Latest News

Shares in French supermarket retailer Casino slump after profit warning

© Reuters. FILE PHOTO: The logo of Casino supermarket is pictured in Paris, France, March 3, 2021. REUTERS/Gonzalo Fuentes

PARIS (Reuters) -Shares in French supermarket retailer Casino slumped on Monday after the company cut the 2021 profit outlook for its French retail operations, blaming a higher-than-expected decline in France’s food market in the fourth quarter.

Casino’s shares were down 7.2 percent in early session trading, and Casino’s woes weighed on its larger domestic rival Carrefour (PA:CARR), whose shares also fell 3.2 percent.

Analysts at investment bank Jefferies analysts said their focus would now be on “how profit pressures are translating into cashflow and leverage pain”, with Casino reporting its annual results on Feb. 25.

The group, which previously eyed a profit rise this year in France, said it now expected a decline in 2021 EBITDA (earnings before interests, taxes, depreciation and amortisation) at its French retail operations of 1.7% to around 1.28 billion euros. ($1.43 billion).

Jefferies analysts highlighted Casino’s strong exposure to convenience stores in city centers and notably in the Paris Ile-de-France region, which Jefferies had suffered negative market trends.

“The combination of still depressed tourist visits and a recovery in out-of-home food consumption late in 2021 was likely a toxic combination for Casino’s critical profit generators Monoprix/Franprix,” wrote Jefferies.($1 = 0.8953 euros)

Shares in French supermarket retailer Casino slump after profit warning

Disclaimer:Fusion Mediawould like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

What's your reaction?

In Love
Not Sure

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in:Latest News