Carrefour Brasil posts small rise in Q2 profit, notes inflation pressures
Reuters
Published Jul 26, 2022 05:15PM ET
Updated Jul 26, 2022 07:11PM ET
SAO PAULO (Reuters) -Carrefour Brasil said on Tuesday its second-quarter adjusted net profit edged up 1.3% from a year earlier, citing solid sales despite inflation pressures.
The local unit of French retailer Carrefour SA (OTC:CRRFY) reported profits of 600 million reais ($112.1 million), helped by double-digit same-store sales growth.
Net sales rose 36% to 24.0 billion reais, which included food retailer Grupo Big's results for June, when its acquisition by Carrefour (EPA:CARR) Brasil was concluded. Carrefour's Atacadao wholesale division posted 30% growth in net sales.
The sales results were driven by a "solid performance in the food category, with volumes growing even in a highly inflationary environment," Stephane Maquaire, Carrefour Brasil's chief executive, said in the profit report.
The company's adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) grew by 24.5% to 1.7 billion reais.
Operating expenses rose 28% from a year earlier to 2.86 billion reais.
The retailer said food inflation since February has led to a change in shopping habits, with customers coming more often but buying fewer items and spending less on average during each visit.
Brazil has been facing persistently high inflation rate since the start of the year.
Carrefour Brasil said it has opened six new cash and carry format stores and four new convenience units, in addition to starting the integration process of Grupo Big, whose acquisition was valued at about $1.3 billion.
($1 = 5.3522 reais)
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.