FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of November, 2012
Brazilian Distribution Company
(Translation of Registrant’s Name Into English)
Av. Brigadeiro Luiz Antonio,
3142 São Paulo, SP 01402-901
Brazil
(Address of Principal Executive Offices)
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F)
Form 20-F X Form 40-F
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule
101 (b) (1)):
Yes ___ No X
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule
101 (b) (7)):
Yes ___ No X
(Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
Yes ___ No X
3Q12 Earnings
Consolidated net income up 64.6% in the quarter
São Paulo, Brazil, October 31, 2012 - Grupo Pão de Açúcar [BM&FBOVESPA: PCAR4 (PN); NYSE: CBD] and Via Varejo S.A. [BM&FBOVESPA: VVAR3] announce their results for the third quarter of 2012 (3Q12). The results are presented in the segments as follows: GPA Food, which comprises supermarkets (Pão de Açúcar, Extra Supermercado and PA Delivery), hypermarkets (Extra Hiper), neighborhood stores (Minimercado Extra), cash-and-carry stores (Assaí), gas stations and drugstores, and GPA Malls & Properties; and GPA Consolidated, comprised by GPA Food and Via Varejo (Casas Bahia and Ponto Frio's bricks-and-mortar stores and Nova Pontocom's e-commerce: Extra.com.br, PontoFrio.com.br and Casasbahia.com.br). More information about the results of Via Varejo S.A. can be obtained in its earnings release.
GPA Food
Gross sales revenue up 9.5% in 3Q12
EBITDA up 8.4% to R$ 496 million
- Gross sales revenue totaled R$ 7.484 billion, up 9.5% over 3Q11
- Gross profit at R$ 1.755 billion, up 8.0% over 3Q11
- EBITDA at R$ 496 million, up 8.4% over 3Q11, with margin at 7.3%
- Net profit at R$ 142 million, up 19.1% over 3Q11
- A total of 15 stores were opened in the quarter, one Pão de Açúcar, three Extra Supermercado, three Extra Hiper and eight Minimercado Extra stores
GPA Consolidated
EBITDA totaled R$ 801 million, up 11.1%, with margin at 6.6%
Net profit totaled R$ 210 million, up 64.6% over 3Q11
|
| HIGHLIGHTS | |||||||||||||||
| GPA Food | GPA Consolidated | ||||||||||||||
| (R$ million)(1) | 3Q12 | 3Q11 | Δ | 9M12 | 9M11 | Δ | 3Q12 | 3Q11 | Δ | 9M12 | 9M11 | Δ | |||
| Gross Sales Revenue | 7,484 | 6,834 | 9.5% | 22,292 | 20,402 | 9.3% | 13,666 | 12,571 | 8.7% | 40,837 | 37,549 | 8.8% | |||
| Net Sales Revenue | 6,761 | 6,159 | 9.8% | 20,137 | 18,372 | 9.6% | 12,155 | 11,085 | 9.7% | 36,340 | 33,224 | 9.4% | |||
| Gross Profit | 1,755 | 1,625 | 8.0% | 5,282 | 4,731 | 11.7% | 3,203 | 3,084 | 3.9% | 9,700 | 8,919 | 8.7% | |||
|
Gross Margin |
26.0% | 26.4% | -40 bps | 26.2% | 25.7% | 50 bps | 26.4% | 27.8% | -140 bps | 26.7% | 26.8% | -10 bps | |||
| EBITDA | 496 | 458 | 8.4% | 1,563 | 1,299 | 20.3% | 801 | 721 | 11.1% | 2,346 | 1,945 | 20.7% | |||
|
EBITDA Margin(2) |
7.3% | 7.4% | -10 bps | 7.8% | 7.1% | 70 bps | 6.6% | 6.5% | 10 bps | 6.5% | 5.9% | 60 bps | |||
| Net Financial Revenue (Expenses) | (117) | (167) | -30.2% | (380) | (495) | -23.3% | (272) | (328) | -17.1% | (892) | (990) | -9.8% | |||
| % of net sales revenue | 1.7% | 2.7% | -100 bps | 1.9% | 2.7% | -80 bps | 2.2% | 3.0% | -80 bps | 2.5% | 3.0% | -50 bps | |||
| Net Income - Company | 142 | 119 | 19.1% | 529 | 346 | 52.7% | 210 | 128 | 64.6% | 617 | 324 | 90.3% | |||
|
Net Margin |
2.1% | 1.9% | 20 bps | 2.6% | 1.9% | 70 bps | 1.7% | 1.2% | 50 bps | 1.7% | 1.0% | 70 bps | |||
| Net Income - Controlling Shareholders (3) | 154 | 129 | 19.2% | 568 | 368 | 54.5% | 189 | 133 | 41.3% | 610 | 357 | 70.9% | |||
|
Net Margin |
2.3% | 2.1% | 20 bps | 2.8% | 2.0% | 80 bps | 1.6% | 1.2% | 40 bps | 1.7% | 1.1% | 60 bps | |||
| (1) Totals may not tally as the figures are rounded off and all margins were calculated as percentage of net sales revenue. | |||||||||||||||
| (2) Earnings before Interest, Taxes, Depreciation, Amortization and Net Financial Revenue (Expenses) | |||||||||||||||
| (3) Net Income after noncontrolling shareholders | |||||||||||||||
1/16
PERFORMANCE BY SEGMENT
The Company’s operations are integrated in two business segments, as shown below:
In order to enable comparison of the Company’s figures, the tables and explanations about the 9M12 earnings, except when otherwise noticed, exclude the revenue from the Company’s real estate projects. In 3Q12, no such revenues were recognized. In 2Q12, R$ 98 million in gross sales revenue was recognized. This figure refers to land swaps for development and construction of real estate projects. For further information on the recognition of such revenue, see explanatory notes number 27 on the 3Q12 Financial Statements and notes 3.b. and 26 on the 2Q12 Financial Statements.
SALES PERFORMANCE
| GPA Food | GPA Food | ||||||||||
| Retail | Cash and Carry | ||||||||||
| (R$ million) | 3Q12 | 3Q11 | Δ | 3Q12 | 3Q11 | Δ | 3Q12 | 3Q11 | Δ | ||
| Gross Sales Revenue | 7,484 | 6,834 | 9.5% | 6,219 | 5,727 | 8.6% | 1,265 | 1,107 | 14.2% | ||
| Net Sales Revenue | 6,761 | 6,159 | 9.8% | 5,606 | 5,150 | 8.9% | 1,155 | 1,008 | 14.5% | ||
| Gross 'Same-Store' Sales Revenue | 6.8% | 8.2% | |||||||||
|
Food |
7.7% | 8.1% | |||||||||
|
Non-food |
3.8% | 8.9% | |||||||||
GPA Food 3Q12 x 3Q11
Gross sales revenue increased 9.5% over 3Q11 to R$ 7.484 billion. Same-store sales growth was 6.8%, equivalent to 1.5% in real terms, when deflated by the IPCA benchmark inflation index.
2/16
4 Retail: gross sales revenue up 8.6%. The highlights were:
§ Minimercado Extra performance, which reflects the brand’s new positioning and favors higher value-added items, following the store conversion from the former Extra Fácil format, and posted a 23.6% same-store increase;
§ Growth at Extra Supermercado higher than that in Retail Food, benefitted by conversion of banners CompreBem and Sendas, which was concluded in 3Q11;
4 Cash-and-carry: gross sales revenue up 14.2%, mainly due to:
§ 12.6% increase in same-store gross sales revenue, due to an increase in the average ticket reflecting focus on the new target publics – processors, distributers and users, and adjustment in assortment and store layout. Store productivity as measured by average sales per square meter also posted a double-digit growth in the period.
The home and personal care category and the beverage category were the main drivers of the 7.7% same-store gross sales revenue in Food.
A total of 15 stores were opened in the third quarter, of which one Pão de Açúcar store, three Extra Supermercado stores, three Extra Hiper stores and eight Minimercado Extra stores, which added over 36 thousand square meters to the sales area, up 2.4%. In the January-September period, GPA Food’s sales area totaled 1,543 thousand square meters, up 3.2% from the end of 2011.
The Company will open approximately 40 new stores in 4Q12, of which 30 will be Minimercado Extra stores.
| GPA Food ex-real estate projects |
GPA Consolidated ex-real estate projects | ||||||||||
| (R$ million) | 9M12 | 9M11 | Δ | 3Q12 | 3Q11 | Δ | 9M12 | 9M11 | Δ | ||
| Gross Sales Revenue | 22,193 | 20,402 | 8.8% | 13,666 | 12,571 | 8.7% | 40,739 | 37,549 | 8.5% | ||
| Net Sales Revenue | 20,039 | 18,372 | 9.1% | 12,155 | 11,085 | 9.7% | 36,242 | 33,224 | 9.1% | ||
| Gross 'Same-Store' Sales Revenue | 6.9% | 7.7% | 7.1% | 6.6% | 7.4% | 7.8% | |||||
|
Food |
7.3% | 7.6% | |||||||||
|
Non-food |
5.7% | 8.0% | |||||||||
GPA Food 9M12 x 9M11
Gross sales revenue was up 8.8%. The 6.9% same-store growth, or 1.6% in real terms, reflects the successful conversion process of Extra Supermercado into Minimercado Extra stores, which deliver improved performance compared with the previous format.
GPA Consolidated 3Q12 x 3Q11
Gross sales revenue totaled R$ 13.666 billion, up 8.7% over 3Q11, mainly due to same-store sales growth pace in the Food Retail segment and the Ponto Frio banner performance, reflecting improved product mix and the new store positioning.
GPA Consolidated 9M12 x 9M11
Gross sales revenue was up 8.5% to R$ 40.739 billion, while same-store sales growth was 7.4%.
3/16
Operating Performance
| GPA Food | GPA Food | ||||||||||
| Retail | Cash and Carry | ||||||||||
| (R$ million) | 3Q12 | 3Q11 | Δ | 3Q12 | 3Q11 | Δ | 3Q12 | 3Q11 | Δ | ||
| Net Sales Revenue | 6,761 | 6,159 | 9.8% | 5,606 | 5,150 | 8.9% | 1,155 | 1,008 | 14.5% | ||
| Gross Profit | 1,755 | 1,625 | 8.0% | 1,590 | 1,497 | 6.3% | 164 | 128 | 28.1% | ||
|
Gross Margin |
26.0% | 26.4% | -40 bps | 28.4% | 29.1% | -70 bps | 14.2% | 12.7% | 150 bps | ||
|
Selling Expenses |
(1,044) | (958) | 9.0% | (939) | (862) | 9.0% | (105) | (97) | 8.8% | ||
|
General and Administrative Expenses |
(215) | (209) | 2.7% | (199) | (197) | 0.7% | (16) | (12) | 36.8% | ||
| Total Operating Expenses | (1,259) | (1,167) | 7.8% | (1,137) | (1,059) | 7.4% | (121) | (108) | 11.8% | ||
|
% of Net Sales Revenue |
18.6% | 18.9% | -30 bps | 20.3% | 20.6% | -30 bps | 10.5% | 10.7% | -20 bps | ||
|
EBITDA |
496 | 458 | 8.4% | 453 | 438 | 3.4% | 43 | 20 | 116.3% | ||
|
EBITDA Margin |
7.3% | 7.4% | -10 bps | 8.1% | 8.5% | -40 bps | 3.7% | 2.0% | 170 bps | ||
GPA Food 3Q12 x 3Q11
EBITDA increased 8.4% to R$ 496 million, while EBITDA margin reached 7.3%, down 10 basis points, mainly impacted by the cash-and-carry operations, as detailed below. The cash-and-carry segment accounted for 16.9% of GPA Food’s gross sales revenue in 3Q12, up from 16.2% in 3Q11, while it accounted for 8.7% of GPA Food’s EBITDA, more than doubled from 4.3% in 3Q11.
4 Retail: EBITDA margin declined 40 basis points, to 8.1%, due to:
§ Adjustment in the sales policy in order to improve pricing competition, which impacted gross margin. Such adjustment is also related to specific marketing campaigns, such as “Alerta Vermelho” (red alert), for the Extra banner;
§ Decline of operating expenses as percentage of net sales revenue to 20.3% in 3Q12 from 20.6%, reflecting the Company’s administrative expenses control;
§ Similar expense and revenue growth, despite the personnel-related cost pressure, and increase in marketing expenses.
4 Cash-and-carry: EBITDA margin increased 170 basis points, to 3.7%, over 3Q11, due to:
§ 150 basis-point increase in gross margin, to 14.2%, due to maturation of stores opened in the past two years and to assortment adjustments to the target-public, favoring more profitable items;
§ Reduction of operating expenses as percentage of net revenue, due to efficiency gains in stores, such as sales area formatting and inventory optimization, review of the logistic model and adjustment in services rendered;
§ Increase in general and administrative expenses, which is related to the hiring of executives to support the banner’s strong expansion expected for the coming years.
4/16
| GPA Food | GPA Consolidated | ||||||||||
| (R$ million) | 9M12 | 9M11 | Δ | 3Q12 | 3Q11 | Δ | 9M12 | 9M11 | Δ | ||
| Net Sales Revenue | 20,039 | 18,372 | 9.1% | 12,155 | 11,085 | 9.7% | 36,242 | 33,224 | 9.1% | ||
| Gross Profit | 5,184 | 4,731 | 9.6% | 3,203 | 3,084 | 3.9% | 9,602 | 8,919 | 7.6% | ||
|
Gross Margin |
25.9% | 25.7% | 20 bps | 26.4% | 27.8% | -140 bps | 26.5% | 26.8% | -30 bps | ||
|
Selling Expenses |
(3,136) | (2,884) | 8.7% | (2,032) | (1,918) | 5.9% | (6,136) | (5,721) | 7.2% | ||
|
General and Administrative Expenses |
(587) | (548) | 7.1% | (370) | (444) | -16.8% | (1,222) | (1,253) | -2.5% | ||
|
Total Operating Expenses |
(3,722) | (3,432) | 8.5% | (2,402) | (2,363) | 1.7% | (7,357) | (6,975) | 5.5% | ||
|
% of Net Sales Revenue |
18.6% | 18.7% | -10 bps | 19.8% | 21.3% | -150 bps | 20.3% | 21.0% | -70 bps | ||
|
EBITDA |
1,461 | 1,299 | 12.5% | 801 | 721 | 11.1% | 2,244 | 1,945 | 15.4% | ||
|
EBITDA Margin |
7.3% | 7.1% | 20 bps | 6.6% | 6.5% | 10 bps | 6.2% | 5.9% | 30 bps | ||
GPA Food 9M12 x 9M11
EBITDA increased 12.5%, while EBITDA margin increased 20 basis points, to 7.3%. The margin increase was due to a 20 basis-point gain in gross margin and a 10-basis point decline in operating expenses as a percentage of net revenues.
GPA Consolidated 3Q12 x 3Q11
Gross margin fell by 140 basis points, mainly pressured by increased competition and higher logistics costs in the electronics segment. EBITDA increased 11.1% to R$ 801 million, with margin at 6.6%, up 10 basis points compared with 3Q11.
GPA Consolidated 9M12 x 9M11
EBITDA increased 15.4%, to R$ 2.244 billion, with margin at 6.2%, up 30 basis points over the same year-ago period.
Financial Performance and Indebtedness
Financial Result
| GPA Food ex-real estate projects |
GPA Consolidated ex-real estate projects | ||||||||||||||
| (R$ million) | 3Q12 | 3Q11 | Δ | 9M12 | 9M11 | Δ | 3Q12 | 3Q11 | Δ | 9M12 | 9M11 | Δ | |||
|
Financial Revenue |
127 | 112 | 13.3% | 355 | 306 | 16.0% | 163 | 171 | -5.1% | 459 | 444 | 3.5% | |||
|
Financial Expenses |
(243) | (279) | -12.8% | (735) | (801) | -8.3% | (435) | (499) | -13.0% | (1,352) | (1,433) | -5.7% | |||
| Net Financial Revenue (Expenses) | (117) | (167) | -30.2% | (380) | (495) | -23.3% | (272) | (328) | -17.1% | (893) | (990) | -9.8% | |||
|
% of Net Sales Revenue |
1.7% | 2.7% | -100 bps | 1.9% | 2.7% | -80 bps | 2.2% | 3.0% | -80 bps | 2.5% | 3.0% | -50 bps | |||
|
Charges on Net Bank Debt |
(63) | (90) | -30.0% | (205) | (259) | -20.6% | (134) | (156) | -14.4% | (416) | (422) | -1.5% | |||
|
Cost of Discount of Receivables |
(25) | (34) | -26.7% | (80) | (116) | -30.8% | (107) | (159) | -32.9% | (377) | (492) | -23.4% | |||
|
Restatement of Other Assets and Liabilities |
(29) | (43) | -33.3% | (94) | (120) | -21.8% | (32) | (13) | 144.7% | (100) | (76) | 31.9% | |||
| Net Financial Revenue (Expenses) | (117) | (167) | -30.2% | (380) | (495) | -23.3% | (272) | (328) | -17.1% | (893) | (990) | -9.8% | |||
5/16
GPA Food 3Q12 x 3Q11
The net financial expense totaled R$ 117 million, down 30.2% from 3Q11, despite the 9.5% increase in gross sales revenue in the quarter, and accounted for 1.7% of net sales revenue, down 100 basis points from 3Q11. The reduction was mainly due to declining interest rates, notably as from September 2011, which impacts the Company as explained below:
§ R$ 63 million in charges on the net bank debt, which accounted for 0.9% of net sales volume, down 60 basis points from 3Q11;
§ R$ 25 million in discounted credit card receivables cost, which accounted for 0.4% of net sales revenue, a 20 basis-point reduction from 3Q11. The volume of discounted receivables totaled R$ 3.017 billion;
§ R$ 29 million in restatement of other assets and liabilities, which accounted for 0.4% of net sales revenue in the quarter, down 30 basis points from 3Q11.
GPA Food 9M12 x 9M11
The net financial expense totaled R$ 380 million, down 23.3% from 9M11, despite the 9.3% gross sales revenue increase. The result was impacted by a decline in interest rates and control in payment conditions.
GPA Consolidated 3Q12 x 3Q11
The net financial expense totaled R$ 272 million, down 17.1% from 3Q11, and accounted for 2.2% of net sales revenue, down 80 basis points from 3Q11.
GPA Consolidated 9M12 x 9M11
The net financial expense totaled R$ 893 million and accounted for 2.5% of net sales revenue, down 50 basis points from the first nine months of 2011.
Indebtedness
| GPA Food | GPA Consolidated | ||||
| (R$ million) | 09.30.2012 | 06.30.2012 | 09.30.2012 | 06.30.2012 | |
| Short Term Debt | (2,151) | (2,084) | (2,435) | (2,373) | |
|
Loans and Financing |
(1,420) | (1,406) | (1,586) | (1,581) | |
|
Debentures |
(731) | (679) | (848) | (792) | |
| Long Term Debt | (4,770) | (4,767) | (5,657) | (5,658) | |
|
Loans and Financing |
(1,742) | (1,754) | (1,831) | (1,844) | |
|
Debentures |
(3,027) | (3,012) | (3,827) | (3,814) | |
| Total Gross Debt | (6,921) | (6,851) | (8,092) | (8,031) | |
| Cash | 4,299 | 4,221 | 5,551 | 5,473 | |
| Net Debt | (2,622) | (2,630) | (2,541) | (2,557) | |
| Net Debt / EBITDA(1) | 1.25x | 1.30x | 0.75x | 0.79x | |
|
Payment book - short term |
- | - | (2,277) | (2,227) | |
|
Payment book - long term |
- | - | (112) | (116) | |
| Net Debt with payment book | - | - | (4,930) | (4,900) | |
| Net Debt / EBITDA(1) | 1.25x | 1.30x | 1.46x | 1.52x | |
6/16
GPA Food
On 09/30/2012, GPA Food’s gross debt was at R$ 6.921 billion, of which 68.9% maturing in the long term, that is, due in over 12 months. Net debt was at R$ 2.622 billion, down R$ 8 million from 06/30/2012. The net-debt-to-EBITDA ratio was at 1.25x at the end of the period.
GPA Consolidated
The net debt totaled R$ 2.541 billion on 09/30/2012, down R$ 16 million from 06/30/2012. The net-debt-to-EBITDA ratio was at 0.75x. Considering net debt with payment book, net debt/EBITDA would be 1.46x.
Net profit
| GPA Food ex-real estate projects |
GPA Consolidated ex-real estate projects | ||||||||||||||
| (R$ million) | 3Q12 | 3Q11 | Δ | 9M12 | 9M12 | Δ% | 3Q12 | 3Q11 | Δ% | 9M12 | 9M12 | Δ% | |||
| EBITDA | 496 | 458 | 8.4% | 1,461 | 1,299 | 12.5% | 801 | 721 | 11.1% | 2,244 | 1,945 | 15.4% | |||
| Depreciation and Amortization | (164) | (127) | 29.5% | (467) | (368) | 27.0% | (216) | (157) | 37.7% | (591) | (465) | 27.1% | |||
| Net Financial Revenue (Expenses) | (117) | (167) | -30.2% | (380) | (495) | -23.3% | (272) | (328) | -17.1% | (893) | (990) | -9.8% | |||
| Equity Income | 6 | 8 | -24.2% | 8 | 14 | -43.9% | 10 | 11 | -14.1% | 12 | 25 | -51.6% | |||
| Result from Permanent Assets | (8) | (2) | 284.3% | (32) | (1) | N/A | (6) | 1 | 0.0% | (9) | 3 | 0.0% | |||
| Nonrecurring Result | (29) | - | 0.0% | (29) | (49) | -40.3% | (35) | (62) | -43.6% | (45) | (144) | -68.5% | |||
| Other Operating Revenue (Expenses) | 14 | (2) | - | 37 | (2) | - | 15 | (8) | - | 40 | (3) | - | |||
| Income Before Income Tax | 198 | 168 | 18.4% | 598 | 398 | 50.2% | 297 | 178 | 67.0% | 759 | 370 | 105.0% | |||
| Income Tax | (56) | (48) | 16.7% | (171) | (52) | 231.2% | (87) | (51) | 73.0% | (244) | (46) | 432.9% | |||
| Net Income(1) - Controlling Shareholders | 142 | 119 | 19.1% | 427 | 346 | 23.3% | 210 | 128 | 64.6% | 515 | 324 | 58.8% | |||
| Minority Interest - Noncontrolling | 12 | 10 | 20.2% | 39 | 21 | 82.6% | (21) | 6 | 0.0% | (8) | 32 | 0.0% | |||
| Net Income(1) - Controlling Shareholders | 154 | 129 | 19.2% | 466 | 368 | 26.7% | 189 | 133 | 41.3% | 508 | 357 | 42.3% | |||
| Net Margin | 2.3% | 2.1% | 20 bps | 2.3% | 2.0% | 30 bps | 1.6% | 1.2% | 40 bps | 1.4% | 1.1% | 30 bps | |||
| Indemnity Liabilities | 19 | - | - | 19 | - | - | 19 | - | - | 19 | - | - | |||
|
Refis 11.941/2009 |
- | - | - | - | 28 | - | - | - | - | - | 28 | - | |||
|
Expenses (Revenues) with Association |
10 | - | - | 10 | 21 | - | 5 | 62 | - | 40 | 116 | - | |||
|
Total Nonrecurring |
29 | - | - | 29 | 49 | - | 24 | 62 | - | 60 | 143 | - | |||
|
Income Tax from Nonrecurring |
(7) | - | - | (7) | (10) | - | (6) | (21) | - | (18) | (37) | - | |||
|
Minority Interest |
- | - | - | - | 5 | - | 2 | (20) | - | 9 | (2) | - | |||
| Adjusted Net Income | 176 | 129 | 36.3% | 488 | 412 | 18.5% | 209 | 155 | 34.8% | 559 | 461 | 21.3% | |||
| Adjusted Net Margin | 2.6% | 2.1% | 50 bps | 2.4% | 2.2% | 20 bps | 1.7% | 1.4% | 30 bps | 1.5% | 1.4% | 10 bps | |||
| (1) Net Income after noncontrolling shareholders | |||||||||||||||
GPA Food 3Q12 x 3Q11
Operating income before income tax totaled R$ 198 million, up 18.4% over 3Q11. The increase reflects the operational improvement in all formats and strict control over operating and financial expenses.
Net profit increased 19.1%, to R$ 142 million, with net margin at 2.3%, up 20 basis points.
The Company posted non-recurring expenses in the quarter related to (i) indemnity liabilities from contingencies from the Ponto Frio operation prior to the association with Casas Bahia, announced in 4Q10, totaling R$ 19 million, and (ii) restructuring which caused the resignation of some executive officers, totaling R$ 10 million. Net profit adjusted by the abovementioned effects totaled R$ 176 million, up 36.3%, with net margin at 2.6%, up 50 basis points.
GPA Food 9M12 x 9M11
Operating income before income tax increased 50.2% in the January-September period, to R$ 598 million, while net income increased 23.3%.
7/16
GPA Consolidated 3Q12 x 3Q11
Net profit reached R$ 189 million, up 41.3% over 3Q11, reflecting the operational improvements in GPA Food and Viavarejo. Net margin was up by 40 basis points in 3Q12, to 1.6%.
The non-recurring items totaled R$ 35 million in the quarter, broken down into R$ 22 million in GPA Food, net of income tax, as explained above, and R$ 10 million in expenses related to adjustment in the margin of goods in replacement in guarantee claims and reimbursements for legal expenses referring to related parties.
GPA Consolidated 9M12 x 9M11
Consolidated net profit totaled R$ 508 million, up 42.3%.
Cash Flow
| GPA Food | GPA Consolidated | ||||||||||||
| (R$ million) | 3Q12 | 3Q11 | Δ | 9M12 | 9M11 | Δ | 3Q12 | 3Q11 | Δ | 9M12 | 9M11 | Δ | |
| Cash Balance at beginning of period | 4,221 | 2,576 | 1,645 | 3,544 | 2,468 | 1,076 | 5,473 | 3,963 | 1,510 | 4,970 | 7,781 | (2,811) | |
| Cash Flow from operating activities | 441 | 492 | (51) | 769 | 882 | (114) | 575 | 139 | 436 | 636 | (171) | 807 | |
|
EBITDA |
496 | 458 | 38 | 1,563 | 1,299 | 264 | 801 | 721 | 80 | 2,346 | 1,945 | 402 | |
|
Cost of Discount of Receivables |
(25) | (34) | 9 | (80) | (116) | 36 | (107) | (159) | 52 | (377) | (492) | 115 | |
|
Working Capital |
234 | 200 | 33 | (714) | (301) | (414) | (119) | (423) | 303 | (1,334) | (1,624) | 290 | |
| Cash Flow from Investment Activities | (251) | (558) | 307 | (702) | (993) | 291 | (336) | (628) | 292 | (883) | (1,212) | 330 | |
|
Net CAPEX |
(205) | (282) | 77 | (659) | (718) | 59 | (290) | (353) | 63 | (840) | (937) | 97 | |
|
Aquisition and Others |
(46) | (275) | 229 | (43) | (275) | 233 | (46) | (275) | 229 | (43) | (275) | 233 | |
| Cash Flow from Financing Activities | (113) | (49) | (64) | 688 | 105 | 583 | (162) | 73 | (235) | 828 | 1,112 | (285) | |
|
Dividends Payments and Others |
(28) | (25) | (3) | (159) | (161) | 3 | (28) | (25) | (3) | (159) | (161) | 3 | |
|
Net Proceeds |
(85) | (24) | (61) | 847 | 267 | 580 | (134) | 97 | (231) | 986 | 1,274 | (287) | |
| Variation of Net Cash Generated | 78 | (114) | 192 | 755 | (6) | 760 | 77 | (416) | 493 | 581 | (271) | 852 | |
| Cash Balance at end of period | 4,299 | 2,463 | 1,836 | 4,299 | 2,463 | 1,836 | 5,551 | 3,547 | 2,004 | 5,551 | 3,547 | 2,004 | |
GPA Food 3Q12 x 3Q11
At the end of 3Q12, GPA Food´s cash flow was positive by R$ 4.299 billion, up R$ 78 million in comparison with the cash balance at the beginning of the period, mostly due to operating cash generation and improvement in the Company’s working capital in the period.
GPA Consolidated 3Q12 x 3Q11
Cash flow in 3Q12 stood at R$ 5.551 billion, up R$ 77 million compared with the cash balance at the beginning of the period. Cash generation was due to improvement in operating performance at GPA Food and Viavarejo, and was above investments in the period.
8/16
Capex
| GPA Food | GPA Consolidated | ||||||||||||||
| (R$ million) | 3Q12 | 3Q11 |
Δ |
9M12 | 9M11 | Δ | 3Q12 | 3Q11 | Δ | 9M12 | 9M11 | Δ | |||
| New stores and land acquisition | 91 | 36 | 152.1% | 272 | 121 | 125.7% | 127 | 53 | 139.2% | 359 | 164 | 118.6% | |||
| Store renovations and conversions | 151 | 217 | -30.2% | 333 | 438 | -24.2% | 166 | 224 | -26.0% | 364 | 466 | -22.0% | |||
| Infrastructure and Others | 74 | 73 | 1.7% | 218 | 221 | -1.0% | 112 | 156 | -28.0% | 316 | 375 | -15.8% | |||
| Total | 316 | 325 | -2.9% | 823 | 780 | 5.6% | 405 | 433 | -6.4% | 1,038 | 1,006 | 3.2% | |||
GPA Food 3Q12
Investments totaled R$ 316 million in 3Q12, allocated as follows:
§ R$ 91 million to store openings, construction and land acquisitions. In the period, the Company opened 15 stores, of which one Pão de Açúcar, three Extra Supermercado, three Extra Hiper and eight Minimercado Extra stores, which added over 36 thousand square meters to the Company’s sales area, up 2.4%.
§ R$ 151 million to store renovations and conversions; and
§ R$ 74 million to infrastructure (technology and logistics) and others.
GPA Food 9M12
Investments totaled R$ 823 million, of which R$ 272 million were aimed at store openings and land acquisitions, up 125.7% over the same year-ago period. Such investment is in line with the Company’s strategy to increase the store openings pace. At the end of the nine-month period, GPA Food’s sales area was at 1.543 million square meters, up 3.2% in comparison with December 2011.
GPA Consolidated 3Q12 e 9M12
In the quarter, investments totaled R$ 405 million, of which R$ 90 million in Viavarejo and R$ 316 million in GPA Food, and account for 39.0% of the total investments in the first nine months of 2012.
Investments in the period are in line with the Company’s annual business plan. The Company reaffirms the guidance of approximately R$ 1.8 billion in investments for this year, of which R$ 1.4 billion to GPA Food and R$ 400 million to GPA Non Food.
Dividends
GPA Consolidated
| GPA Consolidated | ||||||
| (R$ million) | 3Q12 | 3Q11 | Δ | 9M12 | 9M11 | Δ |
| Dividends | 27.9 | 22.6 | 23.5% | 83.6 | 67.7 | 23.5% |
GPA Consolidated
The Board of Directors approved the prepayment of interim dividends totaling R$0.11 per preferred share and R$0.10 per common share on a meeting held on 10/25/2012. The 3Q12 dividends to be paid will total R$ 28 million.
Payment will be made on 11/23/2012. Shareholders registered as such on 11/12/2012 will be entitled to receive the payment. Shares will be traded ex-dividends as of 11/13/2012, until the payment date.
9/16
| BALANCE SHEET | |||||||
| ASSETS | |||||||
| GPA Food | GPA Consolidated | ||||||
| (R$ million) | 09.30.2012 | 06.30.2012 | 09.30.2011 | 09.30.2012 | 06.30.2012 | 09.30.2011 | |
| Current Assets | 9,302 | 9,019 | 7,313 | 17,184 | 16,694 | 15,438 | |
|
Cash and Marketable Securities |
4,299 | 4,221 | 2,463 | 5,551 | 5,473 | 3,575 | |
|
Accounts Receivable |
310 | 260 | 187 | 2,368 | 2,253 | 2,054 | |
|
Credit Cards |
217 | 181 | 121 | 486 | 389 | 314 | |
|
Payment book |
- | - | - | 1,947 | 1,961 | 1,818 | |
|
Sales Vouchers and Others |
90 | 76 | 62 | 129 | 105 | 117 | |
|
Post-Dated Checks |
4 | 4 | 4 | 4 | 4 | 4 | |
|
Allowance for Doubtful Accounts |
(0) | (1) | (0) | (198) | (205) | (199) | |
|
Resulting from Commercial Agreements |
439 | 389 | 303 | 439 | 389 | 303 | |
|
Receivables Fund (FIDC) |
1,086 | 1,056 | 1,024 | 2,473 | 2,381 | 2,435 | |
|
Inventories |
2,795 | 2,603 | 2,568 | 5,185 | 4,939 | 5,097 | |
|
Recoverable Taxes |
214 | 270 | 509 | 802 | 826 | 1,412 | |
|
Expenses in Advance and Other Accounts Receivables |
158 | 219 | 259 | 367 | 432 | 563 | |
| Noncurrent Assets | 14,484 | 14,278 | 13,174 | 17,574 | 17,261 | 15,515 | |
|
Long-Term Assets |
2,635 | 2,564 | 1,959 | 4,532 | 4,405 | 3,223 | |
|
Marketable Securities |
- | - | - | - | - | - | |
|
Accounts Receivables |
480 | 462 | 439 | 575 | 556 | 529 | |
|
Paes Mendonça |
480 | 462 | 439 | 480 | 462 | 439 | |
|
Payment Book |
- | - | - | 103 | 102 | 96 | |
|
Others |
- | - | - | - | - | - | |
|
Allowance for Doubtful Accounts |
- | - | - | (8) | (7) | (5) | |
|
Inventories |
111 | 111 | - | 111 | 111 | - | |
|
Recoverable Taxes |
267 | 212 | 12 | 1,122 | 1,030 | 93 | |
|
Fair Value Bartira |
356 | 355 | 416 | 356 | 355 | 416 | |
|
Deferred Income Tax and Social Contribution |
411 | 426 | 397 | 1,159 | 1,185 | 1,189 | |
|
Amounts Receivable from Related Parties |
185 | 178 | 101 | 169 | 146 | 221 | |
|
Judicial Deposits |
754 | 730 | 502 | 938 | 899 | 660 | |
|
Expenses in Advance and Others |
72 | 92 | 92 | 101 | 123 | 116 | |
|
Investments |
269 | 176 | 152 | 366 | 269 | 243 | |
|
Property and Equipment |
6,757 | 6,617 | 6,276 | 7,734 | 7,554 | 7,145 | |
|
Intangible Assets |
4,823 | 4,920 | 4,787 | 4,942 | 5,032 | 4,904 | |
| TOTAL ASSETS | 23,786 | 23,297 | 20,486 | 34,758 | 33,955 | 30,953 | |
| LIABILITIES | |||||||
| GPA Food | GPA Consolidated | ||||||
| 09.30.2012 | 06.30.2012 | 09.30.2011 | 09.30.2012 | 06.30.2012 | 09.30.2011 | ||
| Current Liabilities | 6,508 | 6,149 | 4,470 | 11,894 | 11,297 | 10,220 | |
|
Suppliers |
2,726 | 2,533 | 2,417 | 4,929 | 4,570 | 4,623 | |
|
Loans and Financing |
1,420 | 1,406 | 374 | 1,586 | 1,581 | 1,205 | |
|
Payment Book (CDCI) |
- | - | - | 2,277 | 2,227 | 2,029 | |
|
Debentures |
731 | 679 | 262 | 848 | 792 | 262 | |
|
Payroll and Related Charges |
462 | 372 | 406 | 965 | 837 | 803 | |
|
Taxes and Social Contribution Payable |
73 | 81 | 71 | 162 | 180 | 239 | |
|
Dividends Proposed |
1 | 1 | 0 | 1 | 1 | 0 | |
|
Financing for Purchase of Fixed Assets |
1 | 14 | 14 | 1 | 14 | 14 | |
|
Rents |
44 | 44 | 44 | 44 | 44 | 44 | |
|
Acquisition of Companies |
61 | 58 | 53 | 61 | 58 | 53 | |
|
Debt with Related Parties |
550 | 522 | 523 | 60 | 52 | 22 | |
|
Advertisement |
33 | 40 | 32 | 76 | 85 | 64 | |
|
Provision for Restructuring |
13 | 9 | 6 | 13 | 9 | 6 | |
|
Tax Payments |
159 | 166 | 81 | 162 | 169 | 85 | |
|
Advanced Revenue |
6 | 8 | - | 78 | 77 | 78 | |
|
Others |
228 | 217 | 187 | 631 | 601 | 693 | |
| Long-Term Liabilities | 9,347 | 9,338 | 8,665 | 12,166 | 12,151 | 10,833 | |
|
Loans and Financing |
1,742 | 1,754 | 2,572 | 1,831 | 1,844 | 2,770 | |
|
Payment Book (CDCI) |
- | - | - | 112 | 116 | 94 | |
|
Receivables Fund (FIDC) |
1,218 | 1,194 | 1,201 | 2,488 | 2,437 | 2,497 | |
|
Debentures |
3,027 | 3,012 | 1,529 | 3,827 | 3,814 | 1,529 | |
|
Acquisition of Companies |
150 | 199 | 184 | 150 | 199 | 184 | |
|
Deferred Income Tax and Social Contribution |
1,108 | 1,104 | 1,129 | 1,108 | 1,104 | 1,129 | |
|
Tax Installments |
1,186 | 1,201 | 1,404 | 1,228 | 1,244 | 1,447 | |
|
Provision for Contingencies |
580 | 552 | 415 | 752 | 721 | 529 | |
|
Advanced Revenue |
29 | 23 | - | 365 | 375 | 391 | |
|
Others |
307 | 298 | 231 | 307 | 298 | 263 | |
| Shareholders' Equity | 7,931 | 7,810 | 7,351 | 10,698 | 10,507 | 9,900 | |
|
Capital |
5,241 | 5,278 | 3,234 | 6,702 | 6,702 | 6,129 | |
|
Capital Reserves |
211 | 202 | 336 | 211 | 202 | 377 | |
|
Profit Reserves |
1,308 | 1,147 | 1,366 | 1,308 | 1,147 | 950 | |
|
Minority Interest |
1,171 | 1,183 | 2,416 | 2,477 | 2,456 | 2,443 | |
| TOTAL LIABILITIES | 23,786 | 23,297 | 20,486 | 34,758 | 33,955 | 30,953 | |
10/16
| INCOME STATEMENT | |||||||||||||||
| GPA Food | GPA Food | GPA Consolidated | |||||||||||||
| Retail | Cash and Carry | ||||||||||||||
| R$ - Million | 3Q12 | 3Q11 | Δ | 3Q12 | 3Q11 | Δ | 3Q12 | 3Q11 | Δ | 3Q12 | 3Q11 | Δ | |||
| Gross Sales Revenue | 7,484 | 6,834 | 9.5% | 6,219 | 5,727 | 8.6% | 1,265 | 1,107 | 14.2% | 13,666 | 12,571 | 8.7% | |||
| Net Sales Revenue | 6,761 | 6,159 | 9.8% | 5,606 | 5,150 | 8.9% | 1,155 | 1,008 | 14.5% | 12,155 | 11,085 | 9.7% | |||
| Cost of Goods Sold | (5,006) | (4,534) | 10.4% | (4,016) | (3,654) | 9.9% | (990) | (880) | 12.5% | (8,952) | (8,002) | 11.9% | |||
| Gross Profit | 1,755 | 1,625 | 8.0% | 1,590 | 1,497 | 6.3% | 164 | 128 | 28.1% | 3,203 | 3,084 | 3.9% | |||
|
Selling Expenses |
(1,044) | (958) | 9.0% | (939) | (862) | 9.0% | (105) | (97) | 8.8% | (2,032) | (1,918) | 5.9% | |||
|
General and Administrative Expenses |
(215) | (209) | 2.7% | (199) | (197) | 0.7% | (16) | (12) | 36.8% | (370) | (444) | -16.8% | |||
| Total Operating Expenses | (1,259) | (1,167) | 7.8% | (1,137) | (1,059) | 7.4% | (121) | (108) | 11.8% | (2,402) | (2,363) | 1.7% | |||
| Earnings before Interest, Taxes, Depreciation, Amortization - EBITDA | 496 | 458 | 8.4% | 453 | 438 | 3.4% | 43 | 20 | 116.3% | 801 | 721 | 11.1% | |||
|
Depreciation and Amortization |
(164) | (127) | 29.5% | (153) | (116) | 31.4% | (11) | (10) | 7.9% | (216) | (157) | 37.7% | |||
| Earnings before interest and Taxes - EBIT | 332 | 331 | 0.3% | 300 | 322 | -6.7% | 32 | 10 | 233.2% | 585 | 564 | 3.7% | |||
|
Financial Revenue |
127 | 112 | 13.3% | 120 | 108 | 11.6% | 6 | 4 | 58.1% | 163 | 171 | -5.1% | |||
|
Financial Expenses |
(243) | (279) | -12.8% | (229) | (260) | -12.0% | (14) | (19) | -24.0% | (435) | (499) | -13.0% | |||
| Net Financial Revenue (Expenses) | (117) | (167) | -30.2% | (109) | (152) | -28.7% | (8) | (15) | -45.5% | (272) | (328) | -17.1% | |||
| Equity Income | 6 | 8 | -24.2% | 6 | 8 | -24.2% | - | - | - | 10 | 11 | -14.1% | |||
| Result from Permanent Assets | (8) | (2) | 284.3% | (7) | (1) | 353.8% | (1) | (0) | 64.5% | (6) | 1 | - | |||
| Nonrecurring Result | (29) | - | - | (29) | - | - | - | - | - | (35) | (62) | -43.6% | |||
| Other Operating Revenue (Expenses) | 14 | (2) | - | 14 | (2) | - | - | - | - | 15 | (8) | - | |||
| Income Before Income Tax | 198 | 168 | 18.4% | 176 | 174 | 1.1% | 23 | (6) | - | 297 | 178 | 67.0% | |||
| Income Tax | (56) | (48) | 16.7% | (49) | (52) | -5.7% | (8) | 3 | - | (87) | (51) | 73.0% | |||
| Net Income - Company | 142 | 119 | 19.1% | 127 | 122 | 4.0% | 15 | (3) | - | 210 | 128 | 64.6% | |||
| Minority Interest - Noncontrolling | 12 | 10 | 20.2% | 12 | 10 | 20.2% | - | - | - | (21) | 6 | - | |||
| Net Income - Controlling Shareholders (1) | 154 | 129 | 19.2% | 138 | 131 | 5.2% | 15 | (3) | - | 189 | 133 | 41.3% | |||
| Net Income per Share | 1.39 | 0.51 | |||||||||||||
| Nº of shares (million) ex-treasury shares | 263 | 260 | |||||||||||||
| GPA Food | GPA Food | GPA Consolidated | |||||||||||||
| % Net Sales Revenue | Reatil | Cash and Carry | |||||||||||||
| 3Q12 | 3Q11 | 3Q12 | 3Q11 | 3Q12 | 3Q11 | 3Q12 | 3Q11 | ||||||||
| Gross Profit | 26.0% | 26.4% | 28.4% | 29.1% | 14.2% | 12.7% | 26.4% | 27.8% | |||||||
|
Selling Expenses |
15.4% | 15.6% | 16.7% | 16.7% | 9.1% | 9.6% | 16.7% | 17.3% | |||||||
|
General and Administrative Expenses |
3.2% | 3.4% | 3.5% | 3.8% | 1.4% | 1.2% | 3.0% | 4.0% | |||||||
| Total Operating Expenses | 18.6% | 18.9% | 20.3% | 20.6% | 10.5% | 10.7% | 19.8% | 21.3% | |||||||
| EBITDA | 7.3% | 7.4% | 8.1% | 8.5% | 3.7% | 2.0% | 6.6% | 6.5% | |||||||
| Depreciation and Amortization | 2.4% | 2.1% | 2.7% | 2.3% | 1.0% | 1.0% | 1.8% | 1.4% | |||||||
| EBIT | 4.9% | 5.4% | 5.4% | 6.2% | 2.8% | 0.9% | 4.8% | 5.1% | |||||||
| Net Financial Revenue (Expenses) | 1.7% | 2.7% | 1.9% | 3.0% | 0.7% | 1.5% | 2.2% | 3.0% | |||||||
| Result from Permanent Assets and Others | -0.3% | 0.1% | -0.4% | 0.1% | 0.1% | 0.0% | 0.2% | 0.6% | |||||||
| Income Before Income Tax | 2.9% | 2.7% | 3.1% | 3.4% | 2.0% | 0.6% | 2.4% | 1.6% | |||||||
| Income Tax | 0.8% | -0.8% | 0.9% | 1.0% | -0.7% | 0.3% | 0.7% | 0.5% | |||||||
| Net Income - Company | 2.1% | 1.9% | 2.3% | 2.4% | 1.3% | -0.2% | 1.7% | 1.2% | |||||||
| Minority Interest - noncontrolling | 0.2% | 0.2% | 0.2% | 0.2% | 0.0% | 0.0% | -0.2% | 0.1% | |||||||
| Net Income - Controlling Shareholders (1) | 2.3% | 2.1% | 2.5% | 2.6% | 1.3% | -0.2% | 1.6% | 1.2% | |||||||
| (1) Net Income after noncontrolling shareholders | |||||||||||||||
11/16
| INCOME STATEMENT (ex-real estate projects) | INCOME STATEMENT | ||||||||||||||
| GPA Food | GPA Consolidated | GPA Food IFRS |
GPA Consolidated IFRS | ||||||||||||
| R$ - Million | 9M12 | 9M11 | Δ% | 9M12 | 9M11 | Δ% | 9M12 | 9M11 | Δ | 9M12 | 9M11 | Δ | |||
| Gross Sales Revenue | 22,193 | 20,402 | 8.8% | 40,739 | 37,549 | 8.5% | 22,292 | 20,402 | 9.3% | 40,837 | 37,549 | 8.8% | |||
| Net Sales Revenue | 20,039 | 18,372 | 9.1% | 36,242 | 33,224 | 9.1% | 20,137 | 18,372 | 9.6% | 36,340 | 33,224 | 9.4% | |||
| Cost of Goods Sold | (14,855) | (13,641) | 8.9% | (26,640) | (24,304) | 9.6% | (14,855) | (13,641) | 8.9% | (26,640) | (24,304) | 9.6% | |||
| Gross Profit | 5,184 | 4,731 | 9.6% | 9,602 | 8,919 | 7.6% | 5,282 | 4,731 | 11.7% | 9,700 | 8,919 | 8.7% | |||
|
Selling Expenses |
(3,136) | (2,884) | 8.7% | (6,136) | (5,721) | 7.2% | (3,130) | (2,884) | 8.5% | (6,130) | (5,721) | 7.1% | |||
|
General and Administrative Expenses |
(587) | (548) | 7.1% | (1,222) | (1,253) | -2.5% | (588) | (548) | 7.5% | (1,223) | (1,253) | -2.4% | |||
| Total Operating Expenses | (3,722) | (3,432) | 8.5% | (7,357) | (6,975) | 5.5% | (3,719) | (3,432) | 8.4% | (7,353) | (6,975) | 5.4% | |||
| Earnings before Interest, Taxes, Depreciation, Amortization - EBITDA | 1,461 | 1,299 | 12.5% | 2,244 | 1,945 | 15.4% | 1,563 | 1,299 | 20.3% | 2,346 | 1,945 | 20.7% | |||
|
Depreciation and Amortization |
(467) | (368) | 27.0% | (591) | (465) | 27.1% | (467) | (368) | 27.0% | (591) | (465) | 27.1% | |||
| Earnings before interest and Taxes - EBIT | 995 | 931 | 6.8% | 1,653 | 1,480 | 11.7% | 1,097 | 931 | 17.7% | 1,755 | 1,480 | 18.6% | |||
|
Financial Revenue |
355 | 306 | 16.0% | 459 | 444 | 3.5% | 355 | 306 | 16.0% | 459 | 444 | 3.5% | |||
|
Financial Expenses |
(735) | (801) | -8.3% | (1,352) | (1,433) | -5.7% | (735) | (801) | -8.3% | (1,352) | (1,433) | -5.7% | |||
| Net Financial Revenue (Expenses) | (380) | (495) | -23.3% | (893) | (990) | -9.8% | (380) | (495) | -23.3% | (892) | (990) | -9.8% | |||
| Equity Income | 8 | 14 | -43.9% | 12 | 25 | -51.6% | 8 | 14 | -43.9% | 12 | 25 | -51.6% | |||
| Result from Permanent Assets | (32) | (1) | N/A | (9) | 3 | - | (32) | (1) | N/A | (9) | 3 | - | |||
| Nonrecurring Result | (29) | (49) | -40.3% | (45) | (144) | -68.5% | (29) | (49) | -40% | (45) | (144) | -68.5% | |||
| Other Operating Revenue (Expenses) | 37 | (2) | - | 40 | (3) | - | 37 | (2) | - | 40 | (3) | - | |||
| Income Before Income Tax | 598 | 398 | 50.2% | 759 | 370 | 105.0% | 700 | 398 | 75.9% | 861 | 370 | 132.6% | |||
| Income Tax | (171) | (52) | 2.3 | (244) | (46) | 432.9% | (171) | (52) | 2.3 | (244) | (46) | 4.3 | |||
| Net Income - Company | 427 | 346 | 23.3% | 515 | 324 | 58.8% | 529 | 346 | 52.7% | 617 | 324 | 90.3% | |||
| Minority Interest - Noncontrolling | 39 | 21 | 82.6% | (8) | 32 | - | 39 | 21 | 82.6% | (8) | 32 | - | |||
|
Net Income - Controlling Shareholders (1) |
466 | 368 | 26.7% | 508 | 357 | 42.3% | 568 | 368 | 54.5% | 610 | 357 | 70.9% | |||
| Net Income per Share | 1.93 | 1.37 | 40.8% | 2.32 | 1.37 | 69.0% | |||||||||
| Nº of shares (million) ex-treasury shares | 263 | 260 | 263 | 260 | |||||||||||
| GPA Food | GPA Consolidated | GPA Food IFRS |
GPA Consolidated IFRS | ||||||||||||
| % Net Sales Revenue | |||||||||||||||
| 9M12 | 9M11 | 9M12 | 9M11 | 9M12 | 9M11 | 9M12 | 9M11 | ||||||||
| Gross Profit | 25.9% | 25.7% | 26.5% | 26.8% | 26.2% | 25.7% | 26.7% | 26.8% | |||||||
|
Selling Expenses |
15.6% | 15.7% | 16.9% | 17.2% | 15.5% | 15.7% | 16.9% | 17.2% | |||||||
|
General and Administrative Expenses |
2.9% | 3.0% | 3.4% | 3.8% | 2.9% | 3.0% | 3.4% | 3.8% | |||||||
| Total Operating Expenses | 18.6% | 18.7% | 20.3% | 21.0% | 18.5% | 18.7% | 20.2% | 21.0% | |||||||
| EBITDA | 7.3% | 7.1% | 6.2% | 5.9% | 7.8% | 7.1% | 6.5% | 5.9% | |||||||
| Depreciation and Amortization | 2.3% | 2.0% | 1.6% | 1.4% | 2.3% | 2.0% | 1.6% | 1.4% | |||||||
| EBIT | 5.0% | 5.1% | 4.6% | 4.5% | 5.4% | 5.1% | 4.8% | 4.5% | |||||||
| Net Financial Revenue (Expenses) | 1.9% | 2.7% | 2.5% | 3.0% | 1.9% | 2.7% | 2.5% | 3.0% | |||||||
| Result from Permanent Assets and Others | 0.1% | -0.3% | 0.0% | 0.4% | 0.1% | 0.3% | 0.0% | 0.4% | |||||||
| Income Before Income Tax | 3.0% | 2.2% | 2.1% | 1.1% | 3.5% | 2.2% | 2.4% | 1.1% | |||||||
| Income Tax | 0.9% | 0.3% | 0.7% | 0.1% | 0.8% | 0.3% | 0.7% | 0.1% | |||||||
| Net Income - Company | 2.1% | 1.9% | 1.4% | 1.0% | 2.6% | 1.9% | 1.7% | 1.0% | |||||||
| Minority Interest - noncontrolling | 0.2% | -0.1% | 0.0% | 0.1% | 0.2% | 0.1% | 0.0% | 0.1% | |||||||
| Net Income - Controlling Shareholders (1) | 2.3% | 2.0% | 1.4% | 1.1% | 2.8% | 2.0% | 1.7% | 1.1% | |||||||
| (1) Net Income after noncontrolling shareholders | |||||||||||||||
12/16
| Statement of Cash Flow | |||
| (R$ million) | GPA Consolidated | ||
| 09.30.2012 | 09.30.2011 | ||
|
Net Income for the period |
|
617 | 324 |
|
Adjustment for Reconciliation of Net Income |
- | - | |
|
Deferred Income Tax |
84 | (22) | |
|
Income of Permanent Assets Written-Off |
9 | (3) | |
|
Depreciation and Amortization |
617 | 486 | |
|
Interests and Exchange Variation |
903 | 808 | |
|
Net profit/loss on shareholder interest |
(24) | - | |
|
Adjustment to Present Value |
(22) | (23) | |
|
Equity Income |
(12) | (25) | |
|
Provision for Contingencies |
57 | (20) | |
|
Provision for low and losses of fixed assets |
(23) | 7 | |
|
Share-Based Compensation |
28 | 20 | |
|
Allowance for Doubtful Accounts |
231 | 158 | |
|
Swap revenue |
(97) | - | |
| 2,368 | 1,712 | ||
|
Asset (Increase) Decreases |
|
||
|
Accounts Receivable |
17 | (1,494) | |
|
Inventories |
336 | (263) | |
|
Taxes recoverable |
(441) | (365) | |
|
Financial Instrument - Rede Duque |
(51) | - | |
|
Other Assets |
(59) | 343 | |
|
Marketable Securities |
- | 672 | |
|
Related Parties |
(57) | (333) | |
|
Judicial Deposits |
(125) | (150) | |
| (379) | (1,591) | ||
|
Liability (Increase) Decrease |
|
||
|
Suppliers |
(1,293) | (683) | |
|
Payroll and Charges |
206 | 214 | |
|
Taxes and contributions |
(237) | (48) | |
|
Other Accounts Payable |
(29) | 225 | |
| (1,353) | (292) | ||
| Net Cash Generated from (Used in) Operating Activities | 636 | (171) | |
| Cash Flow from Investment and Financing Activities | |||
| GPA Consolidated | |||
| (R$ million) | 09.30.2012 | 09.30.2011 | |
| Net cash from acquisitions | - | - | |
|
Acquisition of Companies |
(43) | (275) | |
|
Capital Increase in Subsidiaries |
- | 14 | |
|
Acquisition of Property and Equipment |
(838) | (965) | |
|
Increase of Intangible Asset |
(47) | (51) | |
|
Sale of Property and Equipment |
45 | 65 | |
| Net Cash Generated from (used in) Investment Activities | (883) | (1,212) | |
| Cash Flow from Financing Activities | |||
|
Increase (Decrease) of Capital |
13 | 23 | |
|
Increase in Minority Interest |
- | - | |
|
Financiamentos |
- | - | |
|
Funding and Refinancing |
5,694 | 5,192 | |
|
Payments |
(4,498) | (3,648) | |
|
Interest Paid |
(223) | (293) | |
|
Dividend Payments |
(159) | (161) | |
|
Net Cash Generated from (used in) Financing Activities |
|
828 | 1,112 |
|
Cash and Cash Equivalents at the Beginning of the Year |
4,970 | 3,818 | |
|
Cash and Cash Equivalents at the End of the Year |
5,551 | 3,547 | |
| Change in Cash and Cash Equivalent | 581 | (271) | |
13/16
| Breakdown of Gross Sales by Format (ex-real estate projects) | ||||||||||
| (R$ million) | 3Q12 | % | 3Q11 | % | Δ | 9M12 | % | 9M11 | % | Δ |
| Pão de Açúcar | 1,383 | 10.1% | 1,292 | 10.3% | 7.1% | 4,105 | 10.1% | 3,790 | 10.1% | 8.3% |
| Extra Hiper (1) | 3,322 | 24.3% | 3,048 | 24.4% | 9.0% | 10,101 | 24.8% | 9,074 | 24.2% | 11.3% |
| Extra Supermercado | 1,113 | 8.1% | 952 | 7.6% | 16.9% | 3,341 | 8.2% | 3,443 | 9.2% | -3.0% |
| Assaí | 1,265 | 9.3% | 1,107 | 8.9% | 14.2% | 3,538 | 8.7% | 3,046 | 8.1% | 16.1% |
| Others Business (2) | 394 | 2.9% | 353 | 2.8% | 11.5% | 1,101 | 2.7% | 1,050 | 2.8% | 4.9% |
| GPA Food | 7,477 | 54.7% | 6,752 | 54.1% | 10.7% | 22,186 | 54.5% | 20,402 | 54.3% | 8.7% |
| Viavarejo (3) | 6,182 | 45.3% | 5,737 | 45.9% | 7.8% | 18,546 | 45.5% | 17,146 | 45.7% | 8.2% |
| GPA Consolidated | 13,659 | 100.0% | 12,489 | 100.0% | 9.4% | 40,732 | 100.0% | 37,549 | 100.0% | 8.5% |
| Breakdown of Net Sales by Format (ex-real estate projects) | ||||||||||
| (R$ million) | 3Q12 | % | 3Q11 | % | Δ | 9M12 | % | 9M11 | % | Δ |
| Pão de Açúcar | 1,242 | 10.2% | 1,158 | 10.5% | 7.3% | 3,686 | 10.2% | 3,401 | 10.5% | 8.4% |
| Extra Hiper (1) | 2,956 | 24.3% | 2,704 | 24.6% | 9.3% | 8,979 | 24.8% | 8,043 | 24.8% | 11.6% |
| Extra Supermercado | 1,016 | 8.4% | 863 | 7.8% | 17.7% | 3,047 | 8.4% | 2,311 | 7.1% | 31.8% |
| Assaí | 1,154 | 9.5% | 1,008 | 9.2% | 14.5% | 3,232 | 8.9% | 2,768 | 8.5% | 16.8% |
| Others Business (2) | 386 | 3.2% | 351 | 3.2% | 10.2% | 1,087 | 3.0% | 1,039 | 3.2% | 4.7% |
| GPA Food | 6,755 | 55.6% | 6,083 | 55.3% | 11.0% | 20,032 | 55.3% | 17,562 | 54.2% | 14.1% |
| Viavarejo (3) | 5,394 | 44.4% | 4,926 | 44.7% | 9.5% | 16,203 | 44.7% | 14,852 | 45.8% | 9.1% |
| GPA Consolidated | 12,149 | 100.0% | 11,010 | 100.0% | 10.3% | 36,235 | 100.0% | 32,414 | 100.0% | 11.8% |
| (1) Includes M inimercado Extra sales. | ||||||||||
| (2) Includes Gas Station and Drugstores sales. | ||||||||||
| (3) Includes Ponto Frio, Nova Casas Bahia and Nova Pontocom sales. | ||||||||||
| Sales Breakdown (% of Net Sales ex-real estate projects) | |||||||||||
| GPA Food | GPA Consolidated | ||||||||||
| 3Q12 | 3Q11 | 9M12 | 9M11 | 3Q12 | 3Q11 | 9M12 | 9M11 | ||||
| Cash | 53.4% | 52.5% | 53.2% | 52.5% | 41.3% | 40.2% | 41.1% | 40.7% | |||
| Credit Card | 38.9% | 39.6% | 39.3% | 39.6% | 47.7% | 48.4% | 48.4% | 47.9% | |||
| Food Voucher | 7.6% | 7.7% | 7.4% | 7.7% | 4.2% | 4.3% | 4.1% | 4.5% | |||
| Credit | 0.1% | 0.2% | 0.1% | 0.2% | 6.8% | 7.1% | 6.6% | 6.9% | |||
|
Post-Dated Checks |
0.1% | 0.2% | 0.1% | 0.2% | 0.1% | 0.1% | 0.1% | 0.1% | |||
|
Payment Book |
- | - | - | - | 6.7% | 7.0% | 6.5% | 6.8% | |||
14/16
| Stores Openings/Closings per Format | |||||||||
| 12/31/2011 | 6/30/2012 | Openings | Closings | 9/30/2012 | |||||
| Pão de Açúcar | 159 | 159 | 1 | - | 160 | ||||
| Extra Hiper | 132 | 134 | 3 | - | 137 | ||||
| Extra Supermercado | 204 | 204 | 3 | - | 207 | ||||
| Minimercado Extra | 72 | 69 | 8 | - | 77 | ||||
| Assaí | 59 | 59 | - | - | 59 | ||||
| Other Business | 232 | 236 | 7 | (4) | 239 | ||||
| Gas Satation | 78 | 78 | 6 | - | 84 | ||||
| Drugstores | 154 | 158 | 1 | (4) | 155 | ||||
| GPA Food | 858 | 861 | 22 | (4) | 879 | ||||
| Ponto Frio | 401 | 403 | - | (10) | 393 | ||||
| Casas Bahia | 544 | 547 | 9 | - | 556 | ||||
| GPA Consolidated | 1,803 | 1,811 | 31 | (14) | 1,828 | ||||
| Sale Area ('000 m2 ) | 1,496 | 1,507 | 1,543 | ||||||
| Sale Area ('000 m2 ) | 2,821 | 2,871 | 2,918 | ||||||
| # of employees ('000) | 149 | 149 | 149 | ||||||
| 15/16 |
|
3Q12 Results Conference Call and Webcast Thursday, November, 1th, 2012 11:00 a.m. (Brasília time) | 09:00 a.m. (New York) | 01:00 p.m. (London) Portuguese Conference Call (original language) +55 (11) 3127-4971 English Conference Call (simultaneous interpreting) +1 (516) 300-1066 Webcast: http://www.gpari.com.br Replay +55 (11) 3127-4999 Code for audio in Portuguese: 64242193 Code for audio in English: 56177158 http://www.gpari.com.br |
CONTACTS
|
Investor Relations - GPA and Viavarejo Phone: (11) 3886-0421 Fax: (11) 3884-2677 gpa.ri@grupopaodeacucar.com.br Website: www.gpari.com.br www.globex.com.br/ri |
Media Relations - GPA Phone: (11) 3886-3666 imprensa@grupopaodeacucar.com.br Media Relations - Viavarejo Phone: (11) 4225-9228 imprensa@viavarejo.com.br
Social Media News Room http://imprensa.grupopaodeacucar.com.br/category/gpa/ Twitter – Media @imprensagpa |
|
Casa do Cliente – Customer Service Pão de Açúcar: 0800-7732732 / Extra: 0800-115060 Ponto Frio: (11) 4002-3388/Casas Bahia:(11) 3003-8889 |
|
"The financial information contained in the financial statements are presented in accordance with accounting practices adopted in Brazil and refer to the third quarter of 2012 (3Q12), except where otherwise noted, with comparisons made over the same period last year." "Any and all information derived from non-accounting or not accounting numbers has not been reviewed by independent auditors." "For the calculation of " EBITDA" Earnings Before Interest, Taxes, Depreciation and Amortization, According to the table on page 6. The basis for calculating same-store sales is defined by the sales registered in stores open for at least 12 consecutive months and were not closed for 7 consecutive days or more in this period. Acquisitions are not included in the same-store calculation base in the first 12 months of operation. Grupo Pão de Açúcar adopts the IPCA consumer price index as its benchmark inflation index, which is also used by the Brazilian Supermarkets Association (ABRAS), since it more accurately reflects the mix of products and brands sold by the Company. The IPCA in the 12 months ended September 2012 was 5.28% |
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About Grupo Pão de Açúcar and Viavarejo: Grupo Pão de Açúcar is Brazil’s largest retailer, with a distribution network comprising approximately 1,810 points of sale and electronic channels. The Group’s multiformat structure consists of GPA Food and Viavarejo.GPA Food’s operations comprise supermarkets (Pão de Açúcar and Extra Supermercado), hypermarkets (Extra), neighborhood stores (Minimercado Extra), cash-and-carry stores (Assaí), gas stations and drugstores.GPA Food’s business is classified as Food and Non-Food (electronics/home appliances, clothing, general merchandise, drugstore and gas stations).Viavarejo’s operations consist of bricks-and-mortar stores selling electronics/home appliances and furniture (Ponto Frio and Casas Bahia) and online stores (Nova Pontocom: Extra.com.br, PontoFrio.com.br, Casasbahia.com.br).Founded in 1948 in São Paulo, the Group is present in 20 of the 27 Brazilian states, which jointly account for 94.1% of the country’s GDP.
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|
Disclaimer: Statements contained in this release relating to the business outlook of the Company, projections of operating/financial results, the growth potential of the Company and the market and macroeconomic estimates are mere forecasts and were based on the expectations of Management in relation to the Company’s future. These expectations are highly dependent on changes in the market, Brazil’s general economic performance, the industry and international markets, and are therefore subject to change. | ||
| 16/16 |
SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO | ||
| Date: November 1, 2012 | By: /s/ Enéas César Pestana Neto Name: Enéas César Pestana Neto Title: Chief Executive Officer | |
| By: /s/ Vitor Fagá de Almeida Name: Vitor Fagá de Almeida Title: Investor Relations Officer | ||
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.