The French retail group Casino said it will meet profit forecast in France this year, despite a slowdown in sales growth for the third quarter that was pressed by the performance of the company in Europe, while in Brazil the performance was strong.
The Casino, whose credit was lowered to "junk" by Standard & Poor''s in March, is under pressure to recover the performance in France, where the company gets 46 percent of its sales, while facing recession environment in Brazil, its second largest market. The company controls in Brazil the Grupo Pão de Açúcar.
"We are confident about our recovery plan in France. We are very confident to reach the 500 million euros ", said the financial Vice President, Antoine Giscard d''Estaing, in Conference call.
The Casino is promoting price cuts to expand sales of its stores in France, as well as cost cuts and savings obtained by an arrangement with the French retailer Intermarche to be able to meet the profit target.
Excluding acquisitions, currency effects and fuel sales revenue, sales rose 2.9% to 10.43 billion euros in the third quarter, down 3.8% from the previous quarter.
The sales performance of the Casino was released after the GPA reported on Tuesday (11/10) that consolidated net revenue for the third quarter rose 4.4 percent over the same period in 2015, to 15.094 billion reais, driven by 14% jump in sales of the food segment.
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