After a considerable fall in September 2018, the retailer from Saint-Etienne is doing great again. In 2018, the group, under the management of Jean-Charles Naouri, had recorded an internal revenue growth of 4.7% at 36.6 billion euros [41.6 billion USD]. In France, despite the yellow vests movement, sales experienced their largest increase in 5 years (+2.8%).
Likewise, its online business now accounts for 18% of the Casino revenue. The organic sector is also progressing, by 16.3% compared to last year.
Nevertheless, Casino experienced a net loss of 54 million euros [61.4 million USD] last year, with a profit of 101 million euros [114.8 million USD]. The group suffered from the tax rate of 27%, and the restructuring costs of 90 million euros [102.3 million USD] in France in the second semester.
Future prospects
The group revealed its prospects in the short and average term. It expects to reduce its costs by 200 million euros [227.4 million USD] in 2020, half of it this year already. The debt should be reduced. It reached 3.8 billion euros [4.3 billion USD] at the end of 2018, which is twice the EBITDA for the year. At the end of 2017, the net debt reached 4.2 billion euros [4.8 billion USD] for a financial leverage of 2.1 billion euros [2.4 billion USD]. The managers are targeting asset disposals of at least 2.5 billion euros [2.8 billion USD] by the first trimester of 2020.
The retailer will continue to favor small-size stores, with high commercial potential. 300 convenience stores are expected to open by 2021.
This year, Casino will pay a dividend of 3.12 euros [3.55 USD] per share (same amount as last year), representing a return of 7.3% at the current rate.
Source: lerevenu.com