Groupe Casino: Fourth Quarter 2007 Sales up a Strong 18.4% (at Constant Exchange Rates)

Regulatory News: Groupe Casino (Paris:CO) Consolidated net sales   Q4 2007 €m   12 months 2007 €m   % change QoQ   % change 12Mo12Mo reported   organic* reported   organic* Continuing operations 7, 022.9 24, 972.9 18.6% 6.5% 11.0% 3.8% France 4,810.9 17,915.6 5.0% 5.0% 1.8% 1.8% International 2,212.1 7,057.2 65.4% 11.7% 43.8% 11.2% *Based on constant scope of consolidation and exchange rates Consolidated net sales for the fourth quarter of 2007 rose a strong 18.6% thanks to sustained organic growth of 6.5% and the full consolidation of Exito in Colombia. Sales growth in France accelerated to 5%, reflecting a return to growth at Franprix-Leader Price (up 2.2%) and another robust performance from Casino supermarkets (up 9.5%) and Monoprix (up 4.5%). The recovery plans deployed at Franprix and Leader Price began to produce results in the fourth quarter. As expected, Franprix recorded positive growth in same-store sales, of 3.2%. Leader Price experienced a significant trend improvement, with same-store sales down only 3.8% compared with 12.4% in the first nine months of the year. Casino supermarkets and Monoprix are benefiting from the success of their competitively differentiated positioning. Casino supermarkets turned in an excellent performance, with a 7.2% increase in same-store sales. After several quarters of robust growth, this led to a 0.1-point gain in market share for the full year. Monoprix also recorded satisfactory same-store sales growth, of 3.3%. In international markets, organic growth remained high at 11.7%, reflecting continued strong momentum in the Group’s two priority growth regions of Latin America (up 15.4%) and Asia (up 10.5%). All countries reported increased same-store sales. Consolidated net sales for full year 2007 increased by a substantial 11%, or 10.8% at constant exchange rates. Organic growth came to 3.8%, led by an 11.2% gain in international markets. In France, the Group took advantage from a favourable format mix, which features strong market positions in convenience stores (Casino supermarkets, Monoprix, superettes and Franprix) and in discount stores, as well as the deployment of tailored marketing strategies for each banner. Excluding Franprix-Leader Price, sales rose 3.1% in 2007. The Group took over day-to-day management of Franprix and Leader Price in the spring, and the two banners already showed noticeable signs of recovery in the fourth quarter. This turnaround will continue in 2008. Remodelling of the asset portfolio in the international markets significantly improved the Group’s growth profile. Casino now has a geographical platform comprising countries with high growth potential and refocused on two priority regions: South America and South East Asia. International operations, which account for 30% of Group sales, are a key growth driver. The Group’s fourth-quarter performance demonstrates the effectiveness of its operating action plans and the quality of its asset portfolio in France and the international markets. Casino is now poised to deliver sustainable growth. The Group confirms its targets for full year 2007: Further growth in trading profit. Strengthening of the balance sheet to reach a net debt to EBITDA ratio of less than 2.5 by end-2007. The annual results will be published on 13 March 2008. FRANCE Sales in France rose 5% in the fourth quarter, including a 1% gain from the higher number of selling days in relation to the year-earlier period. In € millions   Fourth Quarter   12 months 2006   2007   % change 2006   2007   % change Net sales, France 4,582.8 4,810.9 5.0% 17, 598.6 17,915.6 1.8% Géant Casino hypermarkets 1,697.8 1,746.1 2.8% 6,294.4 6,299.8 0.1% Convenience stores 1,600.8 1,697.0 6.0% 6,325.8 6,569.2 3.8% Casinosupermarkets 759.3 831.3 9.5% 3,047.2 3,224.0 5.8% Monoprix 473.3 494.9 4.5% 1,714.5 1,779.7 3.8% Superettes 368.2 370.7 0.7% 1,564.1 1,565.5 0.1% Franprix/Leader Price 1,017.5 1,040.1 2.2% 4,020.7 3,916.1 -2.6% Other businesses 266.8 327.7 22.8% 957.7 1,130.5 18.1% Same-stores sales   Fourth quarter 2007   12 months % change   Excluding gasoline % change   Excluding gasoline Géant Casino hypermarkets 2.7% 0.9% 0.0% 0.1% Casino supermarkets 7.2% 5.4% 3.2% 3.1% Monoprix 3.3% 3.3% 2.7% 2.7% Franprix 3.2% n/a -0.7% n/a Leader Price -3.8% n/a -10.3% n/a Hypermarkets Géant Casino hypermarket sales rose 2.7% on a same-store basis. Excluding gasoline, sales increased by 0.9%, as the average basket expanded by 2.6%. Food sales grew by a satisfactory 2.5% on the back of double-digit growth in private labels, the expansion of fresh produce, cooperation with dunnhumby and other strategic measures. Non-food sales declined by 2.1%, reflecting, in particular, the impact of continued efforts to refocus the portfolio on the most promising product families. Géant Casino’s market share held firm during the quarter and over the year as a whole. Convenience stores Supermarkets Casino supermarkets had an excellent fourth quarter, with sales up 9.5%. Excluding gasoline, same-store sales were up a strong 5.4%, reflecting a 2.2% increase in the average basket and a 3.1% rise in checkout flowthroughs. These good results, especially for customer traffic, demonstrate the attractiveness of this banner, which has successfully applied an appropriate marketing strategy. Cooperation with dunnhumby has helped optimise this strategy, notably in the areas of pricing and product offering. Casino supermarkets increased their market share by 0.1 point over the year, both in volume and euros. Monoprix Monoprix’s same-store sales rose 3.3%, with a satisfactory performance in both food and non-food items. Monoprix is benefiting from its refocusing on four areas of expertise (food, personal care/cosmetics, apparel and household goods) and from the development of a high-quality, contemporary merchandise selection. One Citymarché and seven Monop’ outlets were opened during the fourth quarter. Over the full year, the banner demonstrated its assertive expansion strategy by opening 23 stores (including eight Citymarchés). Monoprix’s total sales increased by 4.5% over the quarter. Superettes Superette sales rose by 0.7%, reflecting stepped up measures to optimise the store base. Franprix/Leader Price Sales at Franprix-Leader Price were up 2.2% in the fourth quarter after being down 4.2% at the end of September. Action plans to revitalise sales at both banners by focusing on promotions, pricing policy, product line-up and advertising have proven effective. As expected, Franprix recorded positive growth in same-store sales, of 3.2% in the fourth quarter. Leader Price experienced a significant trend improvement, with same-store sales down only 3.8% compared with 12.4% in the first nine months of the year. Other Businesses Sales by the other businesses (Cdiscount, Mercialys, Casino Cafétéria and Banque Casino) were up 22.8%, led by strong growth at Cdiscount, which reported a more than 30% gain in revenue. INTERNATIONAL International sales surged 65.4% in the fourth quarter, with the full consolidation of Exito and Assai (within CBD) accounting for 52.8 points of growth. The currency effect was a positive 0.9% due to the appreciation of the Brazilian real and Thai baht against the euro during the period. Organic growth remained very strong in Latin America and Asia, with a total increase from international operations of 11.7%. Consolidated net sales   Reported   Organic   Same-store Q4 2007   12 months Q4 2007   12 months Q4 2007   12 months South America 107.5% 77.7% 15.4% 14.8% 13.1% 13.2% Asia 15.0% 6.2% 10.5% 9.8% 1.4% 2.0% Indian Ocean 1.1% 1.4% 1.1% 1.7% 1.3% 0.8% In South America, organic growth was a robust 15.4%, including same-store growth of 13.1%. In Brazil, same-store sales at CBD were up 1.4% over the period. Total sales rose 9.8%, reflecting the company’s assertive expansion strategy and the acquisition of a controlling interest in Assai, which provided access to the very promising cash and carry market. Operations in Argentina, Venezuela and Uruguay continued to deliver very high same-store growth. In Colombia, Exito continued to integrate Carulla Vivero and to leverage synergy, notably by converting Vivero and Ley stores into Exito outlets. Organic growth in Asia came to 10.5%, including same-store growth of 1.4%. In Thailand, Big C opened three hypermarkets during the fourth quarter, for a total of five new stores over the full year. In the Indian Ocean, organic growth stood at 1.1%, with same-store sales up 1.3%. In the Netherlands (businesses accounted for by the equity method), Super de Boer recorded same-store growth of 4% in the fourth quarter and 3.7% for the full year, up from 2.5% in 2006. In accordance with IFRS accounting standards, Super de Boer will be fully consolidated as from 1 January 2008, date on which the exercise period begins for the call option held by Casino on 6.2% of the company’s capital. Main changes in the scope of consolidation Exito (Colombia), which was previously accounted for by the equity method, has been fully consolidated since 1 May 2007. Disco (Uruguay) was proportionately consolidated on a 55% basis from 1 April 2006 (compared with 50% previously), on a 58% basis from 1 October 2006 and on a 62.5% basis from 1 August 2007. Assai has been fully consolidated within CBD since 1 November 2007. In accordance with the provisions of IFRS 5 relating to proportionately consolidated companies, sales by FEG (Taiwan) have not been included in consolidated net sales since 14 September 2006, when the Group’s interest in the company was classified under "Assets held for sale”.   4th Quarter   Change   12 months   Change   2006 €m   2007 €m Reported   At constant ex.rates 2006 €m   2007 €m Reported   At constant ex.rates FRANCE 4,582.8 4,810.9 5.0% 5.0% 17,598.6 17, 915.6 1.8% 1.8% Of which :   Géant Casino HM 1,697.8 1,746.1 2.8% 2.8% 6,294.4 6,299.8 0.1% 0.1% Convenience 1,600.8 1,697.0 6.0% 6.0% 6,325.8 6,569.2 3.8% 3.8% Casino SM 759.3 831.3 9.5% 9.5% 3,047.2 3,224.0 5.8% 5.8% Monoprix 473.3 494.9 4.5% 4.5% 1,714.5 1,779.7 3.8% 3.8% Superettes 368.2 370.7 0.7% 0.7% 1,564.1 1,565.5 0.1% 0.1% Franprix–Leader Price 1,017.5 1,040.1 2.2% 2.2% 4,020.7 3,916.1 -2.6% -2.6% Other businesses 266.8 327.7 22.8% 22.8% 957.7 1, 130.5 18.1% 18.1% INTERNATIONAL 1,337.3 2,212.1 65.4% 64.5% 4,906.1 7,057.2 43.8% 43.0% Of which : South America 762.7 1,582.9 107.5% 107.8% 2,636.7 4,686.0 77.7% 79.7% Asia 346.7 398.9 15.0% 10.7% 1,445.4 1,535.7 6.2% -0.5% Indian Ocean 227.7 230.1 1.1% 1.1% 823.0 834.3 1.4% 1.7% Other (Poland) 0.3 0.3 10.2% 4.4% 1.1 1.2 14.8% 11.5% NET SALES – CONTINUING OPERATIONS 5,920.2 7,022.9 18.6% 18.4% 22,504.7 24,972.9 11.0% 10.8% NET SALES DISCONTINUED OPERATIONS 610.2 0.6 ns ns 2,410.2 625.6 ns ns CONSOLIDATED NET SALES 6,530.3 7,023.5 ns ns 24,915.0 25,598.4 ns ns Average exchange rates   12 months 2006   12 months 2007   Change   Argentina (ARS / EUR) 0.259 0.234 -9.6% Uruguay (UYP / EUR) 0.033 0.031 -5.8% Venezuela (VEB / EUR) (x1000) 0.371 0.340 -8.4% Thailand (THB / EUR) 0.021 0.023 7.6% Vietnam (VIND/EUR) (X1000) 0.050 0.045 -9.3% Colombia (COP / EUR) (x1000) 0.337 0.353 4.5% Brazil (R$ / EUR) 0.366 0.375 2.6% France   Dec 31, 06   Sept 30, 07   Dec 31, 07 Géant Casino HM Of which French Affiliates International Affiliates + Service stations 128 6 10 99 128 6 10 99 129 6 11 99 Casino supermarkets Of which French Franchise Affiliates International Franchise Affiliates + Service stations 367 73 12 136 376 74 17 137 379 71 17 140 Franprix supermarkets Of which Franchise outlets 637 299 641 289 652 289 Monoprix-Prisunic supermarkets Of which Franchise outlets/Affiliates 310 56 322 53 330 53 Leader Price discount stores Of which Franchise outlets 471 209 486 219 489 221 Total Supermarkets and discount stores Of which Franchise outlets/Stores operated under business leases 1,785 649 1,825 652 1,850 651 Petit Casino superettes Of which Franchises 2,017 31 1,985 32 1,947 25 Eco Services superettes Of which Franchises 42 35 17 16 14 13 Spar superettes Of which Franchises 862 684 882 704 893 716 Vival superettes Of which Franchises 1,553 1,553 1,659 1,659 1,620 1,620 Casitalia and C’Asia superettes 17 20 22 Other Franchises stores Casino supermarkets Corners, Relay, Shell, Elf, Carmag, etc.   Wholesale activity 1,161 13 1,148   69 1,209 6 1,203   423 1,133 5 1,128   411 TOTAL CONVENIENCE STORES Of which Franchise outlets/Stores operated under business leases 5,721 3,533 6,195 4,043 6,040 3,918 Other affiliates stores Of which France Affiliates International Affiliates 105 103 2 100 98 2 100 98 2 Other businesses Imagica Cafeterias 292 31 261 284 21 263 278 21 257 TOTAL France 8,031 8,532 8,397 Hypermarkets (HM) Supermarkets (SM) Discount (DIS) Superettes (SUP) + other stores Other 128 1,314 471 5,826 292 128 1,339 486 6,295 284 129 1,361 489 6,140 278 HM: hypermarkets SM: supermarkets DIS: discount SUP: superettes MAG: stores DIV: other LGA: stores opened under business leases International   Dec 31, 06   Sept 30, 07   Dec 31, 07 ARGENTINA Libertad hypermarkets Leader Price discount stores Other businesses 62 13 25 24 62 13 25 24 62 13 25 24 URUGUAY Géant hypermarkets Disco supermarkets Devoto supermarkets 48 1 25 22 52 1 27 24 52 1 27 24 VENEZUELA Exito hypermarkets Cada supermarkets Q Precios discount stores 65 6 40 19 63 6 38 19 62 6 38 18 BRAZIL Extra hypermarkets Päo de Açucar supermarkets Sendas supermarkets Assai (other businesses) CompreBem discount stores Extra Facil Extra Perto supermarkets Eletro (other businesses) 551 84 165 62   186 4   50 546 87 159 62   179 11 6 42 575 91 153 62 15 178 19 15 42 THAILAND Big C hypermarkets Leader Price discount stores 55 49 6 55 51 4 58 54 4 VIETNAM Big C hypermarkets 5 5 6 6 7 7 INDIAN OCEAN Jumbo hypermarkets Score/Jumbo supermarkets Cash and Carry supermarkets Spar supermarkets Other businesses 45 11 19 5 6 4 46 11 19 5 6 5 49 11 19 5 6 8 COLOMBIA Exito hypermarkets Ley, Pomona and other supermarkets Q Precios discount stores Other Carulla 111 47 58 6 255 59 51 4 141 257 74 48 4 131 NETHERLANDS Konmar supermarkets Super de Boer supermarkets Edah discount stores 380 2 357 21 331 1 330 331 1 330 TOTAL INTERNATIONAL 1,322 1,416 1 ,453 Hypermarkets Supermarkets Discount stores Other businesses 216 761 263 82 234 728 231 223 257 728 229 239 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