Salute e Benessere
Press release - Q4 2019 Sales
2019 NET SALES
Highlights
In France, the main new highlight of the Q4 2019 and beginning 2020 is the strong increase in customer traffic driven by the fast deployment of autonomous stores in the Group's banners:
In offering its customers a unique service, the Group is pursuing its differentiation strategy and adapting its business model.
The Group has also continued to implement its strategic priorities:
1/ Marketing priorities , with:
2/ Digital priorities , driven by smartphone scan & pay solutions in over 600 stores, an innovative subscription-based digital loyalty programme, with a cumulative 200,000 suscribers over the quarter, and Casino Max, with users of the app accounting for over 20% of sales for the last two months of the year.
3/ Development priorities, with:
Lastly, Cdiscount delivered its profitable growth strategy, with gross merchandise volume (GMV) for the year up +9.1% on an organic basis and a +3.7 points increase in the marketplace contribution to 38.1% in 2019.
Casino also continued to execute its plans to strengthen the Group's structure:
The growth in trading profit (not already audited figures) on the France Retail scope excluding real estate is estimated at +5%. On this basis, the Retail trading margin would reach 3.1%, up +20bp compared to 2018 .
In Latin America, the Group continued to enjoy strong growth in Q4, up +9.2% on an organic basis, driven by the cash & carry business, the refurbished and converted to buoyant formats supermarkets and very good momentum in the convenience segment. The business in Colombia performed well across all formats.
As part of the ongoing disposal process, Leader Price has been classified as discontinued operations and is no longer included in the Group's consolidated sales in 2019. As a consequence 2018 has been restated.
In fourth-quarter 2019, the currency effect was unfavourable at -3.2% and the fuel effect came to +0.5%. Changes in scope of consolidation had a negative impact of -1.6%. The calendar effect was -0.8%.
Business review
France Retail
In France, sales for the quarter were stable on a same-store basis, at €4,164m reflecting the focus of the Group on its most buoyant formats and geographies with:
Business review by banner:
GreenYellow
GreenYellow accelerated the rapid development of its photovoltaic project pipeline . Over the quarter, the Group's energy subsidiary strengthened its photovoltaic activity , especially in Morocco with STMicroelectronics, where the largest solar plant in terms of solar-roof car park shade structures (4,000 sq.m.) was inaugurated, in Colombia with the SEB group, in France with the installation of solar panels in the car racing circuit at the Nevers Magny-Cours representing a photovoltaic capacity of 4.7 MWp, and on Reunion Island with Roland Garros airport. During the quarter, GreenYellow signed a new energy efficiency contract with Samson Regulation, a mechanical and industrial engineering expert.
In addition, GreenYellow continued to enhance its international solutions platform , with the addition of B2B energy sales in Brazil, and B2C gas sales in France through Cdiscount. A new partnership agreement was signed with Jedlix, the start-up developer of a smart charging app, which has strengthened GreenYellow's mobility business.
Its photovoltaic project pipeline now represents 451 MWp . In addition, the annual energy savings generated by GreenYellow represent €77m .
Data & Data Center
3W-relevanC's Data business reported sales for the year of €61m , up +51% on 2018. In December, 3W-relevanC and its partner, Orange Advertising, won an award at the Trophées LSA de l'Innovation in the Marketing category for their unique TV2Store solution for measuring the true impact of television advertising campaigns on in-store sales.
ScaleMax continued to expand its customer portfolio, signing new contracts with Natixis, Amundi, Ascendance Flight Technologies and Iconem during the quarter. In response to strong demand, ScaleMax already doubled its computing capacity at its first site last October and plans to open a new site during the first half of 2020.
Cdiscount
In 2019, Cdiscount generated gross merchandise volume (GMV) of €3.9bn , an organic increase of +9.1% driven by the marketplace which is a key profitability lever, B2C services and Géant corners.
Cnova provided a detailed report on its Q4 net sales on 15 January 2020.
Latam Retail
Sales at the Group's businesses in Latin America (GPA Food and Éxito) rose by +3.4% on a same-store basis and +9.2% on an organic basis this quarter. Consolidated net sales were impacted by a negative currency effect of -6.7%.
Renovated Pão de Açúcar stores, which now account for 40% of the banner's sales, continued to deliver a solid performance that was +700bps above the rest of the store base. The banner intends to pursue the renovation programme in 2020, coupled with the expansion of 5 to 10 stores. The Convenience format reported strong +10.0% growth despite the high basis of comparison in 2018 (+19.1% in Q4 2018). The banner relaunched its expansion programme , opening 9 Minuto Pão de Açúcar stores during the quarter. After converting 18 new Extra Supermarkets to the Mercado Extra format, the converted store base now comprises 100 stores delivering growth in sales of around +5% and increased customer traffic. The Mercado Extra's conversion programme will be completed in 2020 . 15 stores were also converted to the Compre Bem format during the quarter, for a total of 28 stores to date, registering sales growth of around +15% and customer traffic increase. The performance of the Extra Hypermarkets was impacted by a high basis of comparison for the non-food categories over the past two years. A new segmentation of the store portfolio has been established, comprising high-performing stores (around 70) and stores in the process of being sold/closed, converted in Assaí or remodelled. This segmentation will enable the Group to implement an appropriate operational management for each segment.
The Group is pursuing the development of strategic initiatives to support its digital transformation . The e-commerce format reported annual growth of more than +40% , led by expansion of express delivery and click & collect services. James Delivery enjoyed average monthly growth of +35% and a fifteenfold increase in the number of orders since the beginning of the year. The mobile phone app was downloaded over 11 million times and represented more than 20% of Multivarejo's sales.
During the year, 22 Assaí stores were opened, representing a +20% increase in retail space. At Multivarejo, 10 Minuto Pão de Açúcar stores were deployed and the programme of store conversions and renovations was pursued with i) 92 Extra Supermarkets converted, of which 77 to Mercado Extra and 15 to Compre Bem; and ii) 20 Pão de Açúcar stores renovated, raising the total number of renovated units to 46.
· Éxito Group performed well across all formats.
GPA released a detailed report on its Q4 net sales on 15 January 2020 and Éxito Group will provide a detailed report on its results on 17 February 2020.
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Appendices
Main changes in consolidation scope
Retrospective application of IFRS 5 to 2019 and 2018 quarterly sales in France
The Group's reported sales are affected by the process for the disposal of Leader Price announced in Q4 2019. In accordance with IFRS 5, Leader Price's sales (excluding Geimex) are recognised under discontinued operations and no longer appear in the Group's consolidated sales.
Reconciliation of reported 2019 sales with restated sales in France
Reconciliation of reported 2018 sales with restated sales in France
Exchange rate
Implementation of IAS 29
IAS 29, which relates to the accounting treatment of hyperinflation in Argentina, was applied to the accounts closing process at 31 December 2019 (Latam Retail). To permit meaningful comparisons between the 2019 and 2018 data, the net sales figures for Argentina in 2019 have been restated in line with IAS 29.
Changes in operating KPIs for France during 2019
Gross sales under banner – France
2019/2018 change in sales in France by banner
Store network at period-end
ANALYST AND INVESTOR CONTACTS
Régine Gaggioli – +33 (0)1 53 65 64 17
rgaggioli@groupe-casino.fr
or
+33 (0)1 53 65 24 17
IR_Casino@groupe-casino.fr
PRESS CONTACTS
Casino Group – Communications Department
Stéphanie Abadie – sabadie@groupe-casino.fr – +33 (0)6 26 27 37 05
or
+33 (0)1 53 65 24 78 – directiondelacommunication@groupe-casino.fr
Agence IMAGE 7
Karine Allouis – +33(0)1 53 70 74 84 – kallouis@image7.fr
Flore Larger – flarger@image7.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.
Leader Price's sales are now presented as discontinued operations. In accordance with IFRS 5, Leader Price data for fiscal year 2018 as well as data relating to the previous quarters of fiscal year 2019 have been restated in discontinued operations.
Excluding fuel and calendar effects. Net sales and total and organic growth are impacted by the Rocade plan
Including intragroup revenues
Data published by the subsidiary
Changes in trading profit and trading margin assessed in accordance with IFRS 5, following the classification of Leader Price as a discontinued operations in 2018 and 2019
Excluding fuel and calendar effects
Leader Price's sales are now presented as discontinued operations. In accordance with IFRS 5, Leader Price data for fiscal year 2018 as well as data relating to the previous quarters of fiscal year 2019 have been restated in discontinued operations.
Leader Price's sales are now presented as discontinued operations. In accordance with IFRS 5, Leader Price data for fiscal year 2018 as well as data relating to the previous quarters of fiscal year 2019 have been restated in discontinued operations.
Excluding fuel and calendar effects
Excluding Codim stores in Corsica: 8 supermarkets and 4 hypermarkets
Other: mainly Vindémia and Cafeterias
Net sales on a same-store basis include the same-store performance of franchised stores.
Of the 17 hypermarket disposals announced, 15 had been finalised at 12/31/2019 and 2 are in the process of being finalised.
Subscribers to the Casino Max à Volonté programme receive an immediate 10% discount on all purchases, for a monthly subscription payment of €10
Including intragroup revenues
Unaudited data published by Cnova NV. The reported figures present all revenues generated by Cdiscount, including its technical goods sales in the Casino Group's hypermarkets and supermarkets
Organic growth figures exclude (i) sales realized in Casino Group's hypermarkets and supermarkets on technical goods and home category (total exclusion impact in 2019: +3.1 pts and +4.0 pts, respectively, on GMV and net sales growth ; in 4Q19: +2.9 pts and +3.7 pts, respectively, on GMV and net sales growth), and (ii) first 9 months of 1001Pneus acquired at the beginning of 4Q18 (total exclusion impact in 2019: -1.0 pt and -1.4 pt on GMV and net sales growth ; included in 4Q19 organic growth) but take into account showroom sales
Gross merchandise volume (GMV) includes sales of merchandise, other revenues and the marketplace's sales volume based on confirmed and shipped orders, including tax, and the sales volume of services
Marketplace GMV shares have been adjusted to take into account coupons and warranties and exclude CDAV subscription fees. 2018 GMV share has therefore been adjusted by +0.1pt for comparison purposes and 4Q18 by -0.1 pt
Data published by the subsidiary.
Pursuant to the application of IAS 29, the exchange rate used to convert the Argentina figures corresponds to the rate at the reporting date
Online sales under the banners and Cdiscount's GMV for Q4
E-commerce food sales = France e-commerce excluding Cdiscount
Hypermarkets and Supermarkets
Excluding fuel and calendar effects
Excluding Codim stores in Corsica: 8 supermarkets and 4 hypermarkets
Other: mainly Vindémia and Cafeterias
Net sales on a same-store basis include the same-store performance of franchised stores.
Attachment
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