Grupo Pao de Acucar, Brazil’s largest supermarket operator, has booked rising third-quarter sales and profits on the back of increased promotional activity and its acquisition of Ponto Frio.
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The company posted net income of BRL171m (US$99m), more than double the level recorded a year ago.
Net revenue rose 21% to BRL6.15bn. Excluding sales from Ponto Frio, bought from Globex Utilidades SA earlier this year, net sales gained 15.1% in the period, climbing to climbed to BRL5.1bn.
Same-store sales grew by 9.7%, or 5.1% when deflated by the Brazilian consumer price index.
The company attributed its “excellent sales performance” to the business consolidating the positioning of its Pão de Açúcar format – and marketing activity associated with the group’s 61st anniversary, which carried the tag line “Brazil’s biggest anniversary, now even bigger”.
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By GlobalDataEBITDA totalled BRL356.3m, with a “slight” improvement in margins from the previous quarter, with EBITDA rising to 7%.
The company said that margins were dented by increased promotional spending, a shift in the group’s product mix to lower margin goods, and an increased contribution from its newly-acquired formats – which operate with lower margins than the group as a whole.
