Debt-laden French retailer Casino says sales slowed in Q1 (updated)

Teract SA

04/05/2023 07:05

(Adds details)
       PARIS, May 4 (Reuters) - Sales growth at heavily
indebted retailer Casino  CASP.PA  slowed in the first quarter,
the company said on Thursday, dragged down by its supermarkets
and hypermarkets in its core French market.
    Casino, headed and controlled by veteran entrepreneur
Jean-Charles Naouri, is striving to find a way out of its
financial woes, facing two rivalling combination offers for
parts of the group.
     The retailer, which has been selling assets to reduce its
debt, is aiming to complete its 4.5 billion euros ($4.99
billion) disposal plan by the end of the year.
    Disposals at the end of the first quarter amounted to 4.2
billion euros, it said.
    This included the sale of an 18.8% stake in Brazil's
supermarket chain Assai for 723 million euros and of several
assets in France.
     Casino, which also controls Brazil's Grupo Pao de Acucar
 PCAR3.SA , posted first-quarter sales of 5.436 billion euros.
    On a same-store basis and excluding acquisitions, currency
effects and revenue on fuel, sales rose by 1.0% in the first
quarter compared to a 4.4% increase in the fourth quarter of
2022.
    Net debt in France at the end of the first quarter stood at
4.5 billion euros, stable when compared to the end of first
quarter 2022. 
    Casino said it was making progress on its plan to reduce
inventory by 190 million euros in the first half of the year
while implementing a 250 million cost savings plan for the full
year.
    It said it opened 198 stores in convenience formats during
the first quarter, mainly under franchise.

($1 = 0.9022 euros)

 (Reporting by Dominique Vidalon, editing by Tassilo Hummel and
Susan Fenton)
 ((dominique.vidalon@thomsonreuters.com; +33149495432; Reuters
Messaging: dominique.vidalon.reuters.com@reuters.net))