Casino suffers at the hand of currency devaluation

Like most of its major international rivals before it, French food retailer Casino has reported full-year results impacted by the effect of the devaluation of currencies in Latin America.

But, and again following the lead of its rivals, it has put a brave face on the figures, preferring to stress the improvements made at the constant currency level, and in its home market.

Total turnover for the year was €22.8 billion, up 8.9 per cent at constant exchange rates. At actual rates, growth was 3.9 per cent, slightly lower than had been hoped but nonetheless welcomed by the group. Organic growth for the year was 6.7 per cent.

Casino said its French banners had all seen a marked improvement during the year, continuing the good performance which began in 2001 and far outstripping the growth in the market as a whole. Overall sales in France were up 6 per cent at €17.5 billion.

Sales at the Géant hypermarket chain were ahead 4 per cent for the year at €6.96 billion, while the Casino supermarket chain registered a 3.7 per cent hike at €3.12 billion.

Also in France, the group's convenience store outlets showed growth of 6.9 per cent to €10 billion, while the Franprix-Leader Price discount stores posted sales of €3.5 billion, up 11.6 per cent. Monoprix, the city centre store format, saw its sales increase by 4.6 per cent to €1.85 billion.

Superettes and franchised outlets registered an increase of 6.2 per cent for the year at €1.5 billion, while other stores increased sales by 17.9 per cent to €507.6 million.

International sales were down 2.4 per cent for the year as a result of the impact of exchanges rates (-19.9 per cent for the year as a whole). However, there was much to be proud of during the year, the company claimed, with solid growth from the US fascia Smart & Final, an improvement for the Leader Price fascia in Poland despite increasingly difficult market conditions there and double-digit growth from Libertad in Argentina, despite the devaluation of the peso.

Sales in Uruguay rallied in the second half of the year, Casino said, while the Venezuelan units weathered the storm caused by strikes and other difficult economic conditions. In Thailand, sales were impacted by the heavy floods there in the fourth quarter, while the Taiwan market continued to suffer from recession.

There were encouraging signs from Brazil in the final quarter, with sales growing well during the period at the Extra and Barateiro fascias in particular. In the Netherlands, Casino's Laurus unit began its long journey to recovery during the year with a number of store disposals.