Improved performance at its France-based operations has helped boost Groupe Casino’s trading profit in FY 2017, according to the group’s full-year results, published today.
Consolidated trading profit was up 20.1% to €1.24 billion, the group said, which was helped by an improvement in trading profit at its French operations, from €508 million in 2016 to €556 million last year.
The group said that this was due to ‘sound standing profitability at Franprix and Monoprix, an improved contribution from Casino Supermarkets and increased profitability at Géant’, its supermarket division.
In addition, trading profit at its Latin America operations was up to €713 million, from €538 million the year before.
The group said that it ‘achieved its objective’ of 20% trading profit growth, leveraging ‘its unique mix of formats and effective action plans to deliver a sales performance in France that was the best in the retail sector, while also improving its margins.’
E-commerce volumes also saw a 10% rise last year, which was boosted by ‘historically high sales’ in the third quarter, and following the deployment of a strategic e-commerce plan in Q2.
2018 Outlook
The group said that for full year 2018, it is seeing to deliver organic growth in retail trading profit of above 10% in its French iterations, as well as free cash flow that will help it to improve its net financial debt positioning.
Its 2018 aspirations for the wider group are also focused on improving consolidated trading profit above 10% as well as free cash flow of above €1 billion.
“The unique mix of banners’ formats and the transformation plans initiated enabled Casino group to reach the best commercial performance in the sector in France and among the best abroad in 2017, with a marked improvement in its key financial indicators,” said Jean-Charles Naouri, chairman and chief executive of Casino Group.
“This strategic orientation, which addresses our customers’ expectations, will be continued with strengthened ambitions in growth and profitability for 2018.”
Naouri added that in order to ‘align’ itself with evolving consumption trends, “Casino group will further accelerate its digital and e-commerce development in 2018 in order to further assert its leading position in omni-channel retail.”
More Consistency
Commenting on the group’s performance, analyst Bruno Monteyne of Bernstein Research said, “This year's guidance of 10% organic growth for group excludes both FX and non-recurring tax credits.
"This means Casino includes these benefits in headlines when they worked in their favour and are now excluding them when they work against them. We argue with the company for more consistency.”
© 2018 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.
