09 August 2016 by pdonnat
Casino CDS was volatile today, wider by 30bps during the day. The CDS closed at 285bps on the standard 5Y CDS, 10bps wider than yesterday. At the end of July, the 1H earnings’ release eased a little bit the investors’ concern with better French operations. The challenge for the next quarters remains high in order to reach Casino’s EBIT target. At 3%, Casino EBITDA margin is still 50% too low compared to large competitor like Carrefour or Tesco, 3% versus 4.5%. The mood is bearish. The CDS market had difficulties in recycling the clients flows buying protections. The fundamental on Casino are not easy to assess. The Casino business portfolio is large and complex. For those on holidays in France, you will shop most likely at the local Spar. Spar France was bought in 1997 by Casino. This could be surprising for some reader from northern Europe. So is the complexity of Groupe Casino's organisation.