Earnings call transcript: Casino Group enters recovery phase with 2025 turnaround
Casino Group reported a 2025 financial turnaround with positive like-for-like sales growth, improved EBITDA and cash flow, while entering the recovery phase of its three-phase transformation despite elevated net debt.Summary
Casino Group is executing a three-phase transformation (restore, recover, grow) and entered the recovery phase in 2025. For the full year, the group delivered its first positive like-for-like sales growth since restructuring, with net sales of EUR 8.3 billion (+0.5% like-for-like). Adjusted EBITDA before lease payments rose 14% to EUR 655 million, and free cash flow improved by EUR 519 million to -EUR 120 million. Net debt increased to EUR 1.5 billion (+EUR 290 million). Brand performance varied: Monoprix achieved +0.6% like-for-like sales and +10.9% adjusted EBITDA growth; Naturalia delivered +8.6% like-for-like sales and +57% adjusted EBITDA growth; Franprix was nearly flat in sales but gained ~20% in adjusted EBITDA; and Casino/SPAR/Vival posted +0.6% like-for-like sales but a -37% adjusted EBITDA decline due to prior synergies. Cdiscount generated EUR 2.75 billion in GMV (+3.5%) and acquired 2 million new customers. The group streamlined its store portfolio (1,178 exits, 207 openings) and expanded franchise models, launched new store concepts, and implemented purchasing alliances (Aura Retail, Everest) to improve margins. While progress is evident, the group faces elevated leverage, competitive pressure, and macroeconomic uncertainty. Ongoing discussions with creditors aim to extend and restructure debt maturities beyond May 2026 to support the Renouveau 2030 strategic plan.
(Source：Investing Uk)