São Paulo, February 19th, 2018 – GPA [B3: PCAR4; and NYSE: CBD] announces its results for the fourth quarter of 2017 (4Q17). 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 in 2017 advanced 8.2%(1); growth of 27.8%(1) at Assaí

Adjusted EBITDA(*) at GPA Food of R$2.3 billion in the year (+22.3%), with margin expansion from 4.6% to 5.2%

Operating expenses diluted by 60 bps compared to 2016

Net income attributable to controlling shareholders of the Company was R$619 million, reversing the loss in 2016

Operating Highlights


  • Net sales in 2017 totaled R$26.2 billion, with same-store growth of 0.7%(1) and market share gain of 60 bps in the year (Nielsen data);
  • My Discount Program reached over 4 million downloads within just 7 months of launch, with the total loyal customer base expanding from around 12 million to 14 million;
  • Adjusted EBITDA margin(*) reached 5.0% in 2017, expanding 20 bps compared to 2016, mainly due to the improvement in gross margin, which was supported by the new commercial dynamics implemented throughout the year and by the disciplined control of expenses, which even so was accompanied by improvement in service quality at stores;
  • In 4Q17, adjusted EBITDA margin(*) stood at 4.7%, impacted by: (i) strong food deflation (around 110 bps) while other expense items continued to be affected by inflation; (ii) additional expenses due to the fire at the Osasco DC (about 15 bps); (iii) renovation of 50 Pão de Açúcar stores, of which 11 were full renovations, which affected the sales performance of stores with a significant weight in the banner’s sales (about 10 bps).


  • Gross sales reached R$20.1 billion in the year, with strong growth of 28.0%(1) in total sales and of 11.4%(1)(2) in same-store sales, despite the scenario marked by intense deflation. During the year, the banner registered consistent growth in customers and sales volume, accompanied by market share gains;
  • Sales also were boosted by the enhanced commercial dynamics, such as ‘Assaí Anniversary’ and the launch of Black Friday, with performance particularly good in the category General Merchandise;
  • In less than 3 months, approximately 100,000 Passaí cards were issued at 75 stores, resulting in a 50% higher average ticket, due to the attractive value proposition for customers (wholesale prices as of the first unit);
  • Adjusted EBITDA margin(*) stood at 5.3% in 4Q17, which demonstrates the format’s efficiency during a period of strong organic growth and food deflation. In 2017, Adjusted EBITDA margin stood at 5.6%, expanding 140 bps from 2016, while nominal Adjusted EBITDA(*) grew 68.0%;
  • Assaí ended the year with 126 stores, with a record 20 new stores in the period, 5 of which via organic expansion and 15 via conversions from Extra Hiper, the latter improving sales by a factor of 2.5x;
  • Assaí accounted for 41.3% of the sales of GPA Food, up 640 bps from 2016.

Financial Highlights

  • Financial result corresponded to -1.6% of net sales, improving 60 bps from 2016;
  • Net income attributable to controlling shareholders of R$619 million, with margin of 1.4%, supported by the 91.0% increase at Assaí, as well as by the recovery in Multivarejo, where the net loss was reversed to positive;
  • Solid financial position: Net debt(3) fell R$162 million from 2016, while the net debt(3)/ EBITDA ratio declined to -0.15x, from -0.32x in 2016.


  • Strategic priorities: Our strategy for 2018-2020 is to foster sustainable and robust growth in our food operations by leveragin our multi-channel and multi-format presence to offer every Brazilian consumer the best and most innovative offerings and services.
  • Economic environment and business evolution: The sharp drop in food prices during 2017, combined with the still-high unemployment and challenging level of consumer spending, adversely affected the retail industry’s performance. However, GPA has outperformed the industry average (Brazilian Supermarkets Association – ABRAS and Monthly Retail Survey conducted by IBGE) since 3Q16, capturing market share gains at Extra Hiper and Assaí during all measurements by Nielsen over the year, while keeping market share stable in other banners.

(1) In 4Q17, the calendar adjustment was -30 bps at GPA Food, with -70 bps at Multivarejo and -20 bps at Assaí. In 2017, the adjustment was -50 bps at GPA Food, with -70 bps at Multivarejo and -50 bps at Assaí. (2) Includes converted stores, which contributed 310 bps in 2017. (*) Excludes non-recurring effects, as detailed in the section “Operating Performance by Business.”
(3) Includes non-discounted credit card receivables of R$414 million in 4Q17 and R$241 million in 4Q16.

Click on the link below in order to access:

4Q17 Earnings Release

February 20th, 2018
10:30 a.m. (Brasília time) | 8:30 a.m. (NY) | 1:30 p.m. (London)
Conference in English (simultaneous translation)
+1 646 828-8246
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: 8622189#
Access code for audio in Portuguese: 1897102#
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