French supermarket chain Groupe Casino has reported that its consolidated net loss amounted to €5.66bn ($6.12bn) for fiscal year 2023 (FY23), compared with a €316m loss reported in FY22.
The net loss from continuing operations was €2.56bn against a €185m loss in 2022, driven by the heightened financial expenses and asset impairments of Monoprix and Franprix following the new business plan introduced in November 2023.
For the year, the group's consolidated net sales were €8.95bn, a decline of 3.7% on a same-store basis and 4.7% as reported. Consolidated net sales in the prior fiscal year were €9.39bn.
Despite these challenges, Monoprix, Casino convenience banners and Franprix experienced sales growth of 1.8%, 1.1%, and 3.2%, respectively, with Monoprix sales hitting €4.3bn.
The group's consolidated earnings before interest, taxes, depreciation, and amortisation (EBITDA) were reported at €765m, down by 21.8% from the prior year.
To fortify its financial position, Casino Group has undertaken a financial restructuring, including an equity injection of €1.2bn, anticipated to enhance the group’s liquidity by €640m.
A conciliation procedure was also initiated as part of the financial restructure, spanning from 25 May to 25 October 2023, followed by accelerated safeguarding proceedings.
In 2023, the group also divested assets worth €1.4bn, including the complete sale of its stake in Assaí.
The sale comprised multiple transactions, with a 10.4% stake sold in November 2022 and two additional disposals in the first half of 2023, including 18.8% of the capital for around €571m and the remaining 11.7% stake for approximately €326m.
In a strategic move, Groupement Les Mousquetaires and Casino Group concluded the sale of 61 Casino France outlets, including hypermarkets, supermarkets, Franprix and convenience stores, at the end of September 2023.
As of the end of the fiscal year, the company’s consolidated net debt stood at €6.2bn, increasing by €1.7bn from €4.5bn at 31 December 2022.
in January 2024, the European Union granted antitrust approval to a consortium headed by Czech billionaire Daniel Kretinsky to take control of Casino.
The move paves the way for a significant restructuring of the chain’s finances.
