Bloomberg – Casino Guichard-Perrachon SA (CO), the owner of Monoprix and Big C supermarkets, reported an 18 percent jump in 2013 earnings, led by gains in Brazil, and said it’s targeting a resumption of sales growth in France this year.
So-called trading profit advanced to 2.36 billion euros ($3.24 billion), the Saint Etienne, France-based grocer said today in a statement. Analysts predicted 2.35 billion euros, according to the average of 12 estimates compiled by Bloomberg.
Casino is cutting prices in France to revive sales, while introducing new formats such as cash and carry in Thailand and online stores in South America, where revenue growth is strongest. While further investment in the Leader Price and Franprix French discount stores may hold back earnings, it’s the right long-term strategy, Sanford C. Bernstein analyst Bruno Monteyne said yesterday in a note to clients.
In 2014, Casino will “roll out its discount banners, strengthen its position in premium formats, pursue its expansion in the convenience formats and develop non-food e-commerce,” the retailer said in the statement. Casino is also targeting trading profit growth in organic terms, continued international organic sales growth and an improvement of its financial structure, it said.
International trading profit rose 33 percent, with the strongest performance coming from Brazil, it said.
Total revenue reached 48.6 billion euros last year, the grocer said Jan. 14. French sales fell 3.9 percent on an organic basis, it said at the time.
