PARIS (dpa-AFX) - French retail company Casino Group (0HB1.L, CGUIY.PK) on Wednesday updated its outlook for fiscal 2023 EBITDA to now expect a loss, as well as its 2024-2028 business plan of the French perimeter.
For fiscal 2023, the company now estimates EBITDA after leases would be between negative 78 million euros and negative 140 million euros.
The company previously expected EBITDA after lease payments to be lower than the level achieved over the 12-month rolling period to end-September 2023, i.e., 100 million euros.
The revision of EBITDA after lease payments is mainly due to the consideration of the latest DCF sales forecasts, in particular for Hypermarkets, where the turnaround is in progress, but is slower than initially expected. The outlook also reflects the impact, on the DCF margin rate, of the price investments required in the current market environment to pursue the recovery of the business.
Further, the company said its 2024-2028 business plan published in September has been updated to take into account the new 2023 trajectory and new action plans identified for the period.
The company projects EBITDA after lease payments for 2024 of 222 million euros and for 2025 of 509 million euros.
Casino noted that the recovery in Supermarkets traffic and volumes is ongoing, with 10% growth in traffic and 7% growth in volumes over the last week. In Hypermarkets, the gradual turnaround is underway.
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