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| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| Casino Guichard Perrachon | TG:CAJ | Tradegate | Ordinary Share |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.00 | - |
From Nov 2024 to Nov 2024
THIRD-QUARTER 2024
Restructuring plan now secured
New Casino transformation underway
Third-quarter 2024 net sales
Consolidated net sales amounted to €2.1bn in Q3 2024, down -1.8% on a same-store basis and -5.1% as reported after taking into account the effects of changes in scope and store network streamlining (around -3.0%) and a calendar effect (-0.3%).
| vs. Q3 2023 | vs. Q2 2023 | ||||||||
| Net sales by brand (in €m) | Q3 2024 | Change | Q2 2024 | Change | |||||
| Same-store | Total | Same-store | Total | ||||||
| Monoprix | 1,012 | +0.9% | +0.1% | 1,071 | +0.8% | -1.6% | |||
| Franprix3 | 372 | -1.2% | -6.1% | 408 | +0.1% | -6.3% | |||
| Casino3 | 413 | -4.5% | -10.3% | 351 | -5.1% | -13.2% | |||
| Convenience brands | 1,797 | -0.7% | -3.8% | 1,831 | -0.5% | -5.1% | |||
| Cdiscount | 243 | -8.1% | -12.7% | 226 | -16.5% | -20.4% | |||
| Other3 | 28 | +2.6% | -17.5% | 29 | +9.3% | -13.2% | |||
| CASINO GROUP | 2,067 | -1.8% | -5.1% | 2,086 | -3.1% | -7.1% | |||
Convenience brands
Convenience brands (Monoprix, Franprix and Casino) reported a -0.7% decline in net sales on a same-store basis in a deteriorated market4, largely unchanged from Q2.
The Group and its employees worked hard to meet demand throughout the Paris 2024 Olympic and Paralympic Games, especially at the exposed brands in the Paris region (Monoprix, Franprix), which saw a sharp acceleration in business during the first half of August. However, the overall impact on Q3 was neutral, as these positive effects were offset by (i) disruptions relating to security and installations for the Olympics opening ceremony and events (store accessibility), and (ii) Parisians leaving earlier for the summer holidays and fewer tourists visiting Paris before and after the Games.
Store network streamlining continued over the quarter, with 141 unprofitable stores closed (449 since the start of the year), 50 stores opened as franchises or under business lease (192 since the start of the year), 15 integrated stores converted to franchises or business lease (76 since the start of the year) and 7 franchised stores transferred to the integrated network or under business lease (12 since the start of the year).
Cdiscount6
The highlight of the quarter was the return to slight growth in overall comparable GMV7 (vs. -12% in Q1 2024, -9% in Q2 2024) following two years of transformation, reflecting in particular an +8% increase in Marketplace GMV in Q3, gradually improving quarter after quarter (-4% in Q1 2024, -2% in Q2 2024). Cdiscount sales (down -8.1% on a same-store basis) naturally remain impacted by the assertive strategy of streamlining direct sales in favour of the Marketplace, whose GMV represented 67% of product GMV7 over the quarter (+5 pts vs. Q3 2023). Nevertheless, sales have made a sequential improvement since the start of the year (-21.1% in Q1, -16.5% in Q2).
Financial indicators for the first nine months of 2024
| (in €m) | 9 months (2024) | 9 months (2023) |
| Adjusted EBITDA | 402 | 530 |
| Adjusted EBITDA after lease payments | 59 | 197 |
| Free cash flow | -539 | -846 |
Adjusted EBITDA8
Adjusted EBITDA over the first nine months of 2024 came out at €402m (-24%), reflecting a margin of 6.4%
(-156 bps).
| (in €m) | 9 months (2024) | 9 months (2023) | Change |
| Monoprix | 273 | 324 | -51 |
| Franprix | 75 | 106 | -31 |
| Casino | 46 | 49 | -3 |
| Convenience brands | 394 | 479 | -85 |
| Cdiscount | 44 | 50 | -6 |
| Other9 | (35) | 1 | -37 |
| Group adjusted EBITDA margin | 402 6.4% | 530 8.0% | -127 -156 bps |
Convenience brands
Adjusted EBITDA for convenience brands fell by -€85m over the first nine months of 2024. The first nine months of 2023 had benefited from €38m in income, including €15m in tax sponsorship credits (no additional sponsorship credits were recognised in 2024) and €23m in income spread over the contract between Monoprix and Getir/Gorillas (contract terminated during Q3 2023).
Apart from these one-off effects, adjusted EBITDA fell by -€47m, of which:
The convenience brands are focused on streamlining their store networks and business recovery plans, the impact of which will be gradual.
Cdiscount
Adjusted EBITDA10 fell by -€6m over the first nine months, but the gross margin (as a percentage of net sales) improved due to a strategic focus on higher-margin services (Marketplace, advertising, B2B). It should be noted that, as a result of the logistics streamlining plans implemented by Cdiscount over the last two years, annual rental costs have fallen sharply, enabling adjusted EBITDA after lease payments to grow by +€1m.
Other
Adjusted EBITDA from other subsidiaries and the holding company (change of -€37m) was heavily impacted by:
Adjusted EBITDA after lease payments11
| (in €m) | 9 months (2024) | 9 months (2023) |
| Monoprix | 60 | 126 |
| Franprix | 13 | 47 |
| Casino | 14 | 16 |
| Convenience brands | 87 | 189 |
| Cdiscount | 27 | 26 |
| Other12 | (55) | (18) |
| Adjusted EBITDA after Group lease payments | 59 | 197 |
Free cash flow11
Over the first nine months of 2024, free cash flow stood at -€539m (-€846m over the first nine months of 2023) after payment of €153m in social security and tax liabilities placed under moratorium in 2023. Excluding this non-recurring amount of -€153m, free cash flow would stand at -€386m.
| (in €m) | 9 months (2024) | 9 months (2023) |
| Operating cash flow | 7 | 60 |
| o/w Adjusted EBITDA after lease payments | 59 | 197 |
| o/w Non-recurring items | (57) | (99) |
| o/w Other items | 5 | (38) |
| Net capex | (214) | (252) |
| Income taxes | (18) | (6) |
| Change in working capital | (314) | (648) |
| Free cash flow | (539) | (846) |
Covenant13
It should be noted that, although the calculation is required by the loan documentation, the covenant is indicative at this time ("holiday period") until 30 September 2025. The scope of the covenant test corresponds to the Group, adjusted mainly for the subsidiaries Quatrim, Mayland (Poland) and Wilkes (Brazil).
| (in €m) | At 30 September 2024 | At 30 June 2024 |
| Covenant adjusted EBITDA1 | 181 | 230 |
| Covenant net debt1 | 1,119 | 1,244 |
| Covenant net debt/Covenant adjusted EBITDA | 6.17x | 5.41x |
The covenant net debt/covenant adjusted EBITDA ratio is therefore 6.17x. Application will be effective for the first time from 30 September 2025, with an initial required ratio of 8.34x.
Asset disposals
Sale of hypermarkets and supermarkets (HM/SM)
Over the quarter, the Group sold 135 stores:
The activity of all hypermarkets and supermarkets operated by the Group has now virtually ceased, with the remaining stores15 due to be sold or closed by the end of the year.
Sale of Codim 2
In accordance with the agreements announced on 22 June 2024, Casino Group completed on 1 October the sale to Rocca Group of 100% of its subsidiary Codim 216, which employs all the employees of the stores sold, which will operate under the Auchan banner, and which also owns the head office of Codim 2.
Casino Group continues to operate the Vival, Spar and Casino brands in Corsica through its convenience stores.
Real estate disposals
The proceeds of the transaction were used to reduce Casino Group’s debt toward the bondholders of its subsidiary Quatrim, in line with applicable financial documentation. The nominal value of the secured Quatrim bonds has been reduced to €300m.
Purchasing partnership – Alliance Aura Retail
On 23 September, Intermarché, Auchan and Casino Group signed a long-term purchasing partnership with the creation of the Aura Retail alliance, offering purchasing partnerships between the three groups for a period of 10 years:
See the press release
Employment Protection Plans (EPP)
On 24 April 2024, Casino Group launched a transformation plan to align its organisation with its new scope, focused on convenience retailing.
Agreements have been signed with the trade unions in the seven companies concerned, and have been validated by the authorities.
These Employment Protection Plans are currently being rolled out in the entities concerned. The number of job cuts is expected to be at the upper end of the range initially announced, but the number of layoffs will be significantly lower than the number of jobs that are eliminated thanks to the implementation of voluntary redundancy schemes (around 400 jobs) and in-placement schemes (1,200 jobs currently vacant and open to internal redeployment). Natural attrition (retirement, etc.) in recent months has also reduced the projected number of redundancies or created vacancies that can become in-placement opportunities. The Group's objective is to limit forced redundancies.
See the press release
The Group points out that a provision for restructuring has been recorded in the 2024 interim consolidated financial statements17 in line with the decision taken by the Board of Directors on 24 April 2024, to cover the estimated costs associated with the EPP plans. These costs form an integral part of the expenses relating to discontinued HM/SM activities.
Strategic Plan
The Group will present its 2028 Strategic Plan on 14 November, detailing the recovery plan designed to restore the Group's financial health and transform it into the leading convenience store retailer.
A press release and a presentation will be available on the Company's website.
APPENDICES
Net sales by brand
| Net sales by brand (in €m) | 9 months (2024) | Change | ||
| Same-store | Total | |||
| Monoprix | 3,163 | +0.8% | -0.2% | |
| Franprix | 1,187 | -0.1% | -5.2% | |
| Casino | 1,113 | -4.1% | -9.1% | |
| Convenience brands | 5,462 | -0.4% | -3.3% | |
| Cdiscount | 711 | -15.5% | -19.3% | |
| Other | 86 | +5.1% | -19.0% | |
| CASINO GROUP | 6,259 | -2.9% | -5.6% | |
Gross Merchandise Volume
| Estimated gross merchandise volume by brand (in €m, including fuel) | Q3 2024 | Change (incl. calendar effects) | 9 months (2024) | Change (incl. calendar effects) | ||
| Monoprix | 1,060 | +0.6% | 3,313 | +0.8% | ||
| Franprix | 451 | -4.4% | 1,437 | -2.7% | ||
| Casino | 703 | -6.3% | 1,810 | -4.7% | ||
| TOTAL CONVENIENCE BRANDS | 2,213 | -2.7% | 6,559 | -1.5% | ||
| Cdiscount | 541 | -2.2% | 1,534 | -9.4% | ||
| Other | 28 | -17.5 | 86 | -19.0% | ||
| CASINO GROUP TOTAL | 2,782 | -2.8% | 8,180 | -3.3% | ||
Store network of continuing operations
| 30 Sept. 2023 | 31 Dec. 2023 | 31 Mar. 2024 | 30 June 2024 | 30 Sept. 2024 | ||
| Monoprix | 862 | 861 | 849 | 842 | 843 | |
| o/w Integrated stores France excl. Naturalia Franchises/BL France excl. Naturalia | 342 285 | 338 291 | 336 285 | 322 296 | 323 297 | |
| Naturalia integrated stores France | 170 | 170 | 168 | 168 | 168 | |
| Naturalia franchises/BL France | 65 | 62 | 60 | 56 | 55 | |
| Franprix | 1,186 | 1,221 | 1,198 | 1,179 | 1,127 | |
| o/w Integrated stores France Franchises/BL France International affiliates18 | 319 754 113 | 323 782 116 | 320 768 110 | 316 758 105 | 306 716 105 | |
| Casino (Vival, Spar, Casino, etc.) o/w Integrated stores France Franchises/BL France International affiliates19 | 5,964 543 5,286 135 | 5,862 493 5,230 139 | 5,816 450 5,227 139 | 5,751 389 5,220 142 | 5,717 369 5,203 145 | |
| Other businesses20 | 5 | 5 | 5 | 5 | 5 | |
| TOTAL | 8,017 | 7,949 | 7,868 | 7,777 | 7,692 | |
BL: Business Lease
APPENDICES – ACCOUNTING INFORMATION
Discontinued operations
In accordance with IFRS 5, the earnings of the following businesses are presented within discontinued operations for the 2023 and 2024 periods:
APPENDICES – GLOSSARY
Same-store growth
Same-store net sales include e-commerce sales and sales of merchandise excluding fuel from stores open for at least 12 months. The figure is calculated excluding tax and calendar effects.
Gross Merchandise Volume (GMV)
For e-commerce, GMV (“Gross Merchandise Volume”) corresponds to sales generated directly on the Cdiscount Group's websites and by independent sellers on marketplaces. For other retail activities, it corresponds to sales generated by each brand from integrated stores and franchise stores, excluding tax.
Adjusted EBITDA
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) is defined as trading profit plus recurring depreciation and amortisation expense included in trading profit.
Adjusted EBITDA after lease payments
Adjusted EBITDA after lease payments is defined as adjusted EBITDA less repayments of lease liabilities and net interest paid on lease liabilities shown in the cash flow statement.
Free cash flow before dividends and financial expenses
Free cash flow before dividends and financial expenses corresponds to cash flow from operating activities as presented in the consolidated statement of cash flows, less net capex, rental payments subject to restatement in accordance with IFRS 16 and restated for the effects of the strategic disposal plan (until 2023), conciliation and financial restructuring.
Covenant
The covenant is defined as the ratio between 'covenant net debt' and 'covenant adjusted EBITDA'. The scope of the covenant test corresponds to the Group adjusted for Quatrim and, to a lesser extent, the subsidiaries Mayland in Poland and Wilkes in Brazil.
Covenant adjusted EBITDA
“Covenant adjusted EBITDA” or pro forma EBITDA (depending on the financial documentation) corresponds to adjusted EBITDA after lease payments relating to the covenant scope, to which are added any impact of scope effects and pro forma restatements corresponding to future savings/synergies to be achieved within 18 months.
Covenant net debt
“Covenant net debt” corresponds to gross debt relating to the covenant scope (including borrowings from other Group companies by covenant companies) excluding mainly Quatrim bond debt, (i) plus financial liabilities which are, in essence, debt, (ii) adjusted for the average drawdown on the Group’s revolving credit lines over the last 12 months (from the date of restructuring) and (iii) reduced by cash and cash equivalents of the entities in the covenant scope and by non-deconsolidating receivables relating to operating financing programmes reinstated as part of the restructuring.
It differs from consolidated “net debt”, which corresponds to all gross borrowings and debt at the reporting date for the period, including derivatives designated as fair value hedges (liabilities) and trade payables - structured programme, less (i) cash and cash equivalents, (ii) financial assets held for cash management purposes and as short-term investments, (iii) derivatives designated as fair value hedges (assets), and (iv) financial assets arising from a significant disposal of non-current assets.
Analyst and investor contacts
| Charlotte Izabel | +33 (0)6 89 19 88 33 | cizabel@groupe-casino.fr |
| Investor Relations | +33 (0)1 53 65 24 17 | IR_Casino@groupe-casino.fr |
Press contacts
| Corporate Communications Department – Casino Group | ||||
| Stéphanie Abadie | +33 (0)6 26 27 37 05 | sabadie@groupe-casino.fr | ||
| Investor Communications Department | +33 (0)1 53 65 24 78 | directiondelacommunication@groupe-casino.fr | ||
Disclaimer
This press release was prepared solely for information purposes, and should not be construed as a solicitation or an offer to buy or sell securities or related financial instruments. Likewise, it does not provide and should not be treated as providing investment advice. It has no connection with the specific investment objectives, financial situation or needs of any receiver. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. Recipients should not consider it as a substitute for the exercise of their own judgement. All the opinions expressed herein are subject to change without notice.
1 Around 20 stores and 4 logistics platforms
2 See definitions in the appendices on page 9
3 A change in the allocation of net sales was carried out in Q1 2024, consisting of allocating all ExtenC net sales (including the Group's international activities previously presented in the “Other” segment) to the “Casino” and “Franprix” segments. This reallocation stems from a move to present net sales by brand (and no longer by format) in line with the Group’s new operational management methods. Data for 2023 have been adjusted accordingly to facilitate comparisons. The change in ExtenC's allocation concerns 2.1% of sales in Q3 2024.
4 Circana data: French FMCG-Fresh Produce net sales were down -1.5%, -0.5% and -1.1% in July, August and September 2024, respectively
5 Distribution Casino France: an entity which grouped together Casino HM/SM and Casino convenience stores
6 Data published by Cdiscount, excluding comparable sales (down 8.1% on a Casino contribution basis)
7 GMV (gross merchandise value): gross sales including tax
Overall comparable GMV: comparative data excluding Carya and Neosys (disposed of) as well as Géant and Cdiscount Pro (discontinued)
Product GMV: Direct sales and Marketplace GMV (excluding B2C services, other revenues and B2B)
8 See definition in the appendices on page 9
9 Including +€21m and +€30m for Quatrim over the first nine months of 2024 and 2023 respectively
10 Contribution to Casino
11 See definitions in the appendices on page 9
12 Including +€15m and +€24m for Quatrim over the first nine months of 2024 and 2023 respectively
13 See definitions in the appendices on page 9
14 It should be noted that Casino Group received an advance payment in September 2023 in respect of these disposals
15 Around 20 stores and 4 logistics platforms
16 Codim 2 operates 4 hypermarkets, 9 supermarkets, 3 cash & carry stores and 2 drive-throughs in Corsica
17 Note 11.1 of the 2024 interim financial report
18 International affiliate convenience stores include Leader Price franchises abroad. Leader Price franchises in France are presented within discontinued operations
19 International affiliate convenience stores include HM/SM affiliates abroad. HM/SM stores in France are presented within discontinued operations
20 Other activities include 3C Cameroun
Attachment
1 Year Casino Guichard Perrachon Chart |
1 Month Casino Guichard Perrachon Chart |
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