GPA and Carrefour Brasil Report Profit Growth In Q2
Brazil’s leading grocery retailers - GPA and Carrefour Brasil - have reported profit and revenue growth in the second quarter of 2019.
Both companies have attributed the growth to sales in their wholesale format.
The improved economic scenario in the country also resulted in a good performance by other formats such as supermarkets, proximity stores, and online sales.
Grupo Pão de Açúcar (GPA)'s food division reported an 11.3% year on year increase in sales during the quarter, amounting to R$14.2 billion (€3.4 billion).
Adjusted EBITDA increased by 0.9% to R$ 888 million (€211.3 million), with a 6.8% margin.
It was mainly driven by the positive performance of its wholesale banner, Assaí.
The gross sales revenue in Assaí accounted for R$ 7.1 billion (€1.7 billion), up 24.4%, driven by LFL sales growth of 8.1%.
Investments in the food segment grew 54.8% to R$ 510 million (€121.4 million), with three Assaí stores opening in the second quarter, bringing the total to 148, with 12 other stores under construction.
Also, the conversion of 13 Extra Super to Mercado Extra was concluded, bringing the total number of stores under the banner to 43.
GPA also saw continued progress in digital transformation, including a 37% growth in food e-commerce, a 58% increase in downloads of the 'Meu Desconto' app, and a 40-fold increase in the sales of Cheftime kit.
Carrefour Brasil’s adjusted net profit grew 11% year-on-year, to R$ 419 million (€99.7 million), boosted by double-digit growth in sales mainly driven by the Atacadão wholesale unit.
Gross sales, excluding fuel, grew 13.5% to R$ 14.6 billion (€3.5 billion), of which 71% were generated by Atacadão, with adjusted EBITDA increasing 12.7% to R$ 1.0 billion (€238 million).
The retailer reported a five-fold increase in food e-commerce sales in the quarter, driven by enhanced services.
Private label accounted for 13% of Carrefour food sales in the quarter compared with 11% in the first quarter with sales up 33% year-to-date.
© 2019 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.