Pão de Açúcar's quarterly profit rises 70%.
The group acquired by the French company Casino recorded performance above analysts' expectations, driven by improved operational performance at Via Varejo and lower financial expenses.
Reuters - Grupo Pão de Açúcar's net profit rose 70 percent in the first quarter compared to the same period last year, exceeding analysts' expectations, driven by improved operational performance at Via Varejo and lower financial expenses.
The company's net profit, which in addition to supermarket and appliance store operations also operates in online retail and the segment known as "cash and carry," was 275 million reais in the period, compared to 162 million reais in the first quarter of 2012.
Analysts had expected a net profit of 244,3 million reais, according to the average of eight estimates obtained by Reuters.
Considering only the operations of Via Varejo - which operates the Pontofrio, Casas Bahia and Nova Pontocom stores - net profit grew more than sixfold during the period, to 99 million reais.
The GPA Food segment, which includes supermarket, wholesale, and real estate operations, posted a profit of 176 million reais, a 19,5 percent increase compared to the same quarter of 2012.
Consolidated financial expenses fell 17,5 percent in the quarter ended in March, to 397 million reais, bringing the financial result to a negative 254 million reais, compared to 336 million reais in the first quarter of last year.
The decline is "a direct result of lower interest rates (Selic) and control over granting payment terms to customers," the company said on Monday.
The consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization) of Grupo Pão de Açúcar increased 11,2 percent on the same basis of comparison, to 862 million reais, while the EBITDA margin remained stable at 6,4 percent.
The company had already released its net revenue for the period, of 13,383 billion reais, a 10,2 percent increase over the previous year, with a recovery in comparable sales compared to the last quarter of last year.
Same-store sales—which considers stores that have been in operation for at least 12 months—rose 6,6 percent during the period. In the fourth quarter of 2012, the increase had been 5,8 percent, considered weak given that it was the most important quarter for retail.
Grupo Pão de Açúcar will pay R$33,1 million in interim dividends for the first quarter to shareholders holding shares as of May 3rd. Payment will be made on the 16th of next month.
(By Juliana Schincariol)