CASINO, GUICHARD-PERRACHON SA Q3 2019 SALES
Group net sales up +2.4%1 on an organic basis and +1.5%1 on a same-store basis Net sales in France up +0.2%1 on a same-store basis (up +0.4%1 excluding Vindémia) Strong growth in Brazil (up +10.3%2 on an organic basis)
Launch in August of a new €2bn asset disposal plan
In France, the group continued to develop commercial innovations in physical banners, while accelerating in digital and e-commerceand in new B2B activities, which constitute its complementary growth drivers
- Strong growth in the buoyant categories of organic (+8.2%) and catering (+8,8%), whose development has widened at Monoprix in line with the model already proven at Franprix;
- At Franprix and Géant, extension of the model of partnerships and physical marketplaces with leading names in specialised retail (Hema, Ikea, Maty, Piery, Colombus Café…) contributing to the expansion of the in-storeoffer and of customer loyalty;
- Continued profitable franchise development, with the opening of 27 premium and convenience stores ;
- Technological innovation: 240 autonomous stores, with solutions deployed across all banners with a favourable impact on traffic;
- Digital solutions: launch of a new subscription-based loyalty program on CasinoMax and award for digital acceleration in retail won by the internal start-up MaxIt;
- Growth of +16.3% in food e-commerce, driven by the partnership strengthening with Amazon (including the addition of Naturalia to Prime Now);
- Success of new B2B activities: Greenyellow's international expansion and acquisition of new customers in France, including Maisons du Monde; in data and advertising, +52% increase in revenue over 9 months and new partnership with Orange;
- Sale of 2 hypermarkets as part of the Rocade plan, bringing the total sold to date to 17;
-
Cdiscount continues its virtuous momentum of profitable growth with gross merchandise volume
("GMV") up +9.0%3 on an organic basis driven by the marketplace (39.4% of GMV), and services including travels which more than doubled its GMV compared to Q2. Expansion of activities in Europe with the creation of an international alliance of Marketplaces.
Disposal plans: The Group completed the sale of store real estate to Apollo for €327m. In August, the Group announced a new €2bn asset disposal plan to be carried out by Q1 2021 hence increasing focus on buoyant formats. In addition, the Group takes note of the good progress in the sale process of its subsidiary Vindemia, GBH having announced today that it has initiated the pre- notification procedure with the Competition Authority.
Cost savings plan in France: actions plans are progressing at the expected rate in line with the annual target of €130m.
The Group therefore confirms all its objectives in France.
In Latin America, the Group continued to see a good performance in Brazil (up +10.3%2 on an organic basis), with good growth of Cash&Carry, refurbished supermarkets and proximity; In Colombia, sequential acceleration of growth with the success of new formats.
- Excluding fuel and calendar effects (gross sales under banner excluding calendar effects). Net sales and total / organic growth are impacted by the Rocade plan
- Organic growth published by GPA
- Unaudited data published by Cnova. The organic changes include showroom sales and services but exclude technical goods and home category sales made in the Casino Group's hypermarkets and supermarkets, and 1001Pneus and Stootie (acquired in Q4 2018). Revenue was impacted by the transfer of part of direct sales to the marketplace
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Change in net sales1
NET SALES (in €m) | Q3 2019 | Total net sales | Organic net sales | Same-store sales | Same-store sales |
growth | growth1 | growth1 | growth1 over 2 years | ||
France Retail | 4,591 | -5.0% | -3.0% | +0.2% | +2.1% |
Cdiscount | 461 | +1.9% | -0.3% | -0.3% | -3.4% |
Total France | 5,052 | -4.4% | -2.7% | +0.2% | +1.6% |
Latam Retail | 4,002 | +11.0% | +9.6% | +3.0% | +8.6% |
TOTAL GROUP | 9,053 | +1.8% | +2.4% | +1.5% | +4.8% |
In third-quarter 2019, the currency effect was a positive +0.8% and the fuel effect came to +0.1%. Changes in scope of consolidation had a negative impact of -1.2%, mainly due to the disposal of loss-making stores in France (the Rocade plan). The calendar effect was -0.2%.
France Retail
Q2 2019/Q2 2018 change | Q3 2019/Q3 2018 change | ||||||||||||||||||
NET SALES | Q2 | Total growth | Organic | Same-store | Same-store | Q3 | Total growth | Organic | Same-store | Same-store | |||||||||
growth1 over | growth1 over | ||||||||||||||||||
BY BANNER | 2019 | growth2 | growth1 | 2019 | growth1 | growth1 | |||||||||||||
2 years | 2 years | ||||||||||||||||||
Monoprix | 1,143 | +1.3% | +0.5% | +0.2% | +1.6% | 1,054 | +0.5% | +0.1% | +0.3% | +1.7% | |||||||||
Supermarkets | 790 | -1.8% | -1.1% | +1.2% | +2.7% | 853 | -2.9% | -2.7% | +0.4% | +2.1% | |||||||||
o/w SM Casino3 | 746 | -2.1% | -1.3% | +1.4% | +2.8% | 793 | -3.0% | -2.7% | +0.6% | +2.1% | |||||||||
Franprix | 399 | -4.1% | -2.2% | +0.1% | +1.4% | 359 | -5.7% | -3.4% | -0.3% | +2.4% | |||||||||
Convenience | 595 | +0.3% | +0.5% | +1.7% | +2.4% | 623 | -6.6% | -2.9% | -0.9% | +2.6% | |||||||||
& Other4 | |||||||||||||||||||
o/w | 325 | +2.1% | +3.4% | +2.5% | +2.7% | 385 | -1.1% | -1.0% | +0.7% | +3.9% | |||||||||
Convenience5 | |||||||||||||||||||
-0.9% | +2.2% | +1.4% | -6.5% | -0.1% | +0.7% | ||||||||||||||
Hypermarkets | 1,164 | +3.9% | 1,175 | +2.5% | |||||||||||||||
o/w Géant2 | 1,112 | -0.5% | +3.0% | +1.6% | +4.4% | 1,113 | -6.5% | +0.4% | +1.1% | +3.9% | |||||||||
o/w food | 741 | -4.0% | -4.1% | +0.5% | +4.8% | 737 | -10.2% | n.a. | +2.1% | +6.7% | |||||||||
o/w non-food | 104 | +5.0% | +4.9% | +5.3% | -0.2% | 143 | -3.9% | n.a. | -6.7% | -10.7% | |||||||||
Leader Price | 551 | -14.1% | -13.7% | -1.6% | +0.6% | 528 | -12.3% | -14.4% | -1.1% | +0.8% | |||||||||
FRANCE RETAIL | 4,643 | -2.4% | -1.8% | +0.7% | +2.5% | 4,591 | -5.0% | -3.0% | +0.2% | +2.1% | |||||||||
Sales were up +0.2% year-on-year on a same-store basis (up +0.4% excluding Vindémia) and up +2.1% over two years, reflecting a strong third quarter in 2018. The total growth figures for hypermarkets, supermarkets and Leader Price were impacted by the Rocade plan. The Group continued to grow rapidly in buoyant segments, with food e-commerce net sales up +16.3% over the quarter, led by the extension of the partnership with Amazon, and increases of +8,8% in the catering segment and +8.2% in organic products.
The Group strengthened the portfolio of digital solutions to support increased customer traffic. The innovative subscription-based Casino Max Extra loyalty programme6 launched in June 2019 has been highly successful, with more than 110,000 members already signed up in September. The Group plans to pursue the model's development by doubling the total number of subscribers by the end of the year. Following the extension of the partnership with Amazon which was signed in April 2019, 371 lockers have already been installed by the Group in its stores and more than
- The 2019 financial statements reflect the limited retrospective application of IAS 29 (see appendices)
- Excluding fuel and calendar effects
- Excluding Codim stores in Corsica: 8 supermarkets and 4 hypermarkets
- Other: mainly Vindémia and Cafeterias
- Convenience stores excluding Leader Price Express. Net sales on a same-store basis include the same-store performance of franchised stores.
- Subscribers to the Casino Max à Volonté programme receive an immediate 10% discount on all purchases, for a monthly subscription payment of €10.
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12,000 parcels have been picked up from there. In addition, the range of Casino and Monoprix products distributed by Amazon has been extended, with the opening of the Naturalia shop in August.
The roll-out of autonomous stores continued during the quarter, with extended opening hours introduced across all banners. The Group now has a total of 240 autonomous stores and plans to accelerate the roll-out in the fourth quarter.
- Net sales at Monoprix were up +0.3% on a same-store basis and +0.1% organically. The organic, service counters and catering product categories drove performance in the food segment. The e-commercesegment was particularly strong, with sales up +30.1%, notably thanks to the partnership with Amazon and the Monoprix.fr website. During the quarter, the banner notably opened 5 Naturalia stores and 2 points of sale abroad, in Tunisia and Qatar. It also continued to roll out autonomous stores, for a total of 59 at end-September.
- At Franprix, sales were virtually stable on a same-store basis and up +2.4% over two years, considering a particularly strong summer in 2018. The banner continued to make progress in buoyant segments, particularly in the catering category, up +34.5% over the quarter, and whose contribution to net sales increased by 1.4pts versus Q2 2019. Franprix continued to evolve, thanks to Darwin 2019 - its latest pilot store/innovation lab, which has already delivered very promising results - and has significantly enhanced its offering through fast food, bulk goods, organic products and product innovations. The banner has also expanded its non-food offering by forging partnerships with various retailers such as: Cdiscount, with products available in around 100 Franprix stores; Hema, with 15 corners rolled out to date and a total of around 50 by the end of the year; and Le Drugstore Parisien, whose products are already to be found in 30 Franprix stores. The banner has continued to extend its store opening hours and now has 57 autonomous stores.
- At Casino Supermarkets, sales for the quarter were up +0.6% on a same-store basis and up +2.1% over two years. Buoyant segments continued to perform very well, with growth of +12.4% for organic products and +12.5% in e-commerce. Another 15 autonomous stores were rolled out during the quarter, bringing the banner's total to 96. In addition, the Scan & Go service is now available in more than 100 Casino Supermarkets.
- Géant Hypermarkets posted +1.1% same-store growth. Same-store growth over two years came to +3.9%. Sales continued to be driven by the food segment (up +2.1%), in particular by organic products (up +7.3%). The banner continued to roll out Sunday openings and inaugurated its first autonomous hypermarket. The e-commerce segment performed well, with growth of +10.6%. The banner accelerated its shop-in-shop strategy, with the addition of beauty corners (Le Drugstore Parisien), coffee shops (Colombus Café), multimedia and household equipment (Cdiscount), jewellery (Maty and Piery) and optic. New unilateral purchase agreements have been signed for the sale of 2 Géant Casino hypermarkets to Systeme U valued at €57m. In 2018, these stores generated pre-taxsales of around €64m and a loss in trading profit of around - €2.5m.
- The Convenience format generated same-store growth of +0.7% versus a high-performing Q3 2018 (+3.2%). The banner continued to improve the product mix, with an increase in the private-label share in integrated stores of +2.6pts, led by a greater density of private-label offering and an +11.2% rise in net sales of organic products. The convenience network has joined the other networks in rolling out autonomous stores, with 11 openings during the quarter and plans to accelerate this trend by the end of the year. The innovative and fully automated "Casino Pause Déj" concept, focusing exclusively on snacking and catering, was also inaugurated in Paris.
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- The Leader Price network has been streamlined over the past 12 months, with the closure of 121 stores. The roll-out of autonomous stores was initiated in the network, with 16 new stores offering extended opening hours. The LP Max app has now been deployed across the network and its users already represent 6.3% of the banner's net sales.
GreenYellow
GreenYellow pursued its growth strategy based on international expansion and the development of new clients. In the photovoltaic segment, it has strengthened its positions in Latin America and Africa, notably thanks to the launch of a solar power plant linked to storage batteries system at the Nouakchott airport in Mauritania. It has also acquired new customers in France for energy performance contracts of which Maisons du Monde (228,000-square-metre logistics warehouse). Lastly, the Reservoir Sun joint venture launched with Engie in October 2018 enjoys very high visibility in the solar market and, in less than one year, has become a reference in self-consumption for businesses and regional bodies. At end-September, GreenYellow's pipeline represented more than 350MWp with an objective of 450MWp by the end of the year.
Data & Data Center
The data and advertising business with 3W-relevanC continued to accelerate sharply with YTD net sales totalling €40m1, up +52% from 2018. This enabled 3W-relevanC to strengthen its position among France's Top 10 online advertising companies2. 3W-relevanC and Orange Advertising recently joined forces to launch an innovative solution for measuring the impact of televised campaigns on in-store sales, using data from a sample of consumers who subscribe to Orange and shop in Casino Group stores.
ScaleMax has pushed ahead with its development plan with now two CAC 40 companies among its clients. Its installed capacity doubled during the quarter to represent more than 20,000 cores.
- Including intragroup revenues
- Source: Syndicat des Régies Internet (SRI) - August 2019
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Cdiscount1
Cdiscount generated gross merchandise volume (GMV) of €940m during the quarter, an organic increase of +9.0%2 driven by ongoing marketplace expansion, monetisation revenues related to B2C services and the Cdiscount corners.
The marketplace contribution continued to grow rapidly to represent 39.4%3 of GMV, up +3.2pts versus last year. The associated Fulfilment service followed the same trend with +78% growth in GMV, and now represents one-third of marketplace GMV, up +14pts versus last year.
Monetisation revenues increased by +33%, primarily thanks to B2C services, notably Cdiscount Voyages, Cdiscount Energie and financial services.
The banner has significantly expanded its Cdiscount à Volonté product offering, to more than 1.1 million items. The number of subscribers exceeds 2 million, up +19% compared with last year.
Cdiscount accelerated to achieve a new dimension in Europe by taking part in the creation of a European marketplace alliance, the International Marketplace Network (IMN), with three leaders in Europe - eMag (Romania), ePrice (Italy) and Real (Germany). The alliance will serve a market of more than 230 million customers.
Key figures | Q3 2018 | Q3 2019 | Reported | Organic growth2 | |
growth1 | |||||
GMV total including tax3 | 872 | 940 | +7.9% | +9.0% | |
o/w direct sales | 493 | 485 | -1.5% | ||
o/w marketplace sales | 277 | 310 | +11.9% | ||
Marketplace contribution4 (%) | 36.3% | 39.4% | +3.2pts | ||
Net sales (in €m) | 503 | 522 | +3.8% | +5.1% | |
Traffic (millions of visits) | 227 | 245 | +8.1% | ||
Mobile traffic contribution (%) | 65.1% | 73.1% | +8.0pts | ||
Active customers (in millions) | 8.8 | 9.2 | +5.0% |
Cnova provided a detailed report on its Q3 net sales on 11 October 2019.
- 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
- The organic changes include showroom sales and services but exclude technical goods and home category sales made in the Casino Group's hypermarkets and supermarkets, and 1001Pneus and Stootie (acquired in Q4 2018)
- 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
- The marketplace's contribution to GMV has been adjusted to take into account discount coupons and guarantees and exclude CDAV subscription fees. Consequently, the contribution to GMV in third-quarter 2018 has been adjusted by +0.3pts for purposes of comparison.
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