Casino Group: 2022 fourth quarter and full-year net sales
*2022 FOURTH QUARTER AND FULL-YEAR NET SALES*
*Strong growth in Latin America; accelerated expansion in France*
*Consolidated net sales growth in 2022 driven by Latin America and buoyant formats in France in an inflationary environment*
· *Consolidated net sales: €33.6bn* (*+5.2% on a same-store basis, *+10% as reported)
· *France Retail: up +1.5% on a same-store basis*, with a solid performance from convenience (+6.6%) and Franprix (+3.4%)
· *Cdiscount: improvement in the business mix with a marketplace GMV contribution of 52% (+6 pts) *in a contracting e-commerce market
· *Latin America: up +12**% on a same-store basis* (+23% as reported), with excellent performances from Assaí (+31% as reported^1, +10% on a same-store basis^1) and Grupo Éxito (+21% as reported^1, +21% on a same-store basis^1)
*Q4 2022: strong growth in Latin America, stability in France*
· *Consolidated net sales: €9.2bn *(*+4.4% on a same-store basis, *+10% as reported)
· *France Retail: same-store sales remained stable (+0.1%*), with growth in Parisian banners (Franprix +5.5%, Monoprix +1.8%) and convenience (+4.4%)
· *Cdiscount: acceleration in the marketplace, which accounte**d for 54% of total GMV (+9 pts)*
· *Latin America: up +12% on a same-store basis* (+24% as reported), with excellent performances from Assaí (+38% as reported^1, +11% on a same-store basis^1) and Grupo Éxito (+18% as reported^1, +16% on a same-store basis^1)
*Success of the expansion strategy in France *
· *879 stores were opened* *in convenience formats in 2022*, exceeding the 800-store target, 352 of which were opened in Q4 – mainly under franchise
· In all, newly opened stores and new affiliates in convenience or supermarket formats in 2022 represented *gross sales under banner of more than €500m on a full-year basis*
*Consolidated net sales by segment*
* Q4 2022/Q4 2021 change * * 2022/2021*
*Net sales (in €m)*
*Change* *Change*
*Q4 2022* *Total* *Organic*^2 *Same-store*^2 *2022* *Total* *Organic*^2 *Same-store*^2
France Retail 3,636 -0.3% -0.9% +0.1% 14,205 +1.0% +0.4% +1.5%
Cdiscount 451 -23.8% -23.8% -23.8% 1,620 -20.2% -20.5% -20.5%
*Total France* *4,087* *-3.6%* *-4.4%* *-5.1%* *15,825* *-1.7%* *-2.4%* *-2.6%*
Latam Retail 5,068 +23.7% +13.4% +12.0% 17,785 +23.1% +10.5% +12.3%
*GROUP TOTAL* *9,155* *+9.8%* *+4.6%* *+4.4%* *33,610* *+10.0%* *+3.8%* *+5.2%*
Cdiscount GMV^3 940 -22.2% n.a. n.a. 3,497 -16.8% n.a. n.a.
In the fourth quarter of 2022, the currency effect stood at +5.7%, the fuel effect was +0.4%, the calendar effect was -0.2% and changes in scope of consolidation had a negative impact of -0.7%.
In 2022, the currency effect stood at +6.4%, the fuel effect was +0.3%, the calendar effect was -0.2% and changes in scope of consolidation had a negative impact of -0.3%.*Consolidated net sales in France by banner*
* Q4 2022/Q4 2021* * 2022/2021*
Net sales by banner (in €m)
* T4 *
*2022*
Change *2022*
Change
Total Organic^4 Same-store^4 Total Organic^4 Same-store^4
Hypermarkets 756 -15.9%^5 -6.1% -6.2% 3,091 -10.2%^2 -1.0% -0.1%
Supermarkets 886 +15.5%^2 -6.7% -4.0% 3,402 +13.5%^2 -2.2% -0.4%
Convenience & Other^6 434 +2.1% -0.9% +4.5% 1,842 +3.1% +1.4% +6.6%
o/w Convenience^7 342 +4.7% +5.6% +4.4% 1,507 +8.0% +8.8% +6.6%
Monoprix 1,179 -1.0% +4.2% +1.8% 4,393 -0.3% +1.8% +1.2%
Franprix 381 +4.3% +4.6% +5.5% 1,477 +2.7% +3.5% +3.4%
*FRANCE RETAIL* *3,636* *-0.3%* *-0.9%* *+0.1%* *14,205* *+1.0%* *+0.4%* *+1.5%*
*Gross sales under banner in France*
TOTAL ESTIMATED GROSS SALES
UNDER BANNER (in €m, including fuel) *Change *
*(incl. calendar effects)* *Q4 2022* *Q4 2022* *FY 2022*
Hypermarkets 840 -11.4% -6.9%
Supermarkets 925 +12.6% +10.7%
Convenience & Other 629 +4.6% +2.4%
o/w Convenience 537 +9.8% +7.8%
Monoprix 1,251 +0.6% +0.9%
Franprix 454 +7.9% +4.1%
*TOTAL FRANCE* 4,098 +1.6% +1.7%
Sales for the France Retail segment in 2022 amounted to €14,205m, up +1.5% on a same-store basis. Q4 same-store sales remained stable (+0.1%) at €3,636m.
The quarter saw a* significant ramp-up in the expansion strategy for convenience formats*, related in particular to the arrival of master franchisees in October (Magne, Bérard, etc.). The Group opened* 352 new stores **in convenience formats **during the quarter *(Franprix, Spar, Vival, etc.) and *879 new stores over the year*, exceeding its initial target of 800 new store openings in 2022.
The Group also accelerated its pace of converting traditional Géant hypermarkets into *Casino Hyper Frais stores, *with* 32 new conversions completed in Q4 *(after 15 conversions in Q3 and 4 in Q2), bringing the total number of converted stores to 51 at end-2022. The remaining 10 hypermarkets will be converted into the Casino Hyper Frais format in H1 2023.
This strategy is reflected in *increased* *customer loyalty*, with the success of subscriptions in the Casino, Monoprix and Naturalia banners. The Group had more than *370,000 paying subscribers* at end-2022 (300,000 at end-June 2022).
*The food E-commerce segment *reported *+8%* growth in net sales for the quarter.
*Business review by banner:*
· *Monoprix*^*8* net sales grew by *+1.2% on a same-store basis throughout 2022 and by +1.8% in Q4*. Monoprix City and Monop' stores recorded same-store sales growth of +2.8% and a +4% increase in customer traffic over the quarter, buoyed by strong momentum at Monop' (+9% on a same-store basis with a +10% rise in customer traffic). The banner further expanded its store network during the quarter, with *16 new store openings, bringing the total number of store openings over the year to 54*, mainly under franchise. Monoprix plans to *accelerate its expansion*, with almost 100 store openings planned for 2023, primarily under the Monop' banner.
· *Franprix *sales were *up by +3.4% on a same-store basis over the year and by +5.5% for the quarter*, driven by good momentum in customer traffic (+5.4%), sales of Leader Price products (representing 8.5% of sales in Q4, with a target share of 10% in 2023) and the accelerated growth of e-commerce. Gross sales under banner rose by +7.9% over the quarter (+4.1% over the year). The expansion strategy in target areas (Paris and the Ile de France region, the Rhône-Alpes region and the northern Mediterranean region) continued, with *33 new stores opened during the quarter *and *three new master franchise agreements signed in December*. Over the year as a whole, the banner opened *181 stores*, including 136 in Ile de France (960 stores in the Ile de France network at end-2022). The banner plans to maintain this pace of new store openings in 2023 and step up its strategy in H1 2023 of attracting independent retailers to the franchise network.
· *Convenience *net sales* grew by +6.6% on a same-store basis over the year and by +4.4% in Q4*, driven by the appeal of a format suited to customer needs in high-growth areas. Gross sales under banner rose by +9.8% over the quarter (+7.8% over the year). *Store network expansion* *accelerated over the quarter, with* *306 store openings*, including 161 points of sale in the Auvergne-Rhône-Alpes, Occitanie and Provence-Alpes-Côte d'Azur regions, corresponding to the arrival in October of *master franchisees *(Magne, Bérard, etc.). A *total of 652 stores were opened in 2022*, i.e. almost two stores per day.
· After expanding in the first nine months of the year, *Casino Supermarkets and Hypermarkets experienced a reverse trend in Q4*, due to a more difficult competitive environment late in the year, in which the Group controlled its spending on promotions and communication. Supermarkets nevertheless enjoyed solid growth of +7.3% in gross sales under franchised formats over the quarter (of which +2% on a same-store basis). In light of the above, the priority in Q1 2023 is to:
· Implement price and promotional policies adjustments in both banners (launched in December);
· Step up targeted sales strategies for Leader Price products, which saw +95% growth in Q4 in Supermarkets/Hypermarkets, with: (i) introduction of a core selection of 2,000 Leader Price products (85% of the range secured to date), (ii) deployment of “shops-in-shops” (300 to 1,200 product listings) and in-store corners (50 to 300 product listings), with the aim of respectively opening 23 and 200 “shops-in-shops” in hypermarkets and supermarkets and expanding 150 corners in supermarkets by the end of Q1, and (iii) target 18 Leader Price store openings in Q1 2023;
· Roll out an expansion strategy in 2023, including the arrival in H1 of new franchise partners previously affiliated with other networks, and a plan to franchise part of the network.
*Cdiscount*^*9*
Cdiscount is accelerating its *transformation towards a profitable business model*:
· *Sharp increase in Cdiscount’s gross margin, up to 23.2% of net sales in 2022* (+1.3 pt year on year, +5.4 pts versus 2019), driven by an improved business mix in favour of marketplace GMV, which accounted for 54% of total GMV in Q4 (+9 pts) and 52% over the year (+6 pts year on year, +13 pts versus 2019);
· *€191m in marketplace revenues in 2022* (-2% year on year), up +28% on 2019, with a solid and steady increase in the GMV take rate^10 to 16.2% (+0.7 pt year on year, +1.7 pt on 2019);
· *Continued **development of digital marketing, with revenues up +5% over the year (x1.8 versus 2019)*. The GMV take rate^10 has risen steadily over the last few years, reaching 3.1% in 2022 (+0.7 pt versus 2021, +1.6 pt versus 2019);
· *B2B business growth* remains a major source of long-term value creation. *Octopia reported +66%** **growth in B2B revenues in 2022, with 14 new clients over the year *for its turnkey marketplace solution. It had a total of 26 clients at the end of 2022, of which 17 are already live on the platform;
· *The cost savings plan targeting €75m on a full-year basis by end-2023* is ongoing, outperforming the objectives initially set. It generated *€47m in savings in 2022* (a €29m decrease in general expenses and an €18m decrease in capital expenditure), or *€17m more than the expected savings*.
Key figures (in €m) *2022* *2021* *Reported growth* *Organic growth*
*Total GMV including tax*^*11* *3,497* *4,206* *-16.8%* *-14.5%*
o/w direct sales 1,340 1,840 -27.2%
o/w marketplace sales 1,421 1,518 -6.4%
Marketplace contribution (%) 51.5% 45.2% +6.3 pts
Marketplace revenues^12 191 196 -2.2%
Digital marketing revenues^12 71 68 +5.4%
Octopia B2B revenues^12 19 11 +66.4%
*Net sales*^*12* *1,700* *2,163* *-21.4%* *-20.7%*
Cnova published its FY 2022 results on 22 February 2022, before market opening.
*Latam Retail*
The Group's net sales in *Latin America* (Assaí, GPA Brazil and Grupo Éxito) rose by a total of *+23.7% as reported during the quarter, by +12.0% on a same-store basis*, and by *+13.4% on an organic basis*. The quarter was shaped once again by excellent performances from Assaí and Grupo Éxito.
*Conversion of Extra hypermarkets: *the process of converting Extra hypermarkets to Assaí's cash & carry format accelerated in Q4, with *47 conversions* *in 2022* (of which 33 took place during the quarter), *ahead of the* *45-conversion target set for H2 2022*. *GPA also completed the transformation of the Extra** **hypermarkets not sold to Assaí in 2022*, with 23 stores converted into Mercado Extra, Compre Bem and Pão de Açúcar formats.
· In *Brazil*, net sales increased by *+9.7% on a same-store basis* and by *+12.2% on an organic basis*:
· *Assaí*^*13* reported *+38% organic growth* for the quarter, led by solid same-store net sales (*+10.5%*) and the excellent performance of the *60 stores opened **over the year*. In an unsettled macroeconomic environment in Brazil, Assaí won significant market share and exceeded expectations in terms of network expansion, with (i) a new record of 60 store openings in 2022, ahead of the initial target of 52 openings and (ii) outperformance of the 47 converted stores, which are already among the best performers in terms of customer traffic, thereby confirming the high expectations of the conversion project;
· *GPA Brazil*^*13* sales were up by *+7.3%* *on a same-store basis*, a sequential improvement on Q3 (+6.6%). Excluding the hypermarket closure effect, the year-on-year growth in *online sales* came out at *+7%*.
· *Convenience* formats recorded* double-digit same-store net sales growth of +17.3%*, thanks to increased traffic in high density areas;
· The *Compre Bem* and *Mercado Extra* banners delivered *same-store growth of +4.1%*;
· *Pão de Açúcar* 's sales increased by *+6.7% on a same-store basis*, mainly driven by the progress made in the strategy to increase penetration of perishables, as well as the strong growth in basic grocery items.
· For the sixth consecutive quarter, *Grupo Exito*^*13* reported double-digit same-store growth *(+16.3%*), with solid performances in the three countries in which it operates. Growth was again driven by increased store traffic and the good performance of innovative formats. Omni-channel sales accounted for 9.5% of the total for the quarter.
· *Colombia*: *+12.1%* same-store growth driven by the solid performance of the cash & carry business. The proportion of omnichannel sales in the country increased by +0.5 pt year on year to represent 11.9% of total sales in the quarter;
· *Uruguay*: sales up *+13.7%* on a same-store basis;
· *Argentina:* same-store sales up* +95%*, outpacing inflation (around +76% during the quarter).
Assaí published its 2022 earnings on 15 February 2023 after market closing.
GPA and Grupo Éxito published their 2022 earnings on 27 February 2023 after market closing.
*Store network*
FRANCE *31 Dec. 2021* *31 March 2022* *30 June 2022* *30 Sept. 2022* *31 Dec. 2022*
*Géant Casino/Hyper Frais **HM* *95* *97* *77* *77* *77*
o/w French franchised affiliates 3 3 3 3 3
International affiliates 7 9 9 9 9
*Casino Supermarkets * *429* *437* *464* *461* *474*
o/w French franchised affiliates 61 60 62 63 63
International affiliates 26 27 27 23 24
*Monoprix *(Monop’, Naturalia, etc.) *838* *842* *853* *849* *858*
o/w franchised affiliates 206 215 226 235 255
Naturalia integrated stores 198 198 194 183 181
Naturalia franchises 51 51 55 63 65
*Franprix* *942* *978* *1,035* *1,069* *1,098*
o/w franchises 614 649 711 747 775
Franprix banner 782 799 822 836 864
Other banners (Marché d’à côté, etc.) 160 179 213 233 234
*Convenience*
o/w Vival
o/w Spar
o/w Petit Casino and similar
o/w oil companies
o/w affiliates
o/w other convenience outlets^14 *5,728*
1,724
898
946
1,370
90
700 *5,859*
1,762
903
985
1,393
92
724 *5,960*
1,779
908
1,019
1,400
92
762 *6,060*
1,786
913
1,043
1,414
94
810 *6,313*
1,978
951
1,048
1,422
100
814
*Leader Price*^*15* *68* *68* *65* *63* *66*
*Other businesses*^*16* *222* *223* *216* *218* *221*
*Total France* *8,322* *8,504* *8,670* *8,797* *9,107*
INTERNATIONAL *31 Dec. 2021* *31 March 2022* *30 June 2022* *30 Sept. 2022* *31 Dec. 2022*
*ARGENTINA * *25* *25* *26* *29* *33*
Libertad hypermarkets 15 15 16 14 14
DI Libertad 5 9
Mini Libertad and Petit Libertad mini-supermarkets 10 10 10 10 10
*URUGUAY* *94* *93* *93* *92* *96*
Géant hypermarkets 2 2 2 2 2
Disco supermarkets 30 30 30 30 30
Devoto supermarkets 24 24 24 24 26
Devoto Express mini-supermarkets 36 35 35 34 36
Möte 2 2 2 2 2
*BRAZIL* *1,021* *917* *914* *932* *998*
Assaí (cash & carry) 212 216 220 233 263
Extra hypermarkets 72 31 21 5 3
Pão de Açúcar supermarkets 181 181 179 190 194
Extra supermarkets 146 146 149 153 154
Compre Bem 28 28 30 30 29
Mini Mercado Extra & Minuto Pão de Açúcar mini-supermarkets 240 241 241 247 281
Drugstores 68
+ Service stations 74 74 74 74 74
*COLOMBIA* *2,063* *2,036* *2,049* *2,068* *2,155*
Éxito hypermarkets 91 91 91 91 94
Éxito and Carulla supermarkets 158 153 153 153 154
Super Inter supermarkets 61 60 60 60 60
Surtimax (discount) 1,632 1,619 1,634 1,652 1,733
o/w “Aliados” 1,560 1,549 1,564 1,585 1,663
B2B 36 37 41 42 46
Éxito Express and Carulla Express mini-supermarkets 85 76 70 70 68
*Total Latin America* *3,203* *3,071* *3,082* *3,121* *3,282*
*APPENDICES – OTHER INFORMATION*
*Main changes in scope*
· Conversion of 20 Géant Casino hypermarkets into Casino supermarkets on 1 May 2022
· Sale of Sarenza on 1 October 2022 (Monoprix)
*Exchange rate *
AVERAGE EXCHANGE RATES *2021* *2022* *Currency effect*
Brazil (EUR/BRL) 6.3797 5.4376 +17.3%
Colombia (EUR/COP) (x 1,000) 4.4265 4.4718 -1.0%
Uruguay (EUR/UYP) 51.5217 43.3788 +18.8%
Argentina^17 (EUR/ARS) 116.7629 190.4643 -38.7%
*Analyst and investor contacts*
*-*
*Christopher Welton *+ 33 (0)1 53 65 64 17 – cwelton.exterieur@groupe-casino.fr
or
+ 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.fr
or
+ 33(0)1 53 65 24 78 – directiondelacommunication@groupe-casino.fr-
*Agence IMAGE 7*
*Karine Allouis *+33 (0)1 53 70 74 84 – kallouis@image7.fr
*Laurent Poinsot *+ 33(0)6 80 11 73 52 – lpoinsot@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 Data published by the subsidiary
^2 Excluding fuel and calendar effects
3 Data published by the subsidiary, GMV including tax
4 Excluding fuel and calendar effects
^5 Total growth including the conversion of 20 hypermarkets into supermarkets
6 Miscellaneous: mainly Geimex
7 Convenience segment net sales on a same-store basis include the same-store performance of franchised stores
8 Monoprix City including e-commerce, Monop' and Naturalia
9 Data published by Cnova NV. The reported figures present all revenues generated by Cdiscount, including its technical goods sales in Casino Group’s hypermarkets and supermarkets
^10 Calculated as revenues divided by product GMV excluding tax
11 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 services and Octopia
12 Excluding tax
13 Data published by the subsidiaries – GPA same-store changes excluding gas stations
14 Outlets under specific banners with a Casino supply contract
15 Leader Price stores in France. Leader Price international franchises (Geimex) are recorded in "Other activities"
16 Other activities include Geimex and 3C Cameroon stores
17 Pursuant to the application of IAS 29, the exchange rate used to convert the Argentina figures corresponds to the rate at the reporting date
*Attachment*
· 28-02-2023 - Press Release - Q4 2022 Sales