Brazilian supermarket group Companhia Brasileira de Distribuicao (CBD) posted soaring third-quarter profits on the back of strong sales late yesterday (4 November).  

The supermarket operator saw third-quarter net profit increase to BRL82.5m (US$38.7m), up from BRL34.7m booked during the comparable period of last year.  

EBITDA totalled BRL357.2m, a 49.9% increase on last year's EBITDA of BRL238.3m.  

CBD's net sales grew to BRL4.41bn, up from BRL3.50bn from a year ago, driven by increased customer traffic and pricing.

However, the company revealed that gross margins declined during the quarter, dipping to 27% compared with 28.7% in the third quarter of 2007. The company said that increasing price competitiveness in the Brazilian market was the main cause of this fall.  

CBD is jointly controlled by the Brazilian Diniz family and French retail company Casino Guichard Perrachon.