French retail group Auchan has reported income progress of 4.2% 12 months on 12 months, to €15.5 billion, within the first half of its monetary 12 months, primarily fuelled by acquisitions made in 2024, together with former On line casino shops in France and DIA shops in Portugal.
Nevertheless, like-for-like income decreased by 1.6%, impacted by value repositioning efforts in France and the renovation of its hypermarket community.
EBITDA elevated by 8.4%, to €172 million, pushed by efficient value administration, with prices as a proportion of income reducing by 0.3 factors. Excluding international locations at struggle, EBITDA progress was even stronger at 21.4%, the corporate famous.
France
Income at Auchan Retail France reached €8.0 billion (up 4.9%), a progress attributed to the mixing of 94 former On line casino shops and a 4.5% rise in gasoline gross sales.
The corporate additionally witnessed progress in market share to 9.0% – a 0.4-point improve year-on-year.
Nevertheless, like-for-like income decreased by 3.1% resulting from ongoing value repositioning efforts, renovations and downsizing work in 15 hypermarkets. EBITDA stood at a adverse €147 million, in comparison with a adverse €130 million in the identical interval final 12 months.
Spain And Portugal
The retailer’s Spanish arm Alcampo noticed income declining by 2.5%, to €2.2 billion, primarily resulting from a major drop in gasoline gross sales.
Like-for-like income additionally fell by 1.4% resulting from market traits favouring smaller retailer codecs.
In Portugal, like-for-like income elevated 1.5%. Together with the acquired DIA comfort shops, Auchan Retail Portugal’s income rose 17.9% year-on-year to €1.1 billion.
Total, Spain and Portugal’s EBITDA elevated to €122 million, in comparison with €120 million within the first half of 2024.
Poland And Romania
In Poland, like-for-like income (excluding petrol) decreased by 3.0% resulting from cautious client spending and the dominance of low cost retailers.
Nevertheless, Auchan Retail Poland is strategically shifting its retailer community by opening smaller comfort shops and supermarkets, with plans for round 20 openings by 2025.
Moreover, it’s increasing the ‘Atac hiper low cost by Auchan’ idea, having already rebranded three hypermarkets.
Total, Auchan Retail Poland’s income elevated by 1.7% to €1.4 billion.
Romania skilled sturdy gross sales momentum, with like-for-like income up by 6.1% resulting from greater volumes and enticing pricing.
Auchan Retail Romania can be increasing its codecs, together with the launch of its first purpose-built ‘Atac hiper low cost by Auchan’ retailer and the addition of 31 ‘Just by Auchan’ franchise shops for the reason that starting of the 12 months.
Auchan Retail Romania’s revenue elevated by 6.9% to €751 million.
Mixed EBITDA for Poland and Romania reached €85 million, up from €80 million in the identical interval final 12 months.
Ukraine And Russia
The continuing struggle continues to considerably influence Auchan Retail’s operations in Ukraine and Russia.
In Ukraine, regardless of very difficult circumstances, together with energy outages and frequent public alerts forcing retailer closures, Auchan Retail has managed to extend income by initiatives like its ‘advantageous trolley’ promotional programme.
Nevertheless, in Russia, the enterprise is dealing with headwinds as a result of general financial context, leading to a decline in like-for-like revenue and excessive value inflation.
Mixed income for Ukraine and Russia amounted to €1.5 billion, a lower of 0.4% year-on-year.
The mixed EBITDA for each international locations was €22 million, down from €35 million within the comparable interval final 12 months.
Development Plan
Auchan is implementing its plan to return to progress, which features a new organisational construction in France, together with different measures like retailer gross sales and streamlined operations, that’s projected to avoid wasting €190 million yearly by 2027.
Alcampo in Spain can be streamlining its community to avoid wasting €13 million per 12 months.
Newly acquired On line casino shops in France have seen vital quantity and income progress, and Auchan expects them to realize optimistic EBITDA by the second half of 2027.
In Portugal, the mixing of DIA shops is progressing nicely, with a whole conversion to the Auchan model focused for the top of 2025.
Auchan France has negotiated higher phrases with suppliers and is repositioning costs, providing a extra selective and higher-quality purchasing expertise. They’ve additionally launched an easier and extra rewarding loyalty programme.
Auchan is accelerating the modernisation of its hypermarkets, together with decreasing their dimension, with a plan to revamp 120 shops by 2028.
Steerage
Auchan Retail has reaffirmed its objective to exceed €1.6 billion in EBITDA by 2028.
For 2025, the corporate has forecast an EBITDA of roughly €1 billion (in comparison with €877 million in 2024) and expects free money circulate to align with its transformation and restructuring plan targets.
The corporate additionally confirmed its goal of reaching EBITDA above €1.6 billion in 2028.
