(News Bulletin 247) – Rallye, the parent company of distributor Casino, dropped on the stock market on Thursday as investors continue to question the ability of the holding company to lower its debt.

In a press release published yesterday evening, Rallye itself acknowledges that the risk factor linked to the implementation of its safeguard plan has increased in view of the financial situation of Casino, which is seeking to accelerate its own deleveraging.

Rallye recalls that its backup plan depends a lot on Casino’s ability to distribute sufficient dividends, which are themselves dependent on the implementation of the strategic plan and the ongoing disposal program.

In this context, Rallye plans to get closer to its creditors in order to examine the possibilities and possible methods of adjusting its safeguard plan.

As of December 31, 2022, the gross financial debt of Rallye’s holding scope amounted to 3.1 billion euros, down by only 78 million euros compared to 3.178 billion at the end of 2021.

Its net loss worsened to -1.696 billion euros, against -334 million in 2021, due to a provision for depreciation of 1.768 billion euros on Casino securities.

At the same time, the consolidated financial statements show a cash position of 19 million euros as of December 31, 2022.

After having lost more than 10% at the opening, the Rallye title yielded 8% around 10:10 a.m., still at its lowest levels for more than 10 years. It shows one of the largest declines in the Paris market and has dropped nearly 27% since the start of the year.

In its wake, Casino shares lost 2.5%.

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