France's Casino reports weak quarterly sales, considers GreenYellow listing (updated)

Cnova NV

06/05/2021 19:08

* Casino repeats pledge to boost profitability in France
    * French sales slide compared with surge a year ago
    * Latin America sales climb 4% in the quarter

 (Adds details from CFO call with analysts)
    By Dominique Vidalon
    PARIS, May 6 (Reuters) - French retailer Casino  CASP.PA 
said on Thursday it was considering a stock market listing among
the options for its GreenYellow renewable energy subsidiary as
it seeks to cut debt.
    Revenue growth slowed sharply in the first quarter, with a
6.4% fall in sales on a same-store basis in Casino's core French
market, compared to a year ago when sales had surged in the
first wave of coronavirus lockdown restrictions.
    Casino repeated its pledge to boost profitability and cash
flow this year in France, which showed greater profitability in
the first quarter with the help of cost savings.
    To boost profitability Casino is banking on monetising
client data, making savings from purchasing deals and putting a
greater focus on e-commerce, organic food, convenience stores
and energy services.
    Casino, which has been selling assets to reduce its debt,
said last month it had launched preparatory work for potential
capital increases for its Cdiscount e-commerce and GreenYellow
renewable energy subsidiaries.  urn:newsml:reuters.com:*:nASN0012BW
    "A listing is among the options for GreenYellow," Finance
Chief David Lubek told reporters. 
     Casino, which controls Brazil's Grupo Pao de Acucar
 PCAR3.SA , posted first-quarter sales of 7.146 billion euros 
($8.61 billion).
    On a same-store basis and excluding acquisitions, currency
effects and revenue on fuel, sales rose 0.1% compared to 8.1%
growth in the fourth quarter of 2020.
    In France alone, sales at the Monoprix and Franprix stores, 
which are located in city centres, were down in the quarter by
3.2% and 9.1%, respectively.
    Casino said there were fewer tourists in Paris and more
Parisians left for other regions due to coronavirus restrictions
in the capital and surrounding areas.
    Sales at the Geant Casino hypermarkets fell 9.7% year on
year, reflecting the impact of curfew measures and the drop in
traffic due to the closure of shopping centre due to COVID-19
restrictions.
    The food e-commerce business remained strong, with a 38%
jump in sales during the quarter.
    
    ($1 = 0.8298 euros)

 (Reporting by Dominique Vidalon; Editing by Benoit Van
Overstraeten and Edmund Blair)
 ((dominique.vidalon@thomsonreuters.com; +33149495432; Reuters
Messaging: dominique.vidalon.reuters.com@reuters.net))