THIRD-QUARTER 2024
Restructuring plan now secured
- Hypermarkets and Supermarkets disposals completed on schedule
- 425 stores sold since September 2023, of which 135 in Q3 2024 and 18 on 1 October 2024
- The activity of all hypermarkets and supermarkets operated by the Group has now virtually ceased, with the remaining stores1 to be sold or closed by year-end
- Approval and roll-out of Employment Protection Plans
- Seven agreements signed with trade unions and validated by the authorities
- Implementation of Employment Protection Plans currently ongoing (voluntary redundancy and in-placement schemes, and initial redundancy notifications)
- Quatrim debt reduction
- Repayment of almost €200m to holders of secured Quatrim bonds using proceeds from real estate sales, in particular to Tikehau Capital
- Renewal of strategic partnerships
- Aura Retail purchasing partnership created between Intermarché, Auchan and Casino, for a period of 10 years
- Supply partnerships renewed with the Sherpa stores network and TotalEnergies service stations network
- Store network streamlining of convenience brands currently in progress
- 141 unprofitable stores closed, 50 stores opened as franchises and 15 integrated stores converted to franchise or business lease over the quarter
- Presentation of the 2028 Strategic Plan on 14 November 2024
- Consolidated net sales of €2.1bn (-1.8% on a same-store basis2) in Q3 2024
- Convenience brands: €1.8bn (-0.7% on a same-store basis)
- Monoprix: €1,012m (+0.9%)
- Franprix: €372m (-1.2%)
- Casino: €413m (-4.5%)
- Cdiscount: €243m (-8.1% on a same-store basis)
- Convenience brands: €1.8bn (-0.7% on a same-store basis)
- Adjusted EBITDA2 of €402m over the first nine months of 2024 (-24%), 6.4% margin
- Free cash flow2 of -€539m over the first nine months of 2024 (-€846m over the first nine months of 2023) after payment of social security and tax liabilities placed under moratorium in 2023 (-€153m)
Consolidated net sales amounted to €2.1bn in Q3 2024, down -1.8% on a same-store basis and -5.1% as reported after taking into account the effects of changes in scope and store network streamlining (around -3.0%) and a calendar effect (-0.3%).
| vs. Q3 2023 | vs. Q2 2023 | ||||||||
| Net sales by brand (in €m)
| Q3 2024
| Change | Q2
2024 | Change | |||||
| Same-store | Total | Same-store | Total | ||||||
| Monoprix | 1,012 | +0.9% | +0.1% | 1,071 | +0.8% | -1.6% | |||
| Franprix3 | 372 | -1.2% | -6.1% | 408 | +0.1% | -6.3% | |||
| Casino3 | 413 | -4.5% | -10.3% | 351 | -5.1% | -13.2% | |||
| Convenience brands | 1,797 | -0.7% | -3.8% | 1,831 | -0.5% | -5.1% | |||
| Cdiscount | 243 | -8.1% | -12.7% | 226 | -16.5% | -20.4% | |||
| Other3 | 28 | +2.6% | -17.5% | 29 | +9.3% | -13.2% | |||
| CASINO GROUP | 2,067 | -1.8% | -5.1% | 2,086 | -3.1% | -7.1% | |||
Convenience brands (Monoprix, Franprix and Casino) reported a -0.7% decline in net sales on a same-store basis in a deteriorated market4, largely unchanged from Q2.
The Group and its employees worked hard to meet demand throughout the Paris 2024 Olympic and Paralympic Games, especially at the exposed brands in the Paris region (Monoprix, Franprix), which saw a sharp acceleration in business during the first half of August. However, the overall impact on Q3 was neutral, as these positive effects were offset by (i) disruptions relating to security and installations for the Olympics opening ceremony and events (store accessibility), and (ii) Parisians leaving earlier for the summer holidays and fewer tourists visiting Paris before and after the Games.
Store network streamlining continued over the quarter, with 141 unprofitable stores closed (449 since the start of the year), 50 stores opened as franchises or under business lease (192 since the start of the year), 15 integrated stores converted to franchises or business lease (76 since the start of the year) and 7 franchised stores transferred to the integrated network or under business lease (12 since the start of the year).
- Monoprix recorded same-store sales growth of +0.9% over the quarter, reflecting the momentum of Monop (+4.4%) and Naturalia (+3.9%) brands and a return to growth for Monoprix City (+0.5%), driven by its non-food performance (+3.6%). Non-food sales were particularly buoyant this quarter, both in stores (textile sales up +14%) and online (Textiles/Home/Leisure sales up +28%). Monoprix continued to gain new customers over the period (customer traffic up by +1.8%).
- Franprix sales were down -1.2% on a same-store basis, mainly because of a disappointing September
(-3.7%). The brand is continuing its strategy of improving its price image, in particular with a plan to cut prices on a selection of 150 of the top-selling products in September (-0.5 pts impact on sales at constant volume). September was also impacted by (i) unfavourable weather conditions which reduced sales of seasonal products (-1.9 pts) and (ii) the non-renewal of the dilutive "Bibi" promotion in September 2023
(-1.9 pts). Franprix continued to gain new customers over the quarter, with customer traffic up by +0.8%.
- Net sales by Casino brands (Vival, Spar, Casino, etc.) fell by -4.5% on a same-store basis over the quarter, in an environment that remains disrupted by sales of hypermarkets and supermarkets, which led to an overhaul of DCF's5 logistics organisation and a review of the product range. Sales were also negatively impacted by price cuts aimed at franchise customers and by a disappointing September (-7.2%) caused by unfavourable weather conditions, which led to an underperformance of seasonal stores and seasonal product families (liquid, fresh, etc.).
The highlight of the quarter was the return to slight growth in overall comparable GMV7 (vs. -12% in Q1 2024, -9% in Q2 2024) following two years of transformation, reflecting in particular an +8% increase in Marketplace GMV in Q3, gradually improving quarter after quarter (-4% in Q1 2024, -2% in Q2 2024). Cdiscount sales (down -8.1% on a same-store basis) naturally remain impacted by the assertive strategy of streamlining direct sales in favour of the Marketplace, whose GMV represented 67% of product GMV7 over the quarter (+5 pts vs. Q3 2023). Nevertheless, sales have made a sequential improvement since the start of the year (-21.1% in Q1, -16.5% in Q2).
Financial indicators for the first nine months of 2024
| (in €m) | 9 months (2024) | 9 months (2023) |
| Adjusted EBITDA | 402 | 530 |
| Adjusted EBITDA after lease payments | 59 | 197 |
| Free cash flow | -539 | -846 |
Adjusted EBITDA over the first nine months of 2024 came out at €402m (-24%), reflecting a margin of 6.4%
(-156 bps).
| (in €m) | 9 months (2024) | 9 months (2023) | Change |
| Monoprix | 273 | 324 | -51 |
| Franprix | 75 | 106 | -31 |
| Casino | 46 | 49 | -3 |
| Convenience brands | 394 | 479 | -85 |
| Cdiscount | 44 | 50 | -6 |
| Other9 | (35) | 1 | -37 |
| Group adjusted EBITDA margin | 402 6.4% | 530 8.0% | -127 -156 bps |
Adjusted EBITDA for convenience brands fell by -€85m over the first nine months of 2024. The first nine months of 2023 had benefited from €38m in income, including €15m in tax sponsorship credits (no additional sponsorship credits were recognised in 2024) and €23m in income spread over the contract between Monoprix and Getir/Gorillas (contract terminated during Q3 2023).
Apart from these one-off effects, adjusted EBITDA fell by -€47m, of which:
- -€18m for Monoprix, impacted by an unfavourable margin mix and costs inflation not fully offset by the cost-savings plans;
- -€28m for Franprix, mainly due to the impact on margins of price cuts introduced in Q3, the decline in sales performance in Q3, which was particularly disappointing in September, and impairment of trade receivables from franchises in connection with the economic downturn;
- -€2m for Casino, virtually unchanged, despite the fall in net sales (price cuts, impacts of changes to the logistics organisation).
Cdiscount
Adjusted EBITDA10 fell by -€6m over the first nine months, but the gross margin (as a percentage of net sales) improved due to a strategic focus on higher-margin services (Marketplace, advertising, B2B). It should be noted that, as a result of the logistics streamlining plans implemented by Cdiscount over the last two years, annual rental costs have fallen sharply, enabling adjusted EBITDA after lease payments to grow by +€1m.
Other
Adjusted EBITDA from other subsidiaries and the holding company (change of -€37m) was heavily impacted by:
- -€5m reduction in fees received following the sale of Sudeco, the property management company sold by IGC in March 2023;
- Cost dis-synergies at head office level (-€38m) related to the HM/SM disposals and taking into account the consequences of job protection plans. The Group is currently working to improve its operating costs to net sales ratio. The action plans will be presented on 14 November, together with the Strategic Plan.
| (in €m) | 9 months (2024) | 9 months (2023) |
| Monoprix | 60 | 126 |
| Franprix | 13 | 47 |
| Casino | 14 | 16 |
| Convenience brands | 87 | 189 |
| Cdiscount | 27 | 26 |
| Other12 | (55) | (18) |
| Adjusted EBITDA after Group lease payments | 59 | 197 |
Over the first nine months of 2024, free cash flow stood at -€539m (-€846m over the first nine months of 2023) after payment of €153m in social security and tax liabilities placed under moratorium in 2023. Excluding this non-recurring amount of -€153m, free cash flow would stand at -€386m.
| (in €m) | 9 months (2024) | 9 months (2023) |
| Operating cash flow | 7 | 60 |
| o/w Adjusted EBITDA after lease payments | 59 | 197 |
| o/w Non-recurring items | (57) | (99) |
| o/w Other items | 5 | (38) |
| Net capex | (214) | (252) |
| Income taxes | (18) | (6) |
| Change in working capital | (314) | (648) |
| Free cash flow | (539) | (846) |
It should be noted that, although the calculation is required by the loan documentation, the covenant is indicative at this time ("holiday period") until 30 September 2025. The scope of the covenant test corresponds to the Group, adjusted mainly for the subsidiaries Quatrim, Mayland (Poland) and Wilkes (Brazil).
| (in €m) | At 30 September 2024 | At 30 June 2024 |
| Covenant adjusted EBITDA1 | 181 | 230 |
| Covenant net debt1 | 1,119 | 1,244 |
| Covenant net debt/Covenant adjusted EBITDA | 6.17x | 5.41x |
Asset disposals
Sale of hypermarkets and supermarkets (HM/SM)
Over the quarter, the Group sold 135 stores:
- 131 stores sold to Groupement Les Mousquetaires and Auchan Retail France:
- In accordance with the agreements signed on 24 January 2024, 66 stores were sold on 1 July to Groupement les Mousquetaires and Auchan Retail France (63 SM, 1 Spar and 2 drive-throughs);
- In accordance with the agreements signed on 26 May 2023, the Group sold its 51% controlling interest in 65 stores to Groupement les Mousquetaires, who had already owned a 49% stake in these stores since 30 September 202314:
- 1 July: sale of its residual 51% controlling interest in 5 HM
- 30 September: sale of its residual 51% controlling interest in 60 stores (1 HM, 48 SM and 11 Franprix/Leader Price/Casino stores)
- 4 supermarkets sold on 30 September 2024, now under the Super U and Lidl banners
Sale of Codim 2
In accordance with the agreements announced on 22 June 2024, Casino Group completed on 1 October the sale to Rocca Group of 100% of its subsidiary Codim 216, which employs all the employees of the stores sold, which will operate under the Auchan banner, and which also owns the head office of Codim 2.
Casino Group continues to operate the Vival, Spar and Casino brands in Corsica through its convenience stores.
Real estate disposals
- On 26 September, Casino Group completed the sale of 26 real estate assets to Tikehau Capital for a net selling price of over €200m, excluding any subsequent earn-outs. Tikehau Capital has entrusted the management of these property assets to Casino Group for a period of 5 years.
- In addition, Quatrim and its subsidiaries sold real estate properties during the quarter for a total of €7m.
On 23 September, Intermarché, Auchan and Casino Group signed a long-term purchasing partnership with the creation of the Aura Retail alliance, offering purchasing partnerships between the three groups for a period of 10 years:
- Food purchases: three joint purchasing units managed by Intermarché
- Aura Retail Achats Alimentaires
- Aura Retail International Food Services
- Aura Retail Private Label
- Non-food purchases of national brands: two units managed by Auchan
- Aura Retail Achats Non Alimentaires
- Aura Retail International Non-Food Services
- Private-label non-food purchases: Organisation Intragroupe des Achats (OIA) central purchasing unit
Employment Protection Plans (EPP)
On 24 April 2024, Casino Group launched a transformation plan to align its organisation with its new scope, focused on convenience retailing.
Agreements have been signed with the trade unions in the seven companies concerned, and have been validated by the authorities.
These Employment Protection Plans are currently being rolled out in the entities concerned. The number of job cuts is expected to be at the upper end of the range initially announced, but the number of layoffs will be significantly lower than the number of jobs that are eliminated thanks to the implementation of voluntary redundancy schemes (around 400 jobs) and in-placement schemes (1,200 jobs currently vacant and open to internal redeployment). Natural attrition (retirement, etc.) in recent months has also reduced the projected number of redundancies or created vacancies that can become in-placement opportunities. The Group's objective is to limit forced redundancies.
See the press release
The Group points out that a provision for restructuring has been recorded in the 2024 interim consolidated financial statements17 in line with the decision taken by the Board of Directors on 24 April 2024, to cover the estimated costs associated with the EPP plans. These costs form an integral part of the expenses relating to discontinued HM/SM activities.
Strategic Plan
The Group will present its 2028 Strategic Plan on 14 November, detailing the recovery plan designed to restore the Group's financial health and transform it into the leading convenience store retailer.
A press release and a presentation will be available on the Company's website.
APPENDICES
Net sales by brand
| Net sales by brand (in €m)
| 9 months (2024)
| Change | ||
| Same-store | Total | |||
| Monoprix | 3,163 | +0.8% | -0.2% | |
| Franprix | 1,187 | -0.1% | -5.2% | |
| Casino | 1,113 | -4.1% | -9.1% | |
| Convenience brands | 5,462 | -0.4% | -3.3% | |
| Cdiscount | 711 | -15.5% | -19.3% | |
| Other | 86 | +5.1% | -19.0% | |
| CASINO GROUP | 6,259 | -2.9% | -5.6% | |
| Estimated gross merchandise volume by brand (in €m, including fuel) | Q3 2024 | Change (incl. calendar effects) | 9 months (2024) | Change (incl. calendar effects) | ||
| Monoprix | 1,060 | +0.6% | 3,313 | +0.8% | ||
| Franprix | 451 | -4.4% | 1,437 | -2.7% | ||
| Casino | 703 | -6.3% | 1,810 | -4.7% | ||
| TOTAL CONVENIENCE BRANDS | 2,213 | -2.7% | 6,559 | -1.5% | ||
| Cdiscount | 541 | -2.2% | 1,534 | -9.4% | ||
| Other | 28 | -17.5 | 86 | -19.0% | ||
| CASINO GROUP TOTAL | 2,782 | -2.8% | 8,180 | -3.3% | ||
| 30 Sept. 2023 | 31 Dec. 2023 | 31 Mar. 2024 | 30 June 2024 | ()[\]\\.,;:\s@\"]+)*)|(\".+\"))@((\[[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\])|(([a-zA-Z\-0-9]+\.)+[a-zA-Z]{2,}))$/;return b.test(a)}$(document).ready(function(){if(performance.navigation.type==2){location.reload(true)}$("iframe[data-lazy-src]").each(function(b){$(this).attr("src",$(this).attr("data-lazy-src"))});if($(".owl-article-body-images").length){$(".owl-article-body-images").owlCarousel({items:1,loop:true,center:false,dots:false,autoPlay:true,mouseDrag:false,touchDrag:false,pullDrag:false,nav:true})}var a=$("#display_full_text").val();if(a==0){$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:$("#cms_article_id").val()},dataType:"json",success:function(b){},error:function(b,d,c){}})}$(".read-full-article").on("click",function(d){d.preventDefault();var b=$(this).attr("data-cmsArticleId");var c=$(this).attr("data-productId");var f=$(this).attr("data-href");dataLayer.push({event:"paywall_click",paywall_name:"the_manila_times_premium",paywall_id:"paywall_article_"+b});$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:b,productId:c},dataType:"json",success:function(e){window.location.href=$("#BASE_URL").val()+f},error:function(e,h,g){}})});$(".article-embedded-newsletter-form .close-btn").on("click",function(){$(".article-embedded-newsletter-form").fadeOut(1000)})});$(document).on("click",".article-embedded-newsletter-form .newsletter-button",function(){var b=$(".article-embedded-newsletter-form .newsletter_email").val();var d=$("#ga_user_id").val();var c=$("#ga_user_yob").val();var a=$("#ga_user_gender").val();var e=$("#ga_user_country").val();if(validateEmail(b)){$.ajax({url:"/ajax/sendynewsletter",type:"POST",data:{email:b},success:function(f){$(".article-embedded-newsletter-form .nf-message").html(f);$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000);dataLayer.push({event:"newsletter_sub",user_id:d,product_name:"newsletter",gender:a,yob:c,country:e})},error:function(f,h,g){}})}else{$(".article-embedded-newsletter-form .nf-message").html("Please enter a valid email address.");$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000)}});$(document).on("click",".article-embedded-newsletter-form .nf-message",function(){$(this).removeClass("show");$(this).html("")});
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