Auchan to focus on reviving profits after “below par” FY | Progresiv
Auchan Retail has set itself “strict financial objectives” of reviving its profits, after reporting “below par” earnings for the 2018 fiscal year, hurt in large part by the anti-government protests in France. 
For the year to 31 December 2018, revenue at Auchan retail slid by 3.3% to 50.3 billion euros (-0.5% constant-currency), with like-for-like revenue down 2.6%. Auchan said the anti-government protests impacted overall sales to the tune of 140 million euros. Auchan also said its EBITDA for the year fell by 20.5% to 1.52 billion euros on a constant-currency basis, with the protests causing a 35 million euros hit.
Revenue in its home market was down 1.3%, despite initial promising results from its ‘125 days’ promotional campaign. Meanwhile, revenue slid by 0.7% in Southern Europe, despite solid results in Portugal and Spain. Revenue was down 1.4% across Central and Eastern Europe on a constant-currency basis, as a decline in Russia offset growth in all other markets. And sales in Asia slid by 2.6% on a constant-currency basis, partly due to an accounting change related to the tie-up between Sun Art Retail and Suning.
Edgard Bonte, Chairman of parent Auchan Holding, noted: “2018 earnings are very unsatisfactory. Our short-term goal is to turn around Auchan Retail … We are aiming for a significant results improvements from 2019”.
Auchan has now launch an action plan called ‘Renaissance’, through which it aims to prioritise its investments and undertake a “close examination of loss centres” in the near term. Bonte said Auchan plans to shut down 30 more outlets in Russia, and three more stores in China, although he insisted that the group is “not giving up on China”. (www.kamcity.com)
