São Paulo, February 24th, 2017 – GPA [BM&FBOVESPA: PCAR4; and NYSE: CBD] announces its results for the fourth quarter of 2016 (4Q16). The comments refer to the consolidated results of the Group or of its business units. All comparisons are with the same period in 2015, except where stated otherwise.
Food segment revenue reaches R$45 billion in the year, up 11.7%, accelerating to 12.5% in 4Q16
Hypermarkets Extra
– Success of commercial strategies confirmed:
- Gains in market share in terms of volume for 9 consecutive periods (April to December) and same-store sales growth of around 5% in 4Q16;
- Recovery of volume by approximately 900 basis points (bps) since 1Q16;
- Customer traffic improved by 750 bps since the launch of new commercial actions.
– Reversal of trend in same-store sales in non-food categories, which delivered positive performance in the quarter
Pão de Açúcar
– Banner resilience resulted in stable market share in the last two years.
– Inauguration of two new stores during 2016 and planned opening of 5 stores in 2017.
Assaí
– Revenue reached R$15.7 billion, increasing 39.2% in the year, due to:
- Solid same-store sales performance of 18.6%, and double-digit growth in customer traffic, coupled with significant market share gain of around 400 bps;
- Assertiveness of the expansion, with 13 new stores in the last 12 months, including 2 conversions. Opening in 3 new states in 2016 and present in all regions of the country.
– Acceleration of store portfolio optimization strategy: the two conversions of Extra Hiper to Assaí registered sales growth of over 2.5x, exceeding expectations. A total of 15 conversions are planned for 2017, additionally to 6-8 new openings.
– Assaí accounted for 35% of revenue in 2016 (28% in 2015), which is expected to reach 40% by the end of 2017.
Adjusted EBITDA came to R$2.2 billion in 2016, despite the adverse scenario for consumption
Multivarejo
– Adjusted EBITDA totaled R$1.5 billion, with margin of 5.6%.
– Extra: gross margin already reflects the adequate level of competitiveness and no additional pressures are expected.
– Pão de Açúcar: high profitability of the format maintained.
– Proximity: profitability evolution of 250bps.
– Continuous focus on operational excellence: (i) improvement in the level of shrinkage; ii) increased productivity of operational teams; and (iii) reduction of the energy cost.
Assaí
– Adjusted EBITDA growth of 54.5%, for EBITDA margin expansion of 50 bps to 4.7%. Consequently, adjusted net income almost doubled in the period, despite strong organic expansion.
– New-generation stores, i.e. those opened as of 2013, already deliver 100 bps higher EBITDA margin compared to older stores.
Financial result in the year corresponded to 2.2% of sales, practically stable compared to the previous year, with gross debt cost down 20 bps.
Reduction in leverage: Net debt¹ / EBITDA ratio of 0.3 times and improvement of R$357 million in net debt¹.
(1) Includes credit card receivables not discounted of R$241 million in 4Q16 and R$136 million in 4Q15.
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CONFERENCE CALL WITH WEBCAST
February 24th, 2017
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