Eurofood: Casino acquires stake in Pao de Acucar

French retailer Casino is to acquire a 26% stake in the Brazilian group Compahia Brasileira de Distribuicao (CBD), the country's second largest food retailer behind Carrefour of France. The deal, which has cost Casino some FF6.8bn (??1.0bn), will allow the French group to increase to 35.5% its stake in CBD, which is the parent company of the Pao de Acucar supermarket chain and accounts for approximately 13% of the Brazilian food market. Last year CBD reported gross operating profit of 272 million reals (??142.2m) on pre-tax turnover of 4.384 billion reals. The group expects to see gross operating profits grow to some 400 million reals this year on sales of 6 billion reals.

CBD operates 45 hypermarkets, which account for 45% of its overall turnover, as well as 154 supermarkets under the Pao de Acucar fascia (38% of turnover), 71 Barateiro discount outlets (13% of turnover) and 74 Eletra stores which sell electric household goods. The deal sees Casino become the second largest retailer throughout Latin America, again behind compatriot rival Carrefour, and follows its most recent foray into the region with last month's acquisition of a 25% stake in leading Colombian supermarket chain Almacenes Exito (see Eurofood, 15 July 1999, p 12). Casino now operates, either directly or via a significant stake, 70 hypermarkets, 368 supermarkets and 104 large specialist stores. Together, these outlets generated turnover of around FF50bn.

FOREIGN GROWTH BOOSTS INTERIMS

Meanwhile, Casino reported consolidated turnover up by 8.2% to FF46.695bn (??7.119bn) in the first half of 1999. The group's core distribution activities accounted for the lion's share of sales volumes, up by 8.8% to FF45.027bn, while the strongest rate of growth was reported by international sales, up by 41.3% to FF7.351bn. At home in the French market, Casino reported sales up by 4.1% to FF37.676bn. The group's non-core activities declined by 6% to FF1.668bn.