French retail Groupe Casino has booked a slight drop in net profit for 2012, as a weaker performance from its domestic business was offset by a strong international showing.
Full year underlying net profit was down 0.2% to EUR564m (US$755m). Trading profit, however, rose 29% to EUR2bn, boosted by the consolidation of its Brazilian business CBD.
The company said profits were underpinned by a strong performance in emerging markets, with margin improvements in Brazil and Columbia. International, which now accounts for 60% of sales, offset an 8.6% drop in trading profit from Casino's French business. The company said fierce competition and sluggish consumer sentiment in France had weighed on its result.
In its sales update, which was delivered to the market in January, Casino said worldwide sales were up 22% to EUR42bn. French sales were down 0.8%.
2012 RESULTS
Very strong Group sales growth, + 22.1%
Continued sustained organic growth internationally, + 8.5%
Sales almost stable in France, - 0.8%*
Trading Profit + 29.3%
Net profit from continuing operations, Group share, up +84.4% at €1,065m
Net underlying profit, Group share, at €564m
Net debt/EBITDA ratio fell to 1.91x
Recommended dividend of €3
Jean-Charles Naouri, Chairman and Chief Executive Officer of Casino Group, stated:
"The Group underwent some major transformations in 2012, notably with the control of GPA in Brazil and the agreement with Galeries Lafayette on the acquisition of 50% of Monoprix, hence strengthening its profile on international businesses and buoyant formats. For the first time, it has generated operating income in excess of €2 billion. In 2013, confident in the growth of its activity and results, Casino will pursue its strategy of back-to-basics in France and organic growth internationally, while working to maintain its financial structure."
