The French retailer casino has reported sluggish revenues growth for the first quarter. While the company has managed to meet expectations in Brazil, the performance in the French market has dampened sales revenues.
The company has been struggling with its massive stockpile of debts and poor cash flow. Earlier this month the global credit rating agency Moody’s had sliced the firm’s credit ratings by two two notches to Ba3. Following the credit cut, the company’s shares dropped in the French stock exchange.
Earlier this week the French retailer casino indicated at partnering with online retail giant Amazon. The company also struck an asset sale deal with the private equity firm Apollo Global Mangement. According to the agreement, the French retailer casino will sell a portfolio of 12 Casino hypermarkets and 20 supermarkets for up to 470 million euros.
To improve the cash flow and relieve their books of the mounting debt pressure, the company had earlier announced a three-year strategic plan to dispose of assets and raise funds. The company had said that it aims at disposing of over 2.5 billion worth of non-strategic assets by the end of 2020.
The company has said that it aims at generating 500 million euros ($557 million) in free cash flow per year for its French retail business with a stable growth rate of 10% for the next three years.
French retailer casino’s sales revenue grew by 4.3 percent in the first quarter of 2019. In the last quarter of 2018, the revenue from sales increased by 5.1 percent.
The company’s sales in Brazil grew by 7.1 percent. The firm owns Brazil’s Grupo Pao de Acucar, which posted first-quarter sales of 8.853 billion euros.