cbdpr1q12_6k.htm - Generated by SEC Publisher for SEC Filing

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 May, 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  

 

 

1Q12 Results

Consolidated net income totaled R$167 million in 1Q12


São Paulo, Brazil, May 7, 2012 - Grupo Pão de Açúcar [BM&FBOVESPA: PCAR4 (PN); NYSE: CBD] and Via Varejo S.A. [BM&FBOVESPA: VVAR3] announce their results for the first quarter of 2012 (1Q12) as follows: 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; while GPA Consolidated’s operations comprise GPA Food and Viavarejo (Casas Bahia and Ponto Frio's bricks-and-mortar stores and NovaPontocom's e-commerce stores: Extra.com.br, PontoFrio.com.br and Casasbahia.com.br).

 

GPA Food

Gross sales up 11.0% in 1Q12

GPA Food recorded a 1Q12 EBITDA margin of 7.4%

 

§  Gross sales totaled R$7,371 million, up 11.0% over 1Q11

§  Gross profit of R$1,726 million, up 12.3% over 1Q11

§  EBITDA of R$493 million, up 16.9% year-on-year

§  Net income of R$161 million, a 10.9% improvement over 1Q11

 

GPA Consolidated

EBITDA totaled R$758 million in 1Q12, up 30.1% over 1Q11, with margin at 6.2%

Net income totaled R$167 million, up 25.8% over 1Q11

§  Gross sales of R$13,660 million, up 10.4% over 1Q11

§  Gross profit of R$3,256 million, up 14.3% year-on-year

§  EBITDA of R$758 million, up 30.1% over 1Q11

§   Net income of R$167 million, a 25.8% improvement over 1Q11

 

Highlights

 

              

 

GPA Food

GPA Consolidated

 

 

(R$ million)(1)

1Q12

1Q11

Δ

  

1Q12

1Q11

Δ

 

              

Gross Sales Revenue

7,371

6,640

11.0%

  

13,660

12,373

10.4%

Net Sales Revenue

6,656

5,984

11.2%

  

12,147

10,869

11.8%

Gross Profit

1,726

1,537

12.3%

  

3,256

2,848

14.3%

Gross Margin

25.9%

25.7%

20 bps

  

26.8%

26.2%

60 bps

EBITDA (3)

493

422

16.9%

  

758

583

30.1%

EBITDA Margin

7.4%

7.1%

30 bps

  

6.2%

5.4%

80 bps

Net Financial Revenue (Expenses)

(142)

(162)

-11.9%

  

(336)

(326)

3.1%

% of net sales revenue

2.1%

2.7%

-60 bps

  

2.8%

3.0%

-20 bps

Net Income - Controlling Shareholders (2)

161

146

10.9%

  

167

132

25.8%

Net Margin

2.4%

2.4%

0 bps

  

1.4%

1.2%

20 bps

               

(1) Totals may not tally as the figures are rounded off and all margins were calculated as percentage of net sales revenue.

      

(2) Net Income after minority interest.

        

(3) Earnings before Interest, Taxes, Depreciation, Amortization and Net Financial Revenue (Expenses)

        

 

 

1/14

 

 

 

PERFORMANCE BY SEGMENT

 

The Company operates in an integrated manner in two business segments, as shown below:

 

 

GPA Food

  

Electro

 
 
             

Retail

Supermarkets

 

 

 

Hypermarket

 

 

 

Proximity

 

 

 

Gas Station and Drugstores

  

   

Cash and Carry

Cash and Carry

 

   
             

 

 

SALES PERFORMANCE

GPA Food and GPA Consolidated

 

 

GPA Food

  

GPA Food

  

GPA Consolidated

                   
   

Retail

  

Cash and Carry

  
                               

(R$ million)

1Q12

1Q11

Δ

  

1Q12

1Q11

Δ

  

1Q12

1Q11

Δ

  

1Q12

1Q11

Δ

                               

Gross Sales Revenue

7,371

6,640

11.0%

  

6,240

5,730

8.9%

  

1,131

910

24.2%

  

13,660

12,373

10.4%

Net Sales Revenue

6,656

5,984

11.2%

  

5,621

5,158

9.0%

  

1,035

827

25.2%

  

12,147

10,869

11.8%

Gross 'Same-Store' Sales Revenue

9.3%

5.6%

                    

9.6%

6.8%

  

Food

9.4%

3.6%

                          

Non-food

9.2%

11.6%

                          

 

GPA Food

GPA Food’s gross sales increased 11.0% in 1Q12 over 1Q11. Gross same-store sales revenue were up 9.3%. In real terms, i.e. deflated by the IPCA inflation index, sales were up 4.1%. The main factors which contributed to this increase were:

 

4   Retail: gross sales increased 8.9% over 1Q11, chiefly due to the following factors:

§   The food category, in which grocery and perishables posted similar growth;

§   The non-food category, in which the highlight was the textile segment at Extra, due to the adoption of the new strategy for the Fall/Winter collection. The campaign to launch the collection was notable for the participation of actress Camila Pitanga, with garments by designer Marcelo Sommer;

§   The top performers among the Group’s formats were Extra Supermercado and Minimercado Extra, whose gross same-store sales revenue increased above the Group’s average;

 

2/14

 

 

 

 

§   The Company opened one Extra Hiper store and converted five Extra Fácil stores into Minimercado Extra. Another 14 stores are under construction.

4   Cash-and-carry: gross sales increased by 24.2%, chiefly due to:

§   The repositioning of Assaí’s assortment, a process that began in the second half of 2011, for adjusting the assortment to the target publics (processors, distributors and users), benefiting average ticket growth;

§   The opening of one store in São Paulo.

GPA Consolidated

4   Consolidated gross sales totaled R$13,660 million in 1Q12, up 10.4% over 1Q11. In addition to GPA Food, as mentioned above, the performance of Viavarejo also contributed to this result. Casas Bahia and Ponto Frio implemented new marketing campaigns for their bricks-and-mortar stores and continued to revise and adjust their assortments and reorganize their stores to adapt to the new positioning. E-commerce also contributed to this growth, strengthening the importance of the purchasing experience as a competitive advantage.

 

Operating Performance

GPA Food and GPA Consolidated

 

 

GPA Food

  

GPA Food

  

GPA Consolidated

                   
   

Retail

  

Cash and Carry

  
                               

(R$ million)

1Q12

1Q11

Δ

  

1Q12

1Q11

Δ

  

1Q12

1Q11

Δ

  

1Q12

1Q11

Δ

                               

Net Sales Revenue

6,656

5,984

11.2%

  

5,621

5,158

9.0%

  

1,035

827

25.2%

  

12,147

10,869

11.8%

Gross Profit

1,726

1,537

12.3%

  

1,575

1,421

10.8%

  

151

116

30.8%

  

3,256

2,848

14.3%

Gross Margin

25.9%

25.7%

20 bps

  

28.1%

27.6%

50 bps

  

14.6%

14.0%

60 bps

  

26.8%

26.2%

60 bps

Selling Expenses

(1,039)

(938)

10.8%

  

(938)

(842)

11.4%

  

(101)

(95)

6.0%

  

(2,061)

(1,880)

9.6%

General and Administrative Expenses

(193)

(177)

9.4%

  

(183)

(167)

9.2%

  

(11)

(9)

13.7%

  

(437)

(385)

13.5%

Total Operating Expenses

(1,233)

(1,115)

10.6%

  

(1,121)

(1,010)

11.0%

  

(112)

(105)

6.7%

  

(2,498)

(2,266)

10.3%

% of Net Sales Revenue

18.5%

18.6%

-10 bps

  

20.0%

19.6%

-40 bps

  

10.8%

12.7%

-190 bps

  

20.6%

20.8%

-20 bps

EBITDA

493

422

16.9%

  

454

411

10.3%

  

40

11

261.9%

  

758

583

30.1%

EBITDA Margin

7.4%

7.1%

30 bps

  

8.1%

8.0%

10 bps

  

3.8%

1.3%

250 bps

  

6.2%

5.4%

80 bps

 

GPA Food

In 1Q12, EBITDA totaled R$493 million, up 16.9% over 1Q11, with margin at 7.4%.

4   Retail: the EBITDA margin reached 8.1%, up 10 bps over 1Q11, due to:

§    A 50-bps gain in the gross margin as a result of: (i) continuous process of improving negotiations with suppliers; (ii) the improved sales mix and changes in the new consumption habits of Brazil’s middle class. This performance was in line with that in previous quarters.

§    Total operating expenses as a percentage of net sales revenue grew by 40 bps, chiefly due to the increase in personnel expenses as a result of the collective bargaining agreement, which was above inflation (as measured by the IPCA consumer price index), as well as higher marketing expenses in the period.

 

4   Cash-and-carry: the EBITDA margin came to 3.8%, a 250 bps improvement over 1Q11, due to:

§    A 60 bps gain in the gross margin, due to changes in the assortment for favoring a more profitable mix, with a focus on the channels aimed at processors, distributors and users. These initiatives enable scale gains and access to advantageous negotiations with suppliers. The sales area was also restructured, streamlining inventory management and increasing store productivity. The format adjustments also led to gains due to a reduction in logistics costs.

§    A reduction of 190 bps in total operating expenses as a percentage of net sales revenue, chiefly due to the upturn in sales as a result of store maturation and the dilution of fixed expenses, as well as the elimination of the bakery and butcher’s sections as of the second half of 2011.

 

 

3/14

 

 

 

GPA Consolidated

4   In 1Q12, consolidated EBITDA totaled R$758 million, up 30.1% over 1Q11, due to the previously-mentioned operational improvement at GPA Food, and progress in Viavarejo’s integration process, which centralized purchasing negotiations and operating expenses, leading to gross margin gains and reduction in expenses.

 

Financial Performance and Debt

GPA Food and GPA Consolidated

Financial Result

 

 

GPA Food

  

GPA Consolidated

   
   

(R$ million)

1Q12

1Q11

Δ

 

1Q12

1Q11

Δ

               

Financial Revenue

106

92

14.6%

  

146

133

9.2%

Financial Expenses

(248)

(254)

-2.2%

  

(481)

(459)

4.9%

Net Financial Revenue (Expenses)

(142)

(162)

-11.9%

  

(336)

(326)

3.1%

% of Net Sales Revenue

2.1%

2.7%

-60 bps

  

2.8%

3.0%

-20 bps

 

 

 

 

 

 

 

 

Charges on Net Bank Debt

(79)

(84)

-5.3%

  

(83)

(98)

-15.1%

Cost of Discount of Receivables

(30)

(48)

-38.1%

  

(218)

(195)

11.6%

Restatement of Other Assets and Liabilities

(34)

(30)

11.3%

  

(35)

(32)

6.9%

Net Financial Revenue (Expenses)

(143)

(162)

-11.9%

  

(336)

(325)

3.1%

 

GPA Food

4   The net financial expense was R$142 million in 1Q12, equivalent to 2.1% of net sales revenue, down 60 bps over 1Q11. The financial result was comprised of:

§  R$79 million in charges on the net bank debt, equivalent to 1.1% of net sales revenue, down 30 bps over 1Q11 (1.4%), favored by the reduction in interest rates;

§  R$30 million in discounted receivables cost, equivalent to 0.5% of net sales revenue, down 30 bps over 1Q11 (0.8%), also due to the continuous optimization of payment conditions and the decline in interest rates;

§  R$34 million in restatement of other assets and liabilities, which accounted for 0.5% of net sales revenue, stable from 1Q11 (0.5%).

GPA Consolidated

4    The net financial result was an expense of R$336 million, equivalent to 2.8% of net sales revenue, down 20 bps over 1Q11. The financial result was comprised of:

§  R$83 million in charges on the net bank debt totaling, equivalent to 0.7% of net sales revenue, down 20 bps over 1Q11 (0.9%). As with GPA Food, the reduction in interest rates was the main contributing factor to the reduction in the period.

§  R$218 million in payment book and credit card receivables discounting costs, equivalent to 1.8% of net sales revenue, stable in comparison with that in 1Q11 (1.8%).

§  R$35 million in restatement of other assets and liabilities, which accounted for 0.3% of net sales revenue, stable from 1Q11 (0.3%).

 

4/14

 

 

 

Indebtedness

GPA Food and GPA Consolidated

 

 

GPA Food

  

GPA Consolidated

   
   

(R$ million)

03.31.2012

12.31.2011

 

03.31.2012

12.31.2011

           

Short Term Debt

(2,382)

(2,059)

  

(2,442)

(2,654)

Loans and Financing - short term

(1,859)

(1,557)

  

(1,915)

(2,153)

Debentures - short term

(523)

(502)

  

(527)

(502)

Long Term Debt

(3,199)

(3,503)

  

(3,827)

(3,691)

Loans and Financing- long term

(1,302)

(1,365)

  

(1,529)

(1,554)

Debentures - long term

(1,896)

(2,138)

  

(2,298)

(2,138)

Total Gross Debt

(5,581)

(5,562)

  

(6,269)

(6,346)

Cash and Marketable Securities

2,831

3,544

 

3,746

4,970

Net Debt

(2,750)

(2,017)

  

(2,523)

(1,376)

Net Debt / EBITDA(1)

1.36x

1.04x

  

0.78x

0.45x

Payment book - short term

-

-

 

(2,211)

(2,263)

Payment book - long term

-

-

 

(112)

(129)

Net Debt with payment book(2)

-

-

 

(4,847)

(3,768)

Net Debt / EBITDA(1)

1.36x

1.04x

  

1.51x

1.24x

           

(1) EBITDA for the last 12 months

          

 

GPA Food

4   GPA Food’s net debt totaled R$2,750 million as of 03/31/2012, up R$733 million over 12/31/2011. This increase was mainly due to the lower cash generation, which usually happens in the first quarter, especially when compared with the fourth quarter, period in which sales volume is higher and which carries a key seasonal factor. The net-debt-to-EBITDA ratio stood at 1.36x in 1Q12.

GPA Consolidated

4   Net debt totaled R$4,847 million as of 03/31/2012, up R$1,079 million over 12/31/2011. The net-debt-to-EBITDA ratio was 1.51x.

 

 

 

 

 

5/14

 

 

 

Net Income

1Q12 - GPA Food and GPA Consolidated

 

 

GPA Food

  

GPA Food

  

GPA Food

                   
   

Retail

  

Cash and Carry

  
                               

(R$ million)

1Q12

1Q11

Δ

  

1Q12

1Q11

Δ

  

1Q12

1Q11

Δ

  

1Q12

1Q11

Δ

                               

EBITDA

493

422

16.9%

  

454

411

10.3%

  

40

11

261.9%

  

758

583

30.1%

Depreciation and Amortization

(147)

(125)

17.8%

  

(137)

(118)

15.9%

  

(10)

(7)

 

  

(186)

(158)

17.9%

Net Financial Revenue (Expenses)

(142)

(162)

-11.9%

  

(135)

(144)

-6.8%

  

(8)

(17)

 

  

(336)

(326)

3.1%

Equity Income

4

7

 

  

4

7

 

  

-

-

 

  

5

11

-54.0%

Result from Permanent Assets

(10)

0

 

  

(10)

0

 

  

(0)

0

 

  

7

3

126.5%

Other Operating Revenue (Expenses)

0

(6)

 

  

0

(6)

 

  

-

-

 

  

(2)

(15)

-88.2%

Income Before Income Tax

198

138

43.5%

  

177

151

17.1%

  

21

(13)

 

  

246

97

152.3%

Income Tax

(51)

(2)

 

  

(45)

(6)

 

  

(6)

4

 

  

(84)

13

 

Minority Interest - Noncontrolling

14

10

41.7%

  

14

10

41.7%

  

-

-

 

  

4

22

-79.5%

Net Income (1) - Controlling Shareholders

161

146

10.9%

  

146

155

-5.8%

  

15

(9)

 

  

167

132

25.8%

Net Margin

2.4%

2.4%

0 bps

  

2.6%

3.0%

-40 bps

  

1.5%

1.1%

 

  

1.4%

1.2%

20 bps

 

GPA Food

4   In 1Q12, operating income before income tax totaled R$198 million, up 43.5% over 1Q11. The increase reflects the operational improvement in all formats and strict control over operating and financial expenses.

4   Net income totaled R$162 million in the quarter, up 10.9% over 1Q11. The increase in net income was lower than that of operating income before income tax due to a lower effective income tax rate in 1Q11.

 

GPA Consolidated

4    In 1Q12, consolidated net income totaled R$167 million, with margin at 1.4%. Net income was up 25.8% over 1Q11, reflecting the continuing operational improvements in GPA Food and Viavarejo.

 

Cash Flow

GPA Food and GPA Consolidated

 

   

GPA Food

  

GPA Consolidated

     
     

(R$ million)

  

1Q12

1Q11

Δ

  

1Q12

1Q11

Δ

                 

Cash Balance at beginning of period

  

3,544

2,468

1,076

 

4,970

4,426

544

 

  

 

 

 

  

 

 

 

Cash Flow from operating activities

  

(328)

(245)

(83)

  

(562)

(1,454)

892

EBITDA

  

493

422

71

 

758

583

175

Cost of Discount of Receivables

  

(30)

(48)

18

 

(151)

(165)

14

Working Capital

  

(791)

(619)

(172)

  

(1,170)

(1,872)

702

Cash Flow from Investment Activities

  

(175)

(222)

47

 

(202)

(264)

63

Net CAPEX

  

(209)

(342)

133

 

(236)

(346)

110

Aquisition and Others

  

34

120

(85)

  

34

82

(48)

Cash Flow from Financing Activities

  

(210)

439

(650)

  

(460)

880

(1,341)

Dividends Payments and Others

  

-

(0)

0

 

-

(0)

0

Net Proceeds

  

(210)

439

(650)

  

(460)

881

(1,341)

 

  

 

 

 

  

 

 

 

Variation of Net Cash Generated

  

(713)

(28)

(685)

  

(1,224)

(838)

(386)

 

  

 

 

 

  

 

 

 

Cash Balance at end of period

  

2,831

2,441

391

 

3,746

3,588

158

 

GPA Food

4  In 1Q12 GPA Food’s cash flow was negative by R$713 million, down R$685 million over 1Q11, basically due to payments due in 1Q12 of debt raised in 2011.

 

6/14

 

 

 

GPA Consolidated

4  Cash flow in 1Q12 stood at R$1,224 million. The R$386 million change stemmed mainly from payments due in 1Q12 related to debt raised in 2011

 

CAPEX

GPA Food and GPA Consolidated

 

 

GPA Food

  

GPA Consolidated

(R$ million)

1Q12

  

1Q12

 

      

New stores and land acquisition

63

 

76

Store renovations and conversions

52

 

59

Infrastructure and Others

75

 

106

Total

189

 

241

 

GPA Food

4  In 1Q12, CAPEX totaled R$189 million:

§  R$63 million in store openings, construction and land acquisitions;

§  R$52 million in store renovations and conversions; and

§  R$75 million in infrastructure and others;

4  GPA Food opened two new stores in the first quarter, one Extra Hiper and one Assaí. In addition, five Extra Fácil stores were converted to the Minimercado Extra format.

 

GPA Consolidated

4  In 1Q12, investments totaled R$241 million, which include R$52 million in Viavarejo:

§  R$76 million in the construction of new stores;

§  R$59 million in store renovation; and

§  R$106 million in infrastructure;

4  In addition to the opening of the GPA Food stores, the Company also opened two Viavarejo stores, one Casas Bahia and one Ponto Frio.

4  It is worth mentioning that 14 GPA Food stores are currently being refurnished.

4  Investments in the period are in line with the Company’s annual business plan.

 

 

 

7/14

 

 

Dividends

GPA Consolidated

 

 

 

GPA Consolidated

  
 

 

  
 

 

  
 

(R$ million)

1Q12

1Q11

Δ

  
 

 

    

 

  
 

Dividends

27.8

22.5

23.6%

  

 

GPA Consolidated

 

4   On 05/07/2012, the Board of Directors approved the prepayment of interim dividends totaling R$0.11 per preferred share and R$0.10 per common share. Dividends to be paid in 1Q12 will total R$27.8 million, complying with Company’s Dividend Payment Policy, approved by the Board of Directors’ Meeting of 08/03/2009.

4   The interim payment referring to 1Q12 will be made on 06/20/2012. Shareholders registered as such on 06/11/2012 will be entitled to receive the payment. Shares will be traded ex-dividends as of 06/12/2012, until the payment date.

4   As for the fourth quarter, after the end of the 2012 fiscal year and the approval of the corresponding financial statements, the Company will pay shareholders the minimum mandatory dividends, calculated in accordance with Corporate Law, less the amounts prepaid throughout the fiscal year.

 

8/14

 

 

 

 

BALANCE SHEET

   

ASSETS

 
 

GPA Food

  

GPA Consolidated

   
   

(R$ million)

03.31.2012

03.31.2011

12.31.2011

  

03.31.2012

03.31.2011

12.31.2011

               

Current Assets

8,167

7,678

9,150

 

15,466

14,882

17,276

Cash and Marketable Securities

2,831

2,441

3,544

 

3,746

3,955

4,970

Accounts Receivable

309

227

365

 

2,284

1,980

2,431

Credit Cards

215

179

252

 

381

394

478

Payment book

-

-

-

 

1,988

1,404

1,985

Sales Vouchers and Others

90

44

109

 

106

369

175

Post-Dated Checks

4

6

4

 

4

6

4

Allowance for Doubtful Accounts

(0)

(2)

(0)

  

(195)

(192)

(211)

Resulting from Commercial Agreements

392

302

447

 

392

302

447

Receivables Fund (FIDC)

1,086

1,160

1,182

 

2,364

1,960

2,559

Inventories

2,832

2,627

2,865

 

5,178

4,848

5,553

Recoverable Taxes

445

438

458

 

1,032

1,101

908

Expenses in Advance and Other Accounts Receivables

272

415

196

 

470

735

408

               

Noncurrent Assets

13,799

13,187

13,576

 

16,564

15,347

16,493

Long-Term Assets

2,243

2,197

2,054

 

3,893

3,358

3,855

Marketable Securities

-

-

-

 

-

2

-

Accounts Receivables

448

421

445

 

543

517

556

Paes Mendonça

448

431

445

 

448

431

445

Payment Book

-

-

-

 

101

86

118

Allowance for Doubtful Accounts

-

(38)

-

 

(6)

(44)

(7)

Recoverable Taxes

33

128

32

 

721

202

730

Fair Value Bartira

304

416

304

 

304

416

304

Deferred Income Tax and Social Contribution

442

592

456

 

1,211

1,358

1,250

Amounts Receivable from Related Parties

248

79

93

 

152

143

133

Judicial Deposits

652

488

616

 

809

611

738

Expenses in Advance and Others

116

73

108

 

153

109

144

Investments

161

145

156

 

258

229

253

Property and Equipment

6,523

6,072

6,446

 

7,436

6,862

7,358

Intangible Assets

4,873

4,773

4,919

 

4,977

4,898

5,026

TOTAL ASSETS

21,966

20,865

22,726

 

32,030

30,229

33,769

 

LIABILITIES

               
 

GPA Food

  

GPA Consolidated

   
   
 

03.31.2012

03.31.2011

12.31.2011

  

03.31.2012

03.31.2011

12.31.2011

               

Current Liabilities

6,636

5,174

7,211

 

11,445

10,058

13,501

Suppliers

2,744

2,782

3,421

 

4,716

4,864

6,279

Loans and Financing

1,859

649

1,557

 

1,915

1,406

2,153

Payment Book (CDCI)

-

-

-

 

2,211

1,521

2,263

Debentures

523

505

502

 

527

505

502

Payroll and Related Charges

321

257

376

 

712

530

759

Taxes and Social Contribution Payable

82

123

92

 

199

358

332

Dividends Proposed

103

115

103

 

103

116

103

Financing for Purchase of Fixed Assets

14

14

14

 

14

14

14

Rents

42

68

49

 

42

68

49

Acquisition of Companies

56

63

55

 

56

63

55

Debt with Related Parties

513

507

582

 

88

20

28

Advertisement

38

38

29

 

88

38

90

Provision for Restructuring

12

-

13

 

12

-

13

Tax Payments

91

-

168

 

94

0

171

Advanced Revenue

13

-

15

 

79

102

82

Others

223

53

234

 

587

451

609

               

Long-Term Liabilities

7,755

8,416

8,051

 

10,320

10,463

10,173

Loans and Financing

1,302

2,089

1,365

 

1,529

2,239

1,554

Payment Book (CDCI)

-

-

-

 

112

87

129

Receivables Fund (FIDC)

1,167

1,128

1,236

 

2,383

2,346

2,420

Debentures

1,896

1,451

2,138

 

2,298

1,451

2,138

Acquisition of Companies

194

225

189

 

194

225

189

Deferred Income Tax and Social Contribution

1,107

1,303

1,115

 

1,107

1,313

1,115

Tax Installments

1,260

1,346

1,249

 

1,302

1,401

1,292

Provision for Contingencies

537

571

520

 

701

676

680

Advanced Revenue

-

302

-

 

368

694

381

Others

291

-

240

 

326

32

276

 

 

 

 

  

 

 

 

Shareholders' Equity

7,575

7,275

7,463

 

10,265

9,708

10,094

Capital

4,708

4,894

4,758

 

6,130

6,106

6,129

Capital Reserves

392

364

384

 

392

364

384

Profit Reserves

1,279

765

1,112

 

1,279

765

1,112

Minority Interest

1,196

1,251

1,210

 

2,465

2,472

2,469

TOTAL LIABILITIES

21,966

20,865

22,726

 

32,030

30,229

33,769

 

 

 

9/14

 

 

 

 

INCOME STATEMENT

                               
 

GPA Food

  

GPA Food

  

Consolidated

                   
   

Retail

  

Cash and Carry

  
                               

R$ - Million

1Q12

1Q11

Δ%

  

1Q12

1Q11

Δ%

  

1Q12

1Q11

Δ%

  

1Q12

1Q11

Δ%

                               

Gross Sales Revenue

7,371

6,640

11.0%

 

6,240

5,730

8.9%

 

1,131

910

24.2%

 

13,660

12,373

10.4%

Net Sales Revenue

6,656

5,984

11.2%

 

5,621

5,158

9.0%

 

1,035

827

25.2%

 

12,147

10,869

11.8%

Cost of Goods Sold

(4,930)

(4,448)

10.8%

 

(4,046)

(3,737)

8.3%

 

(884)

(711)

24.3%

 

(8,891)

(8,020)

10.9%

Gross Profit

1,726

1,537

12.3%

 

1,575

1,421

10.8%

 

151

116

30.8%

 

3,256

2,848

14.3%

Selling Expenses

(1,039)

(938)

10.8%

 

(938)

(842)

11.4%

 

(101)

(95)

6.0%

 

(2,061)

(1,880)

9.6%

General and Administrative Expenses

(193)

(177)

9.4%

 

(183)

(167)

9.2%

 

(11)

(9)

13.7%

 

(437)

(385)

13.5%

Total Operating Expenses

(1,233)

(1,115)

10.6%

 

(1,121)

(1,010)

11.0%

 

(112)

(105)

6.7%

 

(2,498)

(2,266)

10.3%

Earnings before Interest, Taxes, Depreciation, Amortization - EBITDA

493

422

16.9%

 

454

411

10.3%

 

40

11

261.9%

 

758

583

30.1%

Depreciation and Amortization

(147)

(125)

17.8%

 

(137)

(118)

15.9%

 

(10)

(7)

51.4%

 

(186)

(158)

17.9%

Earnings before interest and Taxes - EBIT

346

297

16.5%

 

317

293

8.1%

 

29

4

593.9%

 

572

425

34.6%

Financial Revenue

106

92

14.6%

 

98

92

6.6%

 

8

0

 

 

146

133

9.2%

Financial Expenses

(248)

(254)

-2.2%

 

(233)

(236)

-1.6%

 

(15)

(17)

-11.3%

 

(481)

(459)

4.9%

Net Financial Revenue (Expenses)

(142)

(162)

-11.9%

 

(135)

(144)

-6.8%

 

(8)

(17)

-54.2%

 

(336)

(326)

3.1%

Equity Income

4

7

-42.7%

 

4

7

 

 

-

-

 

 

5

11

-54.0%

Result from Permanent Assets

(10)

0

 

 

(10)

0

 

 

(0)

0

 

 

7

3

126.5%

Other Operating Revenue (Expenses)

0

(6)

 

 

0

(6)

 

 

-

-

 

 

(2)

(15)

-88.2%

Income Before Income Tax

198

138

43.5%

 

177

151

17.1%

 

21

(13)

 

 

246

97

152.3%

Income Tax

(51)

(2)

 

 

(45)

(6)

 

 

(6)

4

 

 

(84)

13

 

Minority Interest - Noncontrolling

14

10

41.7%

 

14

10

41.7%

 

-

-

 

 

4

22

-79.5%

 Net Income - Controlling Shareholders (1)

161

146

10.9%

 

146

155

-5.8%

 

15

(9)

 

 

167

132

25.8%

Net Income per Share

 

 

 

 

 

 

 

 

 

 

 

 

0.64

0.51

24.4%

Nº of shares (million) ex-treasury shares

 

 

 

 

 

 

 

 

 

 

 

 

260

257

 

                               
                               
 

GPA Food

  

GPA Food

  

Consolidated

                   

% Net Sales Revenue

  

Retail

  

Cash and Carry

  
                               
 

1Q12

1Q11

    

1Q12

1Q11

    

1Q12

1Q11

    

1Q12

1Q11

  
 

 

 

    

 

 

    

 

 

    

 

 

  

Gross Profit

25.9%

25.7%

    

28.0%

27.6%

    

14.6%

14.0%

    

26.8%

26.2%

  

Selling Expenses

15.6%

15.7%

    

16.7%

16.3%

    

9.8%

11.5%

    

17.0%

17.3%

  

General and Administrative Expenses

2.9%

3.0%

    

3.3%

3.2%

    

1.0%

1.1%

    

3.6%

3.5%

  

Total Operating Expenses

18.5%

18.6%

    

19.9%

19.6%

    

10.8%

12.7%

    

20.6%

20.8%

  

EBITDA

7.4%

7.1%

    

8.1%

8.0%

    

3.8%

1.3%

    

6.2%

5.4%

  

Depreciation and Amortization

2.2%

2.1%

    

2.4%

2.3%

    

1.0%

0.8%

    

1.5%

1.5%

  

EBIT

5.2%

5.0%

    

5.6%

5.7%

    

2.8%

0.5%

    

4.7%

3.9%

  

Net Financial Revenue (Expenses)

2.1%

2.7%

    

2.4%

2.8%

    

0.8%

2.1%

    

2.8%

3.0%

  

Result from Permanent Assets and Others

0.2%

-0.1%

    

0.2%

0.1%

    

0.0%

0.0%

    

0.0%

0.1%

  

Income Before Income Tax

3.0%

2.3%

    

3.1%

2.9%

    

2.0%

1.6%

    

2.0%

0.9%

  

Income Tax

0.8%

0.0%

    

0.8%

0.1%

    

0.5%

0.4%

    

0.7%

0.1%

  

Minority Interest - noncontrolling

0.2%

-0.2%

    

0.3%

0.2%

    

0.0%

0.0%

    

0.0%

0.2%

  

Net Income - Controlling Shareholders (1)

2.4%

2.4%

  

 

2.6%

3.0%

    

1.5%

-1.1%

    

1.4%

1.2%

  

(1) Net Icome after Minority Interest

                              

 

 

 

* In 1Q11, the net income of GPA Food’s controlling shareholders was recalculated and reduced from R$157 million to R$ 146 million, due to accounting methods between GPA Food and Viavarejo. As a result, minority interest was reduced from R$21 million to R$10 million in 1Q11.

 

 

 

 

10/14

 

 

 

Statement of Cash Flow

       

(R$ million)

  

GPA Consolidated

   

03.31.2012

03.31.2011

       

Net Income for the period

  

162

111

Adjustment for Reconciliation of Net Income

  

-

-

Deferred Income Tax

  

32

(32)

Income of Permanent Assets Written-Off

  

(7)

7

Depreciation and Amortization

  

194

158

Interests and Exchange Variation

  

297

264

Adjustment to Present Value

  

23

(4)

Equity Income

  

(5)

(11)

Provision for Contingencies

  

13

27

Provision for low and losses of fixed assets

  

(2)

(1)

Share-Based Compensation

  

8

(7)

Allowance for Doubtful Accounts

  

53

-

   

768

513

       

Asset (Increase) Decreases

      

Accounts Receivable

  

399

(420)

Inventories

  

350

(20)

Taxes recoverable

  

(116)

(194)

Other Assets

  

(111)

(196)

Marketable Securities

  

3

(367)

Related Parties

  

33

(10)

Judicial Deposits

  

(67)

(118)

   

492

(1,325)

       

Liability (Increase) Decrease

      

Suppliers

  

(1,563)

(696)

Payroll and Charges

  

(46)

(65)

Taxes and contributions

  

(123)

41

Contingencies

  

(15)

(7)

Other Accounts Payable

  

(74)

85

   

(1,733)

(720)

       

Net Cash Generated from (Used in) Operating Activities

 

(562) 

(1,454)

       

Cash Flow from Investment and Financing Activities

       
   

GPA Consolidated

   

03.31.2012

03.31.2011

       

Net cash from acquisitions

  

-

-

Acquisition of Companies

  

7

-

Capital Increase in Subsidiaries

  

-

82

Acquisition of Property and Equipment

  

(228)

(287)

Increase of Intangible Asset

  

(8)

(59)

Sale of Property and Equipment

  

28

-

Net Cash Generated from (used in) Investment Activities

  

(202)

(264)

       

Cash Flow from Financing Activities

      

Increase (Decrease) of Capital

  

1

-

Increase in Minority Interest

  

-

-

Funding and Refinancing

  

1,785

2,127

Payments

  

(2,124)

(1,189)

Interest Paid

  

(122)

(58)

Dividend Payments

  

-

(0)

Net Cash Generated from (used in) Financing Activities

  

(460)

880

Cash and Cash Equivalents at the Beginning of the Year

  

4,970

4,426

Cash and Cash Equivalents at the End of the Year

  

3,746

3,588

Change in Cash and Cash Equivalent

  

(1,224)

(838)

 

 

11/14

 

 

 

   

Breakdown of Gross Sales by Format

(R$ million)

  

1Q12

%

1Q11

%

Δ

             

Pão de Açúcar

 

1,348

9.9%

1,212

9.8%

11.2%

Extra Hiper (1)

 

3,411

25.0%

2,958

23.9%

15.3%

Extra Supermercado

 

1,143

8.4%

1,232

10.0%

-7.2%

Assaí

 

1,131

8.3%

910

7.4%

24.2%

Others Business (2)

 

337

2.5%

328

2.7%

2.8%

GPA Food

 

7,371

54.0%

6,640

53.7%

11.0%

             

Viavarejo (3)

 

6,289

46.0%

5,733

46.3%

9.7%

GPA Consolidated

 

13,660

100.0%

12,373

100.0%

10.4%

             
             
   

Breakdown of Net Sales by Format

(R$ million)

  

1Q12

%

1Q11

%

Δ

             

Pão de Açúcar

 

1,213

10.0%

1,091

10.0%

11.2%

Extra Hiper (1)

 

3,030

24.9%

2,623

24.1%

15.5%

Extra Supermercado

 

1,044

8.6%

1,119

10.3%

-6.7%

Assaí

 

1,035

8.5%

827

7.6%

25.2%

Others Business (2)

 

334

2.8%

325

3.0%

2.9%

GPA Alimentar

 

6,656

54.8%

5,984

55.1%

11.2%

             

Viavarejo (3)

 

5,491

45.2%

4,884

44.9%

12.4%

GPA Consolidado

 

12,147

100.0%

10,869

100.0%

11.8%

             

(1) Includes Minimercado Extra sales.

          

(2) Includes Gas Station and Drugstores sales.

        

(3) Includes Ponto Frio, Nova Casas Bahia and Nova Pontocom sales.

      

 

 

12/14

 

 

 

 

Sales Breakdown (% of Net Sales)

   
 

GPA Food

  

GPA Consolidated

 

1Q12

1Q11

  

1Q12

1Q11

           

Cash

53.3%

53.2%

  

40.6%

41.9%

Credit Card

39.2%

39.0%

  

48.8%

46.8%

Food Voucher

7.4%

7.6%

  

3.9%

4.9%

Credit

0.1%

0.2%

  

6.7%

6.4%

Post-Dated Checks

0.1%

0.2%

  

0.1%

0.1%

Payment Book

0.0%

0.0%

  

6.6%

6.3%

 

 

 

 

Stores Openings/Closings/Conversions per Format

 

12/31/2011

  

Opened

  

Closed

  

03/31/2012

               

Pão de Açúcar

159

 

0

  

-1

  

158

Extra Hiper

132

 

1

  

0

  

133

Extra Supermercado

204

 

0

  

0

  

204

Minimercado Extra

72

 

0

  

-1

  

71

Assaí

59

 

1

  

0

  

60

Ponto Frio

401

 

1

  

-2

  

400

Casas Bahia

544

 

1

  

-1

  

544

Other Business

232

 

1

  

-1

  

232

Gas Satation

78

 

0

  

0

  

78

Drugstores

154

1

-1

154

GPA Consolidated

1,803

 

5

 

-6

  

1,802

Sale Area ('000 m2)

2,821

         

2,830

Nº of employees ('000)

149

          

149

 

 

 

 

 

13/14

 

 

 

 

1Q12 Results Conference Call and Webcast

Tuesday, May 8, 2012

11:00 a.m. (Brasília time) | 10:00 a.m. (New York) | 3:00 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:20125656 

Code for audio in English:19996509

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 first quarter of 2012 (1Q12), 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 March 2012 was 7.24%

About Grupo Pão de Açúcar and Viavarejo: Grupo Pão de Açúcar is Brazil’s largest retailer, with a distribution network comprising approximately 1,800 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.

 

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.

 

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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:  May 08, 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.