French retailer Groupe Casino has reported a decline in net sales and core earnings in the first half of its financial year, due to the ongoing restructuring of the business.
Groupe Casino reported a 3.5% decline in consolidated net sales, to €4.2 billion, in the first half on a same-store basis.
Adjusted EBITDA for the period declined by 24% to €255 million, reflecting a margin of 6.1%.
Philippe Palazzi, chief executive officer of Groupe Casino, said, “As we present these results and the measures we have already implemented, I would like to reiterate that our priority remains the future of all the group’s employees and following through on our commitments.”
Restructuring And Transformation
Casino's ongoing restructuring involves streamlining the store network through closures, conversions to franchises and rational expansion.
The company sold its loss-making hypermarkets and supermarkets to Groupement Les Mousquetaires, Auchan Retail France, and Carrefour.
It is also reorganising its head office functions and logistics at Distribution Casino France and has agreed to sell Codim 2 stores.
Palazzi added, “Since the beginning of April, the new executive management team has been analysing the situation and developing a plan to create economic and social value. Alongside this work, which will deliver medium- and long-term results, I would like to highlight the commitment of our teams, who have already launched a number of transformation initiatives.”
The company has signed supply partnerships with the Sherpa store network and TotalEnergies service station network.
It has launched a new commercial concept for Franprix, with three pilot stores, overhauled Monoprix’s Carte M’ loyalty programme, and rolled out a new brand platform for Cdiscount.
Divisional Performance
The company's Monopix banner reported a 0.8% increase in net sales in the first half on a same-store basis, with growth in its e-commerce segment.
Franprix posted same-store sales growth of 0.4% in the first half, with slower sales in the Paris suburbs and growth in Paris and the provinces.
Net sales under the Casino banner - comprising Vival, SPAR and Petit Casino, among others – fell by 3.8% in the first half, and by 5.1% on a same-store basis in the second quarter.
This was mainly driven by disruptions due to the ongoing sale of Casino hypermarkets and supermarkets and the subdued performance of seasonal stores in June due to unfavourable weather conditions.
