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Brazil’s GPA Sees 12.5% Growth In Food Segment Revenue

Published on Feb 28 2017 12:00 PM in Retail tagged: Trending Posts / Brazil / Groupe Casino / GPA / Financial Statements

Brazil’s GPA Sees 12.5% Growth In Food Segment Revenue

Brazil’s largest retailer GPA reported food segment revenue of R$12.74 billion (€3.88 billion) for Q4 2016 (+12.5% year-on-year) and R$44.96 billion (€13.71 billlion) for the full year (+11.7%).

GPA is the Brazilian subsidiary of French retailer Groupe Casino.

Gross profit amounted to R$2.70 billion (€823.56 million) in Q4 (+2.0%) and R$9.52 billion (€2.90 billion) for 2016 (+4.9%).

Banner Sales

The Extra hypermarket banner saw gains in market share in terms of volume for nine consecutive periods (April to December) and same-store sales growth of around 5% in Q4 2016. There was also a reversal of trend in same-store sales in non-food categories, delivering positive performance in the quarter.

The Pão de Açúcar supermarket banner has seen stable market share in the last two years. Two new stores were opened during 2016 and five new stores are planned for 2017.

Revenue at wholesaler Assaí reached R$15.7 billion (+39.2%), due to solid same-store sales performance of 18.6%, and double-digit growth in customer traffic. Thirteen new stores were opened in the last 12 months, including two conversions of Extra Hiper to Assaí that registered sales growth of over 2.5 times, exceeding expectations. A total of 15 conversions are planned for 2017, in addition to up to eight new openings.

Assaí accounted for 35% of revenue in 2016 (28% in 2015), which is expected to reach 40% by the end of 2017.

Developments In 2016

In the last 12 months, 30 new stores were opened: 13 Assaí, 14 Minuto Pão de Açúcar, 2 Pão de Açúcar and 1 Minimercado Extra. In Q4 only, 18 new stores were opened: 9 Minuto Pão de Açúcar, 1 Pão de Açúcar and 8 Assaí, including the two first conversions of Extra Hiper

At the end of 2016, Groupe Casino announced the divestment of appliance and furniture retailer Via Varejo to concentrate its efforts on the food segment in the country. The proceeds from the transaction, to be concluded in 2017, will be invested in actions to consolidate and expand GPA’s market share in the food segment.

© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine

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