France's Auchan Retail has reported revenue growth of 2.1% in its financial year 2024, reaching €31.67 billion, with a 4.2% growth in the second half of the year.
This growth, driven by strategic acquisitions like 94 former Casino stores (68 supermarkets and 26 hypermarkets) in France and DIA Group’s activities in Portugal (481 convenience stores), countered a decline in revenue from existing stores.
However, like-for-like sales fell by 2.8%, especially in France, with decline in average selling prices and reduced non-food consumption.
While overall EBITDA decreased to €877 million, it improved in the second half of the year by €25 million, excluding the impact of the acquisitions, demonstrating effective cost management and competitive pricing strategies implemented by the company
France
Auchan France's 2024 revenue grew 1.3% to €16.95 billion, primarily driven by the addition of 94 ex-Casino stores starting in May.
These new stores boosted Auchan's market share by 0.6% to 9.5% by December, and resulted in a 22% increase in sales volume, indicating a successful integration.
Existing Auchan stores, however, experienced a 4.7% sales decline, with food sales remaining stable but non-food sales continuing to fall.
Despite a €100 million hit from the acquisition of former Casino stores, EBITDA reached €110 million, recovering in the second half of the year by €25 million due to effective cost management.
A turnaround plan announced in November is expected to show results in 2025.
Spain And Portugal
While Spain's Alcampo saw a slight 0.8% revenue dip, to €4.61 billion, due to lower footfall in hypermarkets and a slowing inflation rate, the integration of previously acquired DIA stores helped offset some of the decline.
Portugal, however, experienced robust growth with a 23% revenue surge, to €2.14 billion, driven by an improved customer experience and the acquisition of DIA's 481 convenience stores, making Auchan Portugal the country's largest retail network with an 11.8% market share.
Overall, the combined EBITDA in Spain and Portugal reached €378 million, slightly down from the previous year, with Portugal's strong performance and profitable acquisition partially counteracting the decline in Spain, which was also impacted by flooding in the Valencia region.
Poland And Romania
Despite a declining market favouring discount stores, Auchan Poland saw a 2.8% revenue increase, to €2.83 billion, in 2024, aided by favourable exchange rates and the proactive addition of 50 smaller supermarket and convenience store locations.
Meanwhile, Auchan Romania continued its strong growth trajectory with a 6.3% revenue jump, to €1.55 billion, thanks to increased customer traffic and sales volume driven by price investments.
Romania also saw format diversification, including rebranding some hypermarkets to the Atac hiper discount format and launching a franchise programme under the Simply by Auchan brand. The retailer opened 10 stores under this programme by the end of 2024.
Combined EBITDA from Poland and Romania amounted to €269 million, slightly lower than the €274 million in 2023, with cost controls in Poland offsetting some revenue declines. The overall EBITDA margin for both countries remained steady at 6.1%.
Ukraine And Russia
Auchan's operations in Ukraine and Russia faced significant challenges in 2024 due to the ongoing war.
In Ukraine, power outages and security alerts disrupted operations and impacted sales, though Auchan remained committed to serving the population and received the 'low-cost trolley' award for its prices on 50 basic products.
Russia also experienced difficulties, with an attack affecting shopping centre traffic. Despite this, and aided by high inflation, revenue in Russia saw a slight increase.
However, unfavourable exchange rates contributed to an overall 8% decline in the combined Ukraine and Russia revenue to €2.99 billion. EBITDA also decreased to €113 million, down from €164 million in 2023.
Net Financial Debt
Auchan ended 2024 with zero net debt (-€6 million), compared to a positive cash position the previous year.
Despite reduced cash flow from operations, Auchan funded its key investments, including the acquisition of former Casino and DIA stores, through strategic asset sales, such as real estate and a stake in Auchan Hungary.
This active debt management resulted in a leverage ratio of 2.2, consistent with the European retail industry average.
Network Growth Expansion
Auchan expanded its network in 2023-2024, adding 788 stores through acquisitions in Spain, Portugal, and France. Further expansion occurred organically in Poland and Romania.
A price repositioning initiative in France, including price reductions on over 1,600 products, is underway, the company noted.
A new commercial project focusing on food, everyday items, and own-brand products is being implemented alongside a reduction of hypermarket space totalling 280,000 square metres by 2028 across several countries.
This initiative, coupled with store modernisations, particularly of newly acquired locations, represents a €750 million investment through 2028.
A restructuring in France will help the company generate €100 million in annual savings by 2027, it added.
Outlook
For 2028, Auchan expects an EBITDA over €1.6 billion (compared to €0.9 billion in 2024), positive free cash flow exceeding €0.4 billion (€0.3 billion in 2024), and a leverage ratio below 1.5x (from 2.2x in 2024).
A €1-billion real estate asset sale planned for 2025-2026 will further bolster Auchan's finances, it added.
