Casino Group: 2023 Full Year Results
2023 FULL-YEAR RESULTS
In accordance with IFRS 5 – Non-current Assets
Held for Sale and Discontinued Operations, the 2022 and 2023 net
sales and earnings for Assaí, Grupo Éxito, GPA and the Group's
French hypermarkets and supermarkets are presented within
discontinued operations. Consequently, the net sales and earnings
(including EBITDA and trading profit) presented in this press
release relate solely to the Group's continuing operations
(Monoprix, Franprix, Casino convenience banners, Cdiscount and
Other1).
- Net sales at
€9.0bn in 2023 (-3.7%)2, of which €2.3bn in Q4
(-4.6%)2
- Monoprix: €4.3bn
(+1.8%), of which €1.2bn in Q4 (+0.9%)
-
Franprix: €1.5bn (+3.2%), of which €382m in Q4
(+0.4%)
- Casino
convenience banners: €1.5bn (+1.1%), of which €321m in Q4
(-3.4%)
-
Cdiscount: €1.2bn (-22.9%), of which €355m in Q4
(-20.4%) linked to the planned reduction in direct sales
- EBITDA after lease payments
at €341m (-38%), reflecting a margin of 3.8%
- Retail banners:
4.3% margin (-199 bps: cost inflation not passed on to customers
and franchises through sales prices; lower volumes)
-
Cdiscount: 4.2% margin (+282 bps: shift towards a
more profitable model based on the marketplace and on sales of
services; ongoing cost savings plan)
- Trading profit at €124m
(-61%), reflecting a margin of 1.4%
- Other operating income and
expenses at -€1.2bn
- Non-cash impact of asset impairment
(-€0.9bn, mainly Monoprix and Franprix goodwill), linked to the
update to the business plan (November 2023)3
- Operating
restructuring costs of -104 M€ (costs of downsizing and store
closures)
- Consolidated net loss,
Group share of -€5.7bn related to disposals and
the financial restructuring
- Net loss from continuing
operations, Group share: -€2.6bn, including asset
impairment (-€0.9bn), deferred tax (-€0.7bn), and financial
expenses (-€0.8bn)
- Net loss from discontinued
operations, Group share: -€3.1bn, relating to impairment
of GPA, Grupo Éxito and hypermarket/supermarket (HM/SM) goodwill,
and HM/SM operating losses
- Equity attributable to
owners of the parent at 31 December 2023: -€2.5bn
- Net financial
debt4 of €6.2bn at
31 December 2023
- Net financial debt of
€1.5bn adjusted for the financial restructuring5
- Financial restructuring
approved6: impacts to come subject to
effective completion of the restructuring
- Gross financial debt down by €3.5bn
(by €4.9bn including TSSDI undated deeply subordinated notes)
- Injection of €1.2bn in new
equity
The Board of Directors met on 27 February 2024
to approve the statutory and consolidated financial statements for
2023. The auditors have completed their audit procedures on the
financial statements and are in the process of issuing their
report.
2023 FOURTH QUARTER AND FULL-YEAR
BUSINESS RESULTS
|
Q4 2023 vs. Q4 2022 |
2023 vs. 2022 |
Net sales by banner (in €m) |
Q4 2023 |
Change |
2023 |
Change |
Total |
Organic7 |
LFL7 |
Total |
Organic7 |
LFL7 |
Monoprix |
1,168 |
-0.9% |
+0.6% |
+0.9% |
4,338 |
-1.3% |
+1.4% |
+1.8% |
Franprix |
382 |
0.0% |
-0.1% |
+0.4% |
1,522 |
+3.0% |
+3.2% |
+3.2% |
Casino convenience banners |
321 |
-6.1% |
-5.2% |
-3.4% |
1,483 |
-1.8% |
-1.4% |
+1.1% |
Cdiscount |
355 |
-21.4% |
-20.4% |
-20.4% |
1,235 |
-23.8% |
-22.9% |
-22.9% |
Other |
98 |
-12.7% |
-9.3% |
+5.5% |
380 |
-4.4% |
-3.0% |
+6.7% |
GROUP TOTAL |
2,324 |
-5.8% |
-4.5% |
-4.6% |
8,957 |
-4.7% |
-3.2% |
-3.7% |
-
Monoprix reported same-store net sales
growth of +1.8% over the year, driven mainly by Monop'
(+4.3%) and Monoprix City food (+2.6%). The year 2023 also saw (i)
Naturalia swing back into profit (+0.6%) in a still difficult
organic market, (ii) an acceleration in openings of Monoprix
City/Monop' stores under franchise (42 openings under franchise in
2023, including 39 Monoprix City/Monop' stores), and (iii)
expansion in French overseas territories and international markets,
with 11 new store openings (Qatar, United Arab Emirates,
Saint-Barthélemy, etc.).
- In the fourth
quarter, Monoprix reported same-store growth of +0.9%. Customer
traffic was up by +1.8% over the quarter, with growth in food sales
at Monoprix City (+1.5%), Monop' (+1.7%) and Naturalia
(+2.9%).
- Franprix
posted same-store sales growth of +3.2% in 2023, led by
(i) good customer traffic momentum (+2.4%) and (ii) double-digit
growth in e-commerce (+18%), boosted by the +40% acceleration in
marketplace sales (Uber Eats, Deliveroo, etc.) in 2023, making
Franprix the leading quick-commerce retailer in Paris. Total gross
sales under banner rose by +5.1% over the year. The strategy of
expansion in target areas continued, with 148 store openings over
the year (including 139 under franchise), mainly in Paris and the
Île-de-France region (114 store openings).
- In the fourth
quarter, Franprix recorded same-store sales growth of +0.4%,
adversely affected by a high basis of comparison. Franprix market
share remained stable over the fourth quarter based on Kantar data.
Customer traffic remained upbeat (+1.5%), as did gross sales under
banner (+1.7%).
- Net sales
for Casino convenience banners were up by +1.1% in 2023 on a
same-store basis. Expansion of the store network continued
in 2023, with 380 store openings under franchise and the transfer
of 93 stores from an integrated to a franchise model.
- In the fourth
quarter, same-store sales at Casino convenience banners were down
-3.4% in a less favourable market environment for convenience
formats (down -1.1% in volume based on Circana data). The
performance was adversely affected by an unfavourable basis of
comparison, as fourth-quarter 2022 was affected by the fuel
shortages which boosted Casino's convenience formats in rural and
semi-urban areas.
- In 2023,
Cdiscount8 continued to reduce its unprofitable
direct sales in favour of developing its services (marketplace,
Advertising, B2C and B2B). Marketplace
GMV9 slipped -2% over the year, with the
marketplace contribution at a record 60% (+8.5 pts
year on year), while direct sales GMV fell by -31%, in line with
the company's strategy of streamlining and improving profitability.
Service revenues rose by +1.7% over the year. Overall, same-store
sales declined by
-24%10.
- Marketplace GMV
fell by -2.5% in Q4, with a contribution of 60.5% (+6.4 pts vs Q4
2022), while direct sales GMV fell by -25%. Sales were down -22% on
a same-store basis10.
2023 FULL-YEAR RESULTS
In €m |
2022 |
2023 |
Change |
Net sales |
9,399 |
8,957 |
-3.2% (organic), -3.7% (same-store) |
EBITDA |
978 |
765 |
-21.8% |
EBITDA after lease payments |
549 |
341 |
-37,8% |
EBIT |
316 |
124 |
-60.6% |
Underlying net profit (loss) from continuing operations,
Group share |
(323) |
(1,451) |
Including €588m relating to the increase in the tax expense |
Net profit (loss) from continuingoperations, Group share |
(185) |
(2,558) |
Impact of the increase in financial expenses and impairment of
goodwill and deferred tax |
Net profit (loss)from discontinued operations, Group share |
(130) |
(3,103) |
Impact of HM/SM operating losses and impairment of GPA, Grupo Éxito
and HM/SM assets |
Net profit (loss),Group
share |
(316) |
(5,661) |
|
Consolidated net sales amounted
to €9.0bn in 2023, down -3.7% on a
same-store basis11, down
-3.2% on an organic
basis11 and down -4.7% as
reported after taking into account changes in scope
(-1.5%). Currency, fuel and calendar effects were virtually
neutral.
Consolidated EBITDA came to
€765m (down -21.8% including a -7.4% negative
impact from changes in the scope of consolidation), reflecting
a margin of 8.5%.
- Monoprix:
€459m, down -8%, reflecting a margin of
10.6% (-73 bps), mainly affected by higher energy
costs;
- Franprix: €155m,
down -16%, reflecting a margin of 10.2% (-227 bps)
due to a sharp increase in costs (particularly energy costs) and
lower volumes on a same-store basis, partly offset by the expansion
of the franchise network;
- Casino convenience banners:
€72m, down -54%, reflecting a margin
of 4.9% (-545 bps) due to higher energy costs and
support provided to franchise partners in dealing with the impact
of inflation;
- Cdiscount:
€83m (+51%), reflecting a +330 bps improvement in
the margin (to 6.7%) thanks to the transition to a more profitable
business model focused on services and the marketplace, along with
the effects of the cost savings plan (€129m of savings generated in
2023 vs. 2021, outperforming initial target of €90m).
EBITDA after lease payments was
€341m, down -37.8%, reflecting a margin of
3.8%.
Consolidated trading profit was
€124m, down -60.6%, reflecting a margin of
1.4%.
- Monoprix:
€131m, down -22%, reflecting a margin of
3.0% (-81 bps);
- Franprix: €54m,
down -25%, reflecting a margin of 3.5% (-133
bps);
- Casino convenience banners:
-€2m, reflecting a margin of -0.1% (-530
bps);
- Cdiscount:
-€12m, reflecting a margin of
-1.0% (+156 bps).
Underlying net financial expense and net
loss, Group share12Underlying net
financial expense for the period was
-€768m (compared with -€414m in 2022), a
deterioration of -€354m, mainly due to around -€130m resulting from
the net rise in interest on bonds, the Term Loan B and short-term
debt (including the impact of higher interest rates and the average
volume of RCF drawdowns), around -€120m relating to interest-rate
hedging instruments, including credit risk13, around -€135m in
amortisation of non-cash financial expenses and around +€30m of
bonuses on bond redemptions and income from financial
investments14.
Underlying net loss, Group share, came out at
-€1,451m (vs. -€323m in 2022), reflecting a decrease
in
trading profit (-€191m), an increase in the cost
of net debt (-€342m) and a rise in tax expense (-€588m).
Diluted underlying earnings per
share15 stood at a loss of -€13.93, vs.
-€3.42 in 2022.
Other operating income and expenses
amounted to -€1,157m in 2023 (vs. +€86m in 2022),
including -€940m of asset impairment losses (mainly Monoprix and
Franprix goodwill impairment based on the November 2023 business
plan) and -€104m of operating restructuring costs.
Consolidated net profit (loss), Group
share
Net loss from
continuing operations, Group share was -€2,558m
(vs. -€185m in 2022), reflecting notably the increase in financial
expenses and impairment of Monoprix and Franprix assets in
connection with the new November 2023 business plan.
Net loss from discontinued operations,
Group share was -€3,103m in 2023 (vs. -€130m in 2022), due
to HM/SM operating losses and impairment of GPA, Grupo Éxito and
HM/SM assets.
Consolidated net loss, Group
share amounted to -€5,661m vs. -€316m in 2022.
Financial position at 31 December
2023
Consolidated net debt
stood at €6.2bn (€4.5bn at 31 December 2022), an
increase of €1.7bn, of which mainly -€0.7bn in free cash flow,
materially impacted by -€0.5bn of financing losses, -€0.6bn of
financial expenses, -€1.4bn of losses on disposals of businesses
(HM/SM) and +€1.3bn of proceeds on disposals.
At 31 December 2023, the Group's
liquidity was €1,051m (cash and cash
equivalents). The Group also has €95 million in the Quatrim
segregated account.
In €m |
|
31 Dec. 2022 |
31 Dec. 2023 |
Change |
|
31 Dec.
2023adjusted16 |
Loans and borrowings |
|
4,945 |
7,232 |
+2,287 |
|
3,230 |
EMTN notes / HY CGP |
|
2,287 |
2,168 |
-119 |
|
0 |
Casino Finance / reinstated RCF |
|
50 |
2,051 |
+2,001 |
|
711 |
Term Loan B / reinstated Term Loan |
|
1,425 |
1,425 |
0 |
|
1,410 |
HY Quatrim notes |
|
653 |
553 |
-100 |
|
491 |
Confirmed credit lines – Monoprix |
|
170 |
170 |
0 |
|
131 |
Cdiscount PGE |
|
60 |
60 |
0 |
|
60 |
Other |
|
300 |
805 |
+50517 |
|
427 |
Cash and cash equivalents |
|
(468) |
(1,051) |
-583 |
|
(1,696) |
Net financial debt18 |
|
4,477 |
6,181 |
+1,704 |
|
1,53419 |
|
|
|
|
|
|
|
Net financial debt excluding Quatrim20 |
|
|
|
|
|
1,048 |
The net financial debt (excluding Quatrim) /
EBITDA after lease payments (excluding Quatrim) ratio stood at
3.3x, with EBITDA after lease payments (excluding Quatrim) of €317m
and net financial debt (excluding Quatrim) of €1,048m.
Financial restructuring
The Group's financial restructuring
includes:
- an equity injection of
€1.2bn, which will strengthen the Group's liquidity by
around €640m after deducting amounts to be settled at the
restructuring date:
- repayment of deferred tax and
payroll taxes (around €220m21),
- repayment of borrowings and
financial expenses (approximately €260m22),
- payment of related expenses or
expenses due on the restructuring date (around €80m);
- the conversion into equity
of most of the Group's secured and unsecured debt, including €4.9bn
in principal maturities (€3.5bn excluding TSSDI undated
deeply subordinated notes).
As part of the financial restructuring, a
conciliation procedure was initiated, running from 25 May 2023 to
25 October 2023. Accelerated safeguard proceedings were then
initiated between 25 October 2023 and 25 February 2024. All of the
information regarding these procedures is available on the
Company’s website: Financial restructuring
Outlook
In view of the HM/SM disposal process and their
treatment as discontinued operations, the EBITDA France 2023-2028
projections published by the Group in November 2023 are no longer
valid. Furthermore, in view of the forthcoming change of control,
the Group is not publishing a new 2024 outlook.The Consortium's
business plan was communicated to the market on November 22, 2023
(see press release of November 22, 2023).
SIGNIFICANT EVENTS IN 2023
Asset disposals
In 2023, Casino Group disposed of assets
worth close to €1.4bn:
- The Group completed
the sale of its entire stake in Assaí on 23 June
2023. Following the sale of a 10.4% stake in November 2022, the
Group completed two further disposals in H1 2023:
- 16 March 2023: sale of 18.8% of the
capital for around €571m after tax and expenses
(gross proceeds of €723m);
- 23 June 2023:
sale of the remaining 11.7% stake for approximately
€326m after tax and expenses (gross proceeds of
€404m).
-
At the end of September 2023, Groupement Les Mousquetaires
and Casino Group completed the sale of a set of 61 Casino France
outlets (hypermarkets, supermarkets, Franprix and
convenience stores) based on an enterprise value of
€209m, including service stations. At the same time, the
Group received €140m in deposits for the second wave of
store disposals (to be completed within three years).
-
Partial sales of the stake in GreenYellow
represented €17m in 2023.
-
Property disposals totalled around
€165m in France over the year (sale of Sudeco to
Crédit Agricole Immobilier in Q1, sale of other property assets23,
Apollo and Fortress earn-outs).
Since the start of 2024, Casino Group
has announced the sale of around €1.7bn in assets:
- On 24 January 2024,
the Group announced that it had signed agreements with
Auchan Retail France24 and
Groupement Les Mousquetaires25 for the
sale of 288 stores (and their adjoining service
stations), based on an enterprise value of between €1.3bn
and €1.35bn. The disposals would be completed in Q2 and Q3
2024, after consultation with the relevant employee representative
bodies.
- As part of the
memorandum of understanding signed with Groupement Les
Mousquetaires, on 8 February 2024, Casino Group announced that
it had reached an agreement with Carrefour for the sale of
25 stores (and their adjoining service stations) that were
initially to be acquired by Groupement Les Mousquetaires.
- On 26 January 2024, Casino Group
announced that it had sold its direct 34% stake in Grupo
Éxito to Grupo Calleja. GPA also tendered its 13% stake in
Grupo Éxito to the sale. Casino Group collected gross
proceeds of $400m from this transaction (€367m as
of the date of the
sale26), while GPA
received gross proceeds of $156m.
France
Retail banners
Development in buoyant formats
- The Group
continued its expansion into franchises, a more
profitable, less capital-intensive development model. Franprix,
Monoprix and Casino convenience banners opened 561 stores under
franchise in 2023, taking the number of stores operated in
France under franchise or business lease to 6,979 (i.e. 81% of the
network vs. 79% at end-2022).
Extension of the purchasing partnerships
with Groupement Les Mousquetaires
- On 2 October 2023,
Casino Group announced that it had reached an agreement with
Groupement Les Mousquetaires to:
- extend the duration of
three existing Auxo purchasing alliances (Auxo central
purchasing entities for food, non-food and indirect purchases) for
a further two years, until 2028;
- extend the purchasing
alliance to include private-label food products (Auxo
Private Label);
- enter into a supply
agreement with Groupement Les Mousquetaires’ Seafood and Meat
sectors, based on the know-how of Agromousquetaires.
Food e-commerce
-
Acceleration in quick commerce
- Monoprix has seen a ramp up in
activity on the Uber Eats and Deliveroo platforms (small baskets of
ten or so items delivered within 30 minutes), with business up +80%
in 2023;
- Franprix has become the leading
quick-commerce retailer in Paris, with an acceleration of +40% in
marketplaces (Uber Eats, Deliveroo, etc.) in 2023.
-
Partnerships extended to attract and retain new
customers
- Amazon
partnership: launch in June 2023 of an Amazon x Monoprix
offer giving all Amazon Prime subscribers a six-month free
subscription to Monopflix (-10% discount in stores and
online);
- Uber Eats
partnership: launch of an offer for Uber One subscribers
in France in November 2023 entitling them to a six-month 10%
discount in Monoprix stores on the Uber Eats platform.
Further initiatives to support purchasing
power
-
Monoprix:
- Price freeze on
200 essential Monoprix-brand products throughout 2023
- Cost-price offers on fresh
produce between September and December
-
Franprix:
- Price cuts on 150 essential
products from the end of May to the end of December 2023;
price freeze on TLJ products in all Franprix
stores from Q2
- Development of the Leader
Price product range (1,437 SKUs and 29 Leader Price
shop-in-shops rolled out at the end of 2023)
- Dedicated end-of-month
promotions (with immediate discounts on top of standard
offers)
- Casino
convenience banners:
- Continuation of the
anti-inflation basket with prices frozen on 500
products (extended to 1,000 products at less than €2 from the
beginning of October 2023).
Latin America
Spin-off and sale of Grupo
Éxito
In early September 2022, GPA’s Board of
Directors announced that it was considering distributing
approximately 83% of Grupo Éxito’s capital to its shareholders and
retaining a minority stake of around 13% which could be sold at a
later date. Casino’s Board of Directors approved the plan to
unleash the full value of Grupo Éxito.
The spin-off was approved by GPA’s
Shareholders at the General Meeting of 14 February 2023 and was
completed on 23 August 2023, with the separate listing of GPA
and Grupo Éxito’s Brazilian Depository Receipts (BDR).
Following the transaction, Casino Group held a
direct 34% stake in Grupo Éxito and an indirect stake of 13%
through GPA’s minority shareholding.
In connection with the tender offers launched in
the United States and Colombia by Grupo Calleja for Grupo Éxito, on
26 January 2024, Casino Group announced that it had completed the
sale of its entire 34% direct stake. GPA also tendered its 13%
stake in Grupo Éxito to the sale. Following these transactions,
Grupo Calleja acquired 86.84% of Grupo Éxito’s share capital.
Casino Group and GPA no longer own any
stake in Grupo Éxito.
GPA capital increase and loss of control by
Casino Group
Following the press release issued by GPA on 10
December 2023, Casino group acknowledges that it is aware that GPA
has initiated preliminary work efforts towards a potential primary
equity offering as part of its plan to optimize its capital
structure.
GPA has convened an extraordinary general
meeting on 11 January 2024 to deliberate on, among other matters,
an increase in the Company’s authorized capital of up to 800
million common shares and the proposal by GPA’s management, with
Casino’s assent, to elect a new slate for the board of directors,
conditioned upon the closing of the potential offering, in order to
conform with the expected dilution of Casino’s equity interest in
the Company.
On 22 January 2024 (2nd call), the general
meeting approved these resolutions.
In the event of completion of this
project and the appointment of the new Board of Directors, Casino
would no longer control GPA.
CSR pledges
maintained27
Casino Group maintained its ESG performance in
2023, with non-financial ratings remaining stable from MSCI (AA)
and FTSE4GOOD (4.1/5) and downgraded 1 point by Moody's ESG
(73/100) and S&P CSA (67/100). The Group won two LSA La Conso
s'engage awards.
Committed employer
- Gender
equality: the percentage of women managers in France was
44.1% in 2023 (vs. 43.8% in 2022), in line with the Group's target
of 45% by 2025. The Group rolled out its action plan to combat
violence against women by supporting the government campaign (3919
Violence Femmes Info helpline) and the UN Women’s Orange Day,
raising a total of €96,000. Monoprix signed an agreement on gender
equality, including specific measures to support women who are
victims of domestic violence.
-
Diversity: in 2023, the Diversity - Equality Label
was renewed for the Group’s Casino and Monoprix banners and
extended to Franprix and Cdiscount. The Group employs more than
2,960 people with disabilities in France (representing 6.7% of the
workforce), including 110 people recruited in 2023. Casino
employees have donated 238 days for carers' leave, with 265 days
matched by Casino.
Climate and environmental
protection
- Casino Group emitted 244,000 tonnes
of CO2 (Scopes 1 and 2) in France in 2023 (291,000 tonnes in 2022),
a reduction of -16%. The Group has maintained its CDP A- score (vs.
B in 2021).
- The Group has set up a specific
action plan with its AMC central purchasing body to provide
training to all employees on climate issues and to mobilise the Top
100 suppliers around their net-zero strategies, with dedicated "one
to one" meetings.
- More than 500
employees received training through Climate Fresk.
Responsible consumption
- The Group's banners continue to
take action in a bid to offer a more responsible range of products,
with the Nutri-Score displayed on 100% of Casino and Franprix
products and the Planet Score on Monoprix and Franprix
products.
- Monoprix was awarded the Max
Havelaar prize for its 30-year commitment to fair trade (100% of
bananas sold, chocolate bars and own-brand coffees labelled) and
supported the "Veganuary" campaign to promote a plant-based diet in
January.
- Franprix was awarded the anti-waste
label for four stores and rolled out 200 Vinted lockers.
- Cdiscount supports responsible
products, which accounted for 17.1% of product GMV in 2023
(+3.9 pts vs. 2022).
Outreach initiatives
- A total of €2.3m was collected in
2023 by Monoprix and Franprix for charities through the ARRONDI
scheme to round up checkout purchases to the nearest euro. The
funds raised will support Fondation des Femmes and the Gustave
Roussy institute in the fight against childhood cancer.
APPENDICES – NET SALES
Gross sales under banner in
France
TOTAL ESTIMATED GROSS SALES UNDER BANNER (in €m, including
fuel) |
Q4 2023 |
Change (incl. calendar effects) |
2023 |
Change (incl. calendar effects) |
|
|
Monoprix |
|
1,249 |
-0.1% |
4,623 |
-0.1% |
Franprix |
|
462 |
+1.7% |
1,826 |
+5.1% |
Casino convenience banners |
|
508 |
-5.3% |
2,345 |
+1.6% |
Cdiscount |
|
681 |
-11.1% |
2,375 |
-15.9% |
Other |
|
98 |
-12.7% |
380 |
-4.4% |
TOTAL |
|
2,998 |
-3.9% |
11,549 |
-2.9% |
2023 key figures –
Cdiscount28
Key figures (in €m) |
202229 |
2023 |
Reported growth |
Same-store change |
Total GMV including tax30 |
3,440 |
2,804 |
-18.5% |
-14.0% |
o/w direct sales |
1,340 |
928 |
-30.7% |
|
o/w marketplace |
1,421 |
1,392 |
-2.0% |
|
GMV contribution (%) |
51.5% |
60.0% |
+8.5 pts |
|
Net sales |
1,700 |
1,197 |
-29.6% |
-24.0% |
APPENDICES – FULL-YEAR
RESULTS
In €m |
|
|
2022 |
2023 |
Change |
Same-store change31 |
Group Consolidated net sales
Monoprix Franprix Casino convenience
banners Cdiscount Other |
|
|
9,3994,3931,4781,5101,620397 |
8,9574,3381,5221,4831,235380 |
-4.7%-1.3%+3.0%-1.8%-23.8%-4.4% |
-3.7%+1.8%+3.2%+1.1%-22.9%+6.7% |
EBITDA – Group Margin
Monoprix Franprix Casino convenience
banners Cdiscount Other |
|
|
97810.4%4971841565587 |
7658.5%4591557283(4) |
-21.8%-187 bps-7.7%-15.8%-53.6%+50.5%-104.1% |
|
EBIT – Group Margin
Monoprix Franprix Casino convenience
banners Cdiscount Other |
|
|
3163.4%1687278 (41)40 |
1241.4%13154 (2) (12)(46) |
-60.6%-197 bps-22.1%-25.2%-102.7%+70.2%n.a. |
|
Underlying net profit
In €m |
2022 (restated) |
Restated items |
2022underlying (restated) |
2023 |
Restated items |
2023 underlying |
|
|
|
|
|
Trading profit |
316 |
0 |
316 |
124 |
0 |
124 |
|
|
|
|
|
Other operating income and expenses |
86 |
(86) |
0 |
(1,157) |
1,157 |
0 |
|
|
|
|
|
Operating profit (loss) |
402 |
(86) |
316 |
(1,033) |
1,157 |
124 |
|
|
|
|
|
Net finance costs |
(240) |
0 |
(240) |
(582) |
0 |
(582) |
|
|
|
|
|
Other financial income and expenses |
(174) |
(0) |
(174) |
(187) |
0 |
(187) |
|
|
|
|
|
Income taxes |
(188) |
(52) |
(240) |
(778) |
(50) |
(827) |
|
|
|
|
|
Share of profit (loss) of equity-accounted investees |
(1) |
0 |
(1) |
2 |
0 |
2 |
|
|
|
|
|
Net profit (loss) from continuing operations |
(201) |
(138) |
(339) |
(2,577) |
1,108 |
(1,470) |
|
|
|
|
|
o/w attributable to non-controlling interests |
(15) |
(0) |
(16) |
(19) |
0 |
(19) |
|
|
|
|
|
o/w Group share |
(185) |
(138) |
(323) |
(2,558) |
1,107 |
(1,451) |
|
|
|
|
|
Underlying net profit corresponds to net profit
from continuing operations, adjusted for (i) the impact of other
operating income and expenses, as defined in the "Significant
accounting policies" section in the notes to the consolidated
financial statements, (ii) the impact of non-recurring financial
items, as well as (iii) income tax expense/benefits related to
these adjustments and (iv) the application of IFRIC 23.
APPENDICES – ACCOUNTING
INFORMATION
Discontinued operationsIn accordance with IFRS 5,
the earnings of the following businesses are presented within
discontinued operations in 2023 and 2022.
-
Assaí: The Group relinquished control of its
Brazilian cash & carry business Assaí on 31 March 2023 and sold
its residual stake in the company on 23 June 2023.
-
Grupo Éxito: On 26 January 2024, Casino Group
announced that it had completed the sale of its 34.05% direct stake
in Grupo Éxito to Grupo Calleja.
-
GPA: As it is considered highly likely that Casino
will lose control of GPA, the results of GPA are presented within
discontinued operations for 2022 and 2023.
-
Casino hypermarkets and supermarkets: As the sale
of Casino hypermarkets and supermarkets is considered highly
likely, the results of these businesses are presented within
discontinued operations for 2022 and 2023.
Main changes in the scope of continuing
operations
- Disposal of
Sudeco
- Sale of an additional
stake in GreenYellow
Impairment of non-current assets
In accordance with IFRS 5, assets held for sale are measured at the
lower of their carrying amount and their fair value, net of
transaction costs.
- GPA: the fair
value used for the impairment test is based on the share price at
the reporting date adjusted for the value of GPA’s 13% stake in
Grupo Éxito. Based on a share price of R$4.06 at 31 December 2023,
GPA's adjusted market capitalisation represents €63m, requiring the
recognition of €1,850m in impairment losses within discontinued
operations (of which €951m had already been recognised at 30 June
2023).
- Grupo Éxito: the
fair value used is based on the price offered in the Calleja public
tender offer ($1.175bn for 100% of the shares, net of transaction
costs incurred by Casino estimated at $9m), requiring the
recognition of €841m in impairment losses within discontinued
operations in 2023 (of which €219m had already been recognised
at 30 June 2023).
-
Hypermarkets and supermarkets
The fair value of these assets was determined taking into account
the terms and conditions of the sale of the stores to Groupement
Les Mousquetaires and Auchan Retail, as well as an estimate of the
costs incurred by this sale (estimated earnings of the stores until
the sale in 2024, buyback of leases, restructuring of warehouses,
etc.). On this basis, an impairment loss of €823m was recognised
against goodwill within discontinued operations at 31 December
2023, in addition to the €216m already recognised at 30 June
2023.
As a result of the annual impairment tests carried out on goodwill,
the Group recognised impairment losses of €514m in respect of
Franprix and €328m in respect of Monoprix at 31 December 2023.The
results of these tests derive from calculations of value in use
using the discounted cash flow method, as presented in the
2024-2028 business plan approved by the Board of Directors in
November 2023. |
APPENDICES – OTHER
INFORMATION
Store network of continuing
operations
|
31 Dec. 2022 |
31 March 2023 |
30 June 2023 |
30 Sept. 2023 |
31 Dec. 2023 |
Monoprix |
858 |
852 |
855 |
862 |
861 |
o/w Integrated stores France excl.
Naturalia
Franchises/BL France excl. Naturalia |
356256 |
343266 |
345272 |
342285 |
338291 |
Naturalia integrated
stores France |
181 |
177 |
175 |
170 |
170 |
Naturalia franchises/BL
France |
65 |
66 |
63 |
65 |
62 |
Franprix |
1,098 |
1,123 |
1,155 |
1,159 |
1,191 |
o/w Integrated stores France Franchises/BL France |
323775 |
328795 |
324831 |
319840 |
323868 |
Franprix banner |
864 |
876 |
888 |
881 |
891 |
Other banners (Le Marché d’à côté, etc.) |
234 |
247 |
267 |
278 |
300 |
Convenience o/w Integrated stores France
Franchises/BL France International affiliatesVival bannerSpar
bannerPetit Casino banner and otherOil companiesOther convenience
outlets32 |
6,3136095,6041001,9789511,0481,422814 |
6,4345885,7461002,0029511,0471,478856 |
6,4485685,7781022,0079511,0481,464876 |
6,3925435,7461031,9839471,0301,485844 |
6,3254935,7241081,9549409901,499834 |
Leader Price33 o/w Integrated
stores France Franchises France |
661848 |
66660 |
63657 |
40634 |
37334 |
Other businesses34 |
221 |
202 |
200 |
179 |
179 |
TOTAL |
8,556 |
8,677 |
8,721 |
8,632 |
8,593 |
Consolidated income statement
(in € millions) |
|
2023 |
2022 (restated)35 |
CONTINUING OPERATIONS |
|
|
|
Net sales |
|
8,957 |
9,399 |
Other revenue |
|
95 |
256 |
Total revenue |
|
9,052 |
9,655 |
Cost of goods sold |
|
(6,474) |
(6,906) |
Gross margin |
|
2,578 |
2,750 |
Selling expenses |
|
(1,705) |
(1,598) |
General and administrative expenses |
|
(748) |
(836) |
Trading profit |
|
124 |
316 |
As a % of net sales |
|
1.4% |
3.4% |
|
|
|
|
Other operating income |
|
110 |
627 |
Other operating expenses |
|
(1,267) |
(541) |
Operating profit (loss) |
|
(1,033) |
402 |
As a % of net sales |
|
-11.5% |
4.3% |
|
|
|
|
Income from cash and cash equivalents |
|
8 |
2 |
Finance costs |
|
(590) |
(242) |
Net finance costs |
|
(582) |
(240) |
Other financial income |
|
35 |
98 |
Other financial expenses |
|
(222) |
(272) |
Profit (loss) before tax |
|
(1,801) |
(12) |
As a % of net sales |
|
-20.1% |
-0.1% |
|
|
|
|
Income tax benefit (expense) |
|
(778) |
(188) |
Share of profit (loss) of equity-accounted investees |
|
2 |
(1) |
Net profit (loss) from continuing operations |
|
(2,577) |
(201) |
As a % of net sales |
|
-28.8% |
-2.1% |
Attributable to owners of the parent |
|
(2,558) |
(185) |
Attributable to non-controlling interests |
|
(19) |
(15) |
DISCONTINUED OPERATIONS |
|
|
|
Net profit (loss) from discontinued
operations |
|
(4,551) |
(145) |
Attributable to owners of the parent |
|
(3,103) |
(130) |
Attributable to non-controlling interests |
|
(1,448) |
(14) |
CONTINUING AND DISCONTINUED OPERATIONS |
|
|
|
Consolidated net profit (loss) |
|
(7,128) |
(345) |
Attributable to owners of the parent |
|
(5,661) |
(316) |
Attributable to non-controlling interests |
|
(1,468) |
(29) |
Earnings per share
In € |
|
2023 |
2022 (restated)35 |
From continuing operations, attributable to owners of the
parent |
|
|
|
|
|
(24.17) |
(2.15) |
|
|
(24.17) |
(2.15) |
From continuing and discontinued operations, attributable
to owners of the parent |
|
|
|
|
|
(52.87) |
(3.36) |
|
|
(52.87) |
(3.36) |
Consolidated statement of comprehensive
income
(in € millions) |
2023 |
2022 (restated)36 |
Consolidated net profit (loss) |
(7,128) |
(345) |
Items that may be subsequently reclassified to profit or
loss |
603 |
203 |
Cash flow hedges and cash flow hedge reserve(i) |
5 |
9 |
Foreign currency translation adjustments(ii) |
581 |
194 |
Debt instruments at fair value through other comprehensive income
(OCI) |
- |
(1) |
Share of items of equity-accounted investees that may be
subsequently reclassified to profit or loss |
16 |
2 |
Income tax effects |
- |
(1) |
Items that will never be reclassified to profit or
loss |
(67) |
5 |
Equity instruments at fair value through other comprehensive
income |
(51) |
(30) |
Actuarial gains and losses |
(21) |
46 |
Share of items of equity-accounted investees that will never be
subsequently reclassified to profit or loss |
- |
- |
Income tax effects |
5 |
(11) |
Other comprehensive income (loss) for the year, net of
tax |
536 |
208 |
Total comprehensive income (loss) for the year, net of
tax |
(6,592) |
(138) |
Attributable to owners of the parent |
(5,222) |
(237) |
Attributable to non-controlling interests |
(1,370) |
99 |
(i) The change in the cash flow hedge
reserve was not material in either 2023 or 2022 (ii) The
€581m increase in this item in 2023 primarily results from (a) the
appreciation of the Brazilian real and Colombian peso representing
€150m and €141m, respectively, offset by the depreciation of the
Argentine peso representing -€165m and (b) the reclassification to
profit (loss) of €453m after control of Sendas was relinquished.
The €194m positive net translation adjustment in 2022 arose mainly
from the increase in value of the Brazilian real for €299m, offset
by the decrease in value of the Colombian peso for -€123m
Consolidated statement of financial
position
ASSETS |
|
31 Dec. 2023 |
31 Dec. 2022 (restated)
37 |
1 Jan. 2022
(restated)37 |
(in € millions) |
Goodwill |
|
2,046 |
6,933 |
6,667 |
Intangible assets |
|
1,082 |
2,065 |
2,006 |
Property, plant and equipment |
|
1,054 |
5,319 |
4,641 |
Investment property |
|
49 |
403 |
411 |
Right-of-use assets |
|
1,696 |
4,889 |
4,748 |
Investments in equity-accounted investees |
|
212 |
382 |
201 |
Other non-current assets |
|
195 |
1,301 |
1,183 |
Deferred tax assets |
|
84 |
1,076 |
857 |
Non-current assets |
|
6,419 |
22,368 |
20,715 |
Inventories |
|
875 |
3,640 |
3,214 |
Trade receivables |
|
689 |
854 |
772 |
Other current assets |
|
1,023 |
1,636 |
2,033 |
Current tax assets |
|
25 |
174 |
196 |
Cash and cash equivalents |
|
1,051 |
2,504 |
2,283 |
Assets held for sale |
|
8,262 |
110 |
973 |
Current assets |
|
11,925 |
8,917 |
9,470 |
TOTAL ASSETS |
|
18,344 |
31,285 |
30,185 |
|
|
|
|
|
EQUITY AND LIABILITIES |
|
31 Dec. 2023 |
31 Dec. 2022
(restated)37 |
1 Jan. 2022
(restated)37 |
(in € millions) |
Share capital |
|
166 |
166 |
166 |
Additional paid-in capital, treasury shares, retained earnings and
consolidated net profit (loss) |
|
(2,618) |
2,625 |
2,577 |
Equity attributable to owners of the parent |
|
(2,453) |
2,791 |
2,742 |
Non-controlling interests |
|
675 |
2,947 |
2,880 |
Total equity |
|
(1,777) |
5,738 |
5,622 |
Non-current provisions for employee benefits |
|
147 |
216 |
273 |
Other non-current provisions |
|
25 |
515 |
376 |
Non-current borrowings and debt, gross |
|
7 |
7,377 |
7,461 |
Non-current lease liabilities |
|
1,338 |
4,447 |
4,174 |
Non-current put options granted to owners of non-controlling
interests |
|
37 |
32 |
61 |
Other non-current liabilities |
|
113 |
309 |
225 |
Deferred tax liabilities |
|
10 |
90 |
67 |
Total non-current liabilities |
|
1,677 |
12,984 |
12,637 |
Current provisions for employee benefits |
|
9 |
13 |
12 |
Other current provisions |
|
269 |
229 |
216 |
Trade payables |
|
2,550 |
6,522 |
6,099 |
Current borrowings and debt, gross |
|
7,436 |
1,827 |
1,369 |
Current lease liabilities |
|
360 |
743 |
718 |
Current put options granted to owners of non-controlling
interests |
|
2 |
129 |
133 |
Current tax liabilities |
|
12 |
19 |
8 |
Other current liabilities |
|
1,606 |
3,069 |
3,196 |
Liabilities associated with assets held for sale |
|
6,200 |
12 |
175 |
Current liabilities |
|
18,445 |
12,563 |
11,926 |
TOTAL EQUITY AND LIABILITIES |
|
18,344 |
31,285 |
30,185 |
Consolidated statement of cash
flows
(in € millions) |
|
2023 |
2022 (restated)38 |
Profit (loss) before tax from continuing operations |
|
(1,801) |
(12) |
Profit (loss) before tax from discontinued operations |
|
(4,889) |
(351) |
Consolidated profit (loss) before tax |
|
(6,690) |
(363) |
Depreciation and amortisation for the year |
|
640 |
662 |
Provision and impairment expense |
|
954 |
161 |
Losses (gains) arising from changes in fair value |
|
2 |
14 |
Expenses (income) on share-based payment plans |
|
1 |
4 |
Other non-cash items |
|
(63) |
(79) |
(Gains) losses on disposals of non-current assets |
|
(15) |
(45) |
(Gains) losses due to changes in percentage ownership of
subsidiaries resulting in acquisition/loss of control |
|
(19) |
(386) |
Dividends received from equity-accounted investees |
|
3 |
5 |
Net finance costs |
|
582 |
240 |
Interest paid on leases, net |
|
126 |
103 |
No-drawdown, non-recourse factoring and associated transaction
costs |
|
51 |
70 |
Disposal gains and losses and adjustments related to discontinued
operations |
|
4,703 |
1,500 |
Net cash from operating activities before change in working
capital, net finance costs and income tax |
|
273 |
1,887 |
Income tax paid |
|
(9) |
(36) |
Change in operating working capital |
|
(486) |
(227) |
Income tax paid and change in operating working capital:
discontinued operations |
|
(437) |
(470) |
Net cash from (used in) operating activities |
|
(659) |
1,154 |
of which continuing operations |
|
(35) |
474 |
Cash outflows related to acquisitions of: |
|
|
|
-
Property, plant and equipment, intangible assets and investment
property
|
|
(352) |
(520) |
-
Non-current financial assets
|
|
(161) |
(231) |
Cash inflows related to disposals of: |
|
|
|
-
Property, plant and equipment, intangible assets and investment
property
|
|
53 |
179 |
-
Non-current financial assets
|
|
96 |
710 |
Effect of changes in scope of consolidation resulting in
acquisition or loss of control |
|
(32) |
587 |
Effect of changes in scope of consolidation related to
equity-accounted investees |
|
22 |
294 |
Change in loans and advances granted |
|
(5) |
(13) |
Net cash from (used in) investing activities of discontinued
operations |
|
237 |
(898) |
Net cash from (used in) investing activities |
|
(143) |
108 |
of which continuing operations |
|
(380) |
1,006 |
Dividends paid: |
|
|
|
|
|
- |
- |
-
to non-controlling interests
|
|
(1) |
(1) |
-
to holders of deeply subordinated perpetual bonds
|
|
(42) |
(42) |
Increase (decrease) in the parent’s share capital |
|
1 |
0 |
Transactions between the Group and owners of non-controlling
interests |
|
(1) |
(21) |
(Purchases) sales of treasury shares |
|
(2) |
(0) |
Additions to loans and borrowings |
|
2,342 |
345 |
Repayments of loans and borrowings |
|
(483) |
(1,121) |
Repayments of lease liabilities |
|
(308) |
(329) |
Interest paid, net |
|
(370) |
(457) |
Other repayments |
|
(23) |
(18) |
Net cash from (used in) financing activities of discontinued
operations |
|
(925) |
328 |
Net cash from (used in) financing activities |
|
188 |
(1,317) |
of which continuing operations |
|
1,113 |
(1,645) |
Effect of changes in exchange rates on cash and cash equivalents of
continuing operations |
|
(3) |
16 |
Effect of changes in exchange rates on cash and cash equivalents of
discontinued operations |
|
107 |
81 |
Change in cash and cash equivalents |
|
(510) |
43 |
Net cash and cash equivalents at beginning of
period |
|
2,265 |
2,223 |
- of
which net cash and cash equivalents of continuing operations
|
|
2,265 |
2,224 |
- of
which net cash and cash equivalents of discontinued operations
|
|
- |
(1) |
Net cash and cash equivalents at end of
period |
|
1,755 |
2,265 |
- of
which net cash and cash equivalents of continuing operations
|
|
853 |
2,265 |
- of
which net cash and cash equivalents of discontinued operations
|
|
902 |
- |
Analyst and investor
contacts-
Christopher Welton+ 33 (0)1 53
65 64 17 – cwelton.exterieur@groupe-casino.fror+33 (0)1 53 65 24 17
– IR_Casino@groupe-casino.fr
Press
contacts-
Casino Group – Communications
Department
Stéphanie Abadie+ 33 (0)6 26 27
37 05 – sabadie@groupe-casino.fror+33(0)1 53 65 24 78 –
directiondelacommunication@groupe-casino.fr
-
Agence IMAGE 7
Karine Allouis +33 (0)6 11 59 23
26 – kallouis@image7.frLaurent Poinsot +33(0)6 80
11 73 52 – lpoinsot@image7.frFranck Pasquier+33
(0)6 73 62 57 99 - fpasquier@image7.fr
Disclaimer
This press release was prepared solely for
information purposes, and should not be construed as a solicitation
or an offer to buy or sell securities or related financial
instruments. Likewise, it does not provide and should not be
treated as providing investment advice. It has no connection with
the specific investment objectives, financial situation or needs of
any receiver. No representation or warranty, either express or
implied, is provided in relation to the accuracy, completeness or
reliability of the information contained herein. Recipients should
not consider it as a substitute for the exercise of their own
judgement. All the opinions expressed herein are subject to change
without notice.
1 Other: sector representing the residual
activities of the Group, including mainly real estate activities
(notably Quatrim and Mayland), the Geimex/ExtenC distribution
business and the cost center of the Casino Guichard-Perrachon
holding company.2 Same-store changes excluding fuel and calendar
effects3 November 2023 Business Plan4 See definition on page 45
Including the impact of the financial restructuring approved on 26
February 2024 (see page 4)6 Decision of the Paris Commercial Court
dated 26 February 2024; the related financial transactions are
expected to be carried out on 27 March 20247 Excluding fuel and
calendar effects8 Data published by the subsidiary. Cdiscount
published its 2023 earnings on 27 February 20249 Gross merchandise
value10 Data published by the subsidiary (respectively -23% in 2023
and -20% in Q4 2023 based on the contribution to Casino's
consolidated figures)11 Excluding fuel and calendar effects 12 See
definition on page 1213 The Group derecognised all of its
hedging instruments in force during H1 2023 as part of its
financial restructuring14 Investment of surplus cash in line with
the increase in the average volume of RCF drawdowns15 Underlying
diluted EPS includes the dilutive effect of TSSDI
distributions 16 Adjusted net debt at 31 December 2023
including the impact of the financial restructuring approved on 26
February 202417 Including a €242m increase in accrued interest
(linked to the suspension of interest and fee payments as from the
start of the conciliation procedure) and €120m in Regera notes18
Net debt corresponds to gross borrowings and debt including
derivatives designed as fair value hedge (liabilities) and trade
payables - structured programme, less (i) cash and cash
equivalents, (ii) financial assets held for cash management
purposes and as short-term investments, (iii) derivatives
designated as fair value hedge (assets), and (iv) financial assets
arising from a significant disposal of non-current assets19
Including the conversion of €3.5bn of principal maturities into
equity, a net increase in cash (equity injection less restructuring
costs), the settlement of interest accrued at the end of December
2023 and the repayment of borrowings20 The financial restructuring
will result in the ring-fencing of Quatrim from the rest of the
Group. The Quatrim note debt will be repaid via an asset divestment
programme agreed with its creditors, who will have limited recourse
to the Group's assets21 Around €300m of these deferred items will
be reimbursed (€80m) owing to a cash pledge set up by the Group in
favour of URSSAF in the second half of 202322 Adjusted debt
includes the partial repayment on the restructuring of the Monoprix
RCF for €35m 23 Including the sale of HM/SM premises, presented
under discontinued operations24 Unilateral purchase agreement25 A
memorandum of understanding (including an attached proposed
purchase agreement)26 Based on a USD/EUR exchange rate of 1.0905 at
24 January 2024 (ECB)27 CSR data concern the Group's activities in
France (including HM/SM)28 Data published by the subsidiary29
Figures have been restated to consider CChezVous (2022) and Carya
(2023) disposal (discontinued operations)30 Gross merchandise
volume (GMV) includes, including tax, sales of merchandise, other
revenues and the marketplace’s sales volume based on confirmed and
shipped orders and the sales volume of B2C services and the Octopia
and C-Logistics activities31 Excluding fuel and calendar effects32
Outlets under specific banners with a Casino supply contract33
Leader Price stores in France. Leader Price international
franchises are recorded in “Other businesses”34 Other businesses
include Leader Price international franchises and 3C Cameroon
stores35 Previously published comparative information has been
restated36 Previously published comparative information has been
restated37 Previously published comparative information has been
restated38 Previously published comparative information has been
restated
- 20240228 - PR - 2023 Full Year Results
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