Auchan boosts revenue by 0.8% in H1, sales in Russia fall due to ruble devaluation
MOSCOW. Aug 31 (Interfax) - The revenue of Auchan Holding in H1 2016 fell by 0.8% year-on-year 26.1 billion euros.
The revenue of Auchan Retail, the largest subdivision of the group, which manages the stores, increased by 0.7% without account of exchange rate fluctuations to 25.4 billion euros, the company said in a statement. Organic growth of revenue amounted to 1.1% due to the expansion of the chain (plus 1.8%), which was partially offset by a decline in LfL sales (-0.7%)
In Russia Auchan's revenue fell due to the unfavorable economic climate and the impact of exchange rate changes. Nevertheless, Auchan Retail is continuing to contribute significant funds to development in the country.
"Lastly, in Russia, where we will celebrate the opening of our 100th hypermarket at the end of the year, our business model and aggressive price positioning is proving very successful among consumers, and we believe more than ever that this country will be a significant contributor of revenue for Auchan Retail," Auchan Holding CEO Wilhelm Hubner was cited as saying in the statement.
The holding's earnings before interest, taxes, depreciation and amortization (EBITDA) rose 0.1% to 296 million euros. Net profit from continuing operations fell by 16% to 117 million rubles.
Auchan Holding includes three companies: Auchan Retail (which manages hypermarkets, supermarkets, convenience stores and internet sales), Immochan (which manages real estate) and Oney Banque.
The French retailer has been operating in Russia since 2002. As at the end of 2015, the chain in Russia includes 92 stores: 58 classic hypermarkets, 27 Auchan City compact hypermarkets and seven Nasha Raduga stores, and also the chain of Atak supermarkets. According to the SPARK-Interfax database, the revenue of LLC Auchan in 2015 rose 9.7% to 344.2 billion rubles, the company is the third largest by retail sales volumes on the Russian market.
