Guyenne and Gascogne, the French retail group, has continued to improve its sales and profits in the first half of 2003, building on the major advances made in the first six months of last year.
Turnover in the six months to 30 June was €556 million, up 6.2 per cent, while net profits improved from €9.3 million to €17.1 million as a result of no exceptional items impacting figures as they had done in previous years.
Operating profit was up 6.2 per cent to €20.5 million.
Turnover at the parent company was up 3.5 per cent to €209 million, while operating profits improved from €368,000 to €795,000. Net profits were down from €35.9 million to €21.3 million, however, as the previous year's figures were distorted by exceptional items relating to the sale of various assets owned by the company's Sogara subsidiary.
At Sogara itself, sales were up 0.5 per cent at €708 million, while operating profits edged higher at €39.5 million. Net profits were €26.2 million, down from €35 million as a result of the exceptional gains registered a year earlier. The company said that the first half performance from the unit, which operates 13 hypermarkets and is jointly owned by the Carrefour group, was boosted by improvements in purchasing conditions and logistics which offset a reduction in the number of shoppers.
At Centros Comerciales Carrefour, the Spanish supermarket unit in which G&G has a stake via Sogara, sales were €3.7 billion during the half, up 9.5 per cent, while operating profits were 14 per cent higher at €114 million. Net profits were considerably higher at €98 million (€86 million in 2002). The first half performance reflected the synergies of Carrefour's merger with the Promodès group in 2000, the company said.
Guyenne & Gascogne operates six Carrefour hypermarkets and 23 Champion supermarkets under franchise, and is a long-time partner of Carrefour. The two companies jointly own Sogara which in turn holds an 8 per cent stake in CCC, the Spanish unit of Carrefour and the biggest food retailer in Spain with 120 Carrefour and 174 Champion stores.