Casino hit by currency fluctuations - Food Retailing - Groupe Casino - Brief Article

Eurofood, Nov 7, 2002

French supermarket chain Casino reported a 2.1% increase in its third quarter revenue to a value of 5.56bn [euro]. That figured however was marred by a negative impact of 6.5% from foreign currency fluctuations, a factor from which its compatriot and rival Carrefour also suffered.

Sales grew by 6% and 7.2% in the third quarter and nine month periods respectively on a like-for-like basis. In its domestic French market, both its Geant and Leader Price formats posted strong sales increases. Internationally, sales were also up, rising by 15.6% at constant exchange rates, but falling by 11.1% after currency impacts. International sales represent around 21.4% of Casino's group sales.

The Latin American region was the main cause for concern. As with many European firms operating there, the unstable economic conditions dented performance. Casino reported a 60% decline in revenue for that region, falling from 324.5m [euro] to 130.2m [euro].

Casino Q3 net consolidated sales (m [euro])

                   Q3 2002   Q3 2001    % /-

France             4 372.2   4 110.1     6.4
International      1 188.1   1 336.8   -11.1
USA                  490.5     531.0    -7.6
Poland               191.7     191.4     0.2
Latin America        130.2     324.5   -59.9
Argentina             42.1     160.0   -73.7
Uruguay               24.3      51.7   -53.0
Venezuela             63.8     112.8   -43.4
Asia                 311.5     289.9     7.5
Thailand             244.4     225.9     8.2
Taiwan                67.1      64.0     4.8
Indian Ocean          64.2       n/a     n/a
Brazil *             699.7     810.7   -13.7
Colombia *           281.7     351.6   -19.9

Source: Casino

Note: * Non consolidated net sales