CASINO, GUICHARD-PERRACHON SA FIRST-QUARTER 2021
Strong growth in the profitability of banners and
E-commerce, enabling the Group to accelerate its debt reduction
First-quarter 2021 confirmed the second-half 2020 trend of increased profitability across all geographies This profitability improvement led to faster debt reduction
Consolidated net sales of €7.1bn, stable on a same-store basis, and up 6.5% over 2 years
- In France, excellent quarter for Cdiscount, with marketplace revenues up +43%
- In Latin America, growth remained very strong at Assaí, with sales up +21%
Q1 EBITDA: +21% at constant exchange rates | Q1 EBITDA after lease payments: +49% at constant exchange rates | ||
∙ +19% in France, margin: +130 bps | ∙+372% in France, margin: +84 bps | ||
∙ +22% in Latam, margin: +86 bps | ∙+29% in Latam, margin: +79 bps | ||
Gross debt: -€1,625m reduction versus Q1 2020 | Net debt (excl. IFRS 5): -€1,033m reduction versus Q1 2020 | ||
∙ -€965m in France | ∙ -€467m in France (-€715m including settlement of GPA TRS) | ||
∙ -€660m in Latam | ∙ -€566m in Latam |
France
Profitability increased sharply once again, with an EBITDA margin up +130 bps versus Q1 2020, driven by (i) cost-saving and operational efficiency plans in the brick-and-mortar banners and (ii) Cdiscount's good performance.
In €m | Q1 2020 | Q1 2021 | Change |
EBITDA | 172 | 204 | +19% |
EBITDA after lease payments | 9 | 40 | +372% |
EBITDA was up +19% versus Q1 2020, in a context of lower net sales relative to the exceptionally high basis of comparison during the first lockdown.
Retail banners:
- Further increase in profitability led by the cost saving and operational efficiency plans in place since second-half2020;
- Net sales declined year-on-year, Q1 2020 having experienced exceptional demand relating to the first lockdown. Over two years, net sales were virtually stable on a same-store basis, with increases for the convenience banners and strong growth in E-commerce. The Group continued its development through its priority growth drivers:
- Very strong growth in food E-commerce (up +38% year-on-year and +97% versus Q1 2019), driven by exclusive partnerships in France with the industry's leading technology players:
- Success of the Ocado partnership: Monoprix Plus and Casino Plus deliveries from the
O'logistique automated warehouse increased by +40% versus Q4 2020, and by +166% versus Q3 2020. The automated warehouse has already handled over €100m in home deliveries on an annualised basis; - Further strengthening of Amazon partnership: the service covers 70% of the Île-de- France population, and Monoprix is now Amazon's sole partner in express food delivery following the discontinuation of its own delivery service.
- Success of the Ocado partnership: Monoprix Plus and Casino Plus deliveries from the
- Deployment of the expansion plan, with 115 convenience stores opened over the quarter, ahead of the target of 300 store openings by June, of which 100 in Q1 2021;
- These growth drivers, which strategically differentiate the Group, will continue to gain momentum in the upcoming quarters.
Cdiscount: further profitable growth, with marketplace revenues rising +43% in Q1 to total €197m over 12 months:
- Marketplace GMV up +34% over the quarter, representing 46% of total GMV (+7 pts);
- Digital marketing up by a strong +43%;
- Accelerated expansion of the turnkey marketplace solution Octopia (+86%), a unique B2B offering which can provide 900,000 European merchant websites (€600bn in GMV) with top-class technology and logistics solutions, and a potential 100 million products and 13,000 vendors.
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GreenYellow: growth of the pipeline1, rising to 720 MWp including 200 MWp under construction (versus 565 MWp at end-2020), with an additional prospective pipeline of more than 2.5 GWp.
RelevanC: growth in revenues, driven by a +50% increase in Retail Media business (activities with advertisers). In Q1 2021, RelevanC put in place drivers to accelerate its growth with (i) the partnership with the digital division of the TF1 group (26 million profiles), (ii) the acquisition of Inlead (a technology platform for local digital marketing that enables RelevanC to extend its offering), and (iii) the digital partnership with Intermarché.
Financial structure:
- The Group successfully completed a €1.525bn refinancing transaction, extending the average maturity of its debt from 3.1 to 3.7 years while also reducing its average interest rate;
- The Group studies potential capital increases for GreenYellow and Cdiscount with the aim of accelerating their growth plans, potentially through market transactions.
In Latin America
Profitability up sharply with reported EBITDA up +32%2, from BRL 1.2bn to BRL 1.6bn.
In Brazil, organic growth of +12.1% driven by Assaí (+21%2);
The Group's leading position in food E-commerce was strengthened, with GPA online sales up +137%2 in Brazil and Éxito Group online sales up +145%3.
The Assaí spin-off operation was highly successful. The combined value of GPA and Assaí shares has increased from BRL 62 to BRL 125, and from USD 12 to USD 23 since the announcement of the spin-off4.
Key figures
Consolidated net sales by segment
Total | Organic | Same-store | Same-store | ||||||||||
Net sales (in €m) | Q1 2021 | growth5 over | |||||||||||
growth | growth5 | growth5 | |||||||||||
2 years | |||||||||||||
France Retail | 3,388 | -12.8% | -7.3% | -6.4% | -1.0% | ||||||||
Cdiscount | 483 | +7.6% | +7.6% | +7.6% | +1.4% | ||||||||
Total France | 3,871 | -10.7% | -5.6% | -4.3% | -0.5% | ||||||||
Latam Retail | 3,275 | -17.3% | +8.4% | +4.0% | +12.8% | ||||||||
GROUP TOTAL | 7,146 | -13.8% | +1.4% | +0.1% | +6.5% | ||||||||
Cdiscount GMV2 | 1,006 | +11.8% | +13.0% | n.a. | n.a. |
In first-quarter 2021, the currency effect was -11.4%, changes in scope of consolidation had a negative impact of -2.3%, and the fuel effect came to -0.5%. The calendar effect was -1.1%.
- Pipeline including GreenYellow's joint ventures
- Data published by the subsidiaries
- Data published by GPA, including a positive currency effect due to the appreciation of COP against BRL
- Announcement of the spin-off on 10 September 2020. Data as of 05 May 2021
- Excluding fuel and calendar effects
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Consolidated net sales in France by banner
Q4 2020/Q4 2019 change | Q1 2021/Q1 2020 change | |||||||||||||||||||||||||
Q4 2020 | Total | Organic | Same-store | Q1 2021 | Total | Organic | Same-store | Same-store | ||||||||||||||||||
Net sales by banner | growth over | |||||||||||||||||||||||||
net sales | growth | growth1 | growth1 | net sales | growth | growth1 | growth1 | |||||||||||||||||||
2 years1 | ||||||||||||||||||||||||||
(in €m) | ||||||||||||||||||||||||||
Monoprix | 1,219 | -1.0% | -0.2% | +1.0% | 1,119 | -3.2% | -2.0% | -3.2% | +0.3% | |||||||||||||||||
Supermarkets | 727 | -6.2% | 0.0% | +3.3% | 675 | -9.6% | -9.5% | -7.1% | -0.2% | |||||||||||||||||
o/w Casino | 687 | -6.8% | -0.5% | +3.3% | 640 | -10.1% | -10.0% | -7.6% | -0.7% | |||||||||||||||||
Supermarkets2 | ||||||||||||||||||||||||||
Franprix | 378 | -2.2% | -2.5% | +0.7% | 366 | -11.2% | -10.3% | -9.1% | +2.4% | |||||||||||||||||
Convenience & | 456 | -24.8% | +4.1% | +5.6% | 415 | -33.4% | -6.7% | -7.2% | +1.7% | |||||||||||||||||
Other3 | ||||||||||||||||||||||||||
o/w Convenience4 | 315 | +6.1% | +5.4% | +5.8% | 316 | -5.9% | -4.8% | -7.2% | +3.5% | |||||||||||||||||
Hypermarkets | 959 | -17.6% | -8.6% | -6.8% | 814 | -14.2% | -11.2% | -9.3% | -7.8% | |||||||||||||||||
o/w Géant2 | 903 | -18.7% | -9.5% | -7.2% | 765 | -15.0% | -12.0% | -9.7% | -8.3% | |||||||||||||||||
o/w Food | 652 | -9.4% | n.a. | -5.3% | 537 | -15.0% | n.a. | -10.1% | -7.5% | |||||||||||||||||
o/w Non-food | 107 | -32.1% | n.a. | -18.6% | 83 | -14.4% | n.a. | -8.7% | -16.1% | |||||||||||||||||
FRANCE RETAIL | 3,739 | -10.2% | -1.9% | +0.1% | 3,388 | -12.8% | -7.3% | -6.4% | -1.0% |
First-quarter sales in the France Retail segment came to €3,388m, a same-store change of -1.0% versus Q1 2019 and of -6.4% versus Q1 2020 due to exceptionally high sales last year during the first lockdown. Momentum remained very strong in food E-commerce,with +38% same-storegrowth in net sales for the quarter, following +43% growth in Q1 2020. O'logistique deliveries (Monoprix Plus and Casino Plus) increased by +40% versus Q4 2020, and by +166% versus Q3 2020. During the first quarter of 2021, the Géant Casino and Casino Supermarkets banners adopted a single website and a competitive, unified pricing policy5, setting up 400 pedestrian pick-uppoints in stores, with 290 of them also providing a home delivery service. The Group also signed a partnership agreement with Uber Eats, with services to be rolled out to around 500 stores by autumn 2021.
The digitalisation of the customer experience continued over the quarter, with 558 stores now offering automated solutions (versus 533 at end-2020),enabling them to operate autonomously in the evening and on Sundays. 63% of payments at Géant hypermarkets and 53% at Casino Supermarkets were made by smartphone or automatic checkout (versus 61% and 48% at end-2020).CasinoMax app users accounted for 24% of sales in hypermarkets and supermarkets in the first quarter (versus 22% at end-2020).
Business review by banner:
- Net sales at Monoprix were up slightly versus Q1 2019 (down -3.2%year-on-year) in a Parisian market in decline versus 2019 due to the temporary reduction in tourism and Parisians' migration to other regions as health measures were tightened. E-commercegrew significantly in Q1 2021, driven by the ramp-upof Monoprix Plus via the O'logistique automated warehouse now offering more than 28,000 items (versus an average market offering of 15,000). In early April, the banner opened its first Cliquez&Retirez service (Monoprix Plus pedestrian Drive solution provided by O'logistique). After Paris, Nice, Lyon and Bordeaux, the partnership with Amazon was extended to Montpellier. Naturalia became France's first food retailer to be awarded Benefit Corporation (B Corp) international certification, which attests to the banner's firm commitment to social and environmental responsibility, the quality of its governance and its transparency with regard to its customers. Monoprix was also named Top Employer 2021 for the excellence of its HR practices. During the quarter, Monoprix continued to expand its store network, with 10 store openings (Monop' and Naturalia) as well as the roll-out of autonomous solutions (204 stores to date, with 25 new deployments in Q1).
- Excluding fuel and calendar effects
- Excluding Codim stores in Corsica: 8 supermarkets and 4 hypermarkets
- Other: mainly Vindémia, Geimex and Restaurants
- Convenience segment net sales on a same-store basis include the same-store performance of franchised stores
- Excluding the Île-de-France region and Corsica
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- Franprix reported same-store sales growth of +2.4% versus Q1 2019 (down -9.1% year-on-year). Robust sales in the Paris suburbs has offset lower levels of consumption in Paris compared to 2019, due to the temporary drop of the number of tourists and office workers, and Parisians' migration to other regions. E-commerce continued its expansion with triple-digit growth, supported by the development of the E-commerceapp and the website launched in 2020. The non-foodexpansion strategy was stepped up with the roll-outof Hema corners (268 stores versus 210 end-2020and 134 end-Q32020). Franprix is now focusing on the expansion of its store network, and plans to open 150 points of sale over the next two years, primarily in the Paris and Lyon suburbs. The banner plans to open more than 50 stores this year (of which 6 opened in Q1 2021).
- Net sales in the Convenience segment continued their structural progression, at +3.5% on a same- store basis versus Q1 2019 (down -7.2% year-on-year,marked by an exceptional level of demand relating to the first lockdown). The expansion of the store network accelerated with 99 store openings over the quarter, primarily under the Vival and Spar banners and in rural regions. The Group continued to focus on innovation with the opening of a new "Casino # toutprès" concept store (5 stores at end-March),offering a wide range of self-serviceproducts with a focus on organic, local and private-labelproducts, as well as convenience services and extended opening hours.
- Casino Supermarkets reported a -0.7% same-storedecline versus Q1 2019, and a -7.6%same-store decline year-on-year, shaped by an exceptional level of demand associated with the first lockdown last year and the impact of the curfew in Q1 2021. E-commercewas once again a growth driver, led by partnerships with Deliveroo (93 supermarkets) and Shopopop (74 supermarkets), and the roll-outof Casino Plus, launched on 30 September 2020, a home delivery service from the O'logistique automated warehouse that offers over 21,000 items (versus an average market offering of 15,000). In addition, the banner continued to deploy autonomous solutions, with 205 stores offering such solutions to date.
- Sales at Géant Hypermarkets were down -8.3% on a same-store basis versus Q1 2019 and down -9.7% year-on-year,impacted by the roll-outof non-foodcorners, the impact of the curfew and the closure of non-foodsections, and the drop in traffic due to the closure of shopping centres. E-commerce continued to grow, supported by partnerships with Uber Eats (20 stores), Deliveroo (15 stores) and Shopopop (55 stores). In addition, the "shop-in-shop" strategy continued at an accelerated pace with the roll-outof Hema corners (54 corners, of which a further 46 in Q1 2021), C&A corners (17, of which an additional 9 in Q1 2021), and Claire's corners (64, of which a further 2 in Q1 2021). Lastly, the deployment of autonomous solutions continued, with 69 stores equipped to date.
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Cdiscount1
In Q1 2021, Cdiscount reported very strong momentum in the marketplace, with GMV up +34% over the quarter, and revenues (commissions and services to vendors) up +43%.
The banner continued its profitable growth strategy, based on four priority areas:
- Growth of the marketplace, with (i) a sharp increase in GMV (+34%) and the marketplace contribution, which represented 46% of total GMV for the quarter (up +7.2 pts versus the prior-yearperiod), and (ii) an acceleration in marketplace revenues (commissions, services to vendors, marketplace subscription fees and rebates), up +43% to reach €197m on a rolling 12-monthbasis. The Fulfillment by Cdiscount service grew by +42.5%;
- Product mix adjustments, with strong growth in higher margin and recurring purchase categories. The Home, DIY and Leisure categories reported a +29% increase for the quarter;
∙
∙
Digital marketing, with revenues up +43% over the quarter, driven by the development of the Cdiscount Ads Retail Solution (CARS) digital marketing platform, which enables vendors and suppliers to promote their products and brands on a self-service platform. Also during the quarter, Cdiscount launched its Cdiscount Advertising platform, which will incorporate all existing digital marketing solutions;
The acceleration of Octopia, the turnkey marketplace solution for retailers and e-merchants in the EMEA region. Octopia recorded GMV growth of +86% for the quarter versus international GMV achieved last year, and stepped up its development with more than 500 connected sites and an agreement signed with a first major EMEA client. In addition, Octopia developed the Géant marketplace, which has been running since 21 April.
Q1 2020 | Q1 2021 | Reported | Organic | |||||
Key figures1 | growth1 | growth2 | ||||||
GMV total including tax3 | 900 | 1,006 | +11.8% | +13.0% | ||||
o/w direct sales | 455 | 455 | - | |||||
o/w marketplace sales | 283 | 381 | +34.3% | |||||
Marketplace contribution (%) | 38.4% | 45.6% | +7.2 pts | |||||
Marketplace revenues | 34 | 49 | +42.9% | |||||
Net sales (€m) | 493 | 518 | +5.0% | +6.7% | ||||
Traffic (millions of visits) | 247 | 294 | +18.9% | |||||
Orders (millions) | 6.3 | 7.4 | +16.9% | |||||
Active customers (in millions) | 9.1 | 10.5 | +14.7% | |||||
Cnova published its Q1 2021 sales figures on 6 May 2021, before market opening.
-
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: the figures include showroom sales and services but exclude sales of technical goods and home category sales made in Casino Group hypermarkets and supermarkets
- 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
Thursday, 6 May 2021 ▪5
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