July 11 - Consolidated net sales for the second quarter of 2008 were up 14.6% over the year-earlier period, reflecting sustained 6.3% organic growth and the full consolidation of Super de Boer (Netherlands) and Exito (Colombia).
Sustained organic growth at 6.3%, both in France (4.2%) and in international markets (11.8%)
Excellent performance by Franprix/Leader Price
|
Consolidated net sales |
|
Q2 2008
(€m) |
|
H1 2008
(€m) |
|
% Change QoQ |
|
% Change HoH |
|
| |
|
|
|
|
|
Reported |
|
Organic * |
|
Reported |
|
Organic * |
|
| Continuing operations |
|
6,951.4 |
|
13,813.2 |
|
14.6% |
|
6.3% |
|
19.6% |
|
6.9% |
|
| France |
|
4,545.7 |
|
9,011.0 |
|
4.2% |
|
4.2% |
|
4.8% |
|
4.8% |
|
| International |
|
2,405.7 |
|
4,802.1 |
|
41.1% |
|
11.8% |
|
63.0% |
|
13.3% |
|
|
*Based on constant scope of consolidation and exchange rates |
Consolidated net sales for the second quarter of 2008 were up 14.6% over the year-earlier period, reflecting sustained 6.3% organic growth and the full consolidation of Super de Boer (Netherlands) and Exito (Colombia).
In France, the Group performed well, with sales up 4.2%.
The lacklustre retail environment and the rise in gasoline prices accentuated the trends observed in the French market in recent months, with consumers continuing to show a marked preference for convenience and discount formats, as well as for private labels and value-line products.
These market trends are in line with the Group’s expectations and confirm the validity of its strategy. The Group’s robust sales in France reflect its favourable format mix and the effectiveness of the sales and marketing strategies deployed by the banners.
Franprix/Leader Price continued to recover strongly, with sales up 9.0% led by faster same-store growth – at Franprix, same-store sales expanded 7.9% versus 5.8% in the first quarter, while at Leader Price the growth rate rose to 4.9% from 1.3%.
Casino supermarkets reported sales up by a robust 9.1%, consolidating their market share gains with a 0.1 point increase over the first six months of the year. Monoprix delivered a satisfactory performance, with sales up 2.5%.
The Casino brand went from strength to strength, with sales growth remaining in the double digits. Casino is the leading private label, measured as a percentage of total sales. Its success is attributable to competitive pricing and an assertive innovation policy.
In international markets, organic growth remained robust at 11.8%, reflecting gains of 12.6% in South America and 13.4% in Southeast Asia. The increase in same-store sales was particularly high in South America.
This performance confirmed the role as a growth driver of international operations, which now account for close to 35% of consolidated sales.
The Group confirms its objectives for full year 2008:
First-half results will be published on 28 August 2008 (before the stock market opens).
FRANCE
Sales in France rose 4.2% in the second quarter of 2008. The difference in the number of selling days had a 0.7% negative impact, compared to a 0.3% positive impact in the first quarter. Restated for the calendar effect, second quarter performance (up 4.9%) was in line with the first quarter (up 5%).
|
in € millions |
|
Second quarter |
|
First half |
|
| |
2007 |
|
2008 |
|
% Change |
|
|
2007 |
|
2008 |
|
% Change |
|
|
| Net sales, France |
|
4,361.9 |
|
4,545.7 |
|
4.2 |
% |
|
8,600.8 |
|
9,011.0 |
|
4.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Franprix-Leader Price |
|
985.5 |
|
1,074.4 |
|
9.0 |
% |
|
1,967.7 |
|
2,139.8 |
|
8.7 |
% |
|
| Géant Casino hypermarkets |
|
1,493.7 |
|
1,479.8 |
|
-0.9 |
% |
|
2,941.3 |
|
2,941.9 |
|
0.0 |
% |
|
| Convenience stores |
|
1,623.0 |
|
1,704.0 |
|
5.0 |
% |
|
3,153.2 |
|
3,331.9 |
|
5.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Casino supermarkets |
|
791.7 |
|
863.8 |
|
9.1 |
% |
|
1,521.7 |
|
1,667.5 |
|
9.6 |
% |
|
| Monoprix |
|
437.2 |
|
448.1 |
|
2.5 |
% |
|
873.9 |
|
902.7 |
|
3.3 |
% |
|
| Superettes |
|
394.1 |
|
392.1 |
|
-0.5 |
% |
|
757.6 |
|
761.7 |
|
0.5 |
% |
|
|
Other businesses |
|
259.8 |
|
287.5 |
|
10.7 |
% |
|
538.5 |
|
597.4 |
|
10.9 |
% |
|
|
Same-store sales |
|
Second quarter 2008 |
|
First half 2008 |
|
| |
Including gasoline |
|
Excluding gasoline |
|
Including gasoline |
|
Excluding gasoline |
|
|
Franprix |
|
7.9 |
% |
|
7.9 |
% |
|
6.9 |
% |
|
6.9 |
% |
|
| Leader Price |
|
4.9 |
% |
|
4.9 |
% |
|
3.0 |
% |
|
3.0 |
% |
|
| Géant Casino hypermarkets |
|
0.4 |
% |
|
-3.0 |
% |
|
0.7 |
% |
|
-2.3 |
% |
|
| Casino supermarkets |
|
6.1 |
% |
|
3.5 |
% |
|
6.8 |
% |
|
4.3 |
% |
|
| Monoprix |
|
0.4 |
% |
|
0.3 |
% |
|
1.3 |
% |
|
1.3 |
% |
|
Franprix/Leader Price
Franprix/Leader Price recorded another good quarter, with sales up a solid 9.0%, confirming the sales recovery.
Franprix reported another improvement in same-store performance, with sales up 7.9% versus 5.8% in the first quarter, while at Leader Price same-store growth accelerated to 4.9% from 1.3%. At both banners, same-store growth was driven mainly by higher checkout flowthroughs, demonstrating the effectiveness of their marketing initiatives and the customer appeal of their concepts.
Hypermarkets
Géant Casino hypermarket sales rose 0.4% on a same-store basis. Excluding gasoline, sales contracted 3%. This was primarily due to a 7.5% fall in non-food sales (compared with a 6.3% decline in the first quarter), as consumers reduced their spending on non-essential items in a lacklustre retail environment shaped by high energy prices.
The 1.2% dip in food sales reflected the ongoing shift towards private-label products and the price investments made since the beginning of the year, both of which are in line with the banner's marketing strategy.
Private-label and value-line items accounted for 44.5% of FMCG and refrigerated product sales, an increase of four points for the quarter that was driven by continued double-digit growth in Casino brand sales.
Deployment of the dunnhumby approach has enabled Géant Casino to continue enhancing its price competitiveness. Since the beginning of the year, the banner has offered the market’s lowest prices on more than 2,500 national brand, private-label and value-line products, which together account for 42% of FMCG and refrigerated products sold in Géant Casino hypermarkets.
Checkout flowthroughs declined by 2.4% in the second quarter (1.7% based on the same number of selling days), representing an improvement compared with the 3.6% fall observed in the first quarter.
Convenience stores
Supermarkets
Casino supermarkets confirm their strong momentum, with same-store sales rising 6.1% or 3.5% excluding gasoline. Growth was led by a 1.2% rise in checkout flowthroughs, in line with the trend observed in recent quarters, and a 2.3% increase in the average basket.
The continued implementation of an assertive expansion strategy helped to drive a 9.1% increase in the banner's total sales.
Thanks to the success of the sales strategy, the Casino supermarkets once again outperformed the market, increasing their share by 0.1 point compared with end-2007.
Monoprix
Monoprix sales were up 2.5% for the quarter, including 0.4% same-store growth.
The banner's differentiated positioning, especially in textiles, helped to drive a satisfactory performance in the non-food segment despite the lacklustre market environment.
Monoprix intends to continue expanding rapidly, in particular by deploying new concepts. During the period, four Monop' stores and one Daily Monop' were opened, and Monoprix announced the acquisition of Naturalia, one of the leading organic product retailers, thereby strengthening its presence in this fast-growing segment.
Superettes
Superette sales for the quarter dipped 0.5%.
Other Businesses
Sales by the other businesses (Cdiscount, Mercialys, Casino Cafétéria and Banque Casino) rose 10.7% in the second quarter, led by very strong 17% growth at Cdiscount.
INTERNATIONAL
International sales surged by 41.1% over the quarter, led by the full consolidation of Exito as of 1 May 2007 and of Super de Boer as of 1 January 2008, which together accounted for 35.3 points of the increase. The currency effect was a negative 6.0%, due primarily to the decline in the Thai, Colombian and Venezuelan currencies against the euro.
Organic growth was a very strong 11.8%, reflecting double-digit increases in both South America and Asia.
| Consolidated net sales |
|
Reported change |
|
Organic growth |
|
Same-store sales |
|
| |
Q2 2008 |
|
H1 2008 |
|
Q2 2008 |
|
H1 2008 |
|
Q2 2008 |
|
H1 2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| South America |
|
28.9 |
% |
|
60.3 |
% |
|
12.6 |
% |
|
15.5 |
% |
|
9.4 |
% |
|
10.9 |
% |
|
| Asia |
|
-1.1 |
% |
|
2.8 |
% |
|
13.4 |
% |
|
13.1 |
% |
|
4.5 |
% |
|
4.7 |
% |
|
| Indian Ocean |
|
1.8 |
% |
|
1.6 |
% |
|
4.2 |
% |
|
3.7 |
% |
|
3.5 |
% |
|
3.3 |
% |
|
In South America, organic growth was a robust 12.6%, lifted by same-store growth of 9.4%.
In Brazil, CBD reported a 7.3% increase in same-store sales in the quarter and 8.1% in the first half, reflecting satisfactory performances in both food and non-food.
Operations in Argentina, Venezuela and Uruguay continued to deliver very high same-store growth.
In Colombia, Exito continued to integrate Carulla Vivero and to leverage synergies, notably by pursuing the store conversion and banner rationalisation programme.
Organic growth in Asia came to 13.4%, led by sustained expansion of the store base and a satisfactory 4.5% increase in same-store sales. In Thailand, Big C stepped up its expansion programme, increasing the store base to 60 as of 30 June with five new hypermarkets opened during the quarter.
In the Indian Ocean, organic growth was satisfactory at 4.2%, with same-store sales up 3.5%.
In the Netherlands, Super de Boer recorded same-store growth of 1.5% in the second quarter, down from 7% in the first three months. This was due to the timing of the Easter holiday this year and to reduced promotional activity compared with the year-earlier period. Same-store growth for the first half of the year stood at 4.2%.
Main changes in the scope of consolidation
-
Exito (Colombia), which was previously accounted for by the equity method, has been fully consolidated since 1 May 2007.
-
Disco (Uruguay) has been proportionately consolidated on a 62.5% basis since 1 August 2007, versus 58% as from 1 October 2006.
-
Assai (Brazil) has been fully consolidated within CBD since 1 November 2007.
-
Super de Boer (Netherlands), which was previously accounted for by the equity method, has been fully consolidated since 1 January 2008.
| |
|
Q2 |
|
% Change |
|
|
H1 |
|
% Change |
|
|
| |
2007
(€m) |
|
2008
(€m) |
|
in Euros |
|
At constant exchange rates |
|
2007
(€m) |
|
2008
(€m) |
|
in Euros |
|
At constant exchange rates |
|
|
FRANCE |
|
4,361.9 |
|
4,545.7 |
|
4.2 |
% |
|
4.2 |
% |
|
8,600.8 |
|
9,011.0 |
|
4.8 |
% |
|
4.8 |
% |
|
| o/w: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Franprix – Leader Price |
|
985.5 |
|
1,074.4 |
|
9.0 |
% |
|
9.0 |
% |
|
1,967.7 |
|
2,139.8 |
|
8.7 |
% |
|
8.7 |
% |
|
| Géant Casino |
|
1,493.7 |
|
1,479.8 |
|
-0.9 |
% |
|
-0.9 |
% |
|
2,941.3 |
|
2,941.9 |
|
0.0 |
% |
|
0.0 |
% |
|
| Hypermarkets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Convenience stores |
|
1,623.0 |
|
1,704.0 |
|
5.0 |
% |
|
5.0 |
% |
|
3,153.2 |
|
3,331.9 |
|
5.7 |
% |
|
5.7 |
% |
|
| Casino supermarkets |
|
791.7 |
|
863.8 |
|
9.1 |
% |
|
9.1 |
% |
|
1,521.7 |
|
1,667.5 |
|
9.6 |
% |
|
9.6 |
% |
|
| Monoprix |
|
437.2 |
|
448.1 |
|
2.5 |
% |
|
2.5 |
% |
|
873.9 |
|
902.7 |
|
3.3 |
% |
|
3.3 |
% |
|
| Superettes |
|
394.1 |
|
392.1 |
|
-0.5 |
% |
|
-0.5 |
% |
|
757.6 |
|
761.8 |
|
0.5 |
% |
|
0.5 |
% |
|
| Other |
|
259.8 |
|
287.5 |
|
10.7 |
% |
|
10.7 |
% |
|
538.5 |
|
597.4 |
|
10.9 |
% |
|
10.9 |
% |
|
|
INTERNATIONAL |
|
1,705.0 |
|
2,405.7 |
|
41.1 |
% |
|
47.1 |
% |
|
2,946.5 |
|
4,802.1 |
|
63.0 |
% |
|
67.3 |
% |
|
| o/w: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| South America |
|
1,114.2 |
|
1,436.8 |
|
28.9 |
% |
|
33.1 |
% |
|
1,793.0 |
|
2,873.9 |
|
60.3 |
% |
|
63.1 |
% |
|
| Asia |
|
390.9 |
|
386.5 |
|
-1.1 |
% |
|
13.4 |
% |
|
751.9 |
|
773.2 |
|
2.8 |
% |
|
13.1 |
% |
|
| Indian Ocean |
|
199.6 |
|
203.2 |
|
1.8 |
% |
|
1.8 |
% |
|
401.0 |
|
407.4 |
|
1.6 |
% |
|
1.5 |
% |
|
| Netherlands |
|
|
|
378.9 |
|
na |
|
na |
|
|
|
747.0 |
|
na |
|
na |
|
| Other (Poland) |
|
0.3 |
|
0.3 |
|
ns |
|
ns |
|
0.6 |
|
0.7 |
|
ns |
|
ns |
|
|
Net Sales continuing operations |
|
6,066.9 |
|
6,951.4 |
|
14.6 |
% |
|
16.3 |
% |
|
11,547.2 |
|
13,813.2 |
|
19.6 |
% |
|
20.7 |
% |
|
|
Net Sales discontinued operations |
|
260.8 |
|
|
|
na |
|
|
|
624.5 |
|
|
|
na |
|
na |
|
| Consolidated sales |
|
6,327.7 |
|
6,951.4 |
|
na |
|
|
|
12,171.7 |
|
13,813.2 |
|
na |
|
na |
|
| Average exchange rates |
|
Q1, 2007 |
|
Q1, 2008 |
|
% Change |
|
|
H1, 2007 |
|
H1, 2008 |
|
% Change |
|
|
| Argentina (ARS / EUR) |
|
0.2465 |
|
0.2114 |
|
-14.2 |
% |
|
0.2435 |
|
0.2082 |
|
-14.5 |
% |
|
| Uruguay (UYP / EUR) |
|
0.0314 |
|
0.0319 |
|
1.5 |
% |
|
0.0312 |
|
0.0321 |
|
3.0 |
% |
|
| Venezuela (VEB / EUR) (x1,000) |
|
0.3555 |
|
0.3100 |
|
-12.8 |
% |
|
0.3503 |
|
0.3038 |
|
-13.3 |
% |
|
| Thailand (THB / EUR) |
|
0.0225 |
|
0.0215 |
|
-4.4 |
% |
|
0.0226 |
|
0.0206 |
|
-8.7 |
% |
|
| Vietnam (VND/EUR) (x1,000) |
|
0.0462 |
|
0.0415 |
|
-10.2 |
% |
|
0.0467 |
|
0.0406 |
|
-13.1 |
% |
|
| Colombia (COP / EUR) (x1,000) |
|
0.3437 |
|
0.3491 |
|
1.6 |
% |
|
0.3548 |
|
0.3547 |
|
0.0 |
% |
|
| Brazil (R$ / EUR) |
|
0.3622 |
|
0.3843 |
|
6.1 |
% |
|
0.3681 |
|
0.3854 |
|
4.7 |
% |
|
| France |
|
31 Dec 07 |
|
31 March 08 |
|
30 June 08 |
| Géant Casino hypermarkets |
|
129 |
|
130 |
|
131 |
|
Of which French Affiliates |
|
6 |
|
6 |
|
6 |
|
International Affiliates |
|
11 |
|
13 |
|
14 |
|
+ Service stations |
|
99 |
|
99 |
|
99 |
| Casino supermarkets |
|
379 |
|
382 |
|
386 |
|
Of which French Franchise Affiliates |
|
71 |
|
68 |
|
69 |
|
International Franchise Affiliates |
|
17 |
|
18 |
|
18 |
|
+ Service Stations |
|
140 |
|
142 |
|
144 |
|
|
|
|
|
|
|
| Franprix supermarkets |
|
652 |
|
662 |
|
668 |
|
Of which Franchis outlets |
|
289 |
|
289 |
|
282 |
|
|
|
|
|
|
|
|
Monoprix-Prisunic supermarkets |
|
330 |
|
331 |
|
336 |
|
Of which Franchise outlets/Affiliates |
|
53 |
|
52 |
|
52 |
| Leader Price discount stores |
|
489 |
|
493 |
|
503 |
|
Of which Franchise outlets |
|
221 |
|
203 |
|
203 |
| Total SM + DIS |
|
1,850 |
|
1,868 |
|
1,893 |
|
Of which Franchise outlets/Stores operated under Business leases
|
|
|
|
|
|
|
| |
651 |
|
630 |
|
624 |
| SUP Petit Casino |
|
1,947 |
|
1,931 |
|
1,927 |
|
Of which Franchise |
|
25 |
|
26 |
|
36 |
| SUP Eco Services |
|
14 |
|
10 |
|
9 |
|
Of which Franchise |
|
13 |
|
9 |
|
8 |
|
|
|
|
|
|
|
| SUP Spar |
|
893 |
|
894 |
|
895 |
|
Of which Franchise |
|
716 |
|
716 |
|
717 |
| SUP Vival |
|
1,620 |
|
1,644 |
|
1,676 |
|
Of which Franchise |
|