2012 Registration Document - Groupe Casino

1
Presentation
of the Casino Group
Management
report
Consolidated
financial statements
Parent company
financial statements
Corporate
governance
General
Meeting
Additional
information
1.3. Business and strategy
7,000 stores across France already carry the Carbon Index
label. In 2010, Casino also pledged to eliminate palm oil from
its private-label goods wherever possible, representing another
example of its initiatives in nutritional progress and its ability to
meet society’s new concerns. At end-2012, 75% of Casino’s
private-label products no longer contained any palm oil, including
for example, its “Noisette” hazelnut spread, which proved an
immediate success when it was launched. This initiative is shared
by all the Group’s banners in France.
c. Presentation of international business
and strategy
International business now accounts for the majority of the Group’s
sales and earnings. The Group operates in eight countries outside
France with a total of 2,581 stores including 386 hypermarkets.
International revenue totalled €23,524 million in 2012, representing
56% of the Group total compared with 45% in 2011. The trading
margin was 5.6% in 2012.
The portfolio of international assets has been thoroughly
remodelled. Casino now has a geographic platform comprised
of countries with high growth potential, large, young populations,
fast-growing economies and a largely fragmented retail structure.
Casino now focuses on two core regions: Latin America and
South-East Asia, which accounted for more than 95% of the
Group’s total international revenue in 2012. Its subsidiaries hold
leadership positions thanks to their long-established store banners
and close-to-the-customer relations. Reflecting this momentum,
the two regions both reported a buoyant performance throughout
the year, with organic growth of 8.8% in Latin America and 10.8%
in Asia.
Casino also operates in the Indian Ocean region, where it has a
leading position through Vindémia.
Latin America
Casino operates in Brazil, Colombia, Argentina and Uruguay,
where it has leading positions. Latin America accounted for
82% of international revenue and 80% of international trading
profit in 2012.
Revenue in Latin America totalled €19,251 million with a trading
margin of 5.5%.
Brazil
Casino has operated in Brazil since 1999, through its subsidiary
Grupo Pão de Açúcar (CBD). Grupo Pão de Açúcar (GPA) is a
historic player in the Brazilian retail market, and over the past
few years has adapted its positioning in food retailing to meet
the needs of consumers whose standard of living has improved
dramatically. Although hypermarkets and supermarkets still
dominate, GPA now has a multi-format, multi-banner portfolio that
caters to a clientele drawn from all socio-economic backgrounds.
It has also been developing innovative private-label goods, which
are much appreciated by consumers, including Qualità, an umbrella
brand for food products, and Taeq, a health and well-being range.
In 2009, GPA acquired Globex and its Ponto Frio banner, Brazil’s
second-largest retailer of consumer electronics and household
appliances. In 2010, Globex signed an agreement with Casas
Bahia, Brazil’s leading non-food retailer, making GPA the unrivalled
leader in consumer electronics and household appliances with a
market share of more than 20%.
With these major strategic initiatives, GPA has consolidated its
position as Brazil’s leading retailer both in food and consumer
durable segments.
In 2012, Casino became GPA’s only major shareholder with a
38.2% interest. GPA has been fully consolidated by Casino since
2 July 2012.
At the end of 2012, GPA operated a total of 1,640 stores, with
strong market positions in Brazil’s two most economically vibrant
states, São Paulo and Rio de Janeiro.
In 2012, GPA contributed €14,487 million to Casino’s consolidated
revenue. Its total revenue amounted to €20,230 million.
GPA’s shares have been listed on the São Paulo Stock Exchange
since 1995 and the New York Stock Exchange since 1997.
Hypermarkets
››
Extra: 138 stores
Extra hypermarkets offer a vast range of food products as well as
personal and household equipment, aiming to meet the demands
of as many consumers as possible at the best prices.
Supermarkets
››
Pão de Açúcar: 162 stores
Pão de Açúcar convenience supermarkets offer a broad array of
high quality products. Always at the leading edge of technology,
the banner also offers a range of services to meet the needs of
a relatively affluent clientele.
››
Extra Perto: 207 stores
Extra Perto stores are large supermarkets designed on a human
scale. They provide an extensive food offering as well as a broad
non-food range in modern, pleasant surroundings.
Convenience
››
Minimercado Extra: 105 stores
Minimercado Extra superettes are local convenience stores with a
simple, pleasant look. They offer all basic products and services,
with good value for money.
10 / Casino Group / registration document 2012