UPDATE 2-Brazil worries hit Casino shares despite forecast-beating sales

jueves 14 de enero de 2016 10:36 GYT
 

* Decline in Brazilian consumer electronics sales slowing

* Market consensus for 2015 EBIT of 1.5 bln euros "realistic"

* Shares fall 6 pct, reversing opening gains (Adds CFO comments from analysts call, analysts, shares)

By Dominique Vidalon

PARIS, Jan 14 (Reuters) - French retailer Casino's shares fell 6 percent on Thursday on concerns about demand in Brazil, despite fourth-quarter sales that beat expectations as a recovery in its home market gained momentum.

Consumer electronics demand in Brazil, Casino's second-biggest market by revenue, remained weak in the fourth quarter but the sales decline had slowed, the company said.

Chief Financial Officer Antoine Giscard d'Estaing said Brazil sales were nearing a bottom, and that he was "very confident" about a recovery in Casino's French operations, rebutting a report by research and investment firm Muddy Waters.

But shares fell nearly 6 percent, reversing opening gains, and were down 5.6 percent at 38.44 euros at 1434 GMT. The shares, which lost 45 percent last year, have been hit by concerns about challenging French and Brazilian markets, and the company's balance sheet.

"We remain concerned by the risk of additional earnings pressure in emerging markets (Brazil)," Societe Generale analysts said in a note to clients.   Continuación...