Brazil’s largest retailer CBD has seen second-quarter profits jump as the company’s sales were boosted by Easter spending.
For the quarter ended 30 June, CBD, also known by its trading name of Grupo Pao de Acucar, saw consolidated net income reach BRL91m (US$59m) against BRL55.5m in the same quarter of the previous year. Consolidated second-quarter sales rose 61.5% to BRL11.3bn.
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However, for the first half of 2011, net income declined 3% to BRL223.4m despite a 7.5% rise in sales to BRL12.2bn.
Nevertheless, second-quarter net income from its food division rose to BRL93.2m, up on the BRL18.3m reported in the same period of last year. Over the period, net food sales rose 10.4% to reach BRL6.2bn. Same-store sales increased 9.3% over the quarter. Excluding inflation, same-store sales were up 2.3%.
For the first half, net income in the food division rose 19% to reach BRL238.8m. Net sales were up 7.5% to BRL12.2bn, and rose by the same amount on a same-store basis.
Much of the second quarter saw CBD’s two major shareholders, French retailer Casino and the Diniz Group, enmeshed in a dispute over the control of the retailer.
A proposal backed by the Diniz Group to merge CBD with Carrefour’s Brazilian assets fell through after the country’s state development bank withdrew its support for the deal.
Casino repeatedly criticised the plan, labelling it illegal, hostile and flawed. The French retailer claims a 2005 deal with Diniz means that it was due to become the sole controlling shareholder in CBD next year.
Shares in the company were up 0.18% to US$43.49 a share on the NYSE at the market’s close yesterday.
