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UPDATE 2-Casino Q4 sales beat expectations on emerging mkts

Published 01/17/2011, 12:22 PM
Updated 01/17/2011, 12:24 PM

* Q4 sales 8.31 bln euros, vs Reuters estimate 8.07 bln

* Q4 French sales 4.82 bln euros, vs Rtrs estimate 4.78 bln

* Q4 international sales up 30 percent

(Adds details from statement)

By Dominique Vidalon

PARIS, Jan 17 (Reuters) - French retailer Casino beat forecasts with a 13.4 percent rise in fourth-quarter sales as strong growth in Latin America and Asia was bolstered by an improved performance in its home market.

Casino, whose domestic rivals include Carrefour, Leclerc, Intermarche and Auchan, said on Monday its Leader Price discount stores in France had continued their recovery while its Geant Casino hypermarkets had been helped by price cuts.

International retailers have been increasingly relying on strong growth in emerging markets to offset sluggish demand in mature markets like Europe and the United States, where shoppers are struggling with austerity measures.

Last week, Carrefour just beat fourth-quarter sales forecasts thanks in large part to its businesses in Latin America and Asia.

Casino, which operates in 10 countries with a network of over 10,000 stores, said fourth-quarter sales rose to 8.31 billion euros ($11.1 billion), above the average forecast of 8.07 billion in a Reuters poll.

International sales leapt 30 percent, boosted by the acquisition of Casas Bahia in Brazil, and are set to continue rising as a proportion of group sales after its majority-owned Big C agreed to buy Carrefour's hypermarkets in Thailand.

Casino said overseas operations should account for about 45 percent of consolidated sales in 2011, versus 38 percent in 2010.

French sales rose 2.7 percent excluding acquisitions and petrol, improving from a decline of 0.1 percent in the first nine months of the year.

Same-store sales at Leader Price rose 5.6 percent, better than a 1.1 percent increase in the third quarter, while same-store sales at Geant fell 2.2 percent excluding petrol, after a 4.1 percent drop the quarter before.

Casino, whose brands also include Franprix and Monoprix supermarkets, Petit Casino convenience stores and Cdiscount Internet shopping, reiterated its target for a 2010 net debt-to-EBITDA (earnings before interest, tax, depreciation and amortisation) ratio of below 2.2 times.

Its shares have beaten the STOXX Europe 600 retail index by 4 percent over the past year, helped by its exposure to emerging markets. They closed at up 0.5 percent at 71.12 euros, valuing the business at about 7.8 billion euros. (Additional reporting by Mark Potter) ($1 = 0.7512 euro)

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