UPDATE 2-Slowdown in Brazil, France, hits sales of retailer Casino

martes 14 de octubre de 2014 16:45 GYT
 

* Q3 l-f-l sales growth 2.8 pct vs 6.5 pct in Q2

* Q3 French hypermarket sales down 3.9 pct vs +1.1 pct in Q2

* CFO 'comfortable" with 2014 EBIT consensus of 2.34 bln euros (Adds comments by CFO, financial details)

By Dominique Vidalon

PARIS, Oct 14 (Reuters) - Retailer Casino said sales growth slowed sharply in the third quarter, reflecting a slowdown in Brazil, its biggest market, and weaker sales at home resulting from low consumer confidence and poor summer weather.

Casino, which generates 60 percent of its sales in emerging markets and controls Brazil's Grupo Pao de Acucar, posted third-quarter group sales of 11.97 billion euros ($15.15 billion). Analysts on average had expected sales of 11.8 billion, according to a Thomson Reuters poll.

Stripping out acquisitions, disposals, currency effects and fuel, sales rose 2.8 percent, slower than the 6.5 percent growth recorded in the second quarter.

"In the third quarter we faced a challenging environment with a deceleration of the Brazilian economy and a weaker France," Chief Financial Officer Antoine Giscard d'Estaing told analysts.

However, he was "comfortable" with the market consensus for 2014 earnings before interest and taxes (EBIT), which currently stood at 2.34 billion euros against 2.4 billion in mid-July.   Continuación...