UPDATE 1-Retailer Casino's Q1 sales rise as French hypermarkets improve – Reuters

* Stronger sales at Geant Casino hypermarkets

* Q1 sales 8.9 bln euros, broadly in line with forecasts

* Keeps 2018 goals, positive French sales trend continuing in Q2 (Recasts with CFO comments, shares, analysts)

By Dominique Vidalon

PARIS, April 17 (Reuters) – French supermarket retailer Casino reported solid first-quarter sales on Tuesday, allowing it to keep its full-year profit goals on track thanks to accelerating sales at its French hypermarkets and signs of improvement in Brazil.

Casino, whose credit rating was cut to junk by Standard & Poor’s in March 2016, is under pressure to show it can revive sales and profits at home as conditions in Brazil remain tough, due in part to food deflation.

“Strong first quarter sales gives us comfort over the detailed guidance we gave in March,” Chief Financial Officer Antoine Giscard d’Estaing told analysts.

The positive sales trend in France was expected to continue in the second quarter while economic trends were more favourable in Brazil, where food deflation would ease in the second half of the year, he said.

For 2018, Casino reiterated its prediction of organic growth above 10 percent in consolidated profit, excluding tax credits, and of organic growth in French operating profit, excluding real estate activities, also above 10 percent.

Giscard d’Estaing, however, would not comment on analysts’ estimates for 2018 earnings before interest and tax, which stand at 1.236 billion euros according to ThomsonReuters I/B/E/S.

Casino, which controls Brazil’s Grupo Pao de Acucar , reported total sales of 8.9 billion euros ($11 billion) for January-March, in line with analysts’ expectations.

Excluding acquisitions, currency effects and revenue on fuel, sales rose by 3.1 percent against 3.2 percent growth in the fourth quarter of 2017.

The group’s Monoprix chain last month became the first French retailer to agree to sell groceries

Read More Here...

This entry was posted in Casino Gambling Stocks News. Bookmark the permalink. Follow any comments here with the RSS feed for this post. Trackbacks are closed, but you can post a comment.