Carrefour Brasil posts 95% drop in Q2 net profit weighed down by BIG division
25/07/2023 23:37
MEXICO CITY, July 25 (Reuters) - Carrefour Brasil
CRFB3.SA reported a 95.2% drop in its second-quarter adjusted
net profit to reach 29 million reais ($6.10 million), hit by the
financial impact of its integration with BIG Group, the company
said on Tuesday.
The Brazilian arm of French retailer Carrefour SA CARR.PA
said that net sales rose 8.1% to reach 25.95 billion reais in
the second-quarter, while its wholesale units posted 4.6% sales
growth year-on-year.
Carrefour's Brazilian unit said operating expenses soared
32.2% from a year earlier to total 3.8 billion reais.
Carrefour Brasil, which bought BIG in mid-2022, said it has
concluded the conversion of BIG stores in June, and that it
plans to ramp-up sales there by the next quarter.
Chief Executive Officer Stephane Maquaire told reporters
that the company now plans to develop the converted stores to
see its positive impact in results in the coming months.
"The more we have the maturation of sales, the more we
have the opportunity to grow in the EBITDA margin," he said.
Adjusted earnings before interest, taxes, depreciation and
amortization (EBITDA) for the company fell 21.7% to total 1.34
billion reais, but the firm saw 6% drop in adjusted EBITDA when
excluding Grupo BIG, reaching 1.5 billion reais.
Carrefour Brasil said it has opened six new wholesale format
stores and 47 converted BIG stores in the second-quarter.
($1 = 4.7520 reais)
(Reporting by Carolina Pulice; Editing by Brendan O'Boyle)
((Carolina.Pulice@thomsonreuters.com;))