CASINO reports jump in FY profit

Casino has this morning reported a 74.4% jump in 2006 net profit to EUR600 million (USD752.7 million) on the back of improvements in both French and international operations. Trading profit increased by 8% to EUR1.04 billion (USD1.3 billion). Recurring full-year net profit was EUR436 million (USD547 million), up 34.7%.

Looking ahead, the group said it expects 'further growth' in recurring operating profit in 2007 and a net debt/EBITDA ratio of below 2.5 times by year-end. Net debt at end-2006 stood at EUR4.39 billion (USD5.5 billion), down from EUR5.44 billion (USD6.7 billion) a year earlier, and the net debt/EBITDA ratio was at 2.6 times, down from 3.5 times. During the year, the group divested operations in Poland and Taiwan and disposed of some US assets, for a total of EUR1.3 billion (USD1.6 billion), bringing the total from the sale of assets to EUR1.9 billion (USD2.3 billion), of which EUR500 million (USD627.3 million) will be received in 2007.

Operating profit in France was EUR852 million (USD1.0 billion) in 2006, virtually unchanged from EUR850 million (USD1.0 billion) in 2005. International operating profit jumped by 64.5% to EUR191 million (USD239.6 million).