French-based Groupe Casino said that its trading profit in its home market ‘improved significantly’ to €508 million, up from €337 million a year earlier, as the group posted its full-year results for 2016.
Retail operations excluding property development posted a trading profit of €421 million in France.
Casino attributed the increase in profits to ‘solid operating performances at Monoprix, Franprix and Supermarchés Casino’. It also noted that Leader Price returned to profitability, while the Géant hypermarket banner ‘strongly reduced its losses’.
At Géant, the business posted a 2.7% increase in food sales on a same-store basis, as it placed more emphasis on food and less on non-food, reducing the latter's retail space by 1.6% over the period.
Overall, Groupe Casino posted consolidated net sales of €36 billion, up 5.7% in organic terms, and a consolidated trading profit of €1.03 billion for the year.
"In 2016, Casino simplified its organisation and considerably reduced its debt,” said Jean-Charles Naouri, chairman and chief executive officer of Casino.
“The group achieved its objectives in France, with a confirmed recovery in profitability, strong cash-flow generation and a reduction in net debt. It now aims to continue growing its sales and results in 2017. It will continue to adapt to new consumer trends by developing the most
buoyant formats: premium, discount, proximity and e-commerce.”
Outside of Europe, the group’s food-retail activities in Latin America grew by 11.4% on an organic basis, driven by improving conditions in Brazil and strong performances in Colombia, Argentina and Uruguay.
Within e-commerce, Cdiscount’s gross merchandise volume rose by 13.6% on a same store basis, however, the business posted a trading loss of €11 million for the full year.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
