Auchan Retail sees signs of revival in FY release | Progresiv
Auchan Retail updated its 2019 performance and presented a mixed picture of performance, with a notable uptick in EBITDA of 14% to 1.83 billion euros, with EBITDA margin up to 4% from the prior-year’s 3%. However, underperformance in Russia and France meant full-year revenues fell 1.4% to 45.8 billion euros. 
French sales were down 2% to 17.36 billion euros, or 38% of total group sales. Russia sales slid 5% and the division made no profit whatsoever. Asian sales, primarily from the Sun Art Retail partnership with Alibaba, now contribute 29% of all Auchan revenues after gaining 1.3% in 2019 to 13.17 billion euros. However, the company cautioned that it expected 2020 performance to be impaired by closures and slowing sales as a result of the COVID-19 outbreak.
Central and Eastern Europe sales fell 2.0% to 9.34 billion euros while southern Europe delivered a 0.5% gain to 5.81 billion euros.
Of all 12 operational markets, only the aforementioned France and Russia experienced turnover declines in 2019. In 2018, Italy also made a loss, leading Auchan to exit the market during 2019. However, CEO Edgard Bonte refuted claims that a departure from Russia might be scheduled, despite announcing an EBITDA margin target of 6% by 2022, which will require a further 1.1 billion euros in savings, of which only 239 million euros was achieved in 2019. In France, having sold 10 sites and closed 11 last year, Auchan has no plans for additional closures this year.
As of 31 December 2019, Auchan Retail was present in 12 countries, where it operated 921 hypermarkets, 746 proximity stores and 347 convenience stores. (www.kantarretailiq.com)
