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Casino Guichard - Perrachon
Why buy this bond?
Total assets exceed liabilities by approximately EUR 6 billion.
Attractive income with regular semi-annual income payment
The company already has enough liquidity to pay off all bonds until 2025
Nowadays, approx. 50% of purchases in France are made without the need for an attendant.
Ask without obligation
Retail number one on the French market
The company is a French retail chain operating mainly in France and Latin America.
They focus on automating their stores as well as warehouses.
The company closed 2019 with a profit of EUR 215 million and sales totaled EUR 34.6 billion. In 2019, the company announced a strategic plan to reduce debt by divesting non-core assets and reducing operating costs through maximum automation.
Nowadays, approx. 50% of purchases in France are made without the need for an attendant. As part of online food sales, the company is growing at a triple-digit rate.
Complete information
Issuer
Casino Guichard - Perrachon SA
The name of the issue
Casino Guichard - Perrachon, 7mar2024
Currency
euro €
Emission volume
900,000,000 EUR
The face value of the bond
100,000 EUR
Indicative market price
85,000 EUR
Discount
15,000 EUR
Coupon from face value
4.49% p.a
Coupon payout frequency
Due date
quarterly payment
7/3/2024
100% liquidity
Yes
Minimum volume
100,000 EUR
Yield to Maturity
15.16% pa - before taking into account all costs
Preferred scenario
15.7% pa - before taking into account all costs
Rating
B
Hierarchy of debt
Senior uninsured
You can find the prospectus for the bonds here:
4.49% Senior Notes due 2024 - Prospectus
Important information
Already in 2019, investor Daniel Křetínský invested in the company by purchasing 5% of the shares.
"We are convinced that Casino Guichard-Perrachon is the best-positioned retail group on the French market and one of the main leaders in Europe, which has always been able to invest in the modernization of its business model," says Daniel Křetínský, who owns 53 in Vesa Equity Investment, about the acquisition. %.
In March 2022, this share increased to 10.1%
Management and outlook
Assets vs. passive
total assets exceed liabilities by approximately EUR 6 billion.
Liquidity
The company already has enough liquidity to pay off all bonds until 2025 and should generate additional cash in the coming years (that's why it's buying back bonds at discounted prices compared to par
Bond summary
As last time, the bonds are again discounted and, in our opinion, unjustified. We think that the company will be able to repay the bonds in full and without any problems, this is confirmed by bond buy-backs. And if Daniel Křetínský saw problems, he would not increase the shareholding, but would wait for a more suitable moment when the market would become even more stressed and subsequently provide crisis liquidity, where he would buy shares at fractions of today's values.