Casinos H1 results were driven by its international operations

Casino's H1 results were driven by its international operations

A jump in profits from Casino's international operations has stood out in a mixed set of results from the French retailer, which saw one-off costs hit its bottom line.

The company today (28 July) posted a 5.6% increase in trading profit to EUR571m (US$818.2m) for the first half of 2011.

Casino's businesses outside France reported a 54.6% leap in trading profit to EUR301m due to "sustained organic growth" in South America and Asia.

The retailer pointed to the contribution from the integration of Brazilian retailer Casas Bahia into CBD, the local company part-owned by Casino. The firm also said the stores in Thailand it acquired from Carrefour in November had "contributed positively" to trading profit. Casino said that, on an organic basis, trading profit from its international operations rose 14.9%.

The international growth was at odds with Casino's performance in France. Trading profit from its domestic operations fell 21.9% to EUR271m due to price cuts and rising purchasing costs. On an organic basis, Casino's profit in France fell 23.4%.

Casino's total trading profit dropped 9.6% on an organic basis, which excluded M&A, was measured at currenct exchange rates and stripped out the impact of asset disposals of OPCI property funds.

The retailer's net profit slid 19.9% to EUR133m amid higher finance costs and one-off items including a EUR72m tax charge in Colombia. Casino's underlying profit fell 14.3% to ERU178m.

Looking at Casino's top line, net sales climbed 18.8% to EUR16.14bn, or 7.1% on an organic basis. In France, the retailer's rose 5.9% to EUR9.1bn. Casino said domestic organic sales increased 3.7%.

Internationally, Casino's net sales jumped 41% to EUR7.04bn. On an organic basis, sales climbed 12.8%.

Chairman and CEO Jean-Charles Naouri, who recently successfully led opposition to a move from its fellow investor in CBD to merge the Brazilian retailer with Carrefour's local assets, pointed to an acceleration in Casino's second-quarter sales growth and said the French firm confirmed its sales growth target for the next three years.

"The faster growth recorded in the second quarter, both in France and in international markets, illustrates the group's excellent sales dynamic," Naouri said. "The relevance of our business model allows us to reaffirm our objectives, particularly our goal of delivering annual sales growth of more than 10% in each of the next three years while maintaining a solid financial structure."

Click here for the complete statement from Casino.