Paris, 29 August 2008 - The economic environment in which the Group operated during the first half of 2008 was similar with 2007 : it was an unfavourable climate in the mature markets where the slow-down was perceptible and more buoyant in the emerging markets.
The Group continued to develop a business activity adjusted to meet the expectations of consumers, and pursue its international growth policy. Business started up in the Ukraine for the Hypermarkets, Real Estate and Financial Services activities. The agreement concluded with the Enka Group in Russia at the end of 2007 has now been finalised for the purchase of 12 Ramstore stores. A joint venture has been set up with the Nakheel Group in Dubai, in order to develop the Auchan banner in the Persian Gulf.
9.4% increase in sales to € 18.7 billion
For the first half of 2008, consolidated sales without VAT rose 9.4% to € 18.7 billion. The total sales out of France represents nearly 50% (49.8%) compared with 48% at year end 2007. Revenues in France nevertheless continued to progress (+ 6.2%) up to € 9.4 billion.
Hypermarket sales were € 14.8 billion (+ 10.2%) and still accounted for 79% of Group revenue. In France, the hypermarkets achieved sales worth € 7.2 billion (+ 5.5%). 12 hypermarkets were opened during the period, of which 1 Alcampo in Spain, 1 Auchan in the Ukraine, 4 RT Mart in China and 6 Auchan City (formerly Ramstore) in Russia. The exchange from Ramstore into the Auchan banner of the 6 remaining Ramstore stores will be finalised before the end of the year. A HyperCorp LLC joint venture has been set up with the Nakheel Group in Dubai. Auchan Group holds a 10% stake in the joint venture which will develop the Auchan brand in Dubai, and subsequently in the Persian Gulf.
Supermarkets sales have started to grow again: revenues increased by 4.9% up to € 3.4 billion, representing 18.3% of Group sales. At the end of June, In France, Italy and Spain, 34% of directly owned stores have been converted to Simply Market banner (reaching a total of 235 stores). In addition the total number of directly owned stores increased by 8 new outlets (7 in Western Europe and 1 in Poland). At the end of July an agreement has been signed in Spain for the acquisition of Galerias Primero. This acquisition is still subjected to local authorities agreement and other usual clauses.
Immochan confirmed its good performance: revenues rose by 17% up to € 213 million. At the end of June, the Real Estate division was managing a total of 268 shopping centres, corresponding to 1.45 million sq.m. The first Ukrainian shopping centre, including 25 shops, has been opened in Kiev. Four others shopping centres have been restructured or enlarged in France and Spain. In collaboration with the supermarkets division, Immochan also set up a new convenience strip mall in the Paris region.
Banque Accord Net Banking Income increased by 20.6% during the first half of 2008. Operating income has reached € 25.9 million compared with € 27.5 million at the end of June 2007 (- 5.8%). Banque Accord had 420,000 new customers during the period, and launched its business in Ukraine, with its new subsidiary Oney. In March 2008 Banque Accord has obtained from the Banque de France a new Bâle II – IRBA credit risk accreditation, and has been one of the first French banks to be accredited.
The Group also continued to develop its new retail formats. As an exemple Auchandirect has prepared the starting of its business in Toulouse and Lille in August.