Eurofood: Casino sales increase 6.3% in first half - Food Retailing - Brief Article

France's number two food retailing group Casino has posted a first half revenue of 11.02bn [euro], a 6% increase on revenue generated in the same period a year ago. The figure was in line with both Casino's and analysts' expectations.

On a like-for-like basis, the increase would have been 9.4%, but the financial instability in Latin America, notably in Argentina and Venezuela, dragged down the French group's performance.

Casino said the success of its Leader Price format was confirmed, with good performances in the four countries in which they already operate, France, Poland, Argentina and Thailand.

The group's performance in its domestic market was impressive given the high comparisons with last year's results. French activities accounted for 76% of consolidated net sales at Casino during the first half, with sales at Geant hypermarkets rising 2.4%, faster than the industry average.

Internationally, and despite the difficulties in Latin America, Casino reported significant market share gains in most countries. At constant exchange rates and on a like-for-like basis, the increase in consolidated net sales would have been 7.8%.

In Poland, the hypermarket sector felt the effects of a nation-wide recession, with a decrease in average spend per shopper partially offset by an increase in customer traffic. The Leader Price stores proved immensely popular, with the number of units rising to 87 at 30 June 2002, from 40 one year earlier.

In the US, Casino saw sales at Smart & Final stores increased in line with objectives, while operations in Asia, Thailand and Taiwan, also saw sales improve.

Casino consolidated net sales (m [euro])

                    H1 2002    H1 2001    %+/-    %+/- *

France              8 351.1    7 861.2    +6.2       n/a
International       2 670.6    2 506.9    +6.5     +19.4
-US                 1 056.9    1 020.5    +3.6      +3.8
-Poland               426.9      360.8   +18.3     +20.3
Latin America         407.4      582.9   -30.1     +24.6
-Argentina            137.9      302.2   -54.4     +21.0
-Uruguay               80.9      103.4   -21.8      -2.1
-Venezuela            188.6      177.3    +6.4     +46.1
Asia                  659.9      542.7   +21.6     +20.5
-Thailand             526.4      407.5   +29.2     +26.2
-Taiwan (+)           133.5      135.2    -1.3      +3.3
Indian Ocean (#)      119.5         --   119.5        --

Cons. net sales    11 021.7   10 368.1    +6.3      +9.4

Source: Casino

Note *: At constant exchange rates

Note (+): 50% joint venture

Note (#): 33.34% joint venture