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Carrefour Brazil Sees 68% Growth In Q3 Net Profit

By Branislav Pekic
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Carrefour Brazil Sees 68% Growth In Q3 Net Profit

Carrefour Brazil has reported an adjusted profit of R$391 million for the period from July to September 2018 – a year-on-year increase of 67.6%.

Consolidated sales in the same period increased by 8.1%, to R$14.0 billion (R$13.3 billion excluding petrol), with LFL sales up 5.1%, including petrol – the highest gain since Q1 2017.

In the wholesale segment (known locally as atacarejo), the Atacadão banner saw an 11.2% rise in gross revenue, to R$9.5 billion, due to a decision to accelerate store openings to 20 new units per year, compared to 10-12 stores in previous periods.

New Openings

In Q3, Carrefour Brasil opened four new Atacadão cash-and-carry stores (including the conversion of a Carrefour hypermarket), in addition to two delivery stores, in Alagoas and Rondônia.

Seven more stores in the traditional format are due to open until December.

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At retail division Carrefour Varejo, gross sales increased by 2.2%, to R$4.5 billion, of which 3% were LFL, reflecting the recovery of hypermarkets and the strong growth of the e-commerce channel (+106%), accounting for 6.9% of total sales (not including petrol) in the quarter.

Carrefour Brazil reduced capex investments by 5.7%, to R$392 million, of which R$266 million was allocated for expansion and the rest for maintenance, store remodelling, and technology.

At the end of September, the retailer had a total of 652 stores in Brazil, of which 185 trade under the Atacadão banner.

Digital Acquisition

Meanwhile, Carrefour Brazil has announced the acquisition of 100% of digital content platform E-Media, which controls the Cyber Cook, Vila Mulher and Mais Equilíbrio sites for an undisclosed amount.

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The three sites attract about four million visitors per month, and the acquisition is part of the retailer’s efforts to promote the digital transformation of its food retail operation.

© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: European Supermarket Magazine.

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