A reduced loss, an increase in turnover … But behind these encouraging indicators, the results of half of the Elo group, a parent company of the Auchan distributor, presented on Thursday, July 24, reflect a profitability even in the middle.
In a year, the Elo Group had its net loss of almost one billion euros to 602 million euros in the first half of 2025. Its turnover increased by 3.8%, to 15.77 billion euros during the first six months of the year.
In difficulties for several years, Auchan, which represents most of the activity of Elo, has opted for the acquisition of almost one hundred casinos stores in 2024. These purchases, to which the acquisition of the activities of the Dia Group (proximity stores) in Portugal must be added, greatly explain the growth of this semester sales.
Below below in comparable stores
Brand billing arises from 4.2% to almost 15.5 billion euros. But without taking into account these perimeter variations, sales remain with retirement: “In comparable stores, billing has dropped 1.6%,” said the group.
The phenomenon is particularly visible in France, where Auchan’s retail trade obtains more than half of its sales and occupies fifth in the large distribution market.
Its billing is increasing (+4.9%) thanks to the integration of 94 casino stores, but in comparable stores: -3.1% compared to the first half of 2024.
This decrease is due, according to the group, “to the repositioning of prices currently implemented”, in particular price reductions, and the “modernization work” started in the second quarter in 15 hypermarkets. But these two phenomena explain only half of the fall in sales, according to ELO.
A degradation of gross operational gain
The Elo Group, on the other hand, ensures that the “volumes” of the stores acquired from the “are growing” casino, resulting in a 22% increase in their external turnover.
For these stores, “the group confirms its objective of achieving an Ebitda (Gross Operational surplus, a profitability indicator, editor’s note) positive since the second semester 2027,” says ELO.
The losses of the group, strongly reduced but still substantial, are the result of the depreciation of assets and an operational loss that remains important, to 393 million euros in the first half, which indicates an activity not yet profitable.
In France, Auchan’s gross operational result has deteriorated even more compared to last year, loss of 147 million euros.
In his press release, Elo explains this degradation due to the repurchase of ex-macs, but ensures that Gross Operating Surplus progressed.
An elimination plan for almost 2,400 jobs
To find the profits, Auchan “made a strategic decision that is to reduce the costs to reduce prices and, therefore, find assistance in all (SUS), recalled Guillaume Darrasse, general manager of Auchan Retail.
Auchan also continues “the transfers of (SUS) non -performance assets,” added Guillaume Darrasse, remembering the “24 stores transfer process with significant ebitda losses, or 22 supermarkets and two hypermarkets” in which Auchan commits a few weeks ago.
In November 2024, Auchan has already announced a great restructuring plan that provides the abolition of almost 2,400 jobs in France.
Source: BFM TV
