Shares in Casino Guichard-Perrachon saw a boost after the company announced growth in its Latin American operations, partially offsetting a decline in its home market. The stock traded 3% higher at EUR0.88, reaching a peak of EUR0.91, according to the latest data available. It’s worth noting, however, that the stock is still down 91% year-to-date due to ongoing financial restructuring efforts and high levels of debt.
For the third quarter, the French grocer reported sales of 4.56 billion euros ($4.84 billion), marking a 5.5% decrease compared to the previous year. On a same-store basis, group sales fell by 5.3%, with a notable 6.4% increase in Latin America offset by an 8.2% drop in France.
Last week, Casino had already released sales figures for its French operations and warned about the impact of price adjustments needed to improve traffic in an increasingly competitive market. This adjustment is expected to put pressure on profitability for the remainder of the year.
To ensure liquidity and maintain operations, Casino began talks with creditors earlier this year. As of September 30, the company’s net debt at the group level rose to EUR6.2 billion from EUR6.1 billion recorded three months earlier.