) Fitch Ratings: CCC- with negative outlook (May 2, 2023); (ii) Scope Ratings: B with outlook under review (April 6, 2023); (iii) Moody's Investors Service: Caa1 with negative outlook (March 28, 2023); (iv) Standard & Poor's: CCC+ with developing outlook (October 8, 2022).
Latin America
Group net sales in Latin America (GPA and Grupo Éxito) were up +4.8% as reported over the quarter, with a rise of +11.4% on an organic basis3 and of +9.5% on a same-store store basis3 , driven mainly by a dynamic performance at Grupo Éxito.
The Group sold an 18.8% stake in Assaí in March 2023 for €723m, relinquishing control of the Brazilian banner by reducing its stake to 11.7%. In accordance with IFRS 5, Assaí's net sales are now presented within discontinued operations.
The project to spin off GPA and Grupo Éxito was approved by GPA's Extraordinary Shareholders' Meeting of 14 February 2023 and is expected to be finalized in the first half of 2023, subject to obtaining the necessary authorizations.
| Net sales (in €m) | Q1 2023 | Total growth |
Organic growth3 |
Same-store growth3 |
|---|---|---|---|---|
| France Retail | 3,274 | -2.3% | -2.0% | -0.4% |
| Cdiscount | 318 | -25.2% | -24.8% | -24.8% |
| Total France | 3,593 | -4.9% | -4.8% | -4.6% |
| Latam Retail4 | 1,844 | +4.8% | +11.4% | +9.5% |
| GROUP TOTAL | 5,436 | -1.8% | +0.5% | +1.0% |
| Cdiscount GMV5 | 712 | -21.6% | n.a. | -15.0% |
Group key figures
Consolidated net sales by segment
In the first quarter of 2023, the currency effect was -2.1%, the effect of changes in the scope of consolidation was -0.6%, the fuel effect was +0.0% and the calendar effect was +0.4%.
Reminder of priorities for FY 2023
Operational efficiency and development
- Inventory reduction plan: -€190m in the first half of the year, offsetting end-2022 excess inventory
- New cost reduction plan: -€250m in the retail banners
- Acceleration of the expansion strategy in convenience formats: +1,000 stores representing more than €500m in full-year gross sales under banner
Deleveraging
- Completion of the disposal plan in France: €400m by the end of 2023
- Continued monetisation of assets in Latin America
- Debt decrease
4 At 31 March 2023, the Group relinquished control of its Brazilian cash & carry business (Assaí). In accordance with IFRS 5, Assaí's activity is now presented within discontinued operations. 2022 data have been restated accordingly
1 The secured gross debt/EBITDA covenant ratio is tested at the quarterly closing dates
2 2022 average drawdown: €1.23bn; 2022 maximum drawdown: €1.73bn
3 Excluding fuel and calendar effects
5 Data published by the subsidiary, GMV including tax
Consolidated net sales in France by banner
| Q4 2022/Q4 2021 | Q1 2023/Q1 2022 | |||||||
|---|---|---|---|---|---|---|---|---|
| Q4 Net sales by banner 2022 Total (in €m) |
Change | Q1 2023 |
Change | |||||
| Organic1 | Same-store1 | Total | Organic1 | Same-store1 | ||||
| Hypermarkets | 756 | -15.9%2 | -6.1% | -6.2% | 614 | -23.2%2 | -10.2% | -12.4% |
| Supermarkets | 886 | +15.5%2 | -6.7% | -4.0% | 775 | +10.7%2 | -10.3% | -7.8% |
| Convenience & Other3 | 434 | +2.1% | -0.9% | +4.5% | 435 | +1.4% | 0.0% | +4.7% |
| o/w Convenience4 | 342 | +4.7% | +5.6% | +4.4% | 345 | +3.1% | +2.1% | +4.9% |
| Monoprix | 1,179 | -1.0% | +4.2% | +1.8% | 1,070 | +0.6% | +4.1% | +4.2% |
| Franprix | 381 | +4.3% | +4.6% | +5.5% | 380 | +6.3% | +6.6% | +6.0% |
| FRANCE RETAIL | 3,636 | -0.3% | -0.9% | +0.1% | 3,274 | -2.3% | -2.0% | -0.4% |
Gross sales under banner in France
| TOTAL ESTIMATED GROSS SALES UNDER BANNER (in €m, including fuel) |
Q1 2023 | Change (incl. calendar effects) |
|---|---|---|
| Hypermarkets | 684 | -21.0% |
| Supermarkets | 799 | +9.6% |
| Convenience & Other | 582 | +1.4% |
| o/w Convenience | 517 | +2.8% |
| Monoprix | 1,144 | +2.6% |
| Franprix | 448 | +7.4% |
| TOTAL FRANCE | 3,656 | -1.2% |
First-quarter 2023 sales in the France Retail segment amounted to €3,274m, virtually stable on a same-store basis (-0.4%), reflecting a solid performance for the Parisian and convenience banners and a more difficult situation for hypermarkets and supermarkets.
The Group continued its expansion strategy, opening 198 new stores in the convenience format in the quarter, mainly under franchise (including 158 convenience stores, 30 Franprix/Marché d'à côté and 10 Monop'/Naturalia).
The conversion of traditional Géant hypermarkets into the Casino Hyper Frais format is almost complete, with 8 new conversions in the first quarter, bringing the total number of hypermarkets converted to 59 at the end of March 2023. The remaining 2 hypermarkets are expected to be converted into the Casino Hyper Frais format in second-quarter 2023.
Business review by banner:
Monoprix5 net sales grew by +4.2% on a same-store basis over the quarter, a sequential improvement compared to Q4 2022 (+1.8%). The performance was mainly driven by strong momentum in stores, with same-store sales growth of +5.2% and +10% for Monoprix City and Monop' stores, respectively, and a respective increase in customer traffic of +5% and +11% over the quarter. Trading at Naturalia recovered from March onwards (+3.2% increase in customer traffic for the months of March/April on a like-for-like basis); also to be noted is the recent launch of a new concept aiming to go beyond 100% organic products to also favour healthy, local products without controversial substances. In addition, the expansion of the network continues in line with objectives.
1 Excluding fuel and calendar effects
2 Total growth including the conversion of 20 hypermarkets into supermarkets
3 Miscellaneous: mainly Geimex
4 Convenience segment net sales on a same-store basis include the same-store performance of franchised stores
5 Monoprix City including e-commerce, Monop' and Naturalia
- Franprix sales were up +6.0% on a same-store basis over the quarter, a sequential improvement on Q4 2022 (+5.5%). The performance was buoyed by good momentum in customer traffic (+4%), further initiatives designed to support purchasing power – including the development of the Leader Price product offer (770 references and deployment of Leader Price "shop-in-shops" in 3 stores to date) – and double-digit growth in e-commerce. Total gross sales under banner rose by +7.4% over the quarter. The banner continued its expansion strategy, opening 30 new stores during the quarter (15 Franprix and 15 Marché d'à côté) and signing a new master franchisee in February (Mounir Horigue), which will secure the development of the network in the Rhône-Alpes region.
- Casino convenience net sales saw +4.9% growth on a same-store basis over the quarter, an acceleration compared to Q4 2022 (+4.4%). The store network expansion strategy continued, with 158 new stores opened in the quarter, including 45 under banners (30 in the South East region, 6 in the South West, 5 in the North West and 4 in the North).
- Casino supermarkets and hypermarkets had another difficult quarter. In December, the banners launched a substantial price reduction campaign across all product categories, enabling them to reduce the gap with their competitors1 . This campaign was stepped up at the end of the first quarter through a vast local communication campaign that was extended to the national level this week.
Sales were boosted by the Leader Price product offer (+122% growth in sales over the quarter in supermarkets/hypermarkets) and by further initiatives to support purchasing power (anti-inflationary measures in the quarter, with prices frozen on 500 products and ongoing fuel promotions). Price adjustments should begin to positively impact customer traffic, volumes and then net sales in the coming months.
"Low price" markers have been reinforced with the Leader Price product offer (+122% growth in sales over the quarter in supermarkets/hypermarkets, with a share now representing 7% of volumes) and initiatives in favor of purchasing power have been pursued (anti-inflation quarter with blocked prices on 500 products with volume increases of between 25 and 30% since their price blocking, continuation of the fuel operation).
The expected effect of the price readjustment measures is a progressive impact:
- The readjustments carried out by successive groups of stores (in the order of 5 to 10% depending on the store, firstly the historical supermarkets and then the hypermarkets) have initially had a positive impact on customer traffic and then on volumes, before being reflected in revenues;
- All supermarkets/hypermarkets have been subject to price repositioning measures:
- Historical supermarkets2 have returned to stable customer traffic compared to the same period in 2022 (vs. -7.3% in March)
- For hypermarkets, the repositioning has been carried out for the most part after the historical supermarkets, and the effects are progressive (sequential improvement in customer traffic of +2 points vs. March and +6 points on volumes)
- Price reduction communication campaigns: as an example, the local campaign on the 17 supermarkets in Lyon resulted in a +9 point increase in traffic from mid-April (now positive at +4.2%).
1 See Circana barometer of April
2 Excluding hypermarkets converted into supermarkets
Cdiscount1
In the first quarter of 2023, Cdiscount confirmed its transformation towards a business model based on the development of marketplace, Advertising services and B2B activities:
- Gross margin continued to improve (+6 pts), driven by the shift in the business mix in favour of marketplace GMV, which represented a record 57% of total GMV in the quarter (+9 pts year on year, +21 pts versus 2019). €45m in marketplace revenues (+2% year on year, +29% versus 2019), with a solid increase in the GMV take rate2 to 16.6% (+0.9 pt year on year, +1.6 pt versus 2019);
- Revenues from Advertising services were €17m for the quarter (+9% year on year, x2.1 versus 2019), with a sharp improvement in the GMV take rate2 to 3.5% (+0.9 pt year on year, +2.2 pts versus 2019). Growth was mainly driven by strong momentum at Retail Media, where revenues grew by +19% year on year in the first quarter;
- The development of B2B activities was driven by the commercial success of the Octopia and C-Logistics solutions. Octopia recorded +42% growth in its B2B revenues over the quarter, with the successful launch of 2 marketplaces (Bébéboutik and an international distributor). C-Logistics saw a six-fold increase in its B2B revenues year on year, with the successful launch of its third party-logistic solution for a European sportswear company.
The cost savings plan to recalibrate the operating cost structure and level of capital expenditure is on track to achieve the €75m full-year target by the end of 2023. It resulted in a significant improvement in profitability and operating cash flow in the first quarter.
The pace of the plan is expected to accelerate, with a target of €15m in additional full-year savings by the end of 2023, despite the inflationary environment.
| Key figures (in €m) | Q1 2022 | Q1 2023 | Reported change |
Like-for-like change3 |
|---|---|---|---|---|
| Total GMV including tax4 | 909 | 712 | -21.6% | -15.0% |
| o/w direct sales | 373 | 252 | -32.5% | |
| o/w marketplace sales | 342 | 329 | -3.7% | |
| Marketplace contribution (%) | 47.8% | 56.7% | +8.9 pts | |
| Marketplace revenues5 | 45 | 45 | +1.9% | |
| Revenues from advertising services5 | 15 | 17 | +9.4% | |
| Octopia B2B revenues5 | 3.8 | 5.4 | +42.4% | |
| Net sales5 | 447 | 324 | -27.6% | -24.2% |
Cnova published its first-quarter net sales on 26 April 2023, after market closing.
1 Data published by Cnova NV. The reported figures present all revenues generated by Cdiscount, including sales of technical goods in Casino Group hypermarkets and supermarkets
2 Calculated as revenues divided by product GMV excluding tax
3 Like-for-like figures excluding sales of technical goods in Casino Group hypermarkets and supermarkets and energy in Q1 2022
4 Gross merchandise volume (GMV) includes, including tax, sales of merchandise, other revenues and the marketplace's sales volume based on confirmed and shipped orders and the sales volume of services and Octopia
5 Excluding tax
Latam Retail
Group net sales in Latin America (GPA and Grupo Éxito)1 rose by +11.4% on an organic basis over the quarter and by +9.5% on a same-store basis, driven by an excellent performance at Grupo Éxito.
- GPA2 sales were up by +6.3% on a same-store basis. Excluding the impact of hypermarket closures, e-commerce GMV for the quarter was up by +7% year on year.
- o Convenience banners reported double-digit same-store sales growth of +12.4%, slowing slightly compared to Q4 (+17.3%) due to the resumption of the holiday season on the coast after two years of pandemic-related restrictions, impacting the format owing to its greater exposure to cities;
- o The Compre Bem and Mercado Extra banners delivered same-store growth of +2.2%;
- o Pão de Açúcar sales increased by +7.5% on a same-store basis, a sequential improvement versus Q4 2022 (+6.7%) thanks mainly to the progress made in the strategy to increase penetration of perishables, as well as strong growth in basic grocery items.
- Grupo Éxito3 reported same-store growth of +11.8%, with a solid performance in the three countries in which it operates. Growth was again driven by a strong performance in innovative formats and omnichannel sales, which accounted for 9.1% of total sales in the quarter.
- Colombia: same-store growth of +6.1%, driven by a good performance in innovative formats and strong momentum in omnichannel sales, which represented 12.3% of total sales in the country in the quarter (up +0.5 pt year on year);
- Uruguay: sales up +12.8% on a same-store basis, driven notably by a dynamic tourist season and a solid performance on fresh produce;
- Argentina: same-store sales up +101%, driven by inflation.
Grupo Éxito published its first-quarter results on 2 May 2023, after market closing. GPA published its results on 3 May 2023, after market closing.
1 Excluding Assaí, whose net sales are now presented within discontinued operations
2 Data published by GPA – same-store changes excluding gas stations
3 Data published by Grupo Éxito
A recognised CSR commitment
Casino Group has made its human resources, social and environmental commitments central to its strategy in order to fight climate change and strengthen engagement among its employees.
Recognised for its performance by non-financial rating agencies Moody's ESG (74/100), MSCI (AA), FTSE4GOOD (4.1/5) and CDP Climat (A-), Casino Group is taking action to reduce the climate impact of its operations:
- The Group reduced its greenhouse gas emissions by 21% in 2022 and met its target of reducing its greenhouse gas emissions by 38% by 2030 (Scopes 1 and 21 – compared to 2015), with emissions currently estimated at 1,025,000 tonnes of CO2 equivalent;
- The Group lowered its electricity consumption by 7% in 2022, and GHG emissions related to refrigerants per square metre of retail space (KgCO2eq./sq.m.) were cut by 14%;
- In April, the AMC central purchasing unit launched a climate challenges training plan for more than 200 employees to get the Top 100 suppliers involved in reducing their carbon impact and make progress through product purchasing, which accounts for more than 65% of the Group's greenhouse gas emissions.
During the quarter, the Group furthered it initiatives to promote more responsible consumption across its banners:
- Franprix: around 10 stores received nationally-recognised 'anti-food waste' certification2 , underlining the Group's fight against food waste (Too Good To Go app, donating products to non-profits, with the equivalent of over 3 million meals saved in 2022);
- Monoprix: one-third of Monoprix stores have already set up a dedicated corner to promote the 'flexiveggie' offering and plant-based alternatives in stores, with the 'flexi-veggie' product range expanded to include more than 150 plant-based products;
- Casino banners: all Casino private-label fruit and vegetables are organic, labelled 'HVE'3 or guaranteed to be free of pesticide residues;
- Cdiscount4 : more responsible products accounted for 15.2% of GMV in Q1 (+3.8 pts vs. 2022).
The Group is sustaining its human resources and social commitment, particularly to foster equality in the workplace and advocate for people with disabilities:
- Casino Group, which obtained a score of 94/100 on the Gender Equality Index (weighted index for 2023), launched a new training programme in the first quarter called 'Si elles'. Open to all women in the Group in France, the programme's aim is to combat self-censorship;
- The Casino banners have maintained their leadership in promoting the integration of people with disabilities, with disabled employees accounting for 9.90% of the workforce in 20225 . Since March, an awareness-raising campaign has been carried out among teams to improve store accessibility for autistic people;
- After raising more than €2.8 million to support non-profit organisations in 2022, the Group's banners launched new donation campaigns during the quarter, in particular Monoprix for Institut Curie and the Casino banners for the Civic Engagement Institute.
1 Scope: Total Group, store network as of December 31, 2022; Scope 1: direct emissions from combustions; Scope 2: indirect emissions generated by the energy consumed; Definition of Scope 3: indirect emissions related to the Group's activities; Scope 3 objective (target validated by the Science Based Target): -10% between 2018 and 2025 on the categories "purchases of products and services" and "use of products sold" representing over 65% of indirect emissions 2 As set out in France's Anti-waste and Circular Economy Act (AGEC) of 10 February 2020
3HVE: High Environmental Value 4 Data published by the subsidiary
5 Déclaration Obligatoire d'Emploi des Travailleurs Handicapés (DOETH) – Casino France Distribution scope
Summary of press releases of 24 April 2023
As part of the project to create a new major French player in responsible and sustainable retail activities that enhance farmers' income, Groupement Les Mousquetaires, Casino Group and TERACT announced on 24 April 2023 that they are in exclusive discussions to further develop the existing strategic cooperation between Groupement Les Mousquetaires and Casino Group.
This cooperation would entail:
- a further development of business partnerships between the two groups;
- a potential transfer to Groupement Les Mousquetaires, over several years and at market value, of a number of points of sale from the Casino France perimeter representing a minimum of €1.1 bn of turnover including VAT; and
- a minority investment by Groupement Les Mousquetaires in the new entity resulting from the combination of Casino Group and TERACT.
In addition, Casino received a conditional letter of intent from EP Global Commerce a.s. (a company controlled by Mr. Daniel Křetínský) to subscribe to a reserved capital increase of up to 750 million euros in the share capital of Casino, Guichard-Perrachon. EP Global Commerce a.s. further intends to offer Fimalac, a shareholder of the company, the opportunity to subscribe to a reserved capital increase of up to 150 million euros. A capital increase with preferential subscription rights would also be offered to Casino's existing shareholders, for an amount of up to 200 million euros. This proposal is subject to the conditions mentioned in the press release of 24 April 2023.
Casino Group is considering EP Global Commerce a.s.'s proposal and is in continued discussions with TERACT and Groupement Les Mousquetaires.
In the context of these announcements, Casino Group is considering the possibility of requesting the appointment of conciliateurs in order to provide a framework for such discussions, and solicited the consent of certain bank creditors and bondholders to this end.
Casino Group will inform the market in due course of the progress of the discussions in relation to TERACT, Groupement Les Mousquetaires and, if applicable, EP Global Commerce a.s.'s proposal.
For more details, Casino Group refers to its two press releases of 24 April 2023 and will not comment further on these announcements at this stage.
ADDITIONAL FINANCIAL INFORMATION RELATING TO BOND REFINANCINGS SINCE 2019
See press release dated 21 November 2019
Financial information for the first quarter ended 31 March 2023:
| In €m | France1 (France Retail + E-commerce) |
Latam | Total | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q1 2022 |
Q1 2023 |
Change | Q1 2022 |
Q1 2023 |
Change | Q1 2022 |
Q1 2023 |
Change | ||
| Net sales | 3,776 | 3,593 | -183 | 1,758 | 1,844 | +85 | 5,535 | 5,436 | -98 | |
| EBITDA | 201 | 95 | -106 | 81 | 108 | +27 | 282 | 204 | -79 | |
| Retail banners/Cdiscount | 149 | 95 | -54 | - | - | - | 149 | 95 | -54 | |
| GreenYellow | 25 | - | -25 | - | - | - | 25 | - | -25 | |
| Property development | 27 | - | -27 | - | - | - | 27 | - | -27 | |
| (-) impact of leases2 | (152) | (148) | +4 | (75) | (79) | -4 | (228) | (228) | 0 | |
| EBITDA including leases | 49 | (53) | -102 | 6 | 29 | +23 | 55 | (24) | -79 |
In France, EBITDA amounted to €95m for the quarter, down -€106m compared to Q1 2022 as a result of the following:
- Half of the decrease results from the €52m decline due to technical effects with no impact on Casino's cash flow:
- The pro forma impact of the GreenYellow disposal: GreenYellow's contribution was €25m in Q1 2022;
- The one-off €27m impact of EBITDA for the property development business3 in Q1 2022.
- The other half of the decrease is due to the €54m decline in EBITDA excluding GreenYellow and property development, despite a good performance for the Parisian and convenience banners and the improvement in EBITDA at Cdiscount.
In Latin America, EBITDA came out at €108m for the quarter, up +€27m. For more information, please refer to the press releases issued by GPA and Grupo Éxito.
Group EBITDA for the quarter was €204m.
Financial information for the 12-month period ended 31 March 2023:
| In €m | France1 (France Retail + E-commerce) |
Latam | Total |
|---|---|---|---|
| Net sales | 15,642 | 7,853 | 23,495 |
| EBITDA | 1,215 | 524 | 1,740 |
| (-) impact of leases2 | (596) | (231) | (828) |
| (i) EBITDA including leases | 619 | 293 | 912 |
| (ii) Gross debt4 | 4,778 | 1,449 | 6,227 |
| (iii) Cash and cash equivalents5 | 286 | 829 | 1,115 |
EBITDA including leases over the rolling 12-month period ended 31 March 2023 came out at €619m in France.
The Group's liquidity in France stood at €2.3bn (versus €2.7bn at end-March 2022), including:
- €286m in cash (€686m at end-March 2022);
- €2.1bn in confirmed undrawn credit lines, available at any time to cover intra-quarter financing needs related to changes in working capital. In the first quarter, the average drawdown was €1.65bn, while the maximum drawdown was €1.95bn6 .
1 Unaudited data, scope as defined in bond refinancing documentation, with mainly Segisor and Wilkes accounted for within the France Retail + E-commerce scope (including GreenYellow)
2 Interest paid on lease liabilities and repayment of lease liabilities as defined in the refinancing documentation
3 EBITDA related to the elimination of property development projects carried out with Mercialys (property development projects carried out with Mercialys are neutralised in EBITDA to the extent of the Group's stake in Mercialys; a reduction in Casino's stake in Mercialys or the sale by Mercialys of these assets therefore results in the recognition of previously eliminated EBITDA)
4 Loans and borrowings at 31 March 2023
5 Data at 31 March 2023
6 2022 average drawdown: €1.23bn; 2022 maximum drawdown: €1.73bn
At 31 March 2023, gross financial debt includes €15m of commercial paper and €170m of drawn unsecured Monoprix credit lines and €162m in bank overdrafts (versus €289m of commercial paper, €170m of drawn credit lines and €114m in bank overdrafts at end‑March 2022). Furthermore, in order to improve its liquidity and increase its subsidiaries' financial autonomy, the Group set up €120m in unsecured financing in the form of a private bond issue maturing in March 2024 carried out by Monoprix Exploitation with an investment fund. This is also included in gross financial debt at 31 March 2023.
During the first quarter, the Group bought back unsecured bonds on the market for a total amount of €83m, of which €10m were cancelled (see press release of February 6, 2023). The Group also repurchased €100m of Quatrim debt, closing on March 31, 2023. The impact of these repurchases on net interest expense in the first quarter was €39m and €47m on a full year basis.
Additional information regarding covenants and segregated accounts:
Covenants tested as from 30 June 2021 pursuant to the Revolving Credit Facility dated 18 November 2019, as amended in July 2021
| Type of covenant (France + E-commerce) | At 31 March 2023 |
|---|---|
| Secured gross debt/EBITDA after lease payments ≤ 3.50x | 3.16x |
| EBITDA after lease payments/Net finance costs ≥ 2.50x | 3.04x |
The secured gross debt/EBITDA after lease payments covenant stood at 3.16x, with EBITDA after lease payments of €612m and secured debt of €1.9bn.
Both covenants were met:
- Debt headroom of €211m and EBITDA headroom of €60m for the secured gross debt/EBITDA after lease payments covenant;
- Headroom of €109m for the adjusted EBITDA after lease payments/net finance costs covenant.
At 31 March 2023, the unsecured segregated account had a balance of €0, the secured segregated account had a balance of €48m and the segregated account for Quatrim bonds had a balance of €13m.
Store network
| FRANCE | 31 March 2022 | 30 June 2022 | 30 Sept. 2022 | 31 Dec. 2022 | 31 March 2023 |
|---|---|---|---|---|---|
| Géant Casino/Hyper Frais HM | 97 | 77 | 77 | 77 | 78 |
| o/w French franchised affiliates | 3 | 3 | 3 | 3 | 3 |
| International affiliates | 9 | 9 | 9 | 9 | 10 |
| Casino supermarkets | 437 | 464 | 461 | 474 | 476 |
| o/w French franchised affiliates | 60 | 62 | 63 | 63 | 62 |
| International affiliates | 27 | 27 | 23 | 24 | 26 |
| Monoprix (Monop', Naturalia, etc.) | 842 | 853 | 849 | 858 | 852 |
| o/w franchised affiliates | 215 | 226 | 235 | 255 | 265 |
| Naturalia integrated stores | 198 | 194 | 183 | 181 | 177 |
| Naturalia franchises | 51 | 55 | 63 | 65 | 66 |
| Franprix | 978 | 1,035 | 1,069 | 1,098 | 1,123 |
| o/w franchises | 649 | 711 | 747 | 775 | 795 |
| Franprix banner | 799 | 822 | 836 | 864 | 876 |
| Other banners (Marché d'à côté, etc.) | 179 | 213 | 233 | 234 | 247 |
| Convenience | 5,859 | 5,960 | 6,060 | 6,313 | 6,434 |
| o/w Vival | 1,762 | 1,779 | 1,786 | 1,978 | 2,002 |
| o/w Spar o/w Petit Casino and similar |
903 985 |
908 1,019 |
913 1,043 |
951 1,048 |
951 1,047 |
| o/w oil companies | 1,393 | 1,400 | 1,414 | 1,422 | 1,478 |
| o/w affiliates | 92 | 92 | 94 | 100 | 100 |
| o/w other convenience outlets1 | 724 | 762 | 810 | 814 | 856 |
| Leader Price2 | 68 | 65 | 63 | 66 | 66 |
| Other businesses3 | 223 | 216 | 218 | 221 | 202 |
| Total France | 8,504 | 8,670 | 8,797 | 9,107 | 9,231 |
| INTERNATIONAL | 31 March 2022 | 30 June 2022 | 30 Sept. 2022 | 31 March 2023 | |
| 31 Dec. 2022 | |||||
| ARGENTINA | 25 | 26 | 29 | 33 | 34 |
| Libertad hypermarkets | 15 | 16 | 14 | 14 | 14 |
| DI Libertad | 0 | 0 | 5 | 9 | 10 |
| Mini Libertad and Petit Libertad | 10 | 10 | 10 | 10 | 10 |
| mini‑supermarkets | |||||
| URUGUAY | 93 | 93 | 92 | 96 | 96 |
| Géant hypermarkets | 2 | 2 | 2 | 2 | 2 |
| Disco supermarkets | 30 | 30 | 30 | 30 | 30 |
| Devoto supermarkets Devoto Express mini-supermarkets |
24 35 |
24 35 |
24 34 |
26 36 |
26 36 |
| Möte | 2 | 2 | 2 | 2 | 2 |
| BRAZIL4 | 701 | 694 | 699 | 735 | 730 |
| Extra hypermarkets | 31 | 21 | 5 | 3 | 3 |
| Pão de Açúcar supermarkets | 181 | 179 | 190 | 194 | 195 |
| Extra supermarkets | 146 | 149 | 153 | 154 | 157 |
| Compre Bem | 28 | 30 | 30 | 29 | 26 |
| Mini Mercado Extra and Minuto Pão de | 241 | 241 | 247 | 281 | 278 |
| Açúcar mini-supermarkets + Service stations |
74 | 74 | 74 | 74 | 71 |
| COLOMBIA | 2,036 | 2,049 | 2,068 | 2,155 | 2,239 |
| Éxito hypermarkets | 91 | 91 | 91 | 94 | 93 |
| Éxito and Carulla supermarkets | 153 | 153 | 153 | 154 | 155 |
| Super Inter supermarkets | 60 | 60 | 60 | 60 | 59 |
| Surtimax (discount) | 1,619 | 1,634 | 1,652 | 1,733 | 1,808 |
| o/w "Aliados" | 1,549 | 1,564 | 1,585 | 1,663 | 1,731 |
| B2B | 37 | 41 | 42 | 46 | 56 |
| Éxito Express and Carulla Express mini‑supermarkets Total Latin America4 |
76 | 70 | 70 | 68 | 68 |
1 Outlets under specific banners with a Casino supply contract
2 Leader Price stores in France. Leader Price international franchises (Geimex) are recorded in "Other activities"
3 Other businesses include Geimex and 3C Cameroon stores
4 The Assaí stores are no longer included in the store network at 31 March 2023. Data for the previous quarters have been restated
APPENDICES – OTHER INFORMATION
Main changes in scope
- Conversion of 20 Géant Casino hypermarkets into Casino supermarkets on 1 May 2022
- Sale of Sarenza on 1 October 2022 (Monoprix)
- Disposal of CChezVous on 31 December 2022 (Cdiscount)
Discontinued operations
At 31 March 2023, the Group relinquished control of its Brazilian cash & carry business (Assaí). In accordance with IFRS 5, Assaí's net sales are now presented within discontinued operations.
2022 data for Assaí were restated as discontinued operations in accordance with the provisions of the standard.
Average exchange rates
| AVERAGE EXCHANGE RATES | 31 March 2022 | 31 March 2023 | Effect of movements in exchange rates |
|---|---|---|---|
| Brazil (EUR/BRL) | 5.8696 | 5.5750 | +5.3% |
| Colombia (EUR/COP) (x 1,000) | 4.3877 | 5.1046 | -14.0% |
| Uruguay (EUR/UYP) | 48.5345 | 42.0649 | +15.4% |
| Argentina1 (EUR/ARS) |
123.3444 | 226.5625 | -45.6% |
1 Pursuant to the application of IAS 29, the exchange rate used to convert the Argentina figures corresponds to the rate at the reporting date
Analyst and investor contacts
-
Christopher Welton + 33 (0)1 53 65 64 17 – [email protected] or + 33 (0)1 53 65 24 17 – IR\[email protected]
Press contacts
- Casino Group – Communications Department
Stéphanie Abadie + 33 (0)6 26 27 37 05 – [email protected] or + 33(0)1 53 65 24 78 – [email protected]
- Agence IMAGE 7
Karine Allouis +33 (0)1 53 70 74 84 – [email protected] Laurent Poinsot + 33(0)6 80 11 73 52 – [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. Recipients should not consider it as a substitute for the exercise of their own judgement. All the opinions expressed herein are subject to change without notice.