Casino: Third Quarter 2008 Sales Up 12.7%

SAINT-ETIENNE, France--(BUSINESS WIRE)--Regulatory News:

Casino (Paris:CO)

Sustained Organic Growth of 7.3%

Very good performance in France, with sales up 5.3%

Continued rapid growth in international markets, with sales up 11.9%

Increased Momentum at Franprix-Leader Price, With Sales Up 12.1% (vs. 9% in Q2 2008)

Consolidated net sales	Q3 2008 (€m)	9 months 2008 (€m)	% Change QoQ		% Change 9Mo9M
			euros	organic^*	euros	organic^*
Continuing operations	7,214.2	21,026.8	12.7%	7.3%	17.1%	7.0%
France	4,737.3	13,747.7	5.2%	5.3%	4.9%	4.9%
International	2,476.9	7,279.1	30.5%	11.9%	50.2%	12.7%

^*based on constant scope of consolidation and exchange rates

Consolidated net sales for the third quarter of 2008 rose by 12.7% from the prior-year period, led by sustained organic growth of 7.3% and the full consolidation of Super de Boer in the Netherlands.

In France, the Group turned in a very good performance, reporting organic sales growth of 5.3% in market conditions that were similar to those observed in the second quarter.

Growth continued to be led by convenience and discount formats, as well as by private labels and value-line products.

Sales growth at Franprix-Leader Price accelerated to 12.1%, reflecting strong same-store growth (10% at Franprix and 5.3% at Leader Price) along with the effects of the more dynamic expansion strategy, which is being implemented according to plan.

In all, convenience store sales rose 5.7%, with Casino supermarkets achieving 8.6% growth and a further 0.1-point gain in market share.

This third quarter performance, which was in line with that for the first half, contributed to a robust 4.9% increase in sales over the first nine months of the year, in an environment that was consistent with the Group's expectations and strategy.

In international markets, organic growth remained robust at 11.9%, reflecting gains of 11.6% in South America and 16.5% in Asia underpinned by strong same-store growth.

Sales for the third quarter attest to the effectiveness of the Group’s business model in the current environment, both in France and in international markets.

In France, Casino has a favourable mix of formats, which is heavily weighted towards convenience and discount banners. The Group will accelerate expansion on those promising and cash efficient formats. Casino is benefiting as well from the effectiveness of its differentiation levers, such as the development of private labels and increasingly personalised marketing thanks to dunnhumby.

Outside France, the Group boasts a platform of international assets concentrated in high potential markets (Brazil, Colombia, Thailand).

* *

The Group confirms its 2008 targets:

Faster organic growth in sales.
Further growth in trading profit.

FRANCE

Sales in France rose by 5.2% in the third quarter of 2008. The impact of the number of selling days was slightly positive at 0.7%.

(€ millions)

Third Quarter

9 months

2007

2008

% change

2007

2008

% change

Net sales, France

Franprix/Leader Price

4,504.0

908.3

4,737.3

1,018.3

5.2%

12.1%

13,104.8

2,876.0

13,747.7

3,156.6

4.9%

9.8%

Géant Casino hypermarkets

1,612.3

1,608.6

-0.2%

4,553.7

4,551.1

-0.1%

Convenience stores

1,719.1

1,817.5

5.7%

4,872.3

5,149.7

5.7%

Casino supermarkets

871.0

945.8

8.6%

2,392.7

2,613.5

9.2%

Monoprix

410.9

420.5

2.3%

1,284.8

1,323.2

3.0%

Superettes

437.2

451.2

3.2%

1,194.8

1,213.0

1.5%

Other businesses

264.3

292.9

10.8%

802.8

890.2

10.9%

Same-store sales	Third Quarter 2008		9 months 2008
Same-store sales	% change	Excluding gasoline	% change	Excluding gasoline
Franprix	10.0%	10.0%	7.8%	7.8%
Leader Price	5.3%	5.3%	3.8%	3.8%
Géant Casino hypermarkets	0.5%	-1.7%	0.7%	-2.1%
Casino supermarkets	5.5%	4.0%	6.3%	4.2%
Monoprix	0.7%	0.7%	1.2%	1.2%

Franprix-Leader Price

Franprix-Leader Price reported sales up by a strong 12.1%, reflecting sustained same-store growth and accelerated expansion of the store base. Same-store growth came to 10% at Franprix (compared with 7.9% in the second quarter) and 5.3% at Leader Price (versus 4.9%). At both banners, the increase was driven mainly by higher checkout flowthroughs.

Fifteen Franprix stores and ten Leader Price stores were opened during the quarter. The accelerated pace of expansion will be maintained in the last three months of the year with 39 Franprix stores and 26 Leader Price stores scheduled to open.

Hypermarkets

Géant Casino hypermarket sales rose 0.5% on a same-store basis. Excluding gasoline, sales contracted 1.7%, primarily due to a 7.2% fall in non-food sales as consumers continued to curb their spending on non-essential items.

Food sales rose 0.8%, lifted by strong momentum in private label sales, with growth remaining in the double-digits. Private-label and value-line items accounted for 44.7% of FMCG and refrigerated product sales, an increase of four points for the quarter.

Checkout flowthroughs declined by 2.3%, while the average basket was up 0.7%.

These developments, which were in line with Group expectations, reflect a deepening of underlying market trends, with consumers turning their backs on hypermarkets in favour of convenience and discount formats and a shift in demand towards private labels and value-line items.

In this environment, Géant Casino continued to strengthen its shopper appeal by rolling out the new store concept, rationalizing the non-food line-up and developing increasingly personalised marketing thanks to dunnhumby.

Convenience stores

Supermarkets

Casino supermarkets enjoyed another period of strong growth, with sales for the quarter up 8.6% (5.5% on a same-store basis). Excluding gasoline, same-store growth came to 4.0%, lifted by a 3.6% increase in the average basket.

The banner continued to expand, opening three new stores during the quarter.

This robust sales performance translated into a further 0.1-point gain in market share during the period.

Monoprix

Monoprix sales were up 2.3% for the quarter, including 0.7% same-store growth. The banner's differentiated positioning helped to drive a satisfactory performance, particularly in the non-food segment, despite the lacklustre market environment.

Three Monop' stores were opened during the period.

Superettes

Superette sales for the quarter rose 3.2%, led by a sharp improvement in sales of beverages, fruit and vegetables.

Other Businesses

Sales by the other businesses (Cdiscount, Mercialys, Casino Cafétéria and Banque Casino) rose by a strong 10.8% in the third quarter, led by a 20.7% surge in revenues at Cdiscount. All in all, the additional revenue generated by Cdiscount fully offset the decline in the hypermarkets' non-food sales.

* *

INTERNATIONAL

International sales expanded 30.5% in the third quarter. Changes in consolidation scope had a 21.7% positive impact, corresponding mainly to the full consolidation of Super de Boer from 1 January 2008. The currency effect was a negative 3.2%, due primarily to the decline in the Thai and Venezuelan currencies against the euro, partially offset by the appreciation of the Brazilian real during the period.

Organic growth remained very strong in South America, up 11.6%, and Asia, up 16.5%.

Consolidated data, in € millions	Reported change		Organic growth		Same-store sales
Consolidated data, in € millions	Q3 2008	9 months 08	Q3 2008	9 months 08	Q3 2008	9 months 08

South America	15.1%	41.2%	11.6%	13.8%	10.0%	10.7%
Asia	0.3%	2.0%	16.5%	14.3%	4.1%	4.4%
Indian Ocean	3.2%	2.1%	5.4%	4.3%	5.2%	3.9%

In South America, same-store sales rose 10.0%, led mainly by faster growth at CBD – where same-store sales were up 13.6% compared with 8.1% in the first half – and by further very strong gains in Argentina, Venezuela and Uruguay.

CBD's excellent performance in both the food and non-food segments attests to the effectiveness of the banner's marketing strategy of competitive price positioning and product line-up renewal.

In a less favourable macroeconomic environment, overall performance in Colombia continued to be dampened by lower non-food sales.

Organic growth in Asia was a high 16.5%, led by a dynamic expansion strategy and satisfactory 4.1% same-store growth. In Thailand, Big C opened three hypermarkets during the quarter (in addition to the six opened in the first half), raising the total number of stores to 63 at end-September. A new hypermarket was also opened in Vietnam, where the store base now comprises eight units.

In the Indian Ocean, organic growth was a satisfactory 5.4% and same-store sales were up 5.2%, reflecting the success of marketing initiatives carried out during the quarter.

In the Netherlands, Super de Boer recorded same-store growth of 4.2% in the third quarter, a performance in line with the first half.

Main changes in the scope of consolidation

Exito (Colombia), which was previously accounted for by the equity method, has been fully consolidated since 1 May 2007.
Disco (Uruguay) has been proportionately consolidated on a 62.5% basis since 1 August 2007 (compared with 58% previously).
Assai (Brazil) has been fully consolidated within CBD since 1 November 2007.
Super de Boer (Netherlands), which was previously accounted for by the equity method, has been fully consolidated since 1 January 2008.

3rd Quarter

Change

9 months

Change

2007

€m

2008

€m

Reported

At constant ex.rates

2007

€m

2008

€m

Reported

At constant ex.rates

FRANCE

4,504.0

4,737.3

5.2%

13,104.8

13,747.7

4.9%

O/w:

Franprix – Leader Price

908.3

1,018.3

12.1%

2,876.0

3,156.6

9.8%

Géant Casino Hypermarkets

1,612.3

1,608.6

-0.2%

4,553.7

4,551.1

-0.1%

Convenience

Casino Supermarkets

Monoprix

Superettes

1,719.1

871.0

410.9

437.2

1,817.5

945.8

420.5

451.2

5.7%

8.6%

2.3%

3.2%

5.7%

8.6%

2.3%

3.2%

4,872.3

2,392.7

1,284.8

1,194.8

5,149.7

2,613.5

1,323.2

1,213.0

5.7%

9.2%

3.0%

1.5%

5.7%

9.2%

3.0%

1.5%

Other

264.3

292.9

10.8%

802.8

890.2

10.9%

INTERNATIONAL

1,898.7

2,476.9

30.5%

33.7%

4,845.2

7,279.1

50.2%

54.1%

o/w :

South America

1,310.1

1,507.7

15.1%

15.0%

3,103.1

4,381.6

41.2%

42.7%

Asia

385.0

386.0

0.3%

16.5%

1,136.9

1,159.2

2.0%

14.3%

Indian Ocean

203.3

209.8

3.2%

3.1%

604.2

617.1

2.1%

2.0%

Netherlands

0.0

373.0

0.0

1,120.0

Other (Poland)

0.3

0.4

33.8%

17.5%

0.9

1.1

19.8%

7.4%

Net Sales continuing operations

6,402.7

7,214.2

12.7%

13.6%

17,949.9

21,026.8

17.1%

18.2%

Net Sales discontinued operations

0.5

0.0

625.0

Consolidated sales

6,403.2

7,214.2

18,574.9

21,026.8

Average exchange rates	H1 2007	H1 2008	% Change	9 months 07	9 months 08	% Change
Argentina (ARS / EUR)	0.243	0.208	-14.5%	0.239	0.211	-11.7%
Uruguay (UYP / EUR)	0.031	0.032	3.0%	0.031	0.033	5.3%
Venezuela (VEB / EUR) (x1,000)	0.350	0.304	-13.3%	0.346	0.306	-11.7%
Thailand (THB / EUR)	0.023	0.021	-8.7%	0.023	0.020	-10.9%
Vietnam (VND/EUR) (x1,000)	0.047	0.041	-13.1%	0.046	0.040	-12.2%
Colombia (COP / EUR) (x1,000)	0.355	0.355	0.0%	0.356	0.354	-0.7%
Brazil (R$ / EUR)	0.368	0.385	4.7%	0.372	0.390	4.9%

France	Dec 31, 07	June 30, 08	Sept 30, 08
Géant Casino hypermarkets	129	131	131
Of which French Affiliates	6	6	6
International Affiliates	11	14	14
+ Service stations	99	99	99
Casino supermarkets	379	386	392
Of which French Franchise Affiliates	71	69	69
International Franchise Affiliates	17	18	21
+ Service Stations	140	144	145
Franprix supermarkets Of which Franchise

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Casino: Third Quarter 2008 Sales Up 12.7%