French retailer Casino to step up investments to boost revenue growth
Adds details, shares
By Dominique Vidalon and Florence Loeve
PARIS, Nov 14 (Reuters) -French food retailer Casino CASP.PA pledged to invest more over the next four years and refocus on convenience stores as it seeks to accelerate revenue growth in a new strategy plan led by CEO Philippe Palazzi, lifting its shares by nearly 2%.
Casino, France's seventh-largest supermarket group by market share, was brought to the brink of default last year after years of debt-fuelled acquisitions and a declining market share.
The group, whose French rivals range from Carrefour CARR.PA to discounter Lidl, will invest 1.2 billion euros ($1.27 billion) in gross capital expenditure between 2025 and 2028 to achieve a gross merchandise volume of 15 billion euros, for an increase of 1.9 billion from 2023.
That should allow Casino to achieve adjusted Earnings Before Interest, Taxes Depreciation and Amortisation (EBITDA) after lease payments of 500 million euros in 2028, it said.
Casino, which targets cumulate savings of 600 million euros over the period, said it aimed to achieve break-even free cash flow before dividends and financial expenses in 2026.
By 0841 Casino shares gained 1.6%, having shed 97% so far this year.
Now owned by Czech billionaire Daniel Kretinsky, Casino has been attempting a turnaround through job cuts, disposals of large loss-making stores and a refocus on inner-city convenience stores such as Monoprix and Franprix.
The slimmed down retailer now counts some 7,700 stores, staff of 25,000 and a market share estimated at around 3%.
"Today we are entering a new phase in the group's transformation," Palazzi said.
"Along with our franchisees and brands, our goal is to redefine convenience retailing to meet new consumer expectations: the right product and the right service at the right time, close to where you live ... at prices suited to everyone’s means," Palazzi said in a statement.
"That is why the group will be focusing on three key markets: day-to-day food shopping, Quick Meal Solutions and new everyday services" he added.
($1=0.9486 euros)
Reporting by Dominique Vidalon; Editing by Jane Merriman and Clarence Fernandez
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
