2024-07-25 08:28:31
When the robin is hoarse, ELO has a cold. The holding company, which brings together Auchan Retail, New Immo Holding (real estate) and Oney (payments), announced its first-half 2024 results on Thursday morning. disappointing », « Clostridium difficile »…We hear the various speakers declare with their mouths closed that “ Auchan France’s performance was affected by declining retail performance and high special charges ».
If turnover remains stable at €15,692 million (-0.1%), the closely watched EBITDA (earnings before interest, taxes, depreciation and amortization) will fall sharply, from €545 million in the first half of 2023 to €339 million a year later. This is a drop of 37%. As a result, net income will increase to –€981 million in the first half of 2024 (–€215 million in the first half of 2023). ” We can’t be satisfied with this », admits Jean-Baptiste Emin, deputy general manager of ELO.
If the real estate activities of New Immo Holding (EBITDA is almost stable) and the banking activities of Oney continue, the situation for Auchan Retail will be more delicate, especially in France. Same-store sales in the first half of 2024 are expected to fall by -3.3%, including -4.7% in France and -1.5% in other countries (excluding Russia and Ukraine). We observed a year-on-year decline in sales, especially in France. This is part of a context of lower consumption in Europe. However, this decline was offset by external growth: the integration of Dia stores in Spain and Portugal and the gradual integration of Casino stores in France.”, explains Ludovic Delcloy, Finance Director of Auchan Retail. In addition, the sales formula is changing, with a sharp slowdown in half-year inflation in our region to 1.8%, and even to -0.4% in France, which has affected the country’s data. All this is part of a fall in consumption. Auchan and its hypermarkets are particularly affected by the sharp fall in non-food sales. Continuation of the situation observed in the second half of 2023. » Auchan Retail’s EBITDA increased from EUR 362 million to EUR 166 million. On the other hand, debt remained stable.
France accounts for 50% of Auchan’s retail turnover. Auchan France is evolving in the face of competition, is better positioned in terms of price and format, and is more compact. The phenomenon of deconsumption is fully in play. Hypermarkets with a greater exposure to non-food products recorded a decline of -5.2%, suffering more than supermarkets (-1.6%). », explains Ludovic Delcloy, Auchan Retail Finance Director. Fuel sales also fell.
Finally, Auchan France’s total turnover (including fuel) fell by 2.9% to 7.6 billion euros. In this context, EBITDA in France fell by 115 million euros.
‘Activism and courage’
« Strong strategic planning requires a lot of activism and courage », estimates Antoine Grolin, CEO of ELO. Guillaume Darrasse, Deputy General Manager of Auchan Retail and President of Auchan Retail France, says: Voluntariness and determination “. The plan includes strengthening strategic markets. Auchan Retail has completed the acquisition of Dia in Portugal, for a total of more than 700 stores, following the acquisition of 213 Dia markets in Spain in the second quarter of 2023. In France, the main moves began with the purchase of 94 Casino stores (353,000 m2), allowing the brand to plant its flag in a region where it has little presence. With this business, Auchan hopes to increase its turnover by 2 billion euros by 2028.” Our goal is to get one million customers », insert by Guillaume Darrasse.
Another consideration is the reduction in sales areas. According to online survey media reports, they will worry about this letter71 of the brand’s 119 hypermarkets between 2025 and 2028. In February, Auchan Retail CEO Yves Claude explained that it was necessary to “ Meeting new consumer expectations », resulting in a reduction in surface area of approximately 25%. “ Our target size is 8,000 square metersindicates Guillaume Dallas. The total area will be reduced by 300,000 square meters by 2027, including 50,000 square meters from 2024. »
The unions fear that thousands of jobs will be lost in stores. The northern dealer also plans to reposition itself on price, especially thanks to its purchasing partnership with Intermarché. He also wants Provide a suitable offer » Through more easily understood options, develop the franchise (by doubling the number of franchise stores by the end of 2024, reaching 321 by the end of 2023) and organize itself more effectively, especially in terms of IT and data functions. “ We expect IT costs to decline starting in 2026. »
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