Despite rising sales and the return of tourists, French supermarket group Casino saw its net losses continue and debts grow even further. The company is therefore selling its energy company GreenYellow and e-tailer Sarenza.
Turnover grows, as do losses
Turnover is picking up at Casino, now that tourists are again finding their way to France. The group’s comparable sales increased by 5.7 % to 15.9 billion euros in the first half of the year, mainly thanks to a strong second quarter. Whereas comparable sales rose by 3.2 % in the first quarter, they were already up 8.1 % in the second. The group also did well in Latin America (with its Brazilian chain GPA).
However, the group carries with it a mountain of debt, which increased to 7.5 billion euros. Gross profit fell 7.8 % at constant exchange rates to 1.069 billion euros, mainly due to a sharp decline in e-commerce platform CDiscount. Net losses amounted to 102 million.
Four billion in divestments
Casino has previously promised its shareholders that it will sell assets worth 4.5 billion euros by next year, and it is currently taking further steps in this direction. Last week, a sales agreement was signed to sell GreenYellow, a subsidiary that offers solar energy and sustainable energy advice. Casino will gain 600 million euros from this sale, reports Les Echos, bringing the total divestment so far to four billion euros.
The final 500 million euros will come from Zalando-like Sarenza: owner (and Casino subsidiary) Monoprix is currently conducting exclusive sales negotiations with the French Beaumanoir Group, which recently also acquired fashion retailers Morgan, La Halle and Caroll. The shoe and clothing webshop aims to “strengthen the omnichannel dimension of the group and its partners”, says deputy CEO Thomas Beaumanoir. It is not yet known how much Beaumanoir would have paid for Sarenza.