Easter increases profits of Pão de Açúcar
Valor Econômico
While the merger agreement with Casas Bahia continues on hold, the Pão de Açúcar group presents positive results in the operation of its own brands in the first quarter. Together, the Pão de Açúcar CompreBem, Extra Electro, Sendas and Assaí chains totaled R$ 5.71 billion (US$ 3.26 billion) in net sales, a 23.2% increase compared to the same period of 2009. Without considering the Ponto Frio chain (acquired in June 2009), the net profits of the group increased 36.9%, to R$ 129.9 million (US$ 74.2 million), while the EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) reached R$ 377.2 million (US$ 215.5 million), growth of 20.8% compared to the first quarter of 2009. The EBITDA margin remained practically steady - going from 6.7% to 6.6%. As regards the gross margin, it fell 0.7 %, to 24.6% in spite of the growth of 19.6% in the gross profit, which reached R$ 1.4 billion (US$ 800 million).
The company managed to reduce the level of operating expenses over the net sales, which went from 18.6% to 18%. "Such result was reached regardless of the increase in the payroll taxes, caused by changes in the tax rate related to labor accidents, and in the greater costs with marketing and information technology", says the Financial Officer of the group, José Antonio Filippo. Even if we take Ponto Frio into account, the percentage stays at 18.1%. According to the executive, the effects of tax replacement and the greater participation of the brand Assaí (which sells products of lesser added value) in the earnings of the group justify the retreat in the gross margin.
The first quarter was positively impacted by Easter, according to the Executive, since the date was celebrated on the first weekend of April this year. In 2009, the Easter sales were concentrated in the second quarter. In the criterion of same stores, the increase got to 15% in gross sales. Real growth reached 9.6%. The sale of foods in the same stores grew 13.5%, with beverages and groceries standing out. The performance of non-food items was 19.5% greater, driven by miscellaneous items, items of drugstore and electric and electronic devices.
Should Globex be considered, which includes the sales in the physical and online stores of Ponto Frio, the result of Pão de Açúcar greatly increases. The gross and net sales grow 47.1% and 50.2% respectively to R$ 7.78 billion (US$ 4.45 billion), and to R$ 6.97 billion (US$ 4 billion). The EBITDA increases 31.4%, to R$ 410.4 million (US$ 234.5 million). The EBITDA margin, however, would stay at 5.9% and net profit would be of R$ 126.2 million (US$ 72.1 million). Ponto Frio registered R$ 3.7 million (US$ 2.1 million) in losses in the quarter, compared to a loss of R$ 31.8 million (US$ 18.2 million) in the same period of 2009. According to Filippo, Ponto Frio is about to "enter the profit curve". For the analyst Daniela Bretthauer, of Raymond James, the result is good. "They were not spectacular though, such as those of some of its rivals in the textile retail, like Marisa and Hering", she says.