Much like their arch rivals Carrefour before them, Casino’s latest semi-annual results saw their profits on their home market France go down. Caused by higher fuel prices and lower selling prices, French net profits dropped 22%.
Despite the lower profits, it seems that the lower selling prices have been a good strategy, as Casino’s home market share grew with 1.2% and its main rival Carrefour saw their home market profit drop a whopping 35%.
Over all its 11,663 stores in 9 countries, Casino’s turnover for the first six months of 2011 was 16.1 billion euro (+19%). Its profits however peaked at 571 million euro, slightly below the expected 580 million. For the first time ever, the foreign markets (South America, Southeast Asia and the Indian Ocean) are generating more than half of the group’s profits.
During the announcement of their results, Casino’s chairman Jean-Charles Naouri also emphasised that Casino will not relinquish control of the Brazilian chain Grupo Pão de Açúcar to Carrefour. On the contrary: Carrefour’s bid to take over the Brazilian market leader is completely halted. “We have waited for thirteen years to take over GPA and we will not sell it now”, he said.
