(AOF) – The Casino Group has canceled a nominal amount of 10,118,000 euros of the Quatrim 2024 covered bond. This cancellation was made following redemptions on the market. The total nominal amount of the Quatrim 2024 covered bond was thus reduced to 7,39,882,000 euros. Redemptions of the Quatrim 2024 covered bond were funded through the senior secured escrow account. As of September 2, 2022, the balance of the senior secure escrow account stood at €85.9 million.
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Key points
– Food distribution group created in 1898 present in France, Brazil, Colombia and Uruguay;
– Distributor weighing €30.5 billion organized into 3 branches: France Retail under the Casino, Monoprix, Franprix and Naturalia brands, Latin Retail in Latin America under the Assaï, GPA and Extra brands in Brazil, Exito and Libertad in Colombia, Disco and Deveto in Uruguay and, finally, the new activities – Green Yellow for solar energy and CDiscount for e-commerce;
– Business model based on 5 pillars: a portfolio of buoyant formats in France, the leading food and non-food e-commerce offer, the development of new growth levers, a significant stake in the major players in distribution from Latin America, and strengthening the structure of the group;
– Capital locked at 52.3% by the Rallye holding company (62% of voting rights), itself a subsidiary of Euris, held by Jean-Charles Naouri, Chairman and CEO of the 13-member Board of Directors;
– Financial situation still tense with €5.6 billion in shareholders’ equity and, at the end of June, €2.3 billion in cash against a net debt of €7.5 billion.
Challenges
– Strategic plan to reduce the share of hypermarkets to 15%, 50% growth in the organic product offering to €1.5 billion, progress in e-commerce and, for new activities, expansion of the network photovoltaics installed and rising data center revenues;
– Dynamic innovation strategy: data management and monetization within RelevanC, cloud offer with ScaleMax, partnerships with Google Cloud and Accenture in distribution, Gorillas in quick-commerce in France and Rappi in Colombia – deployment of the C Discount offer – digitalization of logistics and delivery platforms with Amazon and Ocado;
– Environmental strategy: capitalizing on the “Green Yellow” photovoltaic expertise with a pipeline of 4.5 GWp, reinforced by a fundraising in February, and by its partnerships (Schneider Electric and Amazon web services) – aiming to reduce CO2 emissions by 18% in 2025 and 38% in 2030 (vs 2015);
– Simplification of Latin American assets via a direct holding of 41% in GPA and Assai;
– Continuation of the disposal plan, for an amount of more than €4 billion, with the upcoming sale of Green Yellow;
– Progress in buoyant formats in France, premium and proximity to the Monoprix, Naturalia and Franprix brands, etc. (8% of the French market), in purchasing centers and in the transformation of hypermarkets, formerly Géant Casino, in Super Fresh Casino supermarkets.
Challenges
– Recurrent speculation on a merger with Alibaba, Amazon and on the intentions of the Czech Kretinski, already holder of 4% of the capital;
– Impacts of the openings of “small” stores in France, of the openings of Assai distributors in Latin America; and, from the 2
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half of 2022, of the savings plan of C Discount;
– After a 15% increase in sales and a net loss on 1
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semester, 2022 objectives: at 2
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semester: 800 openings in convenience formats (Monop’, Franprix, Naturalia, Spar, Vival, etc.), mainly franchises (376 at the end of June) – development of the most buoyant retail and e-commerce activities (Casino Hyper Expenses, Gorillas, Amazon and Ocado partnerships) – over the financial year: high level of profitability and improvement in free cash flow.
Urban transformation to enhance real estate heritage
Several initiatives are intended to densify the land around hypermarkets and/or to play on the mix of uses (commerce, office, housing and even urban logistics). Nhood, the company launched by the Mulliez family, has the mission of transforming into mixed neighborhoods sites belonging to the property companies of Auchan, Ceetrus and Nodi, and the real estate assets of other companies in the group. It will accelerate in this business of urban regeneration. The Mulliez family had planned to invest 1.8 billion euros between 2022 and 2026 in its real estate projects. This objective should soon be revised upwards. Carrefour, for its part, joined forces with the promoter Altarea in early 2021 to transform commercial areas into mixed neighborhoods.