By Rogerio Jelmayer
SAO PAULO--Companhia Brasileira de Distribuicao, Brazil's
largest retailer by revenue, posted a net loss in the second
quarter, as the country's poor economic conditions hurt sales in
some of its units and inflation increased the company's
expenses.
The company, which is controlled by French retail group Casino
Guichard-Perrachon SA, late Tuesday said it posted a net loss of 30
million Brazilian reais ($8.9 million) in the period, reversing a
net profit of BRL358 million in the year ago period.
The company's revenue increased 6% in the period to BRL16.1
billion, thanks to its expansion in food sales. However, sales in
nonfood division Via Varejo dropped 21.7% in the period.
After expanding just 0.1% last year, Brazil's economy is
expected to contract around 1.7% this year. Despite poor economic
conditions, Brazil's inflation remains at worrisome levels,
currently at 9.25% per year, forcing the central bank to implement
an aggressive Selic base rate hike. Currently, the Selic rate is at
13.75%.
Operational expenses were up 11.9% to BRL3.2 billion in the
second quarter versus the year ago period.
CBD said earnings before interest, taxes, depreciation and
amortization fell to BRL665 million from BRL1.09 billion a year
earlier.
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
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