CASINO, GUICHARD-PERRACHON SA 
THIRD-QUARTER 2021
Gradual improvement in sales momentum
Third-quarter 2021 saw a return to growth in Group net sales, with a sequential improvement in all geographies
Net sales of €7.7bn, up +1.0% on a same-store basis (+5.1 pts vs. Q2 2021), and up +4.1% overall (+10.6 pts vs. Q2 2021)
- In France Retail, same-store net sales improved by +4.1 pts compared with the second quarter
- In Latin America, growth remained very strong at Assaí, with sales up +18%
Good level of profitability confirmed across the banners, in France and in Latin America
Consolidated net sales by segment
Net sales (in €m) | Same-store growth | Total growth | ||||||||
Q2 2021 | Q3 2021 | Q2 2021 | Q3 2021 | |||||||
France Retail | -8.4% | -4.3% | -11.0% | -3.2% | ||||||
Cdiscount | -8.3% | +8.3% | -7.0% | +10.1% | ||||||
Total France | -8.4% | -2.3% | -10.6% | -1.7% | ||||||
Latam Retail | -0.2% | +3.9% | -1.4% | +11.5% | ||||||
GROUP TOTAL | -4.1% | +1.0% | -6.5% | +4.1% | ||||||
Cdiscount GMV | n.a. | n.a. | -6.1% | +7.5% |
France
- Retail banners:
- In a declining food market shaped by the reopening of the out-of-home food industry, the impact of the health pass on hypermarkets, and a Paris region still feeling the effect of the drop in tourism, the various banners saw a gradual return to growth, with net sales up +7.8 pts vs. Q2 to -3.2% (vs. -11% in Q2) overall and by +4.1 pts on a same-storebasis to -4.3% (vs. -8.4% in Q2). This improvement continued in the first four weeks of October1, with net sales down -2.6% on a same- store basis (-1.4%excluding hypermarkets) and the convenience formats returning to growth, including Franprix:
Net sales on a same-store basis in France | |||||||||
Net sales (in €m) | Q2 2021 | Q3 2021 | 4 weeks over October1 | ||||||
Monoprix | -4.9% | -4.1% | -1.6% | ||||||
Supermarkets | -10.4% | -2.7% | -2.6% | ||||||
Franprix | -12.5% | -3.6% | +1.0% | ||||||
Convenience | -11.2% | -1.3% | +0.3% | ||||||
Hypermarkets | -9.9% | -8.5% | -6.1% | ||||||
FRANCE RETAIL | -8.4% | -4.3% | -2.6% |
- Market shares were almost stable over the last Kantar period (-0.1pts in P10), confirming the steady improvement since P05;
- Continued development of priority growth drivers:
- Acceleration in food E-commerce, with home delivery sales up +72% in the Ile-de-France region, largely outperforming the broader home delivery (+29%2 in France) and food E-commerce(+7%2 in France) markets. This performance validates the Group's strategy supported by its store network and partnerships with leading tech companies. In addition:
- Development of the Ocado partnershipwith the addition of the Naturalia banner to the O'logistique delivery offering, which now covers more than 35,000 items on Monoprix Plus, 26,000 on Casino Plus, and more than 4,000 items on Naturalia Marché Bio;
- The Amazon partnershipgenerated double-digit sales growth. Monoprix is Amazon's sole partner for express food delivery through its Monoprix and Naturalia stores following the discontinuation of the banner's own delivery service;
-
Casino Group and Gorillassigned a memorandum of understanding to seal a strategic partnership with Monoprix & Franprix including (i) the supply of national brands and
Monoprix's products to Gorillas, and (ii) the preparation and delivery of Monoprix and
Franprix orders by Gorillas. Casino Group will be associated to value creation through a stake in Gorillas in France and at Group level.
- From 27 September to 24 October 2021
- Third-quartergrowth in home deliveries in France (source: Nielsen)
Thursday, 4 November 2021 ▪1
- Deployment of the expansion plan with around a hundred convenience stores opened over the quarter (Franprix, Monop, Vival, etc.), bringing the total number of new stores opened since January 2021 to 454.
- Profitability remains high, with EBITDA margin for the retail banners1 at 8%, stable over the quarter thanks to the effects of the cost-savingplans launched in the first half of the year which offset the impact of the sales decline on profitability.
- Cdiscount solid sales performance (GMV +8%) despite a weak e-commerce market amid the reopening:
- Increase in loyalty programme customer base (Cdiscount à Volonté) of +10.8% to 2.4 million;
- Digital marketing revenues up +31% over the quarter;
- Acceleration in Octopia's growth, with five contracts signed over the quarter;
- C-Logisticsenjoyed a sharp acceleration, with 25 customer contracts signed, of which 15 already launched.
- GreenYellow: excellent sales momentum, with major new contracts signed in all geographies and strong growth prospects confirmed. The advanced pipeline2 came to 824 MWp in solar power projects and 351 GWh in energy efficiency business.
- RelevanC opening up new opportunities with (i) the development of its subsidiary in Brazil, (ii) the acquisition by Inlead of nearly 15 new customers over the last 12 months, and (iii) the set up of the joint subsidiary with Intermarché (Infinity Advertising).
Latin America
Net sales up +9.8% on an organic basis over the quarter:
- In Brazil, organic growth of +8.1% led by Assaí (+18%3);
- Strong growth of Grupo Éxito, with same-store growth of +16%3 driven by the economic recovery;
- The Group's leading position in food E-commerce was strengthened, with GPA online sales up +46%3 in Brazil (+393%3 over two years) and online sales accounting for 9.3%3 of Grupo Éxito's total sales.
Reported EBITDA up +6%4, from BRL 1.7bn to BRL 1.8bn.
GPA announced plans to sell 71 Extra hypermarkets to Assaí with the intention of converting them into the cash & carry format, and the transformation of 28 hypermarkets into Pão de Açúcar or Mercado Extra supermarkets. This transaction will enable (i) the acceleration of growth at Assaí, which is expected to achieve BRL 100bn in net sales by 2024, and (ii) the acceleration of GPA on profitable premium and convenience formats, and the consolidation of its leadership position in e-commerce.
Key figures
Consolidated net sales by segment
Net sales (in €m) | Q3 2021 | Total | Organic | Same-store | Same-store growth5 | ||||||||
growth | growth5 | growth5 | over two years | ||||||||||
France Retail | 3,560 | -3.2% | -5.8% | -4.3% | -4.5% | ||||||||
Cdiscount | 492 | +10.1% | +8.3% | +8.3% | +5.1% | ||||||||
Total France | 4,051 | -1.7% | -4.1% | -2.3% | -2.9% | ||||||||
Latam Retail | 3,682 | +11.5% | +9.8% | +3.9% | +16.0% | ||||||||
GROUP TOTAL | 7,734 | +4.1% | +2.2% | +1.0% | +7.3% | ||||||||
Cdiscount GMV3 | 1,006 | +7.5% | n.a. | n.a. | n.a. |
In the third-quarter of 2021, the currency effect stood at +0.8%, changes in scope of consolidation had a positive impact of +0.4%, the fuel effect came to +0.6% and the calendar effect was +0.2%.
- France Retail excluding property development and GreenYellow
- The advanced pipeline comprises projects at the "awarded" and "advanced pipeline" stages within GreenYellow's portfolio of projects in development
- Data published by the subsidiaries
- Data published by the subsidiaries, including a COP vs. BRL currency effect
- Excluding fuel and calendar effects
Thursday, 4 November 2021 ▪2
Outlook for 2021 in France
- Focus on growth
- Objective of 750 secured convenience store openings by the end of the year (Franprix, Vival, Naturalia, Le Petit Casino, etc.);
- Acceleration of food e-commerce based on structurally profitable models thanks to our exclusive partnerships (Ocado, Amazon) and the solutions deployed in stores.
- Profitability
- In light of Cnova N.V.'s announcement on October 8, 2021, stating it was no longer in a position to confirm its financial objectives for 2021, the previous objectives communicated by Casino Group for France including Cnova are no longer valid;
- The Group is therefore formulating its guidance on the France retail banner scope1, for which it confirms, as stated on July 29 communications, its target of EBITDA growth for 2021.
- Inflationary pressures and supply chain constraints
- The Group is attentive to changes in raw material costs and food prices. At present, the Group does not anticipate any material inflationary effect for full-year 2021;
- Measures have been taken to limit the risk of shortages due to logistical constraints. At present, the Group does not anticipate any material effect for full-year 2021.
Disposal plan
- The group confirms the continuation of its disposal plan of €4.5bn in France, of which €3.1bn has been signed or secured to date.
- Works for the finalization of the sale of Floa Bank, for a total amount of €179m, are proceeding according to schedule;
- Preparatory works to finance the acceleration of GreenYellow's growth are continuing;
- As indicated by Cnova N.V. in its press release of October 08, 2021, due to market conditions and despite interest mentioned by possible investors, Cnova's raising of funds is deferred.
- The Group reminds that the deadline for the completion of the disposal plan, initially set at the end of Q1 2021, has been suspended in March 2020 in the context of the Covid-19 pandemic. The Group will keep the market regularly informed of the progress of this disposal plan.
1 France Retail excluding GreenYellow, real estate development and Vindémia (sold in June 2020), as communicated on page 1 of the 2021 half-year results press release
Thursday, 4 November 2021 ▪3
Consolidated net sales in France by banner
Q2 2021/Q2 2020 change | Q3 2021/Q3 2020 change | ||||||||||||||||||||||
Q2 2021 | Total | Organic | Same-store | Q3 2021 | Total | Organic | Same-store | ||||||||||||||||
Net sales by banner (in €m) | net sales | growth | growth1 | growth1 | net sales | growth | growth1 | growth1 | |||||||||||||||
Monoprix | 1,093 | -3.9% | -3.3% | -4.9% | 1,004 | -1.9% | -2.4% | -4.1% | |||||||||||||||
Supermarkets | 711 | -8.8% | -12.7% | -10.4% | 844 | +3.4% | -5.4% | -2.7% | |||||||||||||||
o/w Casino | 670 | -9.5% | -13.4% | -12.2% | 789 | +4.2% | -5.0% | -3.7% | |||||||||||||||
Supermarkets2 | |||||||||||||||||||||||
Franprix | 379 | -15.2% | -14.4% | -12.5% | 327 | -4.5% | -4.2% | -3.6% | |||||||||||||||
Convenience & Other3 | 449 | -28.8% | -4.2% | -10.7% | 498 | +4.4% | -2.2% | -1.2% | |||||||||||||||
o/w Convenience4 | 342 | -5.5% | -6.7% | -11.2% | 411 | +1.8% | +1.0% | -1.3% | |||||||||||||||
Hypermarkets | 844 | -7.5% | -12.7% | -9.9% | 886 | -12.8% | -12.8% | -8.5% | |||||||||||||||
o/w Géant2 | 796 | -8.2% | -13.9% | -11.4% | 824 | -13.3% | -13.4% | -9.5% | |||||||||||||||
FRANCE RETAIL | 3,475 | -11.0% | -8.9% | -8.4% | 3,560 | -3.2% | -5.8% | -4.3% |
In France Retail, sales for the quarter amounted to €3,560m, down -4.3% on a same-store basis (vs. -8.4%in Q2 2021), impacted by a drop in traffic during the summer in the Paris region and the implementation of the health pass. The food E-commerce segment nevertheless remained very strong, recording same-storegrowth in net sales of +26% for the quarter.
The digitalisation of the customer experience continued, with 640 stores now offering automated solutions (versus 613 at end-June2021), enabling them to operate autonomously in the evening and on Sundays. 65% of payments at Géant hypermarkets and 61% at Casino Supermarkets were made by smartphone or automatic checkout during the quarter (vs. 61% and 48% at end-2020).Casino Max app users accounted for 26% of sales in hypermarkets and supermarkets at the end of September (vs. 22% at end-2020)and customers with the Casino Max Extra subscription accounted for 14.5% of sales (+3.7 pts over the year).
Casino Group's market share in France is now almost stable, with a clear improvement on the trends seen in recent periods.
P05 | P06 | P07 | P08 | P09 | P10 |
-0.1 | |||||
-0.4 | -0.4 | -0.3 | |||
-0.6 |
Change in Kantar market share
-1.2
Business review by banner:
- Monoprix net sales were down -4.1% on a same-store basis over the quarter (vs. -4.9%in Q2 2021), impacted by a poor summer in the Paris region due to low tourist flows and the decrease in the number of residents in Paris. E-commerce recorded a strong growth, driven by the ramp-up of Monoprix Plus (more than 35,000 items) and the launch of Naturalia Marché Bio in late August (more than 4,000 items) via the O'logistique automated warehouse. The partnership with Amazon, for which Monoprix and Naturalia are now the only partners in express food delivery, is also experiencing rapid double-digit growth. The launch of the Monopflix loyalty programme at the end of August is already a resounding success. Monoprix continued to roll out autonomous solutions over the quarter (244 stores to date, of which 15 new deployments in Q3).
- Excluding fuel and calendar effects
- Excluding Codim stores in Corsica: 8 supermarkets and 4 hypermarkets
- Other: mainly Vindémia (sold in June 2020), Geimex and restaurants
- Net sales on a same-store basis include the same-store performance of franchised stores
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- Franprix sales were down -3.6%on a same-storebasis in the quarter, a sequential improvement of +8.9 pts compared with Q2 2021 (-12.5%). The banner is still affected by the lower levels of consumption in the Paris market, but the trend has improved since September, with a return to growth (+1.0%) over the last four weeks. The E-commercesegment continued its expansion with triple-digitgrowth, supported by the development of the E-commerce app and the website. The non-food expansion strategy was stepped up with the roll-outof the partnership with Décathlon (45 shops offering such solutions to date). The store base continued to expand, with 20 store openings during the quarter.
- Net sales in the Convenience segment were down -1.3% on a same-store basis over the quarter, with a sequential improvement of +9.9 pts compared with Q2 2021 (-11.2%)which continued at the beginning of Q4, with a return to positive same-store growth (+0.3%). Total net sales increased by +1.8% in Q3, driven by the expansion of the store base with the opening of 373 stores since the beginning of the year, including 73 in Q3 2021. E-commercesales were boosted by the continued development of partnerships with Uber Eats and Deliveroo and the opening of the new "mescoursesdeproximité.com" website, which now enables 1,251 convenience stores to offer an e- commerce solution.
- Casino Supermarkets recorded a -3.7% change in same-store sales, representing a sequential improvement on Q2 2021 (-12.2%), with good momentum in September. Total net sales rose by +4.2%, helped by the conversion of 9 Géant hypermarkets into Casino Supermarkets. E-commercewas once again a growth driver, with same-storegrowth of +28% in the quarter led by partnerships with Deliveroo (86 stores) and Shopopop (88 stores). The banner also continued to roll out Casino Plus (e- commerce from the O'logistique automated warehouse), which now offers 26,000 items. In addition, the banner continued to deploy autonomous solutions, with 237 stores offering such solutions to date.
- Sales at Géant hypermarkets were down -9.5%on a same-storebasis, improving sequentially compared with Q2 2021 (-11.4%), impacted in particular by the drop in traffic due to the implementation of the health pass. The contribution from the E-commercesegment continued to grow over the quarter, supported by partnerships with Uber Eats (19 stores), Deliveroo (14 stores) and Shopopop (46 stores). In addition, the "shop-in-shop"strategy continued with the roll-out of C&A corners (28 corners vs. 18 at end-Q2), Claire's corners (73, of which an additional one in Q3), Greenriders corners (two openings), and the set-up of 8 La Grande Récré corners. Lastly, 67 stores now offer autonomous solutions
Current trading
Sales improved sequentially over the first four weeks of October 20211.
Same-store change
Net sales (in €m) | Q2 2021 | Q3 2021 | Four weeks over | |||||
October | ||||||||
Monoprix | -4.9% | -4.1% | -1.6% | |||||
Supermarkets | -10.4% | -2.7% | -2.6% | |||||
Franprix | -12.5% | -3.6% | +1.0% | |||||
Convenience | -11.2% | -1.3% | +0.3% | |||||
Hypermarkets | -9.9% | -8.5% | -6.1% | |||||
FRANCE RETAIL | -8.4% | -4.3% | -2.6% |
1From 27 September to 24 October 2021
Thursday, 4 November 2021 ▪5
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