|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||38.97 - 40.20|
|52 Week Range||25.37 - 47.58|
|Beta (3Y Monthly)||0.62|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||3.12 (7.97%)|
|1y Target Est||N/A|
When the European Central Bank was building its new headquarters on the banks of Frankfurt’s Main river, stenciled on one of the hoardings around the construction site was an image of a suave Mario Draghi at the roulette table, chips stacked, with Angela Merkel the glamourpuss, at his side. The graffito, dubbed Casino Royale, symbolised an era when markets viewed the ECB’s urbane central bank chief as a James Bond-style figure who would bet the house and win the battle to save Europe from disaster. Cut to 2019, and the spectre of an ever-worsening global trade war is scaring the living daylights out of European investors to the extent that even Mr Draghi’s cunning is not enough.
(Bloomberg Opinion) -- The French supermarket chain that owns Paris’s ubiquitous Monoprix stores is selling more of its assets to pay down its debt. Let’s hope all of the disposals make sense for the company, rather than just being a way to restart dividend payments to its struggling parent Rallye SA, the investment vehicle of Jean-Charles Naouri. The grocery company, Casino Guichard-Perrachon SA (where Naouri is also chairman and chief executive), on Tuesday said it had identified another 2 billion euros ($2.2 billion) of assets to be offloaded over the next 18 months. This would be on top of an initial 2.5 billion euro disposal program due to be completed by early next year. At first glance this looks like good news, with Casino’s shares rising 4%. But it’s interesting that Rallye’s rose by 14%. Casino’s net debt within its French retail business stood at 2.9 billion euros at the end of June, down from 4 billion euros at the same time last year. Selling another chunky tranche of assets would help bring that down significantly.Unfortunately Casino hasn’t said yet what will be included in the new sale, beyond that the assets will be in France.The company says it wants to focus on e-commerce, as well as premium and convenience retailing. That would appear to privilege its Cdiscount, Monoprix and Franprix formats, and implies disposals elsewhere such as in hypermarkets, supermarkets and its Leader Price discount division. It’s hard to see that generating 2 billion euros, though.The worry is that the plan involves selling off more of the company’s real estate and renting it back, particularly sites used by Monoprix and Franprix stores around Paris. That approach was a feature of the first tranche of disposals.Casino plays down the risks of this strategy. For example, when it sells property it usually signs nine-year rental deals on the sites after which it has the right to renew the terms. Still, there’s a danger that the retailer ends up with a store estate that’s substantially leased, reducing its financial flexibility and exposing it to future rent increases.The French company has suspended its dividend, a wise move as it restructures the business. But Rallye, which owns 52% of the group, will no doubt be eager to see a quick resumption as it tries to cut its own 2.9 billion euros of net debt. The parent group is in a creditor protection program at present.Charles Allen, an analyst at Bloomberg Intelligence, says Casino may want to be debt free before reinstating the shareholder payout, indicating that payments will resume when that happens. This would explain why Rallye’s shares and bonds moved higher on Tuesday morning.Casino is also working toward putting its Latin American assets into a single entity, in which it will hold a 41.4% stake. That could pave the way to a partial disposal and a special dividend, which would send more cash in Rallye’s direction.The grocer did a good job of exerting its independence from its parent by shelving the dividend. Mortgaging its future to help pay Rallye’s debts would be a step in the wrong direction.To contact the author of this story: Andrea Felsted at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.French supermarket operator Casino Guichard-Perrachon SA said it plans a second round of asset disposals that would raise an additional 2 billion euros ($2.2 billion) as it tries to reduce its debt.The transactions, which would follow a first phase of 2.5 billion euros worth of divestitures, will be completed by the end of the first quarter of 2021, Casino said Tuesday. The stock rose as much as 2.6% to a three-month high.As its market share shrinks in France, Casino is wrestling with concerns over its net debt, which the company said stood at 4.7 billion euros at the end of June. Short sellers have targeted the retailer, saying distressed parent Rallye SA is relying on unreasonably high dividends to survive. Last month, Casino canceled next year’s dividend payment to shore up cash.The new assets earmarked for sale are in France, where Casino is locked in fierce price competition with the likes of Carrefour SA and E. Leclerc. The company, which didn’t specify what it plans to sell, said it’s focusing on premium, convenience and e-commerce segments in its home market, where it owns the Monoprix chain.What Bloomberg Intelligence SaysThe latest plan “suggests the company thinks it needs to be debt-free to allow cash flow to again be used for dividends should parent Rallye emerge from its ‘Safeguard’ procedure.”Charles Allen, retail analystClick here to read the pieceMost likely Casino will dispose of real estate and unprofitable stores while reducing exposure to hypermarkets, wrote Maria-Laura Adurno, an analyst at Morgan Stanley. Most of its real estate sales have been followed by leasebacks, which add rental costs, she added.The retailer may need to sell the Leader Price discount chain, which is worth 130 million euros, or its stake in real estate venture Mercialys SA or e-commerce unit Cnova, said Clement Genelot, an analyst at Bryan Garnier.Rallye filed for protection from creditors in May in a bid to help save the group from collapse. Casino is approaching the end of the first phase of disposals, having agreed to sell 2.1 billion euros of assets. Many of the deals so far have been real estate sales, including 26 stores sold to Fortress Investment Group for as much as 501 million euros.The retailer’s 720 million euros of bonds due in January 2023 jumped 3 cents on the euro to a two-month high of 88 cents, data compiled by Bloomberg show.(Updates with shares in second paragraph, analyst comment in fifth)\--With assistance from Lisa Pham and Katie Linsell.To contact the reporter on this story: Thomas Mulier in Geneva at firstname.lastname@example.orgTo contact the editors responsible for this story: Eric Pfanner at email@example.com, Thomas MulierFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Casino has outlined plans to sell an additional €2bn in assets as the French retailer looks to slice its debt and focus on key markets. The announcement on Tuesday comes as part of a broad restructuring led by chief executive Jean-Charles Naouri to shore up the company’s financial position. It had already sold €2.1bn in non-core assets as part of a previously-announced €2.5bn programme, the company said.
(Bloomberg) -- Credit Agricole SA and Natixis SA are among French lenders nursing losses on loans made to Rallye SA and other parent companies of retailing giant Casino Guichard-Perrachon SA, which are creaking under more than 3 billion euros ($3.3 billion) of debt.Natixis made a provision for credit losses of 110 million euros in the second quarter because of its loans to Rallye, which filed for creditor protection in May, according to a person familiar with the matter. Credit Agricole added 69 million euros to cover soured debts at the division that houses corporate and investment banking mostly because of the exposure to the same company, according to a separate person. The people asked not to be named because the matter is private.Representatives for the lenders declined to comment.This is the first tangible impact of Casino group’s troubles on its lenders. For years, banks have been lending to the holding companies of Casino, allowing founder Jean-Charles Naouri to keep control of the business. The retailer’s struggles against new market entrants and a mistimed expansion in South America weighed on its profitability and ability to repay the debt, eventually forcing the holding units to file for creditor protection.Rallye, the largest of these firms, had 1.8 billion euros of bank loans outstanding at the end of June, of which 210 million euros are unsecured.Casino also told investors last month Rallye and other parent companies have an additional 323 million euros of structured financing arrangements secured by share pledges. Societe Generale SA won a court ruling in Paris last month that allows it to call on the pledge even if Rallye is under creditor protection.Societe Generale’s net cost of risk rose to 314 million euros in the second quarter because of a number of troubled corporate loans, including those to Rallye, a separate person familiar said.A spokesman for the bank said that the company’s cost of risk stayed at a low level, with a limited impact stemming from a few specific situations. He declined to comment on individual clients.\--With assistance from Luca Casiraghi.To contact the reporters on this story: Donal Griffin in London at firstname.lastname@example.org;Gaspard Sebag in Paris at email@example.com;Lucca de Paoli in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Ambereen Choudhury at email@example.com, Sara Marley, James AmottFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- French supermarket retailer Casino Guichard-Perrachon SA took steps to encourage credit investors on Thursday by canceling next year’s dividend payment and accelerating a debt reduction plan.The company said that it will reduce its net debt in France to less than 1.5 billion euros ($1.7 billion) by the end of 2020, down from 2.9 billion euros currently. Bonds rose to their highest in one month after the announcement, while shares fell.Casino is taking measures to rein in its debt load after its parent Rallye SA filed for protection from creditors in May to help save the group from collapse. Short sellers have targeted the company in the past year, saying that Rallye has relied on unreasonably high dividends to survive. Rallye is part of a string of indebted holding companies that allow Chief Executive Officer Jean-Charles Naouri to control the retailer.“It’s the right time to accelerate paying down our debts,” Chief Financial Officer David Lubek said in a call with reporters. “All of this is being done in the interest of Casino. Rallye’s safeguard procedure is an opportunity.”Lubek reiterated that the company is being managed independently of its controlling shareholder’s liquidity needs. Casino has not made a decision yet on its dividend policy for 2021, he said.Casino’s creditors were encouraged by the plans for debt reduction with the retailer’s 900 million euros of notes due in March 2024 jumping 2 cents on the euro to 86 cents, according to data compiled by Bloomberg. The securities are recovering from a record low of 80 cents last month.Still it isn’t plain sailing for the retailer. Casino’s market share is shrinking in France and it has lost access to some short-term financing after S&P Global Ratings downgraded the company to five levels below investment grade in May. Worldwide, Casino has net debt of 4.7 billion euros. Analysts at Kepler Cheuvreux drew attention to Casino’s free cash flow declining in France during the period and said the retailer drew down on a credit line in the first half which wasn’t expected.The cost of credit protection on Casino’s bonds fell 50 basis points on Thursday but it remains elevated near a record high, showing a sign of stress, according to ICE Data Services.Casino had been paying 3.12 euros a share in dividends every year since 2014, then cut that in half in 2019. The retailer said it’s saving 500 million euros from canceling dividend payments. In May Casino scrapped an interim dividend payment.Trading profit was 347 million euros in the first half, short of analysts’ estimates. The company confirmed its 2019 guidance and raised its target for cost savings this year by 30% to 130 million euros.Casino announced earlier this week that it would sell Indian Ocean unit Vindemia, and on Thursday said it approved a plan to reorganize its assets in Latin America. The retailer has also been selling loss-making hypermarkets to competitors and negotiating sale-and-leaseback arrangements with real estate investors.(Updates with bond moves from second paragraph.)\--With assistance from Albertina Torsoli.To contact the reporters on this story: Robert Williams in Paris at firstname.lastname@example.org;Katie Linsell in London at email@example.comTo contact the editors responsible for this story: Eric Pfanner at firstname.lastname@example.org, ;Vivianne Rodrigues at email@example.com, Thomas Mulier, Marthe FourcadeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- French grocer Casino Guichard-Perrachon SA spent the past decade trying to find success with its wager on Brazil electronics retailer Via Varejo SA. Now that it’s finally given up, investors who stepped in to pick up the pieces are raking in a big payoff.Shares of the retailer have surged 40% since June 14, when a group of hedge funds partnered with retail mogul Michael Klein to buy at auction the 36% stake owned by Casino’s Brazilian subsidiary, Cia Brasileira de Distribuicao, known as GPA. It’s the best-performing Brazilian stock for the period, as markets cheered new management put in place after the ownership change.“At the time of the auction, you had a cheap stock, a high-revenue company and a chance for a turnaround,” said William Leite, head of the equities desk at Garde Asset Management, which took a stake in Via Varejo at the auction. “It looked like a very good opportunity.”Spearheading the changes at Via Varejo is the Klein family, which has a long history with the firm. In the 1950s, Polish immigrant Samuel Klein founded the retail chain Casas Bahia, which was absorbed by Via Varejo in 2009. A series of clashes between Casino and the Kleins ensued. But with the French grocer out, the Klein clan became Via Varejo’s biggest shareholder. It named Michael Klein, Samuel’s son, as the company’s chairman, and Roberto Fulcherberguer the new chief executive officer.Under the new management, the firm has poached executives from rivals, including a new marketing director from Magazine Luiza SA, Ilca Sierra, and a chief digital officer from MercadoLibre Inc., Helisson Lemos. “The new names and the firm’s new strategy are drawing investors’ attention,” said Andre Lion, a partner and portfolio manager at Ibiuna Investimentos Ltda., which also acquired Via Varejo shares at the auction. “The expectation of operational improvement is behind our investment thesis.”That’s far from a sure thing. Via Varejo posted a net loss of 49 million reais ($13 million) in the first quarter after a loss of 267 million reais for 2018. And while last year’s net revenue of 26.9 billion reais far surpassed rival retailer Magazine Luiza’s 15.6 billion reais, its market value is less than a quarter as large.“We brought together the best team in Brazil’s retail sector,” CEO Fulcherberguer said in an emailed statement. “With this team, we’ll turn around the firm’s operations and increase Via Varejo’s leadership in the sector.”Via Varejo has been under fire from analysts as it lost ground to competitors on e-commerce while Brazil’s worst recession on record roiled profits. A spokesman for Casino declined to comment.It’s still unclear how the new management will handle technology investments, marketing and in-store refurbishments, Banco Bradesco BBI SA analysts led by Richard Cathcart wrote in a report earlier this month.Even the hedge fund managers willing to back Klein’s turnaround plans are bracing for a long road ahead, despite the recent payoff.“Those things take a lot of time,” Joao Braga, the co-head of equities at XP Asset Management, said on his Twitter account on July 3. “Nobody should be in a turnaround case to gain short-term money.”Braga, whose XP Long Biased FIC FI Multimercado fund has topped 99% of its peers over the past three years, also bought shares in GPA’s auction.“The easy money to be made in Via Varejo is gone,” Garde’s Leite said. “From now on, management will need to deliver the turnaround for the stock to keep climbing. And we believe they will.”\--With assistance from Fabiola Moura and Albertina Torsoli.To contact the reporters on this story: Vinícius Andrade in São Paulo at firstname.lastname@example.org;Felipe Marques in Sao Paulo at email@example.comTo contact the editors responsible for this story: Brad Olesen at firstname.lastname@example.org, Steve Dickson, Daniel TaubFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Casino Guichard-Perrachon SA and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
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Brazilian food retailer GPA is launching a new business-to-business e-commerce platform, an executive told Reuters, aiming to double its customer base in the segment by the end of 2019. The digital platform for wholesale deliveries to bars, restaurants and other small and mid-sized businesses, is part of GPA's push into the wholesale market, where competition is stiff as Brazil recovers tepidly from a deep recession. GPA, the local subsidiary of France's Casino Guichard Perrachon SA, began wholesale deliveries in the city of Sao Paulo and surrounding areas four years ago under an initiative known as Aliados Minimercado.
Brazilian retail veteran Michael Klein and his family on Friday gained control of appliance retailer Via Varejo SA from retailer GPA SA in an auction. Klein bought a smaller than anticipated additional stake in the company, but other investors pitched in and GPA ended by selling its entire stake at a higher than expected price. Combined with its previous stake of 25.4%, the Klein family will own 27%, making it the retailer's largest shareholder.
GPA, controlling shareholder of Brazil's Via Varejo and a unit of Casino Guichard Perrachon SA, said its board of directors approved the sale of all shares it owns in the retailer for a minimum price of 4.75 reais each, according to a securities filing on Wednesday. Via Varejo's controller also said it received a letter from businessman Michael Klein in which he says that in the event GPA approved the sale of its Via Varejo shares on the stock exchange, he would offer, individually or with other investors, a maximum of 4.75 reais per share in the retailer.
U.S. short-selling firm Muddy Waters on Thursday rejected the preliminary findings of a probe by France's AMF financial regulator into its criticism of retailer Casino. "We vehemently disagree with the preliminary conclusions of the AMF investigation team, which we believe are tainted by bias," Muddy Waters said in a e-mailed statement. Newspaper Le Monde reported earlier on Thursday that the AMF regulator suspects Muddy Waters of "deception" regarding supermarket retailer Casino whose shares have been hurt by Muddy Waters' negative comments.
Moody's Investors Service ("Moody's") has today downgraded French grocer Casino Guichard-Perrachon SA's (Casino) long-term corporate family rating (CFR) to B1 from Ba3 and its probability of default rating (PDR) to B1-PD from Ba3-PD. Moody's has also downgraded Casino's senior unsecured long-term ratings to B1 from Ba3, its senior unsecured MTN program rating to (P)B1 from (P)Ba3, the deeply subordinated perpetual bonds' rating to B3 from B2. "We believe that the debt restructuring of Casino's main shareholder Rallye and of its controlling holding companies creates additional uncertainty at a time when trading conditions in the French retail market remain highly challenging and increases the execution risk of Casino's deleveraging," says Vincent Gusdorf, a Moody's Vice President -- Senior Credit Officer and lead analyst for Casino.
If you're interested in Casino, Guichard-Perrachon Société Anonyme (EPA:CO), then you might want to consider its beta...
The following are the top stories in the Financial Times. Reuters has not verified these stories and does not vouch for their accuracy. Headlines French retailer Casino scraps interim dividend in bid to ...