Casino, Guichard-Perrachon S.A.

Casino reported H1 2026 net sales of EUR 4 billion, up 0.4% like-for-like, and adjusted EBITDA of EUR 326 million, up 14% year over year. Reported consolidated net loss group share was EUR 205 million, and free cash flow before financial expenses was negative EUR 30 million, improving by EUR 23 million versus H1 2025. Net debt was EUR 1.7 billion, up EUR 197 million from December, with liquidity at EUR 713 million. By brand, Monoprix sales were EUR 1.95 billion and adjusted EBITDA EUR 207 million; Franprix sales EUR 755 million and adjusted EBITDA EUR 72 million; Casino/Spar/Vival sales EUR 619 million and adjusted EBITDA EUR 11 million; Naturalia sales EUR 166 million and adjusted EBITDA EUR 14 million; Cdiscount GMV was EUR 1.3 billion with net sales of EUR 454 million and adjusted EBITDA of EUR 29 million. Management did not provide formal full-year revenue or EPS guidance, but said Casino’s ambition for 2026 is to achieve breakeven on free cash flow before financial expenses. It also said end-Q3 2026 leverage is expected to exceed the 6.11x covenant threshold, and that the group would seek a lender waiver if that occurs.

Philippe Palazzi framed the company as being in the final stretch of a long turnaround, saying Casino is close to completing the ‘restore’ and ‘recover’ phases and entering ‘growth.’ He stressed that H1 execution matched the Renouveau 2030 plan, citing store-concept rollouts, assortment simplification, and portfolio streamlining as evidence that the transformation is working. His tone was constructive but disciplined, repeatedly describing Monoprix’s reset as “short-term painful” but necessary for long-term value creation.

Angelique Cristofari focused on the financial recovery and the constraints still ahead. She highlighted H1 like-for-like sales growth of 0.4%, adjusted EBITDA of EUR 326 million, a EUR 205 million net loss group share, and free cash flow before financial expenses of negative EUR 30 million, while noting that free cash flow improved by EUR 23 million year over year. She also detailed liquidity of EUR 713 million, net debt of EUR 1.7 billion, June leverage of 6.47x versus a 6.88x threshold, and warned that end-Q3 leverage is expected to exceed the 6.11x limit, making a waiver likely.

Analysts focused on restructuring risk, supplier pressure, and whether the company can still invest. Management said the July restructuring decisions create a clearer timeline, that teams and commercial partners have been kept informed to preserve operations, and that investment will continue in line with expected returns. On suppliers, Philippe said there was pressure in bottled water and Home & Personal Care from higher plastic costs and some aluminum-related tension; he said price increases would be resisted, though automatic price clauses or case-by-case negotiations could apply. On the TLB creditors’ move against the safeguard plan, Angelique said the company does not expect a technical default tied to restructuring talks to justify termination and intends to keep pursuing the accelerated safeguard plan amendment.