Casino Guichard-Perrachon, a French retail group, announced on Wednesday that it anticipates a decline in earnings and sales for its France operations in the second quarter. Revised offers for the restructuring of the company’s debt are also expected to be submitted on Friday.
Decrease in France Sales
The company expects its France sales in the second quarter to reach around 3.6 billion euros ($4.01 billion), compared to 4 billion euros in the previous year.
Impact on First Half Results
In the first half of the year, Casino Guichard-Perrachon estimates a post-lease loss before interest, taxes, depreciation, and amortization between 165 million euros and 175 million euros. This is a decrease from earnings of 191 million euros in the same period last year. The decline in sales and price reductions in hypermarkets and supermarkets adversely affected the company’s results.
Excluding hypermarkets and supermarkets, the post-lease Ebitda (earnings before interest, taxes, depreciation, and amortization) is projected to be around 300 million euros.
Revised Guidance for Full Year
The company now expects the post-lease Ebitda for the full year to be below 300 million euros, compared to the previously projected 440 million euros in the business plan presented on June 26.
Debt Restructuring Efforts
As Casino Guichard-Perrachon works towards restructuring its debt, conciliators have requested revised offers to be submitted by Friday. These offers will then be reviewed by the company on Monday.
