Casino: First-quarter 2011 sales up a very strong 18.8%

Regulatory News:

Casino (Paris: CO):

Consolidated net sales		Q1 2010 €m		Q1 2011 €m		% change QoQ
						Reported		Organic(1)
Continuing operations		6,608.9		7,849.9		18.8%		5.7%
France		4,225.2		4,414.5		4.5%		3.1%
International		2,383.7		3,435.3		44.1%		10.5%

(1) Based on constant scope of consolidation and exchange rates

Organic growth excluding petrol		Q1 2011
Continuing operations		+4.7%
France		+1.2%
International		+10.5%

Consolidated net sales rose by a reported 18.8% in the first three months of 2011.

Changes in scope of consolidation accounted for 10.6 points of the reported gain, mainly reflecting the consolidation of Casas Bahia by GPA and the consolidation of Carrefour Thailand’s operations by Big C effective 1 January 2011.

The currency effect was a positive 2.5%, due to the rise in the Brazilian real, Colombian peso and Thai baht against the Euro.

Higher petrol prices had a 1% positive impact.

The calendar effect was negative in France (-0.7%) and in international markets (-0.8%), primarily due to the shift in Easter from early April in 2010 to late April in 2011.

Organic growth therefore stood at 4.7% (excluding petrol) for the period.

In France, organic sales ended the quarter up 3.1%. The Group continued to gain market share, with a 0.2-point increase over the period.

• Leader Price continued to recover, with same-store sales up 3.8%.
• Excluding petrol and adjusted for the calendar effect, Géant Casino’s same-store performance was similar to the previous quarter’s. Market share was stable over the period.
• Total sales by Monoprix, Casino Supermarkets and Franprix were satisfactory.
• Cdiscount sales grew by 12.2% on an organic basis and now exceed Géant Casino’s non-food sales.

International operations delivered double-digit organic growth in sales, both in South America and Asia.

• South America reported fast 11.1% organic growth, despite unfavourable technical factors (a later Easter and the postponement of a major promotional campaign in Colombia). The region’s very satisfactory performance was led by the dynamic expansion in Brazil and Colombia.
• Sales continued to gain momentum in Asia, with 11.7% organic growth.

Reported sales in international markets rose by 44.1% over the quarter, lifted by the consolidation of Casas Bahia and Carrefour Thailand, and accounted for 44% of the consolidated total for the period.

The Group is confident in its ability to deliver sales growth of more than 10% in each of the next three years.

It confirms its 2011 targets:

• Strengthen market share in France, in particular by continuing to expand in the convenience and discount segments
• Drive-up margin at Franprix-Leader Price
• Continue to deliver strong profitable organic growth in international markets
• Keep-up the asset rotation strategy, with a target of €700 million worth of asset disposals.

*

* *

FRANCE

Sales in France rose 4.5% over the period. Changes in scope of consolidation had a 1.4% positive impact reflecting the consolidation of three Franprix-Leader Price franchisees effective 1^st February 2011. Petrol sales had a 1.8% positive impact. The calendar effect had a 0.7% negative impact.

Excluding petrol sales and adjusted for the calendar effect, organic growth stood at 1.9% for the period.

In € millions		First Quarter
		2010		2011		% change		Organic growth excluding petrol
Net Sales, France		4,225.2		4,414.5		4.5%		1.2%
Franprix – Leader Price		976.9		1,074.2		10.0%		3.0%
Monoprix		470.0		483.2		2.8%		2.7%
Casino France		2,778.4		2,857.1		2.8%		0.3%
Géant Casino hypermarkets		1,247.0		1,276.4		2.4%		-1.7%
Casino Supermarkets		798.7		834.8		4.5%		0.5%
Superettes		350.2		344.8		-1.5%		-1.5%
Other businesses		382.4		401.1		4.9%		6.9%

Same-store sales		First Quarter 2011
		Including petrol		Excluding petrol		Excluding petrol and calendar effect
Franprix		-4.2%		-4.2%		-4.1%
Leader Price		+3.8%		+3.8%		+4.4%
Géant Casino Hypermarkets		+1.5%		-2.7%		-1.6%
Casino Supermarkets		+1.9%		-1.8%		-0.9%
Monoprix		+0.2%		+0.1%		+0.6%

• Franprix-Leader Price

Leader Price reported a 4.4% increase in same-store sales (adjusted for the calendar effect). The banner is continuing to leverage the sales initiatives deployed last year, including price repositioning, the introduction of national brands and stepped up communication. The new concept is still being deployed in line with objectives, with the renovation of 27 stores. During the period, the banner opened six stores. Market share remained stable over the quarter.

At Franprix, same-store sales contracted by 4.2% year-on-year, primarily because of the termination of Sunday afternoon openings. 7 stores were opened during the quarter. Total sales rose by 2.9% on an organic basis including expansion.

Franprix-Leader Price total sales rose by 10.0% during the first quarter.

• Monoprix

Monoprix’s same-store sales were stable. The performance was satisfactory in food. Textile sales were affected by the soft start of the spring-summer collection.

The banner opened 2 Monop over the period. Monoprix reported total sales up 2.8% and continued to improve market share, with a 0.1-point gain in the first quarter.

• Casino France

Géant Casino’s same store sales declined by 1.6%, excluding petrol and the calendar effect. The average basket was almost stable, while footfalls continued to improve (down 1.2% versus 1.9% in the fourth quarter).

Adjusted for the calendar effect, food sales were stable, confirming the improvement observed in the fourth quarter. The 2010 price investments helped to improve the banner’s price positioning, which continued to focus on promotions and loyalty programmes. Market share was stable for the quarter.

Non-food sales declined by 5.6% excluding the calendar effect, in line with the trend over the previous two quarters. Home segment sales continued to stabilise over the period, while the performance of the other segments (apparel, leisure and multimedia) remained disappointing.

Excluding petrol and the calendar effect, Casino Supermarkets saw sales decline by 0.9%. 2 new stores were opened during the period. Total sales excluding petrol rose by 0.5%. Market share held firm during the quarter.

Superette sales decreased by 1.5% in the first quarter.

Sales by the other businesses (Cdiscount, Mercialys, Casino Cafétéria and Banque Casino) rose by 6.9% on an organic basis, driven by 12.2% organic sales growth at Cdiscount. Electrical appliances and houseware turned in a very good performance and the new sections (toys, jewellery) had another successful quarter. Cdiscount’s revenue now exceeds Géant Casino’s non-food revenue.

The multi-channel strategy continued to demonstrate it success, with pick-up sales accounting for a growing proportion of Cdiscount’s revenue.

INTERNATIONAL

Consolidated sales from international operations surged 44.1% in the first quarter.

Changes in scope of consolidation had a 26.7% positive impact, reflecting the consolidation of Casas Bahia by GPA and of Carrefour Thailand’s operations by Big C. At comparable scope of consolidation, sales were up 17.4% for the period.

The currency effect was also favourable, at a positive 6.9%, due to the appreciation of the Brazilian real, Colombian peso and Thai baht against the euro.

Organic growth was maintained in the double digits in both South America and Asia, for a 10.5% gain overall.

Q1 2011		Reported growth		Organic growth		Same-store growth
South America		44.8%		11.1%		+5.4%
Asia		60.3%		11.7%		+5.5%

In South America, same-store sales rose by 5.4%, dampened by unfavourable technical factors related to the later Easter and the postponement of a major promotional campaign in Colombia (which together had an estimated -3.6% impact). Faster expansion both in Brazil and Colombia enabled operations in the region to deliver sustained organic growth of 11.1%.

• In Brazil, GPA reported same-store sales up 6.8%*, which was a satisfactory performance in the light of the unfavourable calendar effect and a high basis of comparison in non-food sales. "GPA Food” same-store sales were up 5.7%* over the period, 8.0%* adjusted for the Easter effect. Same-store sales at Globex ended the quarter 10.5%* higher, lifted by the sustained strong growth in e-commerce sales (up 33%*). Including the impact of expansion and the consolidation of Casas Bahia, total sales in Brazil climbed +55.9%* year-on-year.
• Same-store performance in Colombia was impacted by the postponement to April of a major promotional campaign that in 2010 was rolled out in March. Excluding this effect, performance was very satisfactory for the quarter. Exito continued to deploy its store conversion programme (12 stores converted), and to develop the Exito Express convenience store network, with 10 openings during the period. The company’s more assertive expansion strategy drove sustained growth in total sales.

In Asia, the speed-up in organic growth observed in the fourth quarter continued in first-quarter 2011, with an 11.7% increase.

• In Thailand, Big C enjoyed sustained organic growth, reflecting a satisfactory same-store performance and a higher contribution from expansion. The Rajdamri store, which was closed in second-quarter 2010 in the wake of political unrest, reopened in February. The development of new formats continued apace, with six Mini Big C units and one Pure outlet opened during the period. Carrefour Thailand operations are being gradually integrated in line with the business plan, with all of the stores to be converted to the Big C banner by the end of June.
• Operations in Vietnam enjoyed another quarter of very strong organic growth, led by strong same-store sales momentum and a significant contribution from the expansion drive. A new convenience store concept, called New Cho, was launched during the quarter.

Performance in the Indian Ocean was satisfactory, with same-store sales rising 2.5%.

* Data published by the company.

Main changes in the scope of consolidation

• Consolidation of Casas Bahia by GPA, effective 1 November 2010
• Consolidation of Carrefour operations by Big C, effective 1 January 2011
• Full consolidation of three franchisees by Franprix-Leader Price, effective 1 February 2011

		First Quarter				% change
		2010 €m		2011 €m		In Euros		At constant exchange rates
France		4,225.2		4,414.5		4.5%		4.5%
Of which:
Franprix – Leader-Price		976.9		1,074.2		10.0%		10.0%
Monoprix		470.0		483.2		2.8%		2.8%
Casino France		2,778.4		2,857.1		2.8%		2.8%
Géant Casino Hypermarkets		1,247.0		1,276.4		2.4%		2.4%
Casino Supermarkets		798.7		834.8		4.5%		4.5%
Superettes		350.2		344.8		-1.5%		-1.5%
Other businesses		382.4		401.1		4.9%		4.9%
INTERNATIONAL		2,383.7		3,435.3		44.1%		37.2%
Of which:
South America		1,730.2		2,505.3		44.8%		37.0%
Asia		448.9		719.7		60.3%		53.6%
Other segments		204.6		210.3		2.8%		2.4%
NET SALES – CONTINUING OPERATIONS		6,608.9		7,849.9		18.8%		16.3%

Average exchange rates		Q1 2010		Q1 2011		%Change
Argentina (ARS / EUR)		0.188		0.182		-3.1%
Uruguay (UYP / EUR)		0.037		0.037		1.5%
Thailand (THB / EUR)		0.022		0.024		9.1%
Vietnam (VND/EUR) (x1000)		0.040		0.037		-7.3%
Colombia (COP / EUR) (x1000)		0.370		0.390		5.3%
Brazil (R$ / EUR)		0.401		0.439		9.5%

France		31 March10		31 Dec 10		31 March 11
Géant Casino hypermarkets		122		125		125
Of which French affiliates		5		6		6
International Affiliates		5		5		5
French Franchises				2		1
+ Service stations		99		99		100
Casino supermarkets		394		405		407
Of which French Franchise Affiliates		54		54		51
International Franchise Affiliates		24		27		28
+ Service stations		156		160		162
Franprix supermarkets		798		870		867
Of which Franchise outlets		477		515		375
Monoprix supermarkets		470		494		494
Of which Naturalia		43		49		49
Of which French Franchise Affiliates		46		54		56
Of which International Franchise Affiliates		75		77		77
Leader Price discount stores		562		585		591
Of which Franchise outlets		278		294		184
TOTAL supermarkets and discount stores
Of which Franchise outlets/Stores operated		2,224		2,354		2,359
under business leases		954		1,021		771
Petit Casino superettes		1,804		1,791		1,786
Of which Franchise outlets		28		29		29
Eco Services superettes		3		2		1
Of which Franchises		2		1		0
Spar superettes		895		928		934
Of which Franchise outlets		741		761		762
Vival superettes		1,772		1,767		1,783
Of which Franchise outlets		1,772		1,766		1,782
Casitalia and C’Asia superettes		1		1		1
Other Franchise stores		1,310		1, 260		1,206
Corners, Relay, Shell, Elf, Carmag, other		1,310		1,260		1,206
Wholesale outlets		1,020		926		922
TOTAL CONVENIENCE STORES
Of which Franchise outlets/Stores operated		6,805		6,675		6,633
under business leases/ Wholesales		4,874		4,744		4,702
Other affiliate stores		16		20		20
Of which French affiliates		15		17		17
International Affiliates		1		3		3
Other businesses		284		287		284
Casino Restauration		284		287		284
TOTAL France		9,451		9,461		9,421
Hypermarkets		122		125		125
Supermarkets		1,662		1,769		1,768
Discount stores		562		585		591
Superettes and other stores		6,821		6,695		6,653
Other		284		287		284

International		31 March10		31 Dec 10		31 March 11
ARGENTINA		22		23		23
Libertad hypermarkets		14		15		15
Other businesses		8		8		8
URUGUAY		53		53		53
Géant hypermarkets		1		1		1
Disco supermarkets		28		28		28
Devoto supermarkets		24		24		24
BRAZIL
Extra hypermarkets				1,647		1,647
Pão de Açúcar supermarkets		1,089		110		114
Sendas supermarkets		104		149		151
Extra Perto supermarkets		145		17		13
CompreBem supermarkets		67		101		118
Assai discount stores		13		113		93
Extra Facil convenience stores		155		57		59
Eletro, Ponto Frio, Casas Bahia (other		42		68		67
businesses)		61		1032		1,032
Of which Ponto Frio		502		506		506
Of which Casas Bahia		455		526		526
THAILAND				116		168
Big C hypermarkets				70		105
Big C supermarkets		97		2		10
Mini Big C convenience stores		67		15		22
Pure stores (other businesses)		30		29		31
VIETNAM						15
Big C hypermarkets		10		14		14
New Cho convenience store		10		14		1
INDIAN OCEAN		49		50		50
Jumbo hypermarkets		11		11		11
Score/Jumbo supermarkets		21		21		21
Cash and Carry supermarkets		5		5		5
Spar supermarkets		6		7		7
Other businesses		6		76		6
COLOMBIA
Exito hypermarkets		260		299		303
Pomona, Carulla and Exito supermarkets		74		73		75
Surtimax discount stores		91		112		112
Exito Express, Carulla Express convenience		49		54		57
stores		11		22		32
Ley and others		35		38		27
TOTAL INTERNATIONAL		1, 580		2,202		2,259
Hypermarkets		281		294		335
Supermarkets		555		579		582
Discount stores		91		111		116
Convenience stores		83		105		122
Other businesses		570		1,113		1,104