Retailer Casino, which is battling to ease investor concerns about its high debt levels, posted a stronger-than-expected second-quarter revenue, thanks to accelerating sales in France and Brazil, and predicted solid growth ahead.
Casino, whose shares rose, added that it was confident of delivering on its plan to complete €1.5 billion ($1.8 billion) of asset sales by early 2019 to help cut debt.
Finance chief Antoine Giscard d'Estaing said that he was confident about Casino's first-half results, due on 26 July.
Giscard d'Estaing said that Casino was benefitting from "strategic initiatives" taken in previous years in France, Brazil, and in the field of e-commerce, and expressed confidence that Casino could grow its third-quarter sales in line with the trend of the second quarter.
Share Rise
Casino shares were up 3% in early-session trading, although the stock remains down roughly 30% since the start of 2018, partly on concerns over the debt position of parent group Rallye.
'We reiterate our "market perform" on Casino after the company reported solid Q2 sales and confirmed full-year guidance. The focus will remain on deleveraging,' wrote brokerage Raymond James.
Buying Alliance
In order to cut costs, protect margins, and cope with changes in shopping habits, particularly amid younger generations, retailers have been forming new buying alliances and sealing partnerships with tech giants.
Casino has a joint purchasing alliance with Auchan, German retailer Metro and France's Schiever. It is also expanding its online offering through a deal to use UK online retailer Ocado's platform.
Monoprix has also become the first French retailer to agree to sell groceries via Amazon.
Full-Year Forecast
For 2018, Casino has forecast organic growth above 10% in consolidated profit excluding tax credits, and for organic growth in French operating profit excluding real-estate activities, also above 10%.
In France, Casino has cut prices and retail space for non-food items at its Géant hypermarkets. It has also handed the management of its consumer electronics goods to its CDiscount unit and is rolling out CDiscount areas in Géant stores.
"This generates good traffic. It is a plus for the global traffic of the store," Giscard d'Estaing told analysts.
News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.
