The Bank of Russia unexpectedly maintained its key interest rate at a record-high 21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to 8.9% in November, well above the central bank’s 4% target , with inflation expectations reaching 13.9% in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s 200-basis point hike as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...
French supermarket group Casino posted a decline in first-half core earnings due to ongoing restructuring activities, including the sale of hypermarkets and supermarkets, store closures, and conversions to franchises.
Key Highlights:
- Earnings Decline: Adjusted earnings before interest, taxes, depreciation, and amortisation (Ebitda) fell 24% to €255 million (RM1.27 billion) in the six months ending June.
- Sales Drop: Net sales decreased by 3.5% to €4.2 billion.
- Debt Reduction: Net debt reduced to €1 billion at the end of June from €1.6 billion at the end of March 2024 and €6.2 billion at the end of 2023.
- Free Cash Outflow: The company reported a free cash outflow before financial expenses of €413 million, compared to an outflow of €735 million a year ago.
Restructuring Efforts:
Casino, France's seventh-largest supermarket group by market share, has been attempting a turnaround after years of debt-fueled acquisitions and a declining market share. The company has been implementing significant changes to improve its economic performance:
- Store Network Streamlining: Closing unprofitable stores and converting integrated sites to franchises.
- Careful Selection of Franchise Partners: Ensuring that new franchise partners are carefully selected and opening new stores with high potential.
Leadership Changes:
In late March, Casino completed its financial restructuring, leading to the appointment of a new leadership team by a consortium led by Czech billionaire Daniel Kretinsky. This marked the end of Jean-Charles Naouri's 30-year ownership of the company.
Philippe Palazzi, the recently appointed CEO, expressed optimism about the company's future. "To improve our economic performance, we have begun streamlining our store network: closing unprofitable stores, converting integrated sites to franchises, carefully selecting our new franchise partners and opening new stores with high potential," Palazzi said in a statement.
Despite the challenging restructuring process, Casino's efforts to reduce debt and improve its store network are aimed at stabilizing the company's financial health and positioning it for future growth.
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