Casino Reports Sustained Sales Growth in First-Quarter 2010: 5.6%

In France, the sales trend improved in the first quarter, with organic sales excluding petrol slightly down (0.9%) versus a 2.7% decrease in fourth-quarter 2009.

15 Apr 2010 --- Retailer Groupe Casino has reported that consolidated net sales rose by a sustained 5.6% in the first quarter of 2010. The favourable impact of the consolidation of Ponto Frio by Grupo Pão de Açúcar was offset by the deconsolidation of Venezuelan operations (2) as of 1 January, leading to a negative 1.2% impact from changes in the scope of consolidation. The positive 3.4% currency effect primarily reflected the sharp increase in the Brazilian real and the Colombian peso against the euro during the period. Higher petrol prices added 0.9% to growth, while the calendar effect was a slightly negative 0.3% in France and neutral in International operations. Organic growth for the quarter stood at 3.5% (2.6% excluding petrol), representing a noticeable acceleration from fourth-quarter 2009 (down 0.2% excluding petrol).

In France, the sales trend improved in the first quarter, with organic sales excluding petrol slightly down (0.9%) versus a 2.7% decrease in fourth-quarter 2009.

All of the convenience formats (Casino Supermarkets, Monoprix, Superettes and Franprix) reported a tangible improvement in performance, with a gain in total sales for the period.

Cdiscount maintained its strong sales momentum.

The sales trend at Géant Casino and Leader Price gradually improved over the quarter, reflecting the initial impact of reinvesting the gains from the pooled purchasing of private-label and value-line products.

International operations, which represented 36% of sales, saw a sharp acceleration in organic growth, to 10.6% from 4.8% in fourth-quarter 2009.

Operations in South America reported double-digit (13.3%) growth, impelled notably by the very strong gains in Brazil.

In Asia, organic growth remained brisk, rising 7.3% on the back of firm sales in Thailand and sustained strong growth in Vietnam.

In all, the solid first-quarter performance attested to the good positioning of the Group’s business portfolio:

• A favourable business mix in France, weighted towards the convenience and discount formats, and leadership in the non-food e-commerce segment.

• In international markets, leadership positions in countries with high growth potential.

Groupe Casino is confident in its ability to strengthen its market share in France by improving the price competitiveness of its banners through the reinvestment of purchasing gains and by faster expansion in the convenience and discount formats.

Internationally, the quality of the Group’s assets should drive further strong and profitable growth.

The Group will pursue its €1 billion asset disposal programme and confirms its target of a net debt/EBITDA ratio of less than 2.2x at year-end 2010.