Casino Group: 2024 Full-Year Results

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2024 FULL-YEAR RESULTS

After the 2024 transformation, the New Casino is now committed to implementing its convenience retail strategy

• Financial restructuring and change of control
  • Refocusing on convenience retail in France

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    • Sale of Casino hypermarkets and supermarkets: 366 stores sold in 2024
    • Employment Protection Plans implemented
• Governance changes at Monoprix
• Renouveau 2028 strategic plan launched and steering committees created to lead its implementation
• First achievements of the Renouveau 2028 strategic plan
  • Store network streamlined, with the closure of 768 non-profitable outlets
  • 266 stores opened and 95 integrated stores converted to franchises or business leases
  • Initial targeted price investments and price reductions
  • Cdiscount new brand platform unveiled
  • The first Franprix stores converted to the new "Oxygène" concept
  • Additional Naturalia stores converted to the "La Ferme" concept
  • Monoprix's Fashion & Home website redesigned
  • Casino mobile grocery truck concept launched
  • Product range structure and private-label strategy both redefined

• Participation in the Aura Retail purchasing partnership between Intermarché, Auchan and Casino

2024 Key figures

The Board of Directors held on 27 February 2025 approved the statutory and consolidated financial statements for 2024. The auditors have completed their audit procedures on the financial statements and are in the process of issuing their report.

Philippe Palazzi, Chief Executive Officer of Casino Group, said:

"2024 was a profound transformation year for Casino Group. Since the Group governance change on 27 March 2024, we have efficiently implemented our restructuring plan in accordance with the pre-determined timeline. These achievements enable us to start over with a solid foundation, with a more agile structure focusing on our convenience retail brands and innovative concepts. Streamlining our store network and being more selective in our choice of current and future franchisees will have a significant impact on improving our profitability. We have launched projects that hold significant future promise, such as the new Franprix and Naturalia concepts and the new design of Cdiscount brand platform, while investing in targeted price cuts to meet the expectations of our franchisees and consumers. Our partnership with Intermarché and Auchan, through Aura Retail, represents a strategic milestone to increase our competitiveness and our purchasing capacity with major food industry groups. Although the 2024 financial results remain impacted by the previous situation, we are now fully committed in implementing our Renouveau 2028 plan, which will make the new Casino the leading convenience retailer in France.”

2024 FOURTH QUARTER AND FULL-YEAR RESULTS

Net sales

Consolidated net sales for 2024 amounted to €8.5bn, down -2.6% on a same-store basis and down -5.4% as reported, after taking into account a -0.6-pt negative Cdiscount scope effect (Carya impact) and a roughly -2.2-pts negative effect of streamlining the convenience brand network.

Fourth-quarter 2024 net sales came to €2.2bn, down -1.8% on a same-store basis and down -4.7% in as reported, after taking into account a +0.6-pt positive calendar effect, a -0.6-pt negative Cdiscount scope effect (Carya impact) and a roughly -2.9-pts negative effect of streamlining the convenience brand network.

Convenience brands

Convenience brands (Monoprix, Naturalia, Franprix and Casino) reported a -1.2% decline in net sales on a same-store basis in Q4 2024 in a declining market⁵.

• Monoprix's net sales contracted by -1.4% on a same-store basis in Q4 2024 (vs. stable full year sales). Sales were up +1.5% at Monop' and down -2.1% at Monoprix City, which recorded a -3.3% fall in food sales, affected by (i) high basis of comparison due to inflation still being passed on in selling prices in Q4 2023 and the Rugby World Cup in October 2023, and (ii) an unfavourable market trend in festive products in December, resulting in a drop in sales value due to consumers trading down to lower-priced products. Non-food sales rose by +0.5% in Q4 2024, including +5.7% growth in textiles and a +1.3% increase in the Home/Leisure segment, thanks in particular to three collaborations with designers during the quarter.

E-commerce supported the trend, with Q4 sales up +7.5%. Online food sales were +0.7% higher, while Fashion & Home sales grew by a very strong +52%, attesting to the success of the redesign of the dedicated website.

• Naturalia recorded same-store net sales growth of +4.5% in Q4 2024 (up +4.7% for the year), driven in particular by the success of the "La Ferme" concept, with double-digit growth recorded in the converted stores (nine stores had been converted by the end of 2024). The brand continued to benefit from solid growth in customer traffic (up +6.7% in Q4 and +5.8% over the year) and a loyal customer base (with 73% of net sales generated by loyalty card holders).
• Franprix's sales were down -1.6% on a same-store basis in Q4 2024 (down -0.5% for the year), affected by various impacts including (i) the price cuts rolled out since September on a selection of 145 best-selling products (-0.5-pt negative impact on constant monthly sales volumes over the quarter), (ii) the non-renewal of the dilutive "Bibingo" sales operation in November 2023 (-1.6-pt negative impact in November), and (iii) a disappointing performance over the holiday period. Franprix nevertheless continued to win new customers during the quarter, with customer traffic up +1.8% in Q4 and +1.4% over the year.
• Net sales by the Casino brands (Vival, Spar, Petit Casino, etc.) were down -1.3% on a same-store basis in Q4 2024 (down -3.6% for the year) but improved sequentially amid the overhaul of DCF's⁶ logistics organisation following the sale of the hypermarkets and supermarkets. The DCF logistics overhaul has now been completed, leading to a lasting return to industry-standard service levels⁷ for distributors of private-label and value line products (>90%). The quarter saw a return to growth in November and December (+0.3% and +2.3% respectively), thanks in particular to solid performances by seasonal stores over the winter period.

Among all convenience brands, wholesale sales (sales to franchisees by convenience brand warehouses) accounted for 30.3% of net sales in 2024.

Cdiscount⁸

In the fourth quarter of 2024, following 2-year of transformation, Cdiscount renews with overall same-store GMV⁹ growth, rising by +2% vs. no change in Q3, a -9% decrease in Q2 and a -12% decrease in Q1.

Product GMV⁹ was up +3% in Q4, thanks in particular to the sales and marketing spend included in Cdiscount's recovery plan launched in Q3 2024 and the solid Black Friday performance, reflecting (i) a +9% rise in Marketplace GMV in Q4 2024 (vs. +8% in Q3, -2% in Q2 and -4% in Q1) and (ii) progress towards a recovery in direct sales GMV (-7% in Q4 vs. -12% in Q3, -26% in Q2 and -29% in Q1).

As expected, Cdiscount net sales (down -5% on a same-store basis) continued to be affected by the assertive strategy of streamlining direct sales in favour of the Marketplace. In Q4 2024, Marketplace GMV accounted for 64% of product GMV (+4 pts vs. Q4 2023) with the sequential improvement observed since the beginning of the year continuing in the last three months (-21% in Q1, -17% in Q2 and -8% in Q3).

A streamlined store network

In 2024, action was taken to streamline the store network by closing 768 unprofitable outlets, 87% of which were operated by franchisees or under business leases (including 297 closed in Q4 2024), opening 266 stores, 98% of which are operated by franchisees or under business leases (including 52 opened in Q4) and converting 95 integrated stores to franchises or business leases (including 19 converted in Q4).

• Monoprix: 37 closures and 33 openings in 2024
• Naturalia: 11 closures, one opening and three conversions from integrated to franchises/business leases in 2024
• Franprix: 207 closures and 39 openings in 2024
• Casino: 513 closures, 193 openings and 92 conversions from integrated to franchises/business leases in 2024

As of 31 December 2024, the number of outlets operated by franchisees or under business leases represented 85% of the Group's store network (vs. 83% at the end of 2023), including 48% of the Monoprix store network, 26% of the Naturalia store network, 71% of the Franprix store network and 94% of the Casino convenience store network.

Pricing policy and product range structure

Pricing policy:

All the convenience brands made targeted pricing investments in 2024 to support their customers' purchasing power.

• Monoprix expanded its Access offer (100 low-price private-label essential products) in 2024 and overhauled its M' loyalty programme in April, enabling M' cardholders to enjoy savings of up to €80 a month for free, through personalised promotions and offers on private-label products.
• Franprix carried out two major price cutting campaigns during the year: (i) in June, the prices charged to franchisees were cut on a selection of 145 best-selling products, and (ii) in September, these products' in-store prices were cut, with visual markers placed on the shelves to help visitors to the stores identify the best bargains.
• During the summer, Casino's convenience brands launched two price cutting campaigns, at Spar (Top 300 items) and Vival/Casino (Top 60 items). The brands also stepped up their promotional offers for consumers, in a bid to boost their sales. In November, they launched a common Spar, Vival and Casino loyalty programme ("Coup de pouce") rewarding frequent purchasers with a 10% discount on their fifth visit to the store in a given month.

Product range structure and private-label products:

The Group is working on the structure of its product range, with the objective of adapting it to each type of geographic market and customer. This has meant stepping up product innovation and expanding local product ranges, with priority given to Made in France, alongside the ranges of national brands and private-label products.

The convenience brands' sales of private-label products rose by +1.4% on a same-store basis in 2024 (+2.2% in Q4), driving an +88-bp increase in the private-label products' share of total sales in 2024 (to 24.8%) and a +123-bp increase in Q4 2024 (to 26.5%).

The private-label product strategy was redefined during the year to make the structure of the various labels simpler and more competitive, without affecting their positive features. This new private-label offer will be rolled out during 2025 to Monoprix, Franprix and the Casino brands and will meet consumer expectations for each product category (core range, organic, premium, value line, cross-category).

Development of new concepts

Cdiscount rolled out its new brand platform and identity on 24 June 2024, reflecting its promise to increase customers' purchasing power (attractive prices, ongoing promotional offers, display of price comparisons) and its social responsibility commitment (more sustainable consumption, increasing proportion of more responsible products).  

Franprix: "Oxygène" concept launched

The concept was launched in June 2024 in close cooperation with franchisees and is tailored to the positioning of each store in one of the following three categories: "mini” (450 sq.m). The aim is to roll out an optimised sales offer (deeper product range, improved retail space allocation, increased proportion of private-label products, differentiated promotional offers) and to encourage purchases just inside the entrance and in the checkout area, with a clearer one-way path guiding the customer around the store. The concept was trialled in eight stores in 2024, with very promising initial results. Franprix is now planning to extend the concept to around 50% of its stores by 2028.

Naturalia: "La Ferme" concept rolled out

The brand continued to roll out the concept, which was launched in 2023. A further six stores were converted in 2024, raising the total to nine stores at year end. The aim of this concept is to better convey the offer's benefits and variety, and to support consumers more effectively by providing more explanations on the shelves (product origins and benefits). Retail space is organised around specific consumption moments (breakfast, snacks, etc.) and the stores are given a warmer atmosphere than traditional organic outlets. The brand is planning to roll out the concept to around 30% of its stores by 2028.

Monoprix: redesigned Fashion & Home website unveiled

The unveiling of the redesigned Fashion & Home website in February 2024 led to a sharp upturn in non-food e-commerce sales (+3% in Q2, +28% in Q3 and +52% in Q4), increasing the proportion of online non-food sales to 5.7% Q4 2024 (vs. 4.3% in Q4 2023).

Casino: launch of the pilot mobile grocery truck concept

Launched in 2024, Casino's pilot mobile grocery truck concept is designed to combat commercial and social isolation in rural and suburban areas. This project is in line with the Renouveau 2028 strategic plan and reaffirms Casino's commitment to a multi-faceted approach to retailing: facilitating access to everyday products (functionality), strengthening social ties (customer relationships) and revitalise areas and local life (emotional connection).

2024 FULL-YEAR RESULTS

In 2024, consolidated net sales amounted to €8.5bn, down -2.6% on a same-store basis and -5.4% in total after taking into account the -1.0-pt scope effect (including -0.4 pts for the convenience brands and -3.8 pts for Cdiscount) and the roughly -1.8-pt effect of the streamlining of the convenience brand network).

Group adjusted EBITDA came in at €576m (-24.7%), reflecting a margin of 6.8% (-174 bps).

Convenience brands

The convenience brands' adjusted EBITDA contracted by -€129m in 2024. The previous year's EBITDA was boosted by €20m in sponsorship credits (no additional sponsorship credits were recognised in 2024) and €23m in income recognised over the life of the contract between Monoprix and Getir/Gorillas (contract terminated in Q3 2023).

In addition to the impact of these non-recurring effects on the basis of comparison, the decline in adjusted EBITDA can be explained as follows:

• -€33m decline at Monoprix: despite a negative volume effect (-€7m), EBITDA margin improved (+€12m) thanks to a significant reduction in markdowns but this was not sufficient to offset the higher costs resulting from across-the-board pay rises and inflation;
• +€7m increase at Naturalia, reflecting the positive volume effect which boosted EBITDA margin by +€5m and the +€2m impact of lower energy costs;
• -€37m at Franprix, mainly due to (i) impairment losses recognised on receivables from franchisees as a result of past expansion (-€8m), (ii) an unfavourable margin mix (-€7m) impacted in particular by price cuts, (iii) a negative volume effect (-€7m) and (iv) profits registered in 2023 and not renewed in 2024

  (-€6m);

• -€24m at Casino, mainly impacted by the additional logistics costs resulting from the sale of the hypermarkets and supermarkets.

Cdiscount

Adjusted EBITDA was down -€12m, with the slight improvement in gross margin only partly offsetting the higher costs, mainly in the shape of marketing spend, to support Cdiscount's revival strategy launched in Q3 2024, which is designed to strengthen the brand's identity and improve the value proposition to its customers.

Other

Lastly, the adjusted EBITDA of the other subsidiaries and the holding company (down -€77m) was heavily affected by the loss of cost synergies at the level of their head offices (-€45m) following disposal of the hypermarkets and supermarkets, taking into account the effects of the employment protection plans.

Group adjusted EBITDA after lease payments amounted to €111m (vs.€320m in 2023).

Consolidated trading profit was -€49m (compared with +€124m in 2023).

Other operating income and expenses represented a net expense of -€772m in 2024 (vs. -€1,157m in 2023) including (i) -€602m of asset impairment losses (mainly Franprix goodwill impairment for -€422m), and (ii)

-€81m in financial restructuring costs for 2024.

Net financial income

Net financial income stood at €3,073m in 2024 (vs. net financial expense of -€768m in 2023), including (i) €3,486m corresponding to the conversion of debt into equity and measurement of reinstated debt at fair value, (ii) net borrowing costs of -€233m, (iii) interest expense on lease liabilities for -€142m and (iv) the

-€19m cost of CB4X¹⁰ (Cdiscount).

Consolidated net profit (loss), Group share

Profit (loss) from continuing operations, Group share came out at positive €2,169m, compared with a loss of -€2,558m in 2023.

Net profit (los