(News Bulletin 247) – The group is now targeting an operating loss of 100 million euros in France for the current year, while Casino still anticipated an operating profit at the end of October.

The distributor Casino, in financial difficulty, announced on Wednesday that it was once again lowering its forecasts for its activities in France for the year 2023 and now anticipates an operating loss (Ebitda after rent) of 100 million euros, after having announced to plan an operating profit (Ebitda) of less than 100 million at the end of October. On the stock market, Casino shares were down slightly by 0.3% to 0.824 euros around 10:35 a.m. Since the start of the year, the stock has lost more than 91% of its value.

The group explains in a press release this reduction in forecasts “in view of the results of the third quarter” and in view of “the trends observed” at the start of the fourth quarter.

In a press release, the group specifies that, for the current year, it is mainly the Casino supermarkets (the hypermarkets) which are in the red. Thus, its “Casino France distribution” activity should post an Ebitda after rent of -538 million euros in 2023, when this indicator should remain in the green for Monoprix (195 million euros), Franprix (85 million euros ), Cdiscount (48 million euros) as well as the group’s other business units (110 million euros).

Moreover, if the evolution of sales volumes has been increasing in supermarkets since the end of September (and traffic in stores since mid-August), it is still in decline (as well as traffic) in hypermarkets since the beginning of the year.

Concerning its overall operational loss for this year, Casino is taking precautions by giving in addition to the figure of 100 million a range, going from a loss of 78 million euros to 140 million, in which this key indicator could ultimately be established. profitability “depending on the successful implementation of action plans”. Furthermore, the group is targeting a largely negative free cash flow for 2023: -2.062 billion euros.

This drop in annual forecasts comes in the middle of a major financial restructuring of the group. The distributor, strangled by a colossal debt, must come under the control of the trio Daniel Kretinsky, Marc Ladreit de Lacharrière and Attestor, who plan to bring in 1.2 billion euros in new money.

No liquidity problem in the coming months

Casino continues to suffer from the loss of interest in hypermarkets, whose “turnaround is underway but is longer than expected”, he specifies in the text, with turnover forecasts. The group also indicates that its margins are suffering, in a context of inflation, from the impact of the “investments” put in place as part of its recovery.

These effects should be lasting since Casino also slashed its 2024 forecasts on Wednesday, anticipating an Ebitda after rent of 222 million euros, compared to 401 million previously anticipated in September. For 2025, the decline is more contained, with the forecast going from 582 to 509 million. In terms of free cash flow, the group expects it to still be largely negative in 2024 (-610 million euros) and in 2025 (-173 million euros).

Casino specifies, however, that it does not anticipate “any liquidity problem between now and the date of completion of the financial restructuring which should take place by the end of the first quarter of 2024”, in particular thanks to the proceeds from sales initiated in America. Latin with the sale of Exito.

(With AFP)