Auchan has reported lower-than-expected growth for its fiscal first half | Progresiv
Auchan has reported lower-than-expected growth for its fiscal first half, hurt by weakness in its home market where it is facing tough price competition. 
For the six months, revenues rose by 2.1% to 26.5 billion euros, but were up just 0.8% on a constant-currency basis, calendar-adjusted basis. Like-for-like sales, meanwhile, declined by 0.6%. Underlying operating profit grew by 4.3% to 326 million euros (-0.7% constant-currency), while underlying net profit fell by 18.6% to 105 million euros (-22.2% constant-currency).
The group was impacted by a 0.7% decline in revenues across France, which partially offset a 0.8% increase across Western Europe, a 0.8% increase in Asia, and a 11.2% rise in Eastern Europe. Auchan said it was helped by “very good” results in Hungary, Ukraine, and Romania, and was boosted by solid performances in Spain, Portugal, and Russia.
CEO Wilhelm Hubner admitted that the results “lag our expectations. They are mainly impacted by France, Italy, and Russia … More than ever the transformation of Auchan Retail is the priority”. Hubner said the group’s performance in France is expected to improve in the second half of 2018, when the benefits of a three-year revamp plan would begin to be felt. (www.kamcity.com)
