GPA announces its 2Q10 Results

São Paulo, Brazil, July 27, 2010 – Grupo Pão de Açúcar – (BM&FBOVESPA: PCAR5; NYSE: CBD) announces its results for the 2nd quarter of 2010 (2Q10). The Company’s operating and financial information was prepared in accordance with the accounting practices adopted in Brazil and the Brazilian Corporate Law, and is presented in Brazilian Reais, as follows: (i) on a consolidated basis, which includes the full operating and financial results of Sendas Distribuidora and Assaí Atacadista and, as of the third quarter of 2009, Globex Utilidades S.A.; and (ii) on a comparable basis, which entirely excludes the operating and financial results of Globex Utilidades S.A., pursuant to current corporate law (Law 6404). All comparisons are with the second quarter of 2009 (2Q09), except where stated otherwise.

OPERATING AND FINANCIAL HIGHLIGHTS

Consolidated comments – including Globex.

  • GPA’s consolidated gross sales totaled R$7,815.4 million in 2Q10, 38.5% up on 2Q09, while net sales came to R$6,977.9 million, up by 39.4%.
  • Globex’s gross sales came to R$1,528.2 million, 55.8% up on the same period in 2009, while net sales grew by 71.6% to R$1,336.0 million.
  • Consolidated EBITDA reached R$394.9 million, a 14.4% year-on-year improvement, accompanied by an EBITDA margin of 5.7%.
  • The consolidated result of FIC – Financeira Itaú CBD, expressed through equity income, amounted to R$14.6 million in the quarter.
  • Consolidated net income totaled R$62.3 million, jeopardized by the non-recurring impact of adherence to the tax installment payment in the amount of R$40.8 million, net of taxes, giving an adjusted net income of R$103.1 million

Comparable-basis comments – excluding Globex.

  • Gross sales totaled R$6,287.3 million in 2Q10, while net sales came to R$5,641.9 million, respective year-on-year growth of 11.5% and 12.7%.
  • In same-store* terms, gross sales moved up by 9.9%, or 4.6% when deflated by the General IPCA consumer price index.
  • Gross profit came to R$1,398.2 million, 10.3% higher than in 2Q09.
  • EBITDA stood at R$359.7 million in absolute terms, a 4.2% improvement over 2Q09, with an EBITDA margin of 6.4%.
  • Assaí’s EBITDA came to R$22.8 million, with a margin of 3.4%.
  • Net income totaled R$82.5 million in the quarter, with a net margin of 1.5%, impacted by non-recurring tax installment payments. Excluding these effects, adjusted net income came to R$127.0 million, with a margin of 2.3%.

*Same-store concept’ – includes only those stores that have been operational for at least 12 months, therefore excluding the Ponto Frio stores.

To acess the 2Q10 Earnings Release, click here.