Grupo Pao de Acucar (CBD) booked a 48% jump in quarterly profits today (2 March) as sales growth accelerated and the Brazilian retail giant cut costs linked to its debt.
CBD’s fourth-quarter net income climbed 47.9% to BRL193.9m (US$108.1m) on the back of a 17.6% increase in net sales, which rose to BRL6.05bn.
The quarterly increase in sales compared to an 15.2% rise in annual revenues, which reached BRL23.25bn. Annual net income more than doubled to BRL597.5m.
Same-store sales increased 10.6% in the fourth quarter; over the course of 2009, they rose 4.5%.
CBD said the results had “consolidated our leading position as Latin America’s largest retail company”.
The company, which is the largest retailer in Brazil, is facing increased competition in its domestic market from Carrefour and Wal-Mart, which have both recently outlined plans for growth in the country.
However, CBD plans to spand BRL5bn between now and 2012, the bulk of which will be spent on new stores, including more Assaí, Extra Fácil and Extra Supermercado outlets.