São Paulo, July 25th, 2017 – GPA [B3: PCAR4; and NYSE: CBD] announces its results for the second quarter of 2017 (2Q17). The comments refer to the consolidated results of the Group or of its business units. All comparisons are with the same period in 2016, except where stated otherwise.

Net sales up 9.0%(1), driven by 29.2%(1) growth at Assaí and continued recovery at Extra banner.

Food Segment Adjusted EBITDA of R$551 million(2), growing 104.3% from 2Q16(2)

Net income attributable to controlling shareholders improved to R$165 million, with margin of 1.5%

Operating Highlights


  • Continued market share gains in 2017 and accelerated growth at Extra Hiper, driven by commercial actions and sequential growth in the non-food segment;
  • Reduction of 3.0% in SG&A expenses supported by efficiency and productivity projects;
  • Adjusted EBITDA margin reached 4.9%(2), up 220 bps from 2Q16(2);
  • Launch of the My Discount program, with over one million downloads in the first ten days.


  • Strong net sales growth, as a result of the good performance of the new stores, and acceleration of same-store sales which grew 13.5%(1), with volume growth offsetting the effect from slower inflation;
  • Adjusted EBITDA margin reached 5.6%, up 260 bps from 2Q16(2).

Financial Highlights

  • Significant growth in net income attributable to controlling shareholders, to R$165 million, with margin of 1.5%, compared to R$125 million in 1Q17;
  • Stronger financial capacity: Net debt (3) fell R$888 million from 2Q16. Net debt(3)/Adjusted EBITDA ratio declined to 0.9x, from 1.4x a year earlier;
  • Financial result stood at 1.8% of net sales, down 20.7% from 2Q16.


  • Strategic priorities: (i) Focus on and strengthening of Food segment; (ii) Outperforming the market in sales growth, supporting market share gains; (iii) Continually expanding the Assaí format; and (iv) Optimizing the store portfolio;
  • Economic environment and business evolution: High unemployment and weak consumption in Brazil pose a challenge to the recovery of the retail sector. However, in the last 12 months, GPA’s sales outperformed the market (ABRAS(4) and IBGE(5)), confirming the continuous market share gains posted by Extra Hiper and Assaí and the stability in the other segments;
  • Guidance for 2017: (i) Sales: continued market share gains at both Multivarejo and Assaí; (ii) EBITDA Margin(6): around 5.5% in the Food segment, supported by higher profitability at Assaí and stability at Multivarejo; (iii) CAPEX: approximately R$1.2 billion; and (iv) Goal of capturing US$50 million in LATAM synergies.

(1) Net revenue adjusted for the calendar effect. (2) Excluding non-recurring tax credits of R$447 million in 2Q17 (exclusively at Multivarejo) and R$288 million in 2Q16 (R$219 million at Multivarejo and R$69 million at Assaí). (3) Includes not discounted credit card receivables of R$329 million in 2Q17 and R$820 million in 2Q16. (4) Brazilian Supermarkets Association. (5) Monthly Retail Survey (PMC) conducted by IBGE. (6) EBITDA adjusted by Other Operating Income and Expenses.

Click on the link below in order to access:

2Q17 Earnings Release

July 26th, 2017
10:30 a.m. (Brasília time) | 9:30 a.m. (NY) | 2:30 p.m. (London)
Conference in English (simultaneous translation)
+1 786 924-6977
Webcast: click here.
Conference in Portuguese (original language)
+55 (11) 3193-1001 or 2820-4001
Webcast: click here.

Replay: +55 (11) 3193-1012 or +55 (11) 2820-4012
Access code for audio in English: 7995388#
Access code for audio in Portuguese: 3133216#
The conference call will also be available in audio format on http://www.gpari.com.br/.

Please dial in five minutes prior to the scheduled conference call time.

Departamento de Relações com Investidores – Investor Relations Team
+55 (11) 3886-0421