Casino Guichard-Perrachon, a French grocer, has revised its earnings forecast for 2023 due to the need to lower prices in order to regain traction in a highly competitive market.
Revised Earnings Forecast
The company announced that its earnings before interest, taxes, depreciation and amortization (EBITDA) after lease payments for 2023 will be below the previously expected level of €100 million ($105.7 million). This is a downward revision from the previous forecast of €214 million.
Increasing Debt Levels
Casino also revealed that its net debt as of September 30th has risen by approximately €200 million since June 30th, reaching a total of €5.6 billion.
As of the end of September, Casino reported liquidity in France amounting to €1.3 billion.
Third Quarter Performance
In the third quarter, the company recorded an EBITDA of €136 million for its operations in France. However, after lease payments, Casino posted a quarterly EBITDA loss of €12 million.
Net sales at the company’s French retail operations experienced a decline of 6.5% in the quarter, amounting to €3.40 billion. On a same-store basis, sales were down 5.6%.