Casino 1h18 - strong improvement in operating profit and cash generation partly tarnished by one-offs and financial engineering
French food retailer Casino has released a strong set of underlying results for 1H18, in line with our expectations and management’s guidance. This follows the release about two weeks ago of sound sales numbers for 2Q18, with LFL growth of 3.2% yoy (after +1.8% in Q1) and a 10bp gain in market share. However, today’s release was somewhat tarnished by the continued lack of transparency and simplicity of Casino evidenced by the further use of financial engineering to move cash around the group - a €400m debt push down in Brazil and the use of equity derivatives for disposing of a 15% stake in Mercialys instead of a plain sale.
Spread Research is France's first Rating Agency, registered by ESMA (European Securities and Markets Authority) and a leading European Independent Credit Research firm, founded in 2004 and based in Lyon, France. Our experienced team offer key research services using a wide range of investment strategies and research methodologies for the High Yield, Emerging Markets, Convertibles and Loan Markets.
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