Brief: Colruyt H1 EBIT Up At EUR 246 Mln, Warns Of Increased Price, Promotional Pressure In Belgium

Colruyt NV

12/12/2023 17:03

Dec 12 (Reuters) - Colruyt Group NV  COLR.BR :
    * H1 REVENUE GROWS 16.0%
    * H1 MARKET SHARE INCREASES TO 32.1%
    * H1 REVENUE ROSE BY 16% TO ALMOST EUR 5.5 BILLION
    * STILL EXPECTS THE OPERATING PROFIT AND THE NET RESULT
(I.E.
EXCLUDING ONE-OFF EFFECTS,  DATS 24 AND DREAMLAND) TO INCREASE
SHARPLY IN THE 2023/24 COMPARED WITH  PRIOR FINANCIAL YEAR,
SPECIFICALLY  AN INCREASE ABOVE 50 TO 60%
    * H1 EARNINGS PER SHARE EUR 7.07
    * H1 OPERATING CASH FLOW (EBITDA) ROSE BY 54.5% TO EUR 450
MILLION
    * IS ALSO EXPLORING THE POSSIBILITY OF SELLING PART OF ITS
STAKE
IN THE ENERGY HOLDING  COMPANY VIRYA ENERGY TO KORYS, THE
INVESTMENT COMPANY OF THE COLRUYT FAMILY, IN THE 2023/24
    * H1 OPERATING PROFIT (EBIT) TOTALLED EUR 246 MILLION VS EUR
108
MILLION YEAR AGO
    * COLRUYT GROUP’S STAKE IN VIRYA ENERGY WOULD THUS DECREASE
FROM
59,94% (AS AT  30 SEPTEMBER 2023) TO APPROXIMATELY 30%, AND
KORYS’ STAKE IN VIRYA ENERGY WOULD INCREASE TO  AROUND 70%
    * POTENTIAL SALE OF COLRUYT GROUP’S STAKE IN VIRYA ENERGY:
POTENTIAL FINANCIAL EFFECTS OF THIS SALE ARE STILL BEING
STUDIED. IF SUCH A TRANSACTION  WERE TO HAVE AN IMPACT ON THE
RESULT, IT WOULD BE CONSIDERED A ONE-OFF EFFECT
    * NET FINANCIAL DEBT AMOUNTED TO EUR 236 MILLION AS AT 30
SEPTEMBER 2023
    * WE CURRENTLY NOTE THAT EVOLUTION OF SALES PRICE INFLATION
VERSUS
COST PRICE INFLATION HAS  NORMALISED AFTER COST PRICE INFLATION
EXCEEDED SALES PRICE INFLATION FOR MORE THAN ONE YEAR
    * COLRUYT GROUP IS EXPERIENCING INCREASED PRICE AND
PROMOTIONAL
PRESSURE IN THE BELGIAN  RETAIL MARKET
    * UNCERTAINTY ASSOCIATED WITH MACROECONOMIC CONTEXT AND HIGH
COMPETITIVENESS IN  BELGIAN RETAIL MARKET COULD SIGNIFICANTLY
IMPACT OUTLOOK AND ADVERSELY AFFECT GROUP’S  RESULTS

Source text: http://tinyurl.com/2xp6yd99
Further company coverage:  COLR.BR 

 (Gdansk Newsroom)
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