Auchan profits from emerging markets

Auchan has published half year results for the first time as a result of new European regulations governing transparency. Although there has been a slow-down in mature markets, emerging markets remained buoyant for the French company and as a result sales for the first six months of 2008 were 9.4% higher than in 2007 reaching EUR18.7 billion.

Revenues in France continued to progress (+ 6.2%) up to € 9.4 billion although EBITDA decreased by 6.6% in France despite a global EBITDA increase of 3.8% to EUR822 million (USD1.2 billion).

Hypermarket sales reached € 14.8 billion (a rise of + 10.2 per cent) and account for 79 per cent of Group revenue. However, in France rate of growth was slower at 5.5 per cent with total sales reaching € 7.2 billion.

Supermarkets sales also started to grow again: revenues increased by 4.9% up to € 3.4 billion, representing 18.3% of Group sales.

According to Christophe Dubrulle, Chairman of the Board, "Despite a negative trend in the purchasing power of our mature market customers, the Auchan Group's consolidated achievements are close to our objectives, due in particular to the contribution of the emerging countries. This confirms us in our choice for applying our discount policies. By boosting our investment level by nearly 42%, we have been able to take advantage of growth opportunities and to continue building the Group's future".

The company has 425 hypermarkets in 12 countries and 716 supermarkets in five countries. It also manages 268 shopping centres around the world and offers banking services to 5.7 million customers.

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