French retail group Casino today (5 March) posted a 7.3% increase in net profit for 2008 but said it would sell off EUR1bn (US$1.3bn) of assets to cut debt.
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Earnings before interest and tax reached EUR1.28bn for the supermarket group, boosted by strong growth in its discount and international stores.
“Casino’s business model is well aligned with the current environment, with its focus on the most buoyant retailing formats – convenience stores, discount stores and non-food e-commerce – as well as on its highly successful private label and its expertise in capturing the value of property assets,” said Jean-Charles Naouri, Casino’s chairman and CEO.
The group said it had met its objectives in 2008. Organic sales growth stood at 5.9%, reaching EUR28.7bn. Trading profit increased by 7.3% on a reported basis, underpinned by 7.6% organic growth which drove an improvement in trading margins of seven basis points.
In France, sales grew by 3.6%. Trading profit was 3.9% higher on an organic basis and was “stable” over the year and up in the second half, in a “tougher economic environment”, Casino said.
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By GlobalDataThe group’s convenience formats enjoyed a solid 4.7% increase in sales, led by Casino supermarkets. Trading profit was stable on an organic basis.
In international markets, sales surged by 43.8%, driven by healthy 11.7% organic growth and the first-time consolidation of Dutch retailer Super de Boer and Colombia’s Exito. Trading profit was 19.8% higher, mainly due to 18.6% organic growth.
Casino said its objective is to improve the net debt/EBITDA ratio at the end of 2009 and bring the ratio down to below 2.2x by the end of 2010.
However, the retailer declined to specify which assets it would look to offload to cut debts.
Casino did separatle announce that it had agreed to sell EUR334m of property to majority-owned real estate business Mercialys.
