By Rogerio Jelmayer

SAO PAULO--Companhia Brasileira de Distribuicao (CBD, PCAR4.BR), Brazil's largest retailer by revenue, said second-quarter profit rose 26% as sales increased and expenses dropped.

The company, which is controlled by French retail group Casino Guichard-Perrachon SA (CGUSY, CO.FR), late Wednesday said its profit rose to 407 million Brazilian reais ($183 million) from BRL323 million a year earlier.

CBD's net revenue totaled BRL16.87 billion, up 12.8% from the year-ago period. On the other hand, the company's operational expenses decreased 2% to BRL2.88 billion.

CBD said earnings before interest, taxes, depreciation and amortization rose to BRL1.15 billion from BRL953 million a year earlier, while earnings before interest, taxes, depreciation and amortization margin picked up to 7.6% from 7.1% a year earlier.

Via Varejo, the company's unit that runs Brazil's biggest home-appliance retail chains Casas Bahia and Ponto Frio, posted a second-quarter increase in its net profit of 21%.

CBD's GPA Alimentar unit, which accounts for the company's sales of foodstuffs, reported an increase of 31% in its net profit in the period.

Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com

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