According to reports Groupe Casino SA announced Tuesday January 17, 2017 that its trading profit in 2016 was a touch more than its goal of 500 million euros following the significant sales growth in the fiscal fourth quarter.
The firm, which runs supermarkets in France and abroad, announced sales worth EUR10.03 billion or $10.63 billion for the three months ended Dec. 31, up 9.1% from the same period year over year, as strong growth in Brazil and Colombia counterbalance a small shrinkage in its local market.
Meanwhile French retailer said its business in France showed a 0.5% decline, as revenue from its smaller convenience stores shrunk.
Casino plans to announce full earnings in the upcoming weeks, however it is quite confident that it has beaten the goal to book a EUR500 million trading profit in 2016, which was considered ambitious by analysts since the company had booked an EUR85 million trading profit in the first half of the year.
Furthermore Latin America powered the rise in Casino’s sales. The group reported a double-digit percentage rise there in both its retail and electronics businesses. Food sales in particular were floating, rising 23% year over year. Without the currency headwinds, Latin America food sales surged 12%.
Moreover in the buildup to the sales update, analysts highlighted the improvements in France, a progress in food retail in Brazil and key clearances, which have basically streamlined the company’s structure, as reasons for cheerfulness in the coming months. Last year, Casino started a divestment program to slash debt, selling its trades in Thailand and Vietnam.