2010 REGISTRATION DOCUMENT (3.4 Mo) - Groupe Casino

31 DECEMBER 2010Business Review22.1.2. INTERNATIONAL(38% of consolidated net sales and 41% of consolidated trading profit)€ millions 2009 2010ReportedchangeOrganicchange (1)Net sales 9,093 11,122 +22.3% +10.8%Trading profit 407 530 +30.2% +9.2%Trading margin 4.5% 4.8% +29 bp -7 bpInternational sales grew by 22.3% to €11,122 million.The sharp increase in the Brazilian real, Colombian peso and Thai bahtagainst the euro had a positive impact of 14.6%. The change in scopeof consolidation had a negative impact of 3.0% as the deconsolidationof the Venezuelan operations was only partially offset by Grupo Pãode Açucar’s consolidation of Ponto Frio and Casas Bahia.Adjusted for these effects, International operations achieved doubledigitorganic growth of 10.8%, up significantly from 4.9% in 2009.Trading profit rose by 30.2% to €530 million from €407 million in2009. This strong growth was lifted by the favourable currency effectand robust organic sales growth in South America and Asia. On anorganic basis, trading profit rose by 9.2%.Trading margin improved 29 bp to 4.8% reflecting significant margingains in South America and Asia. On an organic basis, trading margindeclined slightly by 7 bp due to a decrease in property developmentprofits in Poland. Margins in South America and Asia rose by 28 bpand 56 bp respectively on an organic basis.International contributed 38% to Group revenue and 41% to tradingprofit, versus 34% of both revenue and trading profit in 2009.South America■■■■Brazil (GPA proportionately consolidated on a 33.7% basis, Ponto Frio consolidated by GPA since 1 July 2009 and Casas Bahia since1 November 2010);Argentina;Uruguay;Colombia.€ millions 2009 2010ReportedchangeOrganicchange (1)Net sales 6,563 8,245 +25.6% +13.0%Trading profit 250 372 +48.9% +20.3%Trading margin 3.8% 4.5% +70 bp +28 bpSales in South America rose 25.6% to €8,245 million from€6,563 million in 2009.The currency effect was a favourable 17.1% whilst the scope effectwas a negative 4.5%, mainly due to the deconsolidation of theVenezuelan operations.Organic sales growth was 13.0%, driven mainly by a strong 10.3%increase in same-store sales across South America as a whole.In Brazil, GPA posted strong 13.2% (2) growth in same-store sales.Excluding Globex, same-store sales rose by a sustained 10.5% (2) ,mainly reflecting good performances by Assaï and Extra supermarkets.Globex turned in another excellent same-store performance, withgrowth of 30.2% (2) driven mainly by a 62% (2) increase in e-commercesales.GPA continued to pursue an active expansion policy across all itsformats, opening a total of 54 stores during the year, including eightExtra hypermarkets, twenty-three Extra Facil convenience stores andthirteen Assaï cash and carry stores. In total, Brazilian sales wereup 38% (1) over the year (at constant exchange rates), driven by thefull-year consolidation of Ponto Frio and the consolidation of CasasBahia since 1 November 2010.In Colombia, in a better economic environment than 2009, Exitoreturned to growth, up 5.7% (2) on a same-store basis compared witha decrease of 4.1% (2) in 2009. Exito continued its store rationalisationprogramme, converting 38 stores, and stepped up its expansion,opening 14 new stores including 3 hypermarkets. Exito Express, anew convenience format, was launched during the year, with 9 storesopened. Lastly Exito entered into a strategic alliance with CAFAM, thesecond largest retailer in Bogota. Under the agreement, 31 CAFAMstores joined the Exito network in the final quarter of 2010.Total sales grew by 7.6% (2) in 2010, outperforming the market andstrengthening Exito’s leadership position.Operations in Argentina and Uruguay continued to deliver sustainedsame-store growth.Trading profit in South America totalled €372 million in 2010, up48.9% on a reported basis and 20.3% on an organic basis.Trading margin improved by 70 bp. Deconsolidation of the Venezuelanoperations, which had a lower margin than the region as a whole, hada positive impact, although this was partially offset in the first half by theconsolidation of Ponto Frio, which also has a below-average margin.On an organic basis, trading margin in South America increased by28 bp, mainly reflecting improved profitability at Ponto Frio and highermargins in Colombia.(1) Based on a comparable scope of consolidation and constant exchange rates, excluding the impact of asset disposals to OPCI property funds and before reclassifi cation of theCVAE under income tax.(2) Based on data published by the companies.Registration Document 2010 | Casino Group19