cbdpr4q12_6k.htm - Generated by SEC Publisher for SEC Filing

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934

For the month of February, 2013

           Brazilian Distribution Company           
(Translation of Registrant’s Name Into English)

Av. Brigadeiro Luiz Antonio,
3142 São Paulo, SP 01402-901
     Brazil     
(Address of Principal Executive Offices)

        (Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F)

Form 20-F   X   Form 40-F       

        (Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule
101 (b) (1)):

Yes ___ No   X  

(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule
101 (b) (7)):

Yes ___ No   X  

        (Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)

Yes ___ No   X  


 


        

4Q12 and 2012 Earnings
4Q12: Net sales revenue up 9.1% and EBITDA up 33.5%
2012: Net income totaled R$ 1.156 billion, growth of 60.7%

 

São Paulo, Brazil, February 20, 2013 - Grupo Pão de Açúcar [BM&FBOVESPA: PCAR4 (PN); NYSE: CBD] and Viavarejo  [BM&FBOVESPA: VVAR3] announce their results for the fourth quarter of 2012 (4Q12) and full year of 2012 (2012). The results are presented in the segments as follows: GPA Food, which comprises supermarkets (Pão de Açúcar, Extra Supermercado and PA Delivery), hypermarkets (Extra Hiper), neighborhood stores (Minimercado Extra), cash-and-carry stores (Assaí), GPA Malls & Properties and gas stations and drugstores; and GPA Consolidated, comprised by GPA Food and Viavarejo (Casas Bahia and Ponto Frio's bricks-and-mortar stores and Nova Pontocom's e-commerce: Extra.com.br, PontoFrio.com.br, Casasbahia.com.br, Barateiro.com.br, Partiu Viagens and e-Hub). More information about the results of Viavarejo can be obtained in its earnings release.

 

GPA Food

Gross sales revenue up 9.7% in 4Q12

EBITDA up 29.7%, to R$ 744 million

          

 

  • Gross sales revenue totaled R$ 8.805 billion, up 9.7% over 4Q11
  • EBITDA at R$ 744 million, up 29.7% over 4Q11, with margin at 9.4%
  • Net profit at R$ 305 million, up 13.3% over 4Q11
  • GPA Malls & Properties: swap revenue of R$ 55 million on partnerships with builders in 3 projects
  • Increase in expansion pace: 35 new stores in 4T12and other 16 under construction
 

 

GPA Consolidated

In 4Q12, gross sales revenue reached R$ 16.396 billion and EBITDA margin up 170 basis-points.

Company posts record net profit for the quarter and year: R$ 539 million in 4Q12, up 36.4% over 4Q11,

and R$ 1.156 billion, up 60.7% over 2011.

   
 
  • Gross sales revenues totaled R$ 16.396 billion, up 8.4% over 4Q11
  • EBITDA at R$ 1.323 billion, up 33.5% over 4Q11
  • Net financial expense down 12.4%, in 4Q12, despite the 8.4% increase in sales
 
 

 

HIGHLIGHTS
 
   GPA Food  GPA Consolidated
(R$ million)(1) 4Q12 4Q11 Δ 2012 2011 Δ 4Q12 4Q11 Δ 2012 2011 Δ
 
Gross Sales Revenue 8,805 8,028 9.7% 31,097 28,431 9.4% 16,396 15,132 8.4% 57,234 52,681 8.6%
Net Sales Revenue 7,941 7,206 10.2% 28,078 25,578 9.8% 14,584 13,371 9.1% 50,924 46,594 9.3%
Gross Profit 2,173 1,882 15.5% 7,455 6,613 12.7% 4,104 3,740 9.7% 13,804 12,659 9.0%
Gross Margin 27.4% 26.1% 130 bps 26.6% 25.9% 70 bps 28.1% 28.0% 10 bps 27.1% 27.2% -10 bps
EBITDA 744 573 29.7% 2,291 1,835 24.9% 1,323 991 33.5% 3,668 2,816 30.3%
EBITDA Margin(2) 9.4% 8.0% 140 bps 8.2% 7.2% 100 bps 9.1% 7.4% 170 bps 7.2% 6.0% 120 bps
Net Financial Revenue (Expenses) (136) (146) -6.9% (515) (641) -19.6% (300) (343) -12.4% (1,193) (1,333) -10.5%
% of net sales revenue 1.7% 2.0% -30 bps 1.8% 2.5% -70 bps 2.1% 2.6% -50 bps 2.3% 2.9% -60 bps
Company's net profit 305 269 13.3% 834 616 35.5% 539 395 36.4% 1,156 720 60.7%
Net Margin 3.8% 3.7% 10 bps 3.0% 2.4% 60 bps 3.7% 3.0% 70 bps 2.3% 1.5% 80 bps
(1) Totals may not tally as the figures are rounded off and all margins were calculated as percentage of net sales revenue.
(2) Earnings before Interest, Taxes, Depreciation, Amortization and Net Financial Revenue (Expenses)

 


 

PERFORMANCE BY SEGMENT   

The Company operates four segments – food retail, cash and carry, electronics and home appliances retail (bricks and mortar) and e-commerce. They are grouped as follows:

 

 

 

In order to enable comparison of the Company’s figures, the tables and explanations about the 4Q12 and 2012 earnings, except when otherwise noticed, exclude the revenue from the Company’s real estate projects. In 4Q12, R$ 55 million in gross sales revenue was recognized. This figure refers to land swaps for development and construction of real estate projects. Another  R$ 98 million were incurred in other periods, totaling  R$ 153 million in revenues from  real estate projects, in 2012. For further information on the recognition of such revenue, see note number 28 on the 2012 Financial Statements.

 

Sales Performance

 

 

GPA Food
ex-real estate projects
GPA Food (ex-real estate projects )
 
Retail   Cash and Carry
(R$ million) 4Q12 4Q11 Δ   4Q12 4Q11 Δ   4Q12 4Q11 Δ
  
Gross Sales Revenue 8,751 8,028 9.0% 7,209 6,786 6.2% 1,542 1,243 24.1%
Net Sales Revenue 7,887 7,206 9.4% 6,480 6,072 6.7% 1,407 1,134 24.1%
Gross 'Same-Store' Sales Revenue 5.6% 8.7%                  
Food 7.8% 7.2%                  
Non-food -1.6% 13.6%                  

 


 

GPA Food 4Q12 x 4Q11

Gross sales revenue increased 9.0% over 4Q11, to R$ 8.751 billion. Same-store sales growth was 5.6%, lead by growth of 7.8% in Food sales, notably in perishables and beverages categories. In Non-Food, sales from the consumer electronics category, in Extra banner, were decreased over 4Q11, due to strong comps. In 4Q11, Extra was the sole retail banner to promote Black Friday in bricks-and-mortar stores and the electronics/appliances category grew 28% over 4Q10.

 

4   Retail: gross sales revenue up 6.2%. The highlights were:

§   Minimercado Extra performance, as a result of the conversion process conclusion from the former Extra Fácil format, and of the increase the store openings pace. The format, which was repositioned in order to offer a broader assortment of perishables and services – such as butchery and bakery – posted a double-digit growth in same-store-sales in 4Q12, the banner’s highest growth of 2012, which opened 30 new stores in the quarter.

§   Fastest growth at Pão de Açúcar banner over Retail Food’s average. Both fruits and vegetables and beverage categories were the main drivers of the same-store growth in food. Sales of organic fruits and vegetables were high during the period, helped by the change in displaying these products in the stores. These products are now offered in dedicated stations to organic products.

 

4   Cash-and-carry: gross sales revenue up 24.1%, mainly due to:

§  Double-digit growth in same-store gross sales revenue, due to an increase over 15.0% in the average ticket resulting from adjustments aiming at the target publics of the banner – processors, resellers and users – with an increase in the offering of perishables.

 

 

GPA Food
ex-real estate projects
GPA Consolidated
ex-real estate projects
  
(R$ million) 2012 2011 Δ   4Q12 4Q11 Δ   2012 2011 Δ
 
Gross Sales Revenue 30,944 28,431 8.8% 16,342 15,132 8.0% 57,081 52,681 8.4%
Net Sales Revenue 27,926 25,578 9.2% 14,530 13,371 8.7% 50,772 46,594 9.0%
Gross 'Same-Store' Sales Revenue 6.5% 8.0%   5.8% 8.5%   7.0% 8.8%  
Food 7.4% 7.5%                  
Non-food 3.6% 9.6%                  

 

GPA Food 2012 x 2011

In 2012, gross sales revenue increased 8.8%, to R$ 30.944 billion. Same-store sales growth was 6.5%.

2012 was the first full year of Extra Supermercado operation, strengthening Extra as a national player. The banner, which by the end of 2011 was operating only through Extra Hiper, where the one-stop shop offers gas stations and drugstores, was strengthened with the launch of its own clothing brand and the introduction of the concept store-in-store, in which the designated area for the category was enhanced with its own fit rooms and checkouts, and the reintroduction of butchers. In 2012, Drogaria Extra was also repositioned, with changes in store layout and enhancement of perfumery category. In the fourth quarter, Extra Delivery was launched, consolidating the Extra banner as multichannel. In 2012, three Extra Supermercado stores and other six Extra Hiper stores were opened.

 

3/21                  

 


 

Minimercado Extra, as mentioned above, concluded the store conversion from the former Extra Fácil format, offering a broader assortment of perishables and services. Considering both new and converted stores, Minimercado Extra ended the year with over 100 stores.

In 2012, Pão de Açúcar expansion was resumed. Furthermore, the banner launched new campaigns – such as “Ofertas da Casa” focusing on cleaning products and as “Momento Feliz: Churrasco” (items related to barbecue) – and straighten its anniversary campaign and differentiation through customer service.

Assaí, which underwent a restructuring process, consolidated in 2012 the changes initiated in the previous year, with adjustments in store layout, assortment and quantity of services for target publics. As of December, GPA Food’s sales area totaled 1,568 thousand square meters. The area growth was 4.8%, or 72.0 thousand square meters, with a total of 55 stores opened, highlighting the growth in Minimercado Extra.

 

GPA Consolidated 4Q12 x 4Q11

Gross sales revenue totaled R$ 16.342 billion in 4Q12, up 8.0% over 4Q11, due to the food retail performance, mentioned above, and the electronics bricks-and-mortar stores performance – highlight to Pontofrio, with a double-digit growth in same-store-sales, partially offset by the slowdown of e-commerce business growth trend due to the fierce competition in the sector. In Nova Pontocom, two new businesses were launched: barateiro.com.br - exclusive website that sells refurbished or minor-damaged products and outlet - and Patiu Viagens - website for booking tickets, packages and other travel-related services.

 

GPA Consolidated 2012 x 2011

Gross sales revenue totaled R$ 57.081 billion, up 8.4% over 2011 due to the growth in Food Retail and Viavarejo.

 

Operating Performance

 

GPA Food
ex-real estate projects
  GPA Food (ex-real estate projects)
 
Retail Cash and Carry
(R$ million) 4Q12 4Q11 Δ 4Q12 4Q11 Δ 4Q12 4Q11 Δ
 
Net Sales Revenue 7,887 7,206 9.4% 6,480 6,072 6.7% 1,407 1,134 24.1%
Gross Profit 2,119 1,882 12.6% 1,912 1,707 12.0% 207 175 18.2%
Gross Margin 26.9% 26.1% 80 bps 29.5% 28.1% 140 bps 14.7% 15.4% -70 bps
Selling Expenses (1,168) (1,016) 14.9% (1,045) (916) 14.0% (123) (100) 23.1%
General and Administrative Expenses (240) (216) 11.1% (224) (202) 11.0% (16) (14) 12.4%
Equity Income 3 5 -29.4% 3 5 -29.4% - - -
Other Operating Revenue (Expenses) (25) (81) -69.1% (25) (81) -69.6% (0.3) 0.2 -
Total Operating Expenses (1,429) (1,308) 9.2% (1,290) (1,194) 8.0% (139) (114) 22.2%
% of Net Sales Revenue 18.1% 18.2% -10 bps 20.0% 19.7% 30 bps 9.9% 10.1% -20 bps
EBITDA 690 573 20.2% 622 513 21.4% 67 61 10.6%
EBITDA Margin 8.7% 8.0% 70 bps 9.6% 8.4% 120 bps 4.8% 5.4% -60 bps

 

As of 4Q12, the result of Equity Income and Other Operating Revenue (Expenses) were included along with the total operating expenses, before EBITDA. Thus, the calculation of EBITDA is in accordance with Instruction number 527, of the Comissão de Valores Mobiliários (CVM), of October 4, 2012.


 

GPA Food 4Q12 x 4Q11

 

EBITDA increased 20.2% to R$ 690 million, while EBITDA margin was up 70 basis-points to 8.7%.

 

4   Retail: EBITDA margin increased 120 basis points, due to:

§  Recovery on the gross margin and better sales mix (with higher value added). Seasonal items sales also contributed for margin enhancement;

§  The increase in selling expenses is related to the impact of the labor union wage agreement, which was higher than inflation, granted to employees mainly in September. This increase also impacted the outsourced service expenses (in stores), which were already growing due to the acceleration on store openings in 4Q12 and 1Q13;

 

4   Cash-and-carry: EBITDA margin declined 60 basis points over 4Q11, to 4.8%, due to:

§  Reduction in the gross margin, due to the adjustments made ​​in 2012 to its target publics - processors, distributers and users - usually more sensitive to price. The new model is based on price competitiveness and strict expenses control. With sales increase, Management expects to drive the return on invested capital up for both the format and the Company.

 

§  20 basis-point decrease in operating expenses as percentage of net revenues. The new model has the target  to run the operation with a low level of expenses.

 

 

GPA Food
ex-real estate projects
GPA Consolidated
ex-real estate projects
 
(R$ million) 2012 2011 Δ 4Q12 4Q11 Δ 2012 2011 Δ
   
Net Sales Revenue 27,926 25,578 9.2% 14,530 13,371 8.7% 50,772 46,594 9.0%
Gross Profit 7,303 6,613 10.4% 4,050 3,740 8.3% 13,651 12,659 7.8%
Gross Margin 26.2% 25.9% 30 bps 27.9% 28.0% -10 bps 26.9% 27.2% -30 bps
Selling Expenses (4,298) (3,921) 9.6% (2,230) (2,195) 1.6% (8,360) (7,937) 5.3%
General and Administrative Expenses (828) (743) 11.5% (531) (450) 17.8% (1,754) (1,683) 4.2%
Equity Income 11 19 -40.4% (1) 10 - 11 35 -68.9%
Other Operating Revenue (Expenses) (49) (133) -62.9% (19) (114) -83.0% (33) (259) -87.2%
Total Operating Expenses (5,164) (4,778) 8.1% (2,781) (2,749) 1.2% (10,136) (9,844) 3.0%
% of Net Sales Revenue 18.5% 18.7% -20 bps 19.1% 20.6%  -150 bps 20.0% 21.1% -110 bps
EBITDA 2,138 1,835 16.6% 1,268 991 28.0% 3,515 2,816 24.8%
EBITDA Margin 7.7% 7.2% 50 bps 8.7% 7.4% 130 bps 6.9% 6.0% 90 bps

 

GPA Food 2012 x 2011

EBITDA was up 16.6%, to R$ 2.138 billion, while EBITDA margin increased 50 basis points, to 7.7%, top of guidance disclosed for 2012. The increase in EBITDA margin is related to the gain of 30 basis points in gross margin, reflecting improved sales mix.

 

GPA Consolidated 4Q12 x 4Q11

Gross margin fell by 10 basis points, mainly pressured by increased competition and higher logistics costs in the electronics segment. However, EBITDA margin was benefitted by the reduction in operating expenses in Viavarejo and by the improvement in Food margin (as mentioned above).


 

 

GPA Consolidated 2012 x 2011

In 2012, EBITDA was up by 24.8%, to R$ 3.515 billion, with margin of 6.9%, an increase of 90 basis-point over 2011.

 

 

Financial Performance and Indebtedness

 

Financial Result

 

GPA Food
ex-real estate projects
  GPA Consolidated
ex-real estate projects
(R$ million) 4Q12 4Q11 Δ 2012 2011 Δ 4Q12 4Q11 Δ 2012 2011 Δ
  
Financial Revenue 91 77 18.0% 441 383 14.9% 133 150 -11.0% 587 593 -1.1%
Financial Expenses (227) (223) 2.1% (962) (1,024) -6.0% (434) (493) -11.8% (1,786) (1,926) -7.3%
Net Financial Revenue (Expenses) (136) (146) -6.4% (522) (641) -18.6% (301) (343) -12.2% (1,199) (1,333) -10.0%
% of Net Sales Revenue 1.7% 2.0% -30 bps 1.9% 2.5% -60 bps 2.1% 2.6% -50 bps 2.4% 2.9% -50 bps
 
Charges on Net Bank Debt (64) (86) -25.6% (269) (344) -21.8% (69) (93) -25.7% (300) (378) -20.5%
Cost of Discount of Receivables of Payment Book - - - - - - (53) (63) -16.6% (237) (200) 18.3%
Cost of Discount of Receivables of Credit Card (27) (37) -25.5% (108) (153) -29.5% (130) (181) -28.1% (507) (673) -24.6%
Restatement of Other Assets and Liabilities (45) (23) 93.8% (145) (144) 0.9% (50) (6) 706.7% (155) (82) 89.4%
Net Financial Revenue (Expenses) (136) (146) -6.4% (522) (641) -18.6% (301) (343) -12.2% (1,199) (1,333) -10.0%

 

 

GPA Food 4Q12 x 4Q11

In 4Q12, net financial expense totaled R$ 136 million, down 6.4% from 4Q11, despite the 9.7% increase in gross sales revenue in the quarter, and accounted for 1.7% of net sales revenue. The improvement was mainly due to declining interest rates, notably as from September 2011, and improvement in the management of receivables, which impacts the Company as explained below:

§  R$ 64 million in charges on the net bank debt, amount 25.6% lower than in 4Q11;

§  R$ 27 million in discount of receivables cost, which accounted for 0.3% of net sales revenue, a 20 basis point reduction from 4Q11. The volume of discounted receivables totaled R$ 3.4 billion;

§  R$ 45 million in restatement of other assets and liabilities, which accounted for 0.6% of net sales revenue in the quarter, up 30 basis points from 4Q11, due to the lower financial revenue from supplier payments’ anticipation.

 

GPA Food 2012 x 2011

In 2012, the net financial expense totaled R$ 522 million, down 18.6% from 2011. The result was impacted by a decline in interest rates and control in payment conditions.

 

GPA Consolidated 4Q12 x 4Q11

In 4Q12, net financial expense totaled R$ 301 million, down 12.2% from 4Q11, and accounted for 2.1% of net sales revenue, down 50 basis points from 4Q11.The result is due to the decline in the Selic base rate and improvement in the management of receivables.

 


 

GPA Consolidated 2012 x 2011

In 2012, net financial expense totaled R$ 1.199 billion, down 10.0% from 2011. Even with growth of 8.4% in gross sales, which impacts the amount to be securitized and, consequently, the discounted receivables cost, in 2012 the account represented 2.4% of net sales, a decrease of 50 basis points on the previous year, and is caused by the effects of the declining of interest rate and efficient management on receivables, especially in the electronics segment.

 

 

Indebtedness

The analysis of the Company's indebtedness considers the real estate projects operation, since it is consolidated also in the balance sheet (cash and cash equivalents).

Table shown below does not includes any FIDC transactions (see details below).

 

  GPA Food GPA Consolidated
 
(R$ million) 12.31.2012 09.30.2012   12.31.2012 09.30.2012
  
Short Term Debt (1,419) (2,151) (1,712) (2,435)
Loans and Financing (869) (1,420) (1,044) (1,586)
Debentures (550) (731) (668) (848)
Long Term Debt (5,282) (4,770) (6,151) (5,657)
Loans and Financing (2,340) (1,742) (2,409) (1,831)
Debentures (2,942) (3,027) (3,741) (3,827)
Total Gross Debt (6,701) (6,921) (7,863) (8,092)
Cash 4,505 4,299 7,086 5,551
Net Debt (2,196) (2,622) (777) (2,541)
Net Debt / EBITDA(1) 0.96x 1.24x 0.21x 0.76x
Payment book - short term - - (2,499) (2,277)
Payment book - long term - - (130) (112)
Net Debt with payment book - - (3,406) (4,930)
Net Debt / EBITDA(1) 0.96x 1.24x 0.93x 1.48x
(1) EBITDA for the last 12 months. Doesnot include realestate projects        

 

GPA Food

On 12/31/2012, GPA Food’s gross debt was at R$ 6.701 billion, of which 78.8% maturing in the long term, that is, due in over 12 months. The net-debt-to-EBITDA ratio was at 0.96x at the end of the period.

 

GPA Consolidated

The net debt totaled R$ 777 million on 12/31/2012, down R$ 1.764 billion from 09/30/2012. At the end of 2012, the Company posted longer debt profile and net cash exceeding R$ 7 billion. The net-debt-to-EBITDA ratio was at 0.21x. Considering net debt with payment book, net debt/EBITDA would be 0.93x.

 

7/21                  

 


 

Cash position by 12/31/2012, when compared to previous periods, shows significant increase due to the following reasons: (i) Company`s decision, by the beginning of 2012, on raising cash reserves as precaution to the macro-economy scenario that could possibly afflict market’s liquidity; (ii) usual seasonality on the fourth quarter, more pronounced, specially reflected in the Company’s working capital, on suppliers and inventories; and (iii) cash generation in the period. Company  intends not to refinance debt and the current cash will be partially used to pay-off upcoming debt when reaches maturity. As a result, Company expects to keep lower cash position level throughout 2013, keeping the indebtedness close to the current level by the year-end, financing the necessary investments with the cash generation from operation.

Company used to discount credit card and food vouchers receivables in 2012 with two securitization funds dedicated to this purpose. In the 4Q12, there were changes in both funds. PCAFIDC, fund that served the food operation, is no longer exclusive to GPA’s receivables, and the Company holds no subordinated quotas, thus, it is not consolidated into Companies financial statements in 12/31/2012. Globex FIDC, fund that used to securitize receivables from Viavarejom, was terminated in December 2012. These changes have a neutral net impact in cash, given the fund’s cash position (consolidated by GPA) and the redeemed subordinated quotas were equivalent. Company’s receivables are still being securitized though acquirers.

 

 

 

GPA Malls & Properties

 

The opening of stores at Grupo Pão de Açúcar is the result of a planned expansion process. The Company uses its market knowledge to promote synergies between its retail strength and its real estate assets, which are managed by its real estate unit, GPA Malls & Properties (GPA M&P). GPA M&P manages and explores the Company’s real estate assets, aiming to unlock value in this market.

In 2012, R$ 153 million gross sales revenue was recognized from real estate projects though land swap with Cyrela Polinésia Empreendimento Imobiliários, Pitangueiras Desenvolvimento Imobiliário and Hesa Investimentos Imobiliários for the projects Thera Faria Lima Pinheiros, Figue; Classic and Carpe Diem, respectively. The swap revenue is net of the book value of the asset. Of the R$ 153 million mentioned above, R$ 55 million were recognized in 4Q12.

When compared to retail, is worth noting that the real estate industry have different operational cycle, typically longer, generally exceeding the fiscal year period in which the project started and relies on real estate launches and their construction pace.

For further information on the recognition of such revenue, see explanatory notes number 3.b. and 28, on the Financial Statements. 

 

 

 

8/21                  

 


 

 

Net Profit

 
GPA Food
ex-real estate projects
GPA Consolidated
ex-real estate projects
 
(R$ million) 4Q12 4Q11 Δ 2012 2011 Δ% 4Q12 4Q11 Δ% 2012 2011 Δ%
  
EBITDA 690 573 20.2% 2,138 1,835 16.6% 1,268 991 28.0% 3,515 2,816 24.8%
Depreciation and Amortization (169) (180) -6.0% (636) (547) 16.1% (207) (213) -2.8% (798) (678) 17.7%
Net Financial Revenue (Expenses) (136) (146) -6.4% (522) (641) -18.6% (301) (343) -12.2% (1,199) (1,333) -10.0%
Income Before Income Tax 384 248 54.8% 981 646 51.8% 760 434 74.9% 1,517 805 88.6%
Income Tax (131) 21 - (301) (31) 887.9% (272) (39) 593.1% (516) (85) 506.9%
Company's net income - ex-real estate projects 254 269 -5.8% 679 616 10.0% 488 395 23.4% 1,002 720 39.2%
Net Margin 3.2% 3.7% -50 bps 2.4% 2.4% 0 bps 3.4% 3.0% 40 bps 2.0% 1.5% 50 bps
  
Indemnity Liabilities 2 39 - 21 39 - 2 39 - 21 39 -
Refis 11.941/2009 - - - - 28 - - - - - 28 -
Expenses (Revenues) with Association 23 19 - 34 41 - 23 78 - 64 204 -
Total Nonrecurring 25 59 - 55 108 - 25 118 - 85 271 -
Income Tax from Nonrecurring (5) (7) - (12) (17) - (5) (27) - (22) (68) -
Adjusted Net Income 274 321 -14.5% 722 707 2.2% 508 486 4.6% 1,064 923 15.3%
Adjusted Net Margin 3.5% 4.5% -100 bps 2.6% 2.8% -20 bps 3.5% 3.6% -10 bps 2.1% 2.0% 10 bps
 
 
GPA Food
ex-real estate projects
GPA Consolidated
ex-real estate projects
  
(R$ million) 4Q12 4Q11 Δ 2012 2011 Δ% 4Q12 4Q11 Δ% 2012 2011 Δ%
Net Income - ex-real estate projects 254 269 -5.8% 679 616 10.0% 488 395 23.4% 1,002 720 39.2%

Net Income - real estate projects

51 - 0.0% 155 - 0.0% 51 - 0.0% 155 - 0.0%
Company's net income 305 269 13.3% 834 616 35.5% 539 395 36.4% 1,156 720 60.7%
Adjusted Net Margin 3.9% 3.7% 20 bps 3.0% 2.4% 60 bps 3.7% 3.0% 70 bps 2.3% 1.5% 80 bps
 
Total Nonrecurring 20 51 - 42 91 - 20 90 - 62 203 -
Adjusted Net Income 325 321 1.4% 877 707 24.1% 559 486 15.2% 1,219 923 32.1%
Adjusted Net Margin 4.1% 4.5% -40 bps 3.1% 2.8% 30 bps 3.9% 3.6% 30 bps 2.4% 2.0% 40 bps

 

GPA Food 4Q12 x 4Q11

Operating income before income tax totaled R$ 384 million, up 54.8% over 4Q11. This results denotes operational improvement in all formats and both operational and financial expenses control. Net profit declined in 5.8%, to R$ 254 million, when compared to R$ 269 million posted in 4Q11, substantially affected by non-recurring effects in taxes.

In the quarter, the Company posted non-recurring expenses related to (i) indemnity liability from contingencies from Ponto Frio operation prior to the association with Casas Bahia, celebrated in the 4Q10, that amounted R$2 million, and (ii) impacts on the corporate restructuring plan promoted by the Company in 2H12 totaling R$ 23 million. Net profit, adjusted by these effects was R$ 274 million.

 

GPA Food 2012 x 2011

Operating income before income tax increased 51.8% in 2012, to R$ 981 million. Net income to increased 10.0% to R$ 679 milion.

 

GPA Consolidated 4Q12 x 4Q11

Net profit before taxes reached R$ 760 million, up 74.9% over 4Q11, reflecting the operational improvements in GPA Food and Viavarejo. Company’s profit (before minority interest - non-controlling shareholders) rose 23.4% to R$ 488 million, positively affected by the operational improvement at Viavarejo and lower financial expenses.


 

 

GPA Consolidated 2012 x 2011

Company’s net profit before taxes in 2012 reached R$1.517 billion, growth of 88.6%, as a result of (i) sales growth of 9.0%, (ii) growth in GPA Food’s gross margin by better sales mix, (iii) expenses control over the electronics operation and (iv) reduction in financial expenses by lower indebtedness, receivables management and declining interest rates.

Consolidated net profit totaled R$ 1.002 billion in 2012, growth of 39.2% over 2011.

 

Simplified Cash Flow

 

  GPA Food GPA Consolidated
 
(R$ million) 4Q12 4Q11 Δ 2012 2011 Δ 4Q12 4Q11 Δ 2012 2011 Δ
  
Cash Balance at beginning of period 4,299 2,463 1,836 3,544 2,468 1,076 5,551 3,547 2,004 4,970 3,818 1,152
Cash Flow from operating activities 2,130 751 1,379 2,999 1,634 1,365 4,564 1,299 3,265 5,299 1,128 4,171
EBITDA 744 573 171 2,291 1,835 457 1,323 991 332 3,668 2,816 852
Cost of Discount of Receivables (27) (37) 9 (108) (153) 45 (130) (181) 51 (507) (673) 166
Working Capital 1,428 133 1,296 815 (48) 863 3,371 490 2,882 2,139 (1,015) 3,154
Cash Flow from Investment Activities (271) (380) 109 (1,076) (1,374) 298 (353) (413) 60 (1,339) (1,625) 287
Net CAPEX (281) (387) 105 (1,044) (1,105) 61 (363) (419) 56 (1,306) (1,356) 50
Aquisition and Others 10 6 4 (33) (269) 236 10 6 4 (33) (269) 236
Cash Flow from Financing Activities (1,653) 711 (2,364) (961) 816 (1,778) (2,675) 537 (3,212) (1,844) 1,649 (3,493)
Dividends Payments and Others (28) (22) (6) (186) (183) (3) (28) (22) (6) (186) (183) (3)
Net Proceeds (1,625) 733 (2,358) (775) 1,000 (1,775) (2,647) 559 (3,206) (1,658) 1,833 (3,491)
Variation of Net Cash Generated 206 1,082 (875) 961 1,076 (115) 1,536 1,423 113 2,116 1,152 964
Cash Balance at end of period 4,505 3,544 961 4,505 3,544 961 7,086 4,970 2,116 7,086 4,970 2,116

 

 

GPA Food

Cash position by the year’s end was R$ 4.505 billion, of which R$206 million in 4Q12, mainly generated by the operating cash flow in the period.

As FIDCs are no longer consolidated into Company’s financial statements (see section ‘Indebtedness’ for more information), Management evaluates that the effects from its elimination on receivables (positive impact on working capital of approximately R$1.1 billion) and liabilities (negative impact of around R$1.2 billion) should not be considered in the cash flow analysis. In 4Q12, working capital was improved by the suppliers, which grew relatively more than the amount on inventories.

In 2012, GPA Food generated R$ 961 million in cash, driven by the increase of the operational profit and lower expenses on interest on debt and cost of discount of receivables.

 

GPA Consolidated

Cash position by the end of 2012 was R$ 7.086 billion, R$ 1.536 over the cash in the beginning of 4Q12 and was generated from sales growth combined with EBITDA margin increase, mainly from Viavarejo. The cash flow analysis, when isolated from the FIDC effect (as mentioned below, which would impact the consolidated result in, approximately, R$2.5 billion positively on receivables and R$ 2.516 negatively in the liabilities), points out R$ 0.7 billion positive flow from the suppliers account.

Company added to its cash R$ 2.1 billion in 2012, and intends to use part of it to repay debt close to its maturity, specially in the upcoming quarters, thus not incurring on new refinancing plan. Therefore, Company expects lower cash position along 2013 and should reach year’s end close to current indebtedness level, financing its investments with cash generated from operations.

 

10/21                  

 


 

Capex

 

  GPA Food GPA Consolidated
(R$ million) 4Q12 4Q11 Δ 2012 2011 Δ 4Q12 4Q11 Δ 2012 2011 Δ
New stores and land acquisition 298 55 443.8% 571 176 225.1% 344 82 321.7% 703 246 186.0%
Store renovations and conversions 41 164 -75.0% 374 602 -38.0% 69 194 -64.5% 433 661 -34.5%
Infrastructure and Others 83 213 -61.2% 301 434 -30.6% 125 268 -53.2% 441 676 -34.8%
Total 422 432 -2.3% 1,245 1,212 2.8% 539 544 -1.0% 1,577 1,583 -0.4%

 

GPA Food

In 2012, investments totaled R$ 1.245 billion, of which R$ 422 million was invested in 4Q12. The investments of 4Q12 were allocated as follows:

§  R$ 298 million to store openings, construction and land acquisitions. In 4Q12, the Company opened 35 stores, of which 30 Minimercado Extra, 2 Pão de Açúcar, 2 Assaí and 1 Extra Hiper stores. At the end of 4Q12, another 16 stores were under construction. In 2012, the Company allocated the amount of R$ 571 million for GPA Food expansion, 225.1% higher than the amount invested in 2011, and demonstrates the Company's focus on store openings. For the next years, the Company expects to accelerate store openings, opening 500 new stores until 2015;

§  R$ 41 million to store renovations and conversions. The year ends with R$ 374 million invested, value 38% lower than the amount invested in 2011. This decrease is associated to the end of the investment cycle targeted for stores maintenance, adaptations and conversions observed over the past few years; and

§  R$ 83 million to technological infrastructure and logistics. In 2012, the Company invested R$ 301 million.

GPA Consolidated

In the 4Q12, investments totaled R$ 539 million, of which R$ 117 million in Viavarejo and R$ 422 million in GPA Food. In the quarter, the Company's focus was the store opening. In addition to GPA Food stores, above mentioned, in the quarter, the Company opened 16 electronics stores, predominantly Casas Bahia stores in Northeastern. In 4Q12, the Company reported the highest concentration of store opening in recent years in both businesses. During the year the Company invested R$ 1.577 billion.

 

Dividends

 

At the Company’s General Shareholders Meeting held on April 27, 2012, was approved the payment of dividends for the fiscal year ended on December 31, 2011, totaling R$ 103 million, corresponding to R$ 0.37 per common share and R$ 0.41 per preferred share. The amount of dividends for the year ended on December 31, 2011, including the amount of R$ 67.628 million of anticipated dividends, was R$ 171 million, corresponding to R$ 0.62 per common share and R$ 0.68 per preferred share.

At the Board of Directors Meeting held on May 7, 2012, was approved the payment of intermediate dividends for the first quarter of 2012 totaling R$ 28 million, of which R$ 0.11 per preferred share and R$ 0.10 per common share. The dividends payment was made on June 20, 2012.


 

At the Board of Directors Meeting held on July 23, 2012, was approved the payment of intermediate dividends for the second quarter of 2012 totaling R$ 28 million, of which R$ 0.11 per preferred share and R$ 0.10 per common share. The dividends payment was made on August 13, 2012.

At the Board of Directors Meeting held on October 25, 2012, was approved the payment of intermediate dividends for the third quarter of 2012 totaling R$ 28 million, of which R$ 0.11 per preferred share and R$ 0.10 per common share. The dividends payment was made on November 23, 2012.

GPA’s Management proposed dividends to be distributed, calculated as shown below, considering the dividends anticipations in the amount of R$ 84 million, made ​​in 2012. The amount of payable dividend for the year ended on December 31, 2012 is R$ 166 million (R$ 103 million on December 31, 2011), which corresponds to R$ 0.593716430 per common share and R$ 0.653088073 per preferred share.

 

Proposed dividends
 
(R$ thousands) 2012
 
Consolidated net profit 1,156,436
Minority Interest - Noncontrolling (105,254)
Net profit 1,051,181
Legal reserve (52,559)
Dividends' base of calculation 998,621
  
Dividends policy 25%
Dividends proposed by management 249,655
Proposed dividends to prefered shareholders 160,570
Proposed dividends to common shareholders 89,086
  
Number of prefered shares¹ ² (x 1000) 163,539
Number of common shares¹ (x 1000) 99,680
 
Dividends per prefered share¹ (R$) 0.982288
Dividends per common share¹ (R$) 0.892989
 
(-) Interim dividends already announced 83,668
Proposed dividend to be paid¹ 165,987
 
¹ Estimates. To be aproved at 2013 General Shareholders Meeting  
² Excluding 232,586 shares on treasury  

 

 

 

12/21                  

 


 

 

 

BALANCE SHEET
ASSETS
  GPA Food GPA Consolidated
(R$ million) 12.31.2012 09.30.2012 12.31.2011 12.31.2012 09.30.2012 12.31.2011
Current Assets 8,930 9,302 9,057 17,251 17,184 17,276
Cash and Marketable Securities 4,505 4,299 3,544 7,086 5,551 4,970
Accounts Receivable 418 310 365 2,637 2,368 2,431
Credit Cards 260 217 252 444 486 474
Payment book - - - 2,078 1,947 1,937
Sales Vouchers and Others 154 90 109 301 129 227
Post-Dated Checks 4 4 4 4 4 4
Allowance for Doubtful Accounts (1) (0) (0) (189) (198) (211)
Resulting from Commercial Agreements 572 439 447 572 439 447
Receivables Fund (FIDC) - 1,086 1,182 - 2,473 2,559
Inventories 3,062 2,795 2,865 5,760 5,185 5,553
Recoverable Taxes 256 214 458 871 802 908
Expenses in Advance and Other Accounts Receivables 117 158 196 325 367 408
Noncurrent Assets 14,810 14,484 13,575 18,146 17,574 16,493
Long-Term Assets 2,602 2,635 2,053 4,693 4,532 3,855
Allowance for Doubtful Accounts - - - (9) (8) (7)
Inventories 172 111 14 172 111 14
Recoverable Taxes 231 267 32 1,232 1,122 730
Fair Value Bartira 359 356 304 359 356 304
Deferred Income Tax and Social Contribution 381 411 456 1,079 1,159 1,250
Amounts Receivable from Related Parties 94 185 93 172 169 133
Judicial Deposits 773 754 616 952 938 738
Expenses in Advance and Others 592 72 539 618 101 575
Investments 267 269 243 362 366 340
Property and Equipment 7,087 6,757 6,446 8,114 7,734 7,358
Intangible Assets 4,853 4,823 4,832 4,976 4,942 4,939
TOTAL ASSETS 23,740 23,786 22,632 35,396 34,758 33,769
 
LIABILITIES
  GPA Food GPA Consolidated
  12.31.2012 09.30.2012 12.31.2011 12.31.2012 09.30.2012 12.31.2011
Current Liabilities 6,944 6,508 7,162 13,955 11,894 13,501
Suppliers 3,674 2,726 3,421 6,803 4,929 6,279
Loans and Financing 869 1,420 1,557 1,044 1,586 2,153
Payment Book (CDCI) - - - 2,499 2,277 2,263
Debentures 550 731 502 668 848 502
Payroll and Related Charges 417 462 376 729 965 759
Taxes and Social Contribution Payable 190 73 92 651 162 332
Dividends Proposed 167 1 103 169 1 103
Financing for Purchase of Fixed Assets 88 1 14 88 1 14
Rents 51 44 49 51 44 49
Acquisition of Companies 63 61 55 63 61 55
Debt with Related Parties 394 550 533 82 60 28
Advertisement 42 33 29 113 76 90
Provision for Restructuring 25 13 13 25 13 13
Tax Payments 152 159 168 155 162 171
Advanced Revenue 18 6 15 92 78 82
Others 245 228 234 723 631 609
Long-Term Liabilities 8,725 9,347 8,051 10,373 12,166 10,173
Loans and Financing 2,340 1,742 1,365 2,409 1,831 1,554
Payment Book (CDCI) - - - 130 112 129
Receivables Fund (FIDC) - 1,218 1,236 - 2,488 2,420
Debentures 2,942 3,027 2,138 3,741 3,827 2,138
Acquisition of Companies 158 150 189 158 150 189
Deferred Income Tax and Social Contribution 1,134 1,108 1,115 1,137 1,108 1,115
Tax Installments 1,163 1,186 1,249 1,205 1,228 1,292
Provision for Contingencies 610 580 520 774 752 680
Advanced Revenue 33 29 - 472 365 381
Others 346 307 240 346 307 276
 
Shareholders' Equity 8,070 7,931 7,419 11,068 10,698 10,094
Capital 5,123 5,241 4,713 6,710 6,702 6,129
Capital Reserves 228 211 384 228 211 384
Profit Reserves 1,556 1,308 1,112 1,556 1,308 1,112
Minority Interest 1,162 1,171 1,210 2,573 2,477 2,469
TOTAL LIABILITIES 23,740 23,786 22,632 35,396 34,758 33,769

   


 

  INCOME STATEMENT (ex-real estate projects) INCOME STATEMENT
GPA Food GPA Food GPA Consolidated GPA Food
IFRS
GPA Consolidated
IFRS
Retail Cash and Carry
R$ - Million 4Q12 4Q11 Δ 4Q12 4Q11 Δ 4Q12 4Q11 Δ 4Q12 4Q11 Δ 4Q12 4Q11 Δ 4Q12 4Q11 Δ
Gross Sales Revenue 8,751 8,028 9.0% 7,209 6,786 6.2% 1,542 1,243 24.1% 16,342 15,132 8.0% 8,805 8,028 9.7% 16,396 15,132 8.4%
Net Sales Revenue 7,887 7,206 9.4% 6,480 6,072 6.7% 1,407 1,134 24.1% 14,530 13,371 8.7% 7,941 7,206 10.2% 14,584 13,371 9.1%
Cost of Goods Sold (5,768) (5,324) 8.3% (4,568) (4,365) 4.6% (1,200) (959) 25.2% (10,480) (9,631) 8.8% (5,768) (5,324) 8.3% (10,480) (9,631) 8.8%
Gross Profit 2,119 1,882 12.6% 1,912 1,707 12.0% 207 175 18.2% 4,050 3,740 8.3% 2,173 1,882 15.5% 4,104 3,740 9.7%
Selling Expenses (1,168) (1,016) 14.9%
11.1%
(1,045) (916) 14.0% (123) (100) 23.1% (2,230) (2,195) 1.6% (1,168) (1,016) 14.9% (2,230) (2,195) 1.6%
General and Administrative Expenses (240) (216) (224) (202) 11.0% (16) (14) 12.4% (531) (450) 17.8% (240) (216) 11.1% (531) (450) 17.8%
Equity Income 3 5 -29.4% 3 5 -29.4% - - 0.0% (1) 10 0.0% 3 5 -29.4% (1) 10 0.0%
Other Operating Revenue (Expenses) (25) (81) -69.1% (25) (81) -69.6% (0) 0 0.0% (19) (114) -83.0% (25) (81) -69.1% (19) (114) 0.0%
Result from Permanent Assets 28 (33) 0.0% 28 (33) 0.0% (0) 0 0.0% 45 (51) 0.0% 28 (33) - 45 (51) -
Nonrecurring Result (22) (48) -55.3% (22) (48) - - - - (22) (48) - (22) (48) - (22) (48) -
Other Operating Revenue (Expenses) (31) 0 0.0% (31) 0 0.0% - - - (43) (15) - (31) 0 0.0% (43) (15) 188.7%
Total Operating Expenses (1,429) (1,308) 9.2% (1,290) (1,194) 8.0% (139) (114) 22.2% (2,781) (2,749) 1.2% (1,4290 (1,308) 9.2% (2,781) (2,749) 1.2%
Earnings before Interest, Taxes, Depreciation, Amortization - EBITDA 690 573 20.2% 622 513 21.4% 67 61 10.6% 1,268 991 28.0% 744 573 29.7% 1,323 991 33.5%
Depreciation and Amortization (169) (180) -6.0% (157) (172) -8.6% (12) (8) 51.3% (207) (2130 -2.8% (169) (180) -6.0% (207) (213) -2.8%
Earnings before interest and Taxes - EBIT 521 394 32.2% 465 341 36.5% 56 53 4.7% 1,061 777 36.5% 575 394 46.0% 1,116 777 43.5%
Financial Revenue 91 77 18.0% 84 71 18.2% 6 6 15.9% 133 150 -11.0% 92 77 19.1% 134 150 -10.5%
Financial Expenses (227) (223) 2.1% (212) (204) 4.1% (15) (18) -20.2% (434) (493) -11.8% (227) (223) 2.1% (434) (493) -11.8%
Net Financial Revenue (Expenses) (136) (146) -6.4% (128) (133) -3.5% (8) (13) -35.7% (301) (343) -12.2% (136) (146) -6.9% (300) (343) -12.4%
Income Before Income Tax 384 248 54.8% 337 208 62.0% 47 40 17.6% 760 434 74.9% 440 248 77.1% 815 434 87.6%
Income Tax (131) 21 0.0% (114) 35 0.0% (16) (14) 15.1% (272) (39) 593.1% (135) 21 0.0% (276) (39) 603.5%
Net Income - Company 254 269 -5.8% 223 243 -8.4% 31 26 19.0% 488 395 23.4% 305 269 13.3% 539 395 36.4%
Minority Interest - Noncontrolling 9 22 -60.4% 9 22 -60.4% - - 0.0% (980 (34) 188.8% 9 22 -60.4% (98) (34) 188.8%
Net Income - Controlling Shareholders (1) 262 291 -9.9% 231 265 -12.7% 31 26 19.0% 390 361 8.0% 314 291 7.7% 441 361 22.1%
Net Income per Share                   1.48 1.37         1.68 1.40  
Nº of shares (million) ex-treasury shares                   263 263         263 257  
 
% Net Sales Revenue GPA Food GPA Food GPA Consolidated GPA Food
IFRS
GPA Consolidated
IFRS
Reatil Cash and Carry
  4Q12 4Q11   4Q12 4Q11   4Q12 4Q11   4Q11 4Q10   4Q11 4Q10   4Q11 4Q10  
Gross Profit 26.9% 26.1%   29.5% 28.1%   14.7% 15.4%   27.9% 28.0%   27.4% 26.1%   28.1% 28.0%  
Selling Expenses 14.8% 14.1%   16.1% 15.1%   8.8% 8.8%   15.3% 16.4%   14.7% 14.1%   15.3% 16.4%  
General and Administrative Expenses 3.0% 3.0%   3.5% 3.3%   1.1% 1.2%   3.7% 3.4%   3.0% 3.0%   3.6% 3.4%  
Other Operating Revenue (Expenses) and Equity Income 0.3% 1.1%   0.3% 1.3%   0.0% 0.0%   0.1% 0.8%   0.3% 1.1%   0.1% 0.8%  
Total Operating Expenses 18.1% 18.2%   19.9% 19.7%   9.9% 10.1%   19.1% 20.6%   18.0% 18.2%   19.1% 20.6%  
EBITDA 8.7% 8.0%   9.6% 8.4%   4.8% 5.4%   8.7% 7.4%   9.4% 8.0%   9.1% 7.4%  
Depreciation and Amortization 2.1% 2.5%   2.4% 2.8%   0.8% 0.7%   1.4% 1.6%   2.1% 2.5%   1.4% 1.6%  
EBIT 6.6% 5.5%   7.2% 5.6%   4.0% 4.7%   7.3% 5.8%   7.2% 5.5%   7.6% 5.8%  
Net Financial Revenue (Expenses) 1.7% 2.0%   2.0% 2.2%   0.6% 1.1%   2.1% 2.6%   1.7% 2.0%   2.1% 2.6%  
Income Before Income Tax 4.9% 3.4%   5.2% 3.4%   3.4% 3.6%   5.2% 3.2%   5.5% 3.4%   5.6% 3.2%  
Income Tax 1.7% 0.3%   1.8% 0.6%   1.2% 1.3%   1.9% 0.3%   1.7% 0.3%   1.9% 0.3%  
Net Income - Company 3.2% 3.7%   3.4% 4.0%   2.2% 2.3%   3.4% 3.0%   3.8% 3.7%   3.7% 3.0%  
 
(1) Net Income after noncontrolling shareholders

 

14/21                  

 


 

 

INCOME STATEMENT (ex-real estate projects) INCOME STATEMENT
GPA Food GPA Consolidated GPA Food
IFRS
GPA Consolidated
IFRS
R$ - Million 2012 2011 Δ% 2012 2011 Δ% 2012 2011 Δ% 2012 2011 Δ 2012 2011 Δ
Gross Sales Revenue 30,944 28,431 8.8% 16,342 15,132 8.0% 57,081 52,681 8.4% 31,097 28,431 9.4% 57,234 52,681 8.6%
Net Sales Revenue 27,926 25,578 9.2% 14,530 13,371 8.7% 50,772 46,594 9.0% 28,078 25,578 9.8% 50,924 46,594 9.3%
Cost of Goods Sold (20,623) (18,965) 8.7% (10,480) (9,631) 8.8% (37,121) (33,935) 9.4% (20,623) (18,965) 8.7% (37,121) (33,935) 9.4%
Gross Profit 7,303 6,613 10.4% 4,050 3,740 8.3% 13,651 12,659 7.8% 7,455 6,613 12.7% 13,804 12,659 9.0%
Selling Expenses (4,298) (3,921) 9.6% (2,230) (2,195) 1.6% (8,360) (7,937) 5.3% (4,298) (3,921) 9.6% (8,360) (7,937) 5.3%
General and Administrative Expenses (828) (743) 11.5% (531) (450) 17.8% (1,754) (1,683) 4.2% (828) (743) 11.5% (1,754) (1,683) 4.2%
Equity Income 11 19 (0.40) (1) 10 - 11 35 -68.9% 11 19 -40.4% 11 35 -68.9%
Other Operating Revenue (Expenses) (49) (133) -62.9% (19) (114) -83.0% (33) (259) -87.2% (49) (133) -62.9% (33) (259) -87.2%
Total Operating Expenses (5,164) (4,778) 8.1% (2,781) (2,749) 1.2% (10,136) (9,844) 3.0% (5,164) (4,778) 8.1% (10,136) (9,844) 3.0%
Earnings before Interest, Taxes, Depreciation, Amortization - EBITDA 2,138 1,835 16.6% 1,268 991 28.0% 3,515 2,816 24.8% 2,291 1,835 24.9% 3,668 2,816 30.3%
Depreciation and Amortization (636) (547) 16.1% (207) (213) -2.8% (798) (678) 17.7% (636) (547) 16.1% (798) (678) 17.7%
Earnings before interest and Taxes - EBIT 1,503 1,287 16.8% 1,061 777 36.5% 2,717 2,137 27.1% 1,655 1,287 28.6% 2,869 2,137 34.2%
Financial Revenue 441 383 14.9% 133 150 -11.0% 587 593 -1.1% 447 383 16.6% 593 593 0.0%
Financial Expenses (962) (1,024) -6.0% (434) (493) -11.8% (1,786) (1,926) -7.3% (962) (1,024) -6.0% (1,786) (1,926) -7.3%
Net Financial Revenue (Expenses) (522) (641) -18.6% (301) (343) -12.2% (1,199) (1,333) -10.0% (515) (641) -19.6% (1,193) (1,333) -10.5%
Income Before Income Tax 981 646 51.8% 760 434 74.9% 1,517 805 88.6% 1,140 646 76.4% 1,676 805 108.3%
Income Tax (301) (31) 887.9% (272) (39) 593.1% (516) (85) 506.9% (306) (310 901.2% (520) (85) 511.7%
Net Income - Company 679 616 10.0% 488 395 23.4% 1,002 720 39.2% 834 616 35.5% 1,156 720 60.7%
Minority Interest - Noncontrolling 48 43 10.0% (980 (34) 188.8% (105) (1) NA 48 43 10.0% (105) (1) NA NA
Net Income - Controlling Shareholders (1) 727 659 10.3% 390 361 8.0% 896 718 24.8% 882 659 33.8% 1,051 718 46.4%
Net Income per Share       1.48 1.37 7.9% 3.41 2.73 24.7%       3.99 2.73 46.3%
Nº of shares (million) ex-treasury shares       263 263   263 263         263 263  
 
 
% Net Sales Revenue GPA Food GPA Consolidated GPA Food
IFRS
GPA Consolidated
IFRS
  2012 2011   2012 2011   2012 2011   2012 2011   2012 2011  
Gross Profit 26.2% 25.9%   27.9% 28.0%   26.9% 27.2%   26.6% 25.9%   27.1% 27.2%  
Selling Expenses 15.4% 15.3%   15.3% 16.4%   16.5% 17.0%   15.3% 15.3%   16.4% 17.0%  
General and Administrative Expenses 3.0% 2.9%   3.7% 3.4%   3.5% 3.6%   2.9% 2.9%   3.4% 3.6%  
Other Operating Revenue (Expenses) and Equity Income 0.1% 0.4%   0.1% 0.8%   0.0% 0.5%   0.1% 0.4%   0.0% 0.5%  
Total Operating Expenses 18.5% 18.7%   19.1% 20.6%   20.0% 21.1%   18.4% 18.7%   19.9% 21.1%  
EBITDA 7.7% 7.2%   8.7% 7.4%   6.9% 6.0%   8.2% 7.2%   7.2% 6.0%  
Depreciation and Amortization 2.3% 2.1%   1.4% 1.6%   1.6% 1.5%   2.3% 2.1%   1.6% 1.5%  
EBIT 5.4% 5.0%   7.3% 5.8%   5.4% 4.6%   5.9% 5.0%   5.6% 4.6%  
Net Financial Revenue (Expenses) 1.9% 2.5%   2.1% 2.6%   2.4% 2.9%   1.8% 2.5%   2.3% 2.9%  
Income Before Income Tax 3.5% 2.5%   5.2% 3.2%   3.0% 1.7%   4.1% 2.5%   3.3% 1.7%  
Income Tax 1.1% 0.1%   1.9% 0.3%   1.0% 0.2%   1.1% 0.1%   1.0% 0.2%  
Net Income - Company 2.4% 2.4%   3.4% 3.0%   2.0% 1.5%   3.0% 2.4%   2.3% 1.5%  
 
(1) Net Income after noncontrolling shareholders

 

15/21                  

 


 

 

Statement of Cash Flow
(R$ million) GPA Consolidated
  12.31.2012 12.31.2011
 
Net Income for the period 1,156 720
Deferred Income Tax 193 (57)
Income of Permanent Assets Written-Off (12) 49
Depreciation and Amortization 834 706
Interests and Exchange Variation 1,099 966
Net profit/loss on shareholder interest (23) -
Adjustment to Present Value (14) 22
Equity Income (11) (35)
Provision for Contingencies 83 (5)
Provision for low and losses of fixed assets 11 10
Share-Based Compensation 45 27
Allowance for Doubtful Accounts (19) 37
Swap revenue (23) 24
Deferred Revenue (158) -
  54 55
  3,217 2,519
Asset (Increase) Decreases    
Marketable Securities - 635
Accounts Receivable 2,297 (1,717)
Inventories (192) (776)
Taxes recoverable (575) (507)
Financial Instrument - Rede Duque (50) 114
Related Parties 25 (189)
Judicial Deposits (179) (68)
  1,325 (2,508)
Liability (Increase) Decrease    
       
Suppliers 498 972
Payroll and Charges 101 169
Other Accounts Payable 158 (25)
  758 1,117
Net Cash Generated from (Used in) Operating Activities 5,299 1,128
 
Cash Flow from Investment and Financing Activities
  GPA Consolidated
(R$ million) 12.31.2012 12.31.2011
        
Acquisition of Companies (33) (0)
Acquisition of Property and Equipment (1,309) (1)
Increase of Intangible Asset (84) (0)
Sale of Property and Equipment 87 0
Net Cash Generated from (used in) Investment Activities (1,339) (1,625)
 
Cash Flow from Financing Activities    
Increase (Decrease) of Capital 21 23
Funding and Refinancing 7,211 6,918
Payments (7,977) (4,772)
Interest Paid (913) (336)
Dividend Payments (186) (183)
Net Cash Generated from (used in) Financing Activities (1,844) 1,649
Cash and Cash Equivalents at the Beginning of the Year 4,970 3,818
Cash and Cash Equivalents at the End of the Year 7,086 4,970
Change in Cash and Cash Equivalent 2,116 1,152

 


 

 

Breakdown of Gross Sales by Format
(ex-real estate projects)
(R$ million) 4Q12 % 4Q11 % Δ 2012 % 2011 % Δ
 
Pão de Açúcar 1,550 9.5% 1,415 9.4% 9.5% 5,655 9.9% 5,205 9.9% 8.6%
Extra Hiper (1) 3,909 23.9% 3,753 24.8% 4.1% 13,845 24.3% 12,688 24.1% 9.1%
Extra Supermercado 1,280 7.8% 1,205 8.0% 6.3% 4,621 8.1% 4,648 8.8% -0.6%
Assaí 1,542 9.4% 1,243 8.2% 24.1% 5,080 8.9% 4,289 8.1% 18.5%
Others Business (2) 389 2.4% 362 2.4% 7.4% 1,490 2.6% 1,412 2.7% 5.6%
GPA Food 8,751 53.6% 8,028 53.1% 9.0% 30,944 54.2% 28,431 54.0% 8.8%
Viavarejo (3) 7,591 46.4% 7,103 46.9% 6.9% 26,137 45.8% 24,250 46.0% 7.8%
GPA Consolidated 16,342 100.0% 15,132 100.0% 8.0% 57,081 100.0% 52,681 100.0% 8.4%
 
 
Breakdown of Net Sales by Format
(ex-real estate projects)
(R$ million) 4Q12 % 4Q11 % Δ 2012 % 2011 % Δ
 
Pão de Açúcar 1,389 9.6% 1,262 9.4% 10.0% 5,076 10.0% 4,663 10.0% 8.9%
Extra Hiper (1) 3,466 23.9% 3,310 24.8% 4.7% 12,292 24.2% 11,224 24.1% 9.5%
Extra Supermercado 1,170 8.1% 1,094 8.2% 7.0% 4,217 8.3% 4,215 9.0% 0.1%
Assaí 1,407 9.7% 1,134 8.5% 24.1% 4,639 9.1% 3,902 8.4% 18.9%
Others Business (2) 379 2.6% 359 2.7% 5.6% 1,467 2.9% 1,398 3.0% 4.9%
GPA Food 7,887 54.3% 7,206 53.9% 9.4% 27,926 55.0% 25,578 54.9% 9.2%
Viavarejo (3) 6,643 45.7% 6,165 46.1% 7.8% 22,846 45.0% 21,017 45.1% 8.7%
GPA Consolidated 14,530 100.0% 13,371 100.0% 8.7% 50,772 100.0% 46,594 100.0% 9.0%
 
(2) Includes Gas Station and Drugstores sales.
(3) Includes Ponto Frio, Nova Casas Bahia and Nova Pontocom sales.

 

 


 

 

Sales Breakdown (% of Net Sales ex-real estate projects)
  GPA Food GPA Consolidated
  4Q12 4Q11 2012 2011 4Q12 4Q11 2012 2011
 
Cash 54.3% 53.3% 53.4% 52.7% 42.8% 40.4% 41.4% 40.7%
Credit Card 37.8% 39.4% 38.8% 40.5% 46.9% 48.7% 47.9% 48.7%
Food Voucher 7.8% 7.1% 7.7% 6.6% 4.4% 3.8% 4.3% 3.6%
Credit 0.1% 0.2% 0.1% 0.2% 5.9% 7.1% 6.4% 6.9%
Post-Dated Checks 0.1% 0.2% 0.1% 0.2% 0.0% 0.1% 0.1% 0.1%
Payment Book - - - - 5.9% 7.0% 6.3% 6.8%

 

 

  Stores Openings/Closings per Format
  12/31/2011 9/30/2012 Opened Closed 12/31/2012
 
Pão de Açúcar 160 161 2 - 163
Extra Hiper 132 137 1 - 138
Extra Supermercado 204 207 - - 207
Minimercado Extra 72 77 30 - 107
Assaí 59 59 2 - 61
Other Business 232 238 3 - 241
Gas Satation 78 84 - - 84
Drugstores 154 154 3 - 157
GPA Food 859 879 38 - 917
Ponto Frio 401 393 4 - 397
Casas Bahia 544 556 12 - 568
GPA Consolidated 1,804 1,828 54 - 1,882
Sale Area ('000 m2)          
GPA Food 1,496 1,543     1,568
GPA Consolidated 2,856 2,918     2,962
   
# of employees ('000) 149 149     151

 

 

 

18/21                  

 


 

 

  Figures per Format on December, 31 2012
      Sales Area
  # Stores # Checkouts (sq meter x1000)
 
Pão de Açúcar 163 1,771 210
Extra Hipermercado 138 4,582 805
Extra Supermercado 207 2,262 236
Mini Mercado Extra 107 367 25
Assaí 61 1,263 197
Ponto Frio 397 1,498 342
Casas Bahia 568 3,250 1,052
GPA Bricks-and-Mortar 1,641 14,993 2,867
       
Other Business 241 - 95

Gas Station

84 - 84

Drugstores

157 - 11
GPA Consolidated 1,882 14,993 2,962

 

 

 

 

19/21                  

 


 

 

PRODUCTIVITY RATIO (Gross Sales Revenue) in R$ - Nominal Terms
 
Gross Sales per m²/ mounth
  2012 2011 Δ
Pão de Açúcar 2,273 2,169 4.8%
Extra Hipermercado 1,456 1,415 2.9%
Extra Supermercado 1,648 1,502 9.7%
Minimercado Extra 1,252 1,112 12.6%
Assaí 2,226 1,952 14.0%
Ponto Frio 1,420 1,244 14.1%
Casas Bahia 1,377 1,313 4.9%
GPA Consolidated 1,551 1,453 6.7%
 
Gross Sales per Employee/Month
  2012 2011 Δ
Pão de Açúcar 28,950 29,452 -1.7%
Extra Hipermercado 42,221 42,656 -1.0%
Extra Supermercado 30,778 26,520 16.1%
Minimercado Extra 23,010 27,299 -15.7%
Assaí 53,089 47,578 11.6%
Ponto Frio 49,702 44,765 11.0%
Casas Bahia 46,503 46,260 0.5%
GPA Consolidated 41,151 39,269 4.8%
* Employers in FTE (full-time equivalent) standard    
 
Gross Sales per Checkout/Month
  2012 2011 Δ
Pão de Açúcar 270,376 260,173 3.9%
Extra Hipermercado 255,990 252,886 1.2%
Extra Supermercado 172,227 159,829 7.8%
Minimercado Extra 82,972 72,629 14.2%
Assaí 343,590 298,100 15.3%
Ponto Frio 309,576 266,121 16.3%
Casas Bahia 438,004 413,733 5.9%
GPA Consolidated 223,101 210,296 6.1%
 
Average Ticket - Gross Sales/Month
  2012 2011 Δ
Pão de Açúcar 43.9 40.3 10.0%
Extra Hipermercado 70.2 67.6 2.9%
Extra Supermercado 29.1 27.5 3.6%
Minimercado Extra 13.5 11.7 8.3%
Assaí 113.0 97.1 16.5%
Ponto Frio 493.5 527.5 -6.3%
Casas Bahia 452.0 436.1 3.7%
GPA Consolidated 86.8 80.7 7.4%
 

 

 

4Q12 and 2012 Results Conference Call and Webcast

Wednesday, February , 19th, 2013

11:00 a.m. (Brasília time) | 09:00 a.m. (New York) | 02:00 p.m. (London)

Portuguese Conference Call (original language)

+55 (11) 3127-4971

English Conference Call (simultaneous interpreting)

+1 (516) 300-1066

Webcast: http://www.gpari.com.br 

Replay

+55 (11) 3127-4999

Code for audio in Portuguese: 23975739

Code for audio in English: 23975739

http://www.gpari.com.br

CONTACTS

Investor Relations - GPA and Viavarejo

Phone: (11) 3886-0421

Fax: (11) 3884-2677

gpa.ri@grupopaodeacucar.com.br

Website: www.gpari.com.br 

www.viavarejo.com.br/ri

Media Relations - GPA

Phone: (11) 3886-3666

imprensa@grupopaodeacucar.com.br

Media Relations - Viavarejo

Phone: (11) 4225-9228

imprensa@viavarejo.com.br

 

Social Media News Room

http://imprensa.grupopaodeacucar.com.br/category/gpa/

Twitter – Media

@imprensagpa

Casa do Cliente – Customer Service

Pão de Açúcar: 0800-7732732 / Extra: 0800-115060

Ponto Frio: (11) 4002-3388/Casas Bahia:(11) 3003-8889

"The financial information contained in the financial statements are presented in accordance with accounting practices adopted in Brazil and refer to the fourth quarter of 2012 (4Q12) and 2012, except where otherwise noted, with comparisons made over the same period last year."

"Any and all information derived from non-accounting or not accounting numbers has not been reviewed by independent auditors."

"For the calculation of " EBITDA" Earnings Before Interest, Taxes, Depreciation and Amortization, According to the table on page 6.

The basis for calculating same-store sales is defined by the sales registered in stores open for at least 12 consecutive months and were not closed for 7 consecutive days or more in this period. Acquisitions are not included in the same-store calculation base in the first 12 months of operation.

Grupo Pão de Açúcar adopts the IPCA consumer price index as its benchmark inflation index, which is also used by the Brazilian Supermarkets Association (ABRAS), since it more accurately reflects the mix of products and brands sold by the Company. The IPCA in the 12 months ended December 2012 was 5.84%

About Grupo Pão de Açúcar and Viavarejo: Grupo Pão de Açúcar is Brazil’s largest retailer, with a distribution network comprising approximately 1,810 points of sale and electronic channels. The Group’s multiformat structure consists of GPA Food and Viavarejo.GPA Food’s operations comprise supermarkets (Pão de Açúcar and Extra Supermercado), hypermarkets (Extra), neighborhood stores (Minimercado Extra), cash-and-carry stores (Assaí), gas stations and drugstores.GPA Food’s business is classified as Food and Non-Food (electronics/home appliances, clothing, general merchandise, drugstore and gas stations).Viavarejo’s operations consist of bricks-and-mortar stores selling electronics/home appliances and furniture (Ponto Frio and Casas Bahia) and online stores (Nova Pontocom: Extra.com.br, PontoFrio.com.br, Casasbahia.com.br).Founded in 1948 in São Paulo, the Group is present in 20 of the 27 Brazilian states, which jointly account for 94.1% of the country’s GDP.

 

Disclaimer: Statements contained in this release relating to the business outlook of the Company, projections of operating/financial results, the growth potential of the Company and the market and macroeconomic estimates are mere forecasts and were based on the expectations of Management in relation to the Company’s future. These expectations are highly dependent on changes in the market, Brazil’s general economic performance, the industry and international markets, and are therefore subject to change.

 

 

SIGNATURES

        Pursuant to the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.




COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO



Date:  February 20, 2013 By:   /s/ Enéas César Pestana Neto      
         Name:   Enéas César Pestana Neto
         Title:      Chief Executive Officer



    By:    /s/ Vitor Fagá de Almeida            
         Name:  Vitor Fagá de Almeida 
         Title:     Investor Relations Officer


FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.