Grupo Pão de Açúcar announces its 4Q10 and 2010 Results

São Paulo, Brazil, February 23, 2011 – Grupo Pão de Açúcar (BM&FBOVESPA: PCAR5; NYSE: CBD) announces its results for the 4th quarter (4Q10) and full year of FY10 (FY10). The Company’s operating and financial information was prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), the accounting practices adopted in Brazil (BRGAAP) and Brazilian Corporate Law, and is presented in Brazilian Reais, as follows: (i) on a GPA Food basis, which entirely excludes the operating and financial results of Globex Utilidades S.A. and Nova Casas Bahia, (ii) on a “GPA consolidated”, which includes the full operating and financial results of Globex Utilidades S.A., as of the third quarter of 2009 and Nova Casas Bahia, as of November 2010. All comparisons are with the same periods in 2009 (4Q09 and FY09), except where stated otherwise.

OPERATING AND FINANCIAL HIGHLIGHTS

GPA FOOD

  • Gross sales totaled R$7,281.7 million in 4Q10, while net sales came to R$6,541.9 million, respective year-on-year growth of 7.9% and 8.3%.
  • In same-store(1) terms, gross sales moved up by 7.2%.
  • Gross profit came to R$1,697.8 million, with a margin of 26.0%, 8.3% higher than in 4Q09.
  • EBITDA stood at R$567.1 million, a 9.1% improvement over the same quarter the year before, with an EBITDA margin of 8.7%, versus 8.6% in 4Q09.
  • Assaí’s EBITDA came to R$27.2 million in 4Q10, with a margin of 3.1%.
  • Net income totaled R$498.0 million. Excluding the non-recurring effect of R$221.1 million, adjusted net income came to R$276.9million, with a margin of 4.2%.

Consolidated

  • Consolidated gross sales totaled R$12,603.7 million in 4Q10, 50.9% up on 4Q09, while net sales came to R$11,039.9 million, up by 48.2%. It is worth noting that this figure includes two months of Casas Bahia.
  • Gross profit totaled R$2,798.8 million, with a gross margin of 25.4%, 56.6% up year-on-year.
  • EBITDA stood at R$769.3 million, with an EBITDA margin of 7.0%, a 114.1% improvement in relation to 4Q09.
  • The net financial expense amounted to R$357.8 million, equivalent to 3.2% of net sales.
  • Consolidated net income totaled R$447.0 million. Excluding the non-recurring effect of R$192.3 million, adjusted net income came to R$254.7 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 4Q10 Earnings Release, click here.