Casino Guichard-Perrachon (CO) H1 2024 earnings summary

Executive summary

• Major financial restructuring in H1 2024 reduced net debt by €5.1bn and raised €1.2bn in new equity, with a new management team leading operational and financial turnaround.

• Asset sales included hypermarkets, supermarkets, and international assets, refocusing on convenience, Monoprix, Franprix, and e-commerce.

• Transformation plan underway, including employment protection plans, store closures, franchise conversions, and new supply partnerships.

• Financial results impacted by legacy issues and restructuring context; value creation plan to be announced after Q3 2024.

Financial highlights

• H1 2024 net sales: €4.2bn, down 3.5% like-for-like and 5.9% total year-over-year, mainly due to planned reduction in Cdiscount direct sales.

• Adjusted EBITDA: €255m, down €79m year-on-year (–24%), margin 6.1%; after certain payments, EBITDA was €26m, down €86m.

• Net profit from continuing operations, Group share: €2.5bn (vs. €918m loss in H1 2023), driven by €3.5bn non-recurring financial income from restructuring and €449m asset impairments.

• Underlying net loss, Group share: -€349m (vs. -€892m in H1 2023), a significant improvement year-on-year.

• Free cash flow before financial expenses: -€413m (vs. -€735m), after €153m non-recurring social/tax payments.

• Net debt: €1.0bn at 30 June 2024 (down from €1.6bn at 31 March 2024).

Outlook and guidance

• Restructuring and transformation plan to be finalized by year-end, with value creation plan to be detailed after Q3 2024, focusing on profitable growth and operational efficiency.

• Ongoing cost savings, supply chain improvements, and franchise expansion expected to stabilize and improve EBITDA.

• Satisfactory liquidity position with no material debt maturities before March 2026.