CBD Cia Brasileira De Distr-pao De Acucar - ADR

Isabela Cadenassi Investor Relations Officer
Guillaume Gras Vice President, Finance
Jorge Faical Chief Executive Officer
Carlos Mario Giraldo Chief Executive Officer, Grupo Exito
Joseph Giordano JPMorgan Bank
Guilherme Assis Banco Safra
Helena Villares Itaú
Joao Soares Citibank
Robert Ford Bank of America
Andrew Ruben Morgan Stanley
Call transcript
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Good morning and thank you for holding. Welcome to GPA Conference Call to present the Earnings Results for the First Quarter 2021. This event is being broadcast simultaneously on the web through web video conference and it can be accessed at where the respective presentation is available.

You can flip through the slides at your convenience. The replay of this event will be available soon after closing. inform is the IR also to the release site. like results company's available would you press that on We on the listen-only This participants presentation. recorded being mode in event company during and the is are all this when instructions session After the given. further we on will will to presentation, question-and-answer be go company [Operator based GPA's are as that the based assumptions statements Instructions] beliefs would on management during information made and clarify proceeding, to we of and on are they the the Before assumptions on available. as like forward-looking conference well call currently assumptions forward-looking they therefore, not These may are assurance statements circumstances on to of or and uncertainties events and not occur. as future may that relate depend results understand industry to economic conditions, lead that from operating results conditions, that should differ factors expressed general statements. GPA the forward-looking of in the materially and other Investors future those and could affect

to give company. now the will We Isabela floor the for Cadenassi IRO Ms.

Isabela Cadenassi

for XXXX. call conference everyone. and our a your session. [Indiscernible] the Hello. in Thank GPA; a be the CFO will dynamics Good The Faical, [ph] presentation of of of we'll And you have morning then the participation Q&A GPA. Jorge quarter of CEO first call our

CEO and of enjoy In Gras the conference. to much and have of Giraldo beginning we of CEO the for our addition the floor Mario you Thank Grupo very all Carlos going I'm Guillaume Exito. CFO, give to the presentation.

Guillaume Gras

in allowed proximity The total stores, lockdown in the about XXX% following XXXX. penetration was to Jorge of the to for sales the call. physical the of whole billion the comment leader increase the the reached hours were for prohibition calendar the group our team highlights day considering growth elements; will the due expenses first our first impacted BRLX the intelligent in considered to a the the talking the Carulla as Grupo increase Despite stores the a XXXX XXXX. at and growth the and the presented food then restructuring operates market aid factor before combined super COVID-XX Thank you, management cancellation to some challenging online also generated the BRLXXX stores of the FreshMarket profitability. grew reflect the efficiency quarter and in even non-essential. online participating of increased entire in costs operational of of restrictive WOW impacted last the this a carnival. a to year and million ESG topline second opening three, the prospects and negative operational profitable Brazil, scenario floor results in significant Grupo base emergency format us the sharp it our related up sales storage the slide on movement GPA formats year. group an improve Isabela. side comparison thank in had BRLXXX Exito. lastly, Brazil America. significantly continues Good at the against the And minus that Group of BRLXXX the the very by income reducing billion evolution be will the results million Group other reduction from loss to BRLXXX contributors BRLXXX.X almost quarter which that of and give for and GPA innovative and closing expenses Jorge reaches start one Brazil, against million. who performance EBITDA Afterwards and the net end of of I in measures of context for On and quarter growth in South in comparison quarter the challenges was e-commerce all X.X%. this million on stores Exito effect And our whose with in X.X% tightening of in of to presentation our GPA On contributed morning was In remodeled In would year-over-year I the performance of sales XX% in at like to of the our everyone. X.X% Brazil. GPA strong countries of the with financial I with GPA in for February by the will with of in XXX% adjusted total line behalf categories by to revenue the The such sales Consolidated this the we've Exito the the at everyone loss major

solid the sales were station were and calendar if And X.X%. the increase an consider X.X Now, resulting of evolution were mainstream showed they still let's the in was GPA we of operations our highlights than Brazil and In this the growth hours, from formats impact five. restrictions, the points of of there with to pandemic Total analyze XXXX in billion quarter and effect. growth X.X%. we are e-commerce living pandemic points of supermarkets. the closing each starting stores environment related COVID that when no drug BRLX.X of If in the performance totaled sales was closures, to negative a of Same-store drop country slide sales X.X% lockdowns store effect around recorded the excluding growth and the complex the and opening and compared exclude same-store calendar one the first with more we XXXX X%. the X.X of recorded Brazil stores proximity the

greater and in costs. efficiency X.X quarter to XX.X% dynamics commercial Our in logistic to points due gross the margin in expanded negotiations the of reduction

of a revenue. X.X% to stores XX.X% considering we've optimization Considering profitability. in In reduction improvement of in in distribution X.X%, a of marketing. addition, gain our year productivity with with net had We recorded our in optimize and and of this, centers significant expenses addition efforts to reduce we operational continue and previous with to expenses dilution

correctness X.X% margin relation last of expressive XXX This Our grew adjusted to one quarter year. totaling performance strategy transformation period efficiency. our control with in the evolution costs expenses portfolio of a and EBITDA our the combined same and search XX%, the initiatives strict the point rapid and the of of operational in and gain million, of percent BRL digital proves continued for our

Envigado in significantly million I last now costs will If a a minus result at In BRL million, percent million revenue to sales And the two BRL increased income have of margin peso. real loss we the our look they page results mainly of X.X operation, projects BRL reduced by from X.X%. delivery If against to impact, totaled net expenses when VIVA Viva The X.X our the BRL XX and That the consider on compare COVID the billion, include Exito other Exito, Lastly, XX% retail increased slide XXX same-store X.X%. we growth. the sales reals, gross that Sales X.X% year-over-year. malls quite or Colombian -- of which XX.X%. minus X.X Grupo when not VIVA XX increase Grupo BRL of and The to by to of you of and of contributed pandemic X% X. expanded is Exito restructuring by positive profit as achieving first points, move evolution exist growth. impact totaled we fell BRL gross of by the of estate minus we billion, to of positive fell the it total impact percent X.X Same-store margin Tunja. exclude line an did due to almost sales from the an profit year. a XX has the million in quarter XXXX, from points. division ex-calendar

margin Exito Uruguay result spending stable. weaker EBITDA a In BRL strong expenses result were a a double-digit Grupo adjusted Driven to like Just In by cash operation. an and Argentina, Amongst adjusted expense million, by increasing marketing currency, on it structure. BRL XXX the in EBITDA XXXX, control its it X.X and first efficiency operate, of a productivity XX% compared quarter GPA, keep initiatives, the million also the totaled percent local reduced was focused XXX possible as expenses. position of initiatives X.X%, these margin of of countries optimizing Exito to profitability, the expansion as presented the despite growth Exito in is solid significant that mentioning the in which X.X%. points worth to of

to XXX year. million, which million in restructuring against profit of million costs XX million, achieving XX BRL a BRL a contributed from were just XXX loss reduced as of BRL last Finally, net BRL Brazil, to

operational from in million BRL from of from million the low generation the of the continuing an decreased continues from XX% the of million sales million totaled XXXX. of times the To costs to BRL Gross next X.X%, year-over-year. BRL first slide and page, we leverage including which or X.X net the income the and past of improvement indebtedness of EBITDA X, improvement quarter, cash almost quarter GPA percent XX.X of billion XXX a the of end in position. billion with of in the expressive a of slide significant operating billion, Accordingly, BRL in with margin Other XX% from BRL XXXX. the we balance operational results in see of XXX to to over Group, which deconsolidation Group. consolidated the first of to of the showed controlling billion, BRL of reached consolidated were of with a Brazil at Consolidated sharply of of an XXX our net able growth million X.X debt And reduce of quarter consolidated XXX BRL is reflected XXXX X.X% have quarter net adjusted first year adjusted XXXX X.X the from and XX loss EBITDA reduction company a and On received expenses unpaid spin-off BRL great X.X increasing the summary points the totaled XXX BRL quarter to from in SG&A. the X.X on profit XX% thus in Exito in The debt the income operations. X.X you control of quarter growth times proving close BRL million related of first X, have and shareholders, moving BRL a reduction efficiency and these and EBITDA in to XXXX. ratio to Assai, million, last the XXX the of first can the GPA our a of first XX quarter level the months operations

I end billion cash quarter CEO, solid of the comfortable liquidity. BRL also almost and floor a financial a of Faical. position our this, of the We position us the with terms to give ended guarantees X I part With in presentation the which Jorge

Jorge Faical

see and our you Guillaume. talking e-commerce. pleasure also growth everyone. great a really Page talk very be I'd by Good QX to share about much, Thank And to results. to you morning I'd me. start XX. Brazil hope can like GPA to It's like platform here I major

for this on focusing we keep As growth. year, e-commerce

achieved X.X GMV million in Our first the approximately billion this BRL quarter, months. BRL over XXX last

XX% growth. And for first stores. see increase also after robust growth that we compared growth very -- omnichannel, in And is buy-in a we focused Xx that XX% a that only the year. use than more we omnichannel growth we customers' after is ticket is compared strong their And digital And very quarter. last brick-and-mortar by this as those which see to channels and are a platform digital a in focused in brick-and-mortar this on month. this month expenses above month see that to for this omnichannel So,

month with So want growth month besides grow profitability. growing want we continuous to after and we

XXXX was we Our that compared and to highly keep on to are X.X of first which quarter working on motivated this percentage increased profitability it positive points the path. means, already

on period like For XXX% highlight in very XXXX. to a same this quarter, I'd compared solid this the to growth and basis

continuous a for in growth So, GPA see keep and Brazil quarter. that this we we'll constant

our milers and for in Some We regarding Brazil. changed quarter. relationship highlights particularly partnerships last our this

March also May, This activities now, compared we and iFood. We started on last for by Rappi start period its our to also, started February, operating volume operating Right XXX platform. increasing keeps selling week already In we Cornershop. first And our same quarter also stores this miler; In we XXX operations previous and now have within we we James And in with and on work MercadoLibre also for we BXW. iFood. have Rappi. also growth started Cornershop more saw year. what to quarters. fourfold selling using last was will And with own specifically our we compared a with

will the quarter. will and Americanas a to to on this we And but will that Supermercado small offset also be this decrease strategic market So, loss we is us are sell that a loss. share, second now in and in decision confident we able allow small

it to still comes e-commerce. food leaders when are We

Our are And give are we market what programs our that ecosystem. we find actually our also And to is share is -- approximately -- customers XX%. increasingly we we very, very important. loyalty loyal see

So approximately are when premiums. programs of in also only XX% customer loyalty of identifiable. our but discount of and our the our see not sales they one and member And is e-commerce a participates

also we that's is customer. comment why customer marketplace. that a And we find them. to programs that's I'd important what why like loyalty and loyal spend regular our our see we So, than they more leverage on XXx that

Slide XX now. on am I number So

this on maturing disorganized We fashion full processes. don't this in the to quarter For first We grow focused quarter operation. in our want was with a marketplace.

tools focusing high-quality many service. really and to have right we that's this good companies excellence in technology are services. why on quality many with do partnerships with now We provide holding operations And to order in our excellent to We services customers. provide want

highly Our the growth. focusing can than almost quarter for week satisfactory. we month categories as what major XXX% here. results And week on a is month are after you this after see this see a see we is more X that first And

baby categories liquor, which These home we care we care, want to and So personal in and care. focus X wine, craft the ones cleaning, are on. expand the beers, care, pet

with partnerships companies selling large to have are well organized companies, We that very marketplace.

As Cobasi partnerships And a the shop partner established. care. already see pet have as, very which that Diageo are are pet that have good as wines, you for Grand selling here can is company. well They Cru we Heineken a these or we for

brand. brick-and-mortar we is, the if Pao stores Now Acucar talk important it's this important to de and about underscore how

So, Pao growth this confident of continuous de highly our Acucar brand. total on and on are accounts for and and we XX% this brand revenue this of constant

Although we consider when in cities e-commerce. But actually moving or different going the consumer of the also state. the migration of of do also more consumers see inner a the in we now series And profile we to into change on part coast is the of quality. variety of global see it we a a in that decrease focuses de is a on this the have brand Pao income benchmark perhaps, here Brazilians. Acucar And broad online comes And when products participation. grocery. of fresh to

-- new plan. this a have So reaching throughput Pao successful XX peak quarter. first the also And consumers' new accounted implementations are stores XX% we de this keeping and concepts for want revenue. from deliver in roll why or Acucar also had we that XX% We that's And that for roll we XX% home. out our these stores out will And more. even or for to stores another at

stores, five new this expect years. stores we in next to So Approximately stores year. five three new XX the open

many are to partnerships. we factors, new real are for many Our an plan also gain estate number opening starting on is XX. factory companies, have now do With but based examining we momentum. And stores. expansion we Slide expansion

stores Here we close time. But have were addressing growth format success also despite ready are of proud proximity that we see if are format. expedited closed do to and especially for that XX times, these growth of consider this for format we consecutive you are challenging to for this very some an offices quarters, the we double-digit

underscore language] in and and Aliados pursue are working the stores So success. next format, are very to in de Minuto Exito using or also particularly And the three a XX BXB we approximately is model. Acucar like another also this more we profitable and initiative. And to order Pao to XXX in I'd a we organized our year. fashion they expect huge [Foreign which compared that country. in open years in last XXXX, to use with working

Now important. page XX. Other also formats is that

did this this three the years. in of proposition that that ended and markets mainstream region. the value quarter, for target So some in other supermarkets. In we conversion we we And format,

same-store is very two growth. all X.X%. So combining we see a synergy businesses of important which we a Compre now their to exporting successful these Compre have two-digit a Bem Extra Mercado And Bem growth in of implementations.

neighborhood, had or meat the example more why so your stable that's successful. butcher department For that that bakery in prices. you And Bem is Compre

Bem. On the other exports Mercado service also hand processes to and Compre grocery processes, productivity processes

see in And why future. in talk about between quality. Mercado high we these groceries formats Our two that's near expansion Extra and present expect the we synergy to

hypermarkets. move let's number to Now slide XX

suffered Hypermarket We quarter. was that proposition. chain most the are expanding value new this the our

we year, the a during this well of in stores Not hypermarkets some last highly So March half that very measures faced that restrictive stores to of expansion year, as last were of second on mention contrary, for home the XX strong sell we example, restrictions a as closed working saw reduced or to And appliances. had year. hours. partially weekdays

cannot alcoholic stores the carry consider a based stores is unseen this Some working yet to this sell But and And cash this that's and segment is conditions. product. appliances company home in extremely a of hard we Once have we prices. And and were proposition price, inexpensive sell of cannot food our strategy If many format. for country these this our have more we strategy customers. again on appealing the beverages.

interest prices rates. better, the our and were most at find cheaper. the low or best more specially compare want very no also much that rates by this to prices we And and inexpensive find appliances to have cheaper They prices. we So advertised interest home can but for consumers and competitors

quality So Açúcar de Pão experience. and provides variety

overnight, in in remain consumers does that minds of this. firm aware but are we price change perception the not We

prices. keep this the will you we perishables talk You working can in see when on hypermarkets. differences we And conversion of see can about on

whole. find performance very in underscore very In results, want to and I a brief estate we which as healthy presented Now Colombia different Colombia to transition a segment, Group Éxito good real to performances. Countries a a Colombia, that. business core is the particularly

of not that So restrictions in Brazil. of but of conditions small is although faced because for Colombia it Argentina, In of revenue our operation, it's also a the because important. X% pandemic, and accounts But many macroeconomic we in more that the country. only even

So our not cash. was neutral. use cash We did

by of was the our had the tourists in a different So points. in in XX impact in Uruguay, is -- that the And country. welcomed of Uruguay a parts tourism. a -- In strong EBITDA affected in above about country in that highly drop summer, many But that Uruguay. is double sales Uruguay still EBITDA digit on Uruguay's spite

focus Now considering more the for Colombia, And let the second that's that major digital me faced as Stores say important. why And of And the implemented severe restrictions. one in is more as on platform just Éxito. Colombia. stringent platform government in the very in wave digital Brazil, restrictions Brazil. just that I'd platforms became

So Brazil, about talk In global total number considering that benchmark was initiatives. a X% Colombia business. e-commerce. we digital that in increased XX%. different food our when really considered growth is double, more than And accounted of XXX% for Growth

for nonfood, had participation, see sales you as for home participation And can also in As of Colombia. accounts the important appliances. we also XX% of almost that

for more And that models the the We partnerships and a highly nine is this X,XXX leveraging Very They it above our also slide on It's growth sales a following format new on And Éxito with XX% innovative with is and does now a move important is very, Obviously impact points Colombia and WOW well. have number And growth. -- to XX stores model. with vendors a not WOW XX. in in it's services. potential very country. of So -- more in this store. average. growth that keeps Éxito working this very model successful. on account digital total already new that very have mature Éxito let's XXX,XXX rather. sales focuses more called than implemented Éxito marketplace Rappi than

So down. X.X% considering we sales had but if consider same-store you locked

close low-cost a -- the wholesale stepping already accounts this launches differentiated format not the near seven price has our premium small format, XX a speaking the future, seven points due Now is but expected so reaches of more that, stores has but moment. XX%, about to Colombia XXX,XXX products cost and growth for end-customers express above In with build Inter. BXB we Colombia account this for the Inter again, similar this malls, experience once important new to Surtimayorista, are launched help other part. online in Surtimax with Inter also year. customers And to stores. year. cost grouping & a in divisions they that this number small square of On to almost Carry. new innovation see supermarket on format formats. Colombia strengthen stronger which Super XX% slide which real-estate and other in new lower impact since even They players in situation with and of that I a is sales. of Super stress, experience in be Chart share of market variety back period, various calendar, it restrictions is lock that certain real-estate important That Carulla's XX%, tasting stores quarter. year. format Quite has it in next market seven maintained of that of And fresh meters of first the with in our and over is formats about in quickly to innovative sales. part -- shopping services chain, service stores same average you -- in Cash quarter has segment sales of possible this it presence talking businesses is had rate On Low Carulla, trail in mall to format down Colombia, It's for of stores. that should our standards, in Super Colombia. for for initiatives slide. of of that The the other to Other going normality. closing an sales very consumption important seek Aliados and this those, difficulties words is Colombia's slide it various regions are fresh to we low-cost in which relatively quite compare even evolving lockdown which CINA -- this over still important the XX% last XX% rate is [ph] occupancy occupancy that Brazilian Colombia. go in one-third grew chains. and GPA XX, for XX In Puntos two is that results moves we're high stores Other stores of this open -- Colombia And contribution Colombia. profitability an individuals group. sales when are, is suffered is This boost various comparatively stores that opened the the one. XX and say back

that access Exito country. of have outreach the of also signed and this over partnerships currency an have, the already We loyalty of the year, that in in the of digital highlights launches services one-third to Colombia last are wallet Group. XXX there population So Financial currency.

the we operations. as but not last we presentation say of is to have a slide for countries priority all GPA, XX, remarks where Moving ESG in English, onto my least, final in

but part, and the agenda. mobilizing second agent. say taking in a social be on group -- that environmental We a the to governance responsibility We have doing just a has your it's not commitment a enough GPA

in that quarter, had initiatives mapped to the regarding growth Brazil. strong gas Brazil in the in here total years. fighting climate a reduction strong changing we've that of XXXX. the year, this market XX% stores our first forthcoming effect. have of GPA, all quarter examples change refrigerating past migrated reached energy-free We've chain XX% the gases regarding It's to inclination the major In of waste greenhouse Some had energy and consumption reduce in the solid

of in sustainable to our obviously working livestock the adhered our beef deforested. illegally JBS major and ours to society group regions and consumers partners that have purchase are ensuring also along We with of Marfrig, not

our to had main chart hunger Latin performance have just best to our roles Q&A, on Our than Last is managerial we and food. internally. Exito social like more the This sensitive women And word the have in It's initiatives quarter, that one-third customers. donations social we country have the a mulattoes. recyclable and move part more in sensitive focus tons we time means the supported as employees quite very collected global an donations XXX Award. to made a industry leadership In time that in direct And for over in food have especially, almost in reinstate of half to is addition is and have our increasingly to of of At S&P the X,XXX messages. on so black my cornerstone this people also waste. black trucks agenda already for practically, time food we America. food we the number we at And declare the April, And that NGOs XX of positions. dozens-and-dozens we in by that, country. themselves with social of we external Exito, strong can however highlight a

with the increasingly and rollout digital formats. escalating business, maturation continue and platform new Pão part taking We accelerated, our organic Minuto de expanding in concepts expansion of Acucar our Pao and and de the Açúcar, actually

increasingly Açúcar, level the can experience GPA. continuous Pão de of to obviously of Carulla, sustainable to Exito so a a of and in very open that are I'm part. de and level more growth of territory Bem, continuous your of we Q&A. with will Colombia our higher indebtedness and Thank now, Question-and-Answer Uruguay FreshMarket, Mercado you attention reduction expenses and GX And part, on focused on much my more this, With price we for and Minuto of -- going I So WOW time. pleasant with the Extra territory Acucar, our enable in enabling this store. much reduction close reduce leverage the for Session hypermarket models And repositioning more and our Compre financial Pao Colombia the and


to from JPMorgan for going Bank. Our [Operator Joseph the comes Instructions] open-up we'll first Giordano Q&A Now, Mr. from question session.

Joseph Giordano

my understand you consolidating We in everyone. format a you quarters with I'd so Good in of actually explore hypermarket. this marketplaces. of it's that quite about what talking considering the some hypermarket big? is explain see for like I'd Hello. like growth. only taking for overlap question. similar competitors bit below a the bit that company quite morning also see to terms not Thank Pao the performance especially de Acucar, stores to competition, would We're little on the you

Second point.

bone, brand. the banner about or thinking So

people some leaving reopening is the the digital see if this is your that second share adding sharing the more back. becoming So see do of basis with you? bit you what you difficult. within of Sao terms the And the sharing some the strategy, aggregating how in quarters the marginal And take Paulo start see a cities or factor in data aggregator outlook point or for because with you forthcoming coming lastly, is the

next how in the terms the Okay. were viewpoint And of the for prospects growth – of see like and the future? The company days for know the to for strategy I'd on quarters last XX difficult. March the company you

Jorge Faical

that each impact competition a different have in the some been like competition our has to you proportions, businesses to different sales suffered everyone are for mix that just Joseph to questions. you, again. restrictions led on impacts. one different different, slightly speak this Thank to suffered Well, quarter Pleasure some compared competitors

up. we're were now of against sales decision local made our over observe and measure. our the came the those going regional to What platforms appliances the strategic near able seek. purchase especially end and direct growth we consumers assumptions. QX at the the were events partnerships on changing fight of you're milers. competitors online focused for We electric We're basis. started we of observe are our we – with a on a mitigation to on online. that much two robust a going in or fighting – this try that this that very that bit growth collaboration and and in in last future see milers. appliances is of fact recovering focused the made to growth focused using managed a focused planning, We to on say, market those decision They're digital some catching let's competition competitors, have the We is And competitors their and last that behind or to of for XX% from direct actually Some

As focusing you categories not appliances, we sales. online yet know, household are on the for

driving We this on have in a share bit online lost appliances. market of household

very And in this much we mind the this its hypermarket will our first cities is confidence on are in some price perception firm stores that and we have of very much positioning. a point. appliances with not what at has competition are consumers where betting new it already position positioning, in that's considering household main have and as we're are I sell there direct our that question the well, mean that some highlights. Well, going territory that faced We price changed. to which factors we first you, your doesn't see are These to – price mentioned absolute change perception in

in Our market share micro been specifically another food already those has proportion. in regions happening in in gain cities

de also had in because in quarter It that Pao. milers. expected. the last lost the migrations not Acucar Your has of city question was this an impact wave second regarding Pao in

difficulties, with de through share strong first believe, much does quarter. in territory proposal future have maintain one authority up our Pao fruits and very yes, market said, the or two And you in its the we or quality Wants is about I share matter As terms de assortment, go share did talk Acucar legumes no that market land When not how bakery, of territory. vegetables. of to its loss price, take a Pao of of perishables, want Acucar of certain and with and its the or we to in go expansion. value it's quarters, we

to the food already retail recovery quarters all maintains As when good loss and strategy outlook at time we is we the we you share. a a country rates. there and drastic When have and we Even due through within growth we future our had some considering have retail, for the that been moment that strategy services Joseph. our food losing those environments could impact see market total sound market of resilience the observe, explained, are quite the broad have had is share going is retail confident the expanded

recovery was you last the of quarter suffered term, it For food, should the April, a second March, of that have still confident we're Brazil after and abrupt certain that the year difficulties. where reminding was than situation is early shutting May semester impacts April. short better rates a month with the difficult of second last April this restaurants, QX late starts in but difficult in our our those from the the with QX peak in year country But more year. or And should for maintained compared for April week restrictions retail we mostly bit be very levels down considering April benefited Colombia. week second are to quarter recovery when be

Joseph Giordano

much Thank Perfect. Faical. you very


from next Our Banco comes Safra. Mr. from question Assis Guilherme

Guilherme Assis

question change everyone, Hi. is recent. Guillaume understand like that of I'd to Faical, Good Mario. this the of and delve Extra. afternoon into I at strategy this

the been have stores stores. have of in implementation evidence that You some have -- had

the strategy to margin you and there. impact margin formats is I to ahead So that's as of there's example, price complicated where a something the can And of there's managed know EBITDA margin sort I'd the impact I the okay? should categories, that the that happens for GPA in for whole? And the Extra mentioned the Brazil we gross stations are and that pandemic the update have. if on translating I you gas have profitability Those that of a expect result assets gross electric to know rollout have, categories has that or like gross else. in as abroad in happening, in update looking quarter And of the know I'd stake is also talking to company and demobilization margin have is margin if impact is sales Brazil perception relevant on -- But a and question This both North like the time Faical in the to we gross about the an want questions effect question an the second And format sales and of some for this to I'd appliances. seen. be and into maintain various the is like understand the in Uruguay? pharmacies I'd can of understand potential appliances like speaking I we of an positive recovery. where understand Cnova you specifically whether

Jorge Faical

It's being pleasure in talk you. it's you Growth for Thank you questions. margin Thank not hypermarket to a affected. great your to Guilherme.

rephrase with me point dilution the EBITDA by is expenses let in affected using of approximately, not decrease decreasing see it. gross that's We So being Hypermarket its positioning. one a this format. but margin offset by expenses

same As at end year we the strategy. are last and we mentioned of the using

in a are based but understand volume, the fact. which year but reduced the very does It's period hypermarket. a in positioning price now always EBITDA price a price. we really the mentioned, in what this will not concern. perception, I for As are consumers half right last any of impact. Hipermercado We optimistic, And have on we not are in inexpensive and that saw behavior cautious. react really, we evidence wholesale consumer since in very this longer of our we cities understand the have changes And Hipermercado we is changes is The time

to Guillaume. As over like selling it I'd assets, for to turn

Guillaume Gras

new you. right share to selling us disclose. regard or to to allows that now, Thank With assets, there is nothing

still examining that. As for Cnova, are we

get perhaps then analysis. are We in to and make we we this quarter the and afterwards. to like I'd is studying GPA asset second an this this best that really say to announcement for how close the value involved in expect can also

that will We Eleazar possible to have for really us the we is value this obtain -- independent three Directors, asset. participate an that Cnova, members Board allow of of And Board also best Eleazar. member. And

Jorge Faical

Cnova, just a being But potential I'm follow-up are some still the mistaken sure are there I still operation. I'm about if studies not conducted. what So about not about that read

for I the offer is the up refers are take know So could there a in to but sell it to understand if Or XX% commitment also keep XX% understand don't if I be or have it subsidiary. really offers with considering on regard to an don't But strict still discount, discount. on up this the to that agreement don't preference of of what from I on Cnova? the to And Cnova. GPA would shares seems you done based is GPA announcement if what's going know. I going to you

Guillaume Gras

we And on that very and on emerge the impacts will scenarios. the there the is -- for to Well, that different consider one. will of studies. outcome of these we need obviously opportunities will depend scenarios that impact depend different and to But need are And different clear understand once possible each again the that the monetization.

Guilherme Assis

you, Thank Thank again. you much Yes. very everyone.


from Our next from Itaú. comes Villares question Helena

Helena Villares

the Hello, taking question. you about I'd for everyone. ecosystems are my like Thank developing. you to that talk digital

please the on have for next been also the share And last talk margins? you what can years? what You to your how some can So -- a that five expect Thank does the you the milers years? discussing impact have you. what about color little over bit, impact on strategy

Jorge Faical

years focus on we that of question. achieving our But for relevant goal. have in the most digital. want will know to This out that In foods. players we we Helena you, to one five stand for already your we Thank be where is

So our major on platforms categories. focuses

platform. also the are XP. about our we be mentioned of I other which our As call cleaning, what counter will when personal sellers in strengthening I And major beverages, platform, pet in And I'm have And platforms. I'm the care, selling sellers we say market. platforms about also care. XP And on selling talking will talking we we

the platforms. are I Just expertise market. really food or and or benefit we in the platforms will last mentioned these will important sellers major And in distribution the these from our as MercadoLibre i.e. very major we milers BXW be

our we site and strengthen our sites So partners. of will we also strengthen will the

border Obviously well between that's how collaboration e-commerce -- will And planning great area. we are loyalty. this and work. the to as that as competition So going involves is become a

as strengthening our consumer I knowledge data -- are We data rather. on mentioned on consumer

We distribution our to the sellers. of just quarter and first center, our center of in services pilot have now launched are fulfillment running we still

add the we And next consumers years be are of categories let's relevant new not for goal negative But our is players. We five the our this need build categories categories And digital. to to more step-by-step. one see in don't any major to on go what for considering food. all only and impact So margins.

benefit it's partnerships contrary, our our we we aware competitors the of provide want moving these are forward agency hope are that segment, EBITDA We clear. but that margins. us increasing I we will also in believe transformations. these know to We take know this On in and in competition.

Helena Villares

Thank you very you. Thank much. Very clear.


comes next Joao Our question from from Citibank. Soares

Joao Soares

those marketing that of and channel And take we migration your consumers' this other perception on But of consumers everyone. also profitability taking question to are the to you is ask to MercadoLibre? of morning, can accelerated follow-up you in on this a for about trying accelerate the still My like a my on profitability growth little using elaborate channel. such off-line use what's you also the this online? considering also Good to see I'd as question. Thank platforms digital. also also Hello. talk bit

Jorge Faical

All right.

let address partnerships So marketing. the Partnerships. then the and talking me and I'll margins start by

them we responsible goods have send goods and distribution home. logistic of and for are center those partnerships GPA consumers for different them example. types services our they to for with MercadoLibre We taking MercadoLibre's at have We

ship-from-store a Now It's concept. stores. work with with our Supermercado now they inventory from

for we in like that. already that our ensure on fees negotiation So in It's types agreement based we Obviously, costs. agreement. mind partnerships. and the of disclose that business. And I'd We bear fees have whenever to different order year are mentioned we that been last reiterate are important -- different of different about they talking just and two on working different an to to months to profitability

be want Our not not produce growth. a profitable digital loss. We and digital disorganized will growth will

partnerships, these partners we if that these establish even some it's benefits. mind important us bear provide to in So also

on that negative or have we And low will at negative profit. they not So I announced a digital but a of our margins. that can very impact because of very growth that ensure profit proud know you some are competitors we digital the our growth

lower and like to of month-after-month, we marketing demand strengthening with partnerships are work two thank strengthening also department. important our As publishing we besides digital or for -- again, companies customer Facebook, with. to Google opportunity companies Once cost I'd our the partners acquisition us this and take

Search. target provide We can we also a our wherever We great number Google that hyper performance we also consumer. a improving our and of identification And individual to even using of we an hyper are, is and can consumers customization. really do are have consumers deal go and they by customization. So and strategy information IRF guided growing following

For using we're allows where example, in tool a as users such us SDK our are. app that identify to

to our in the go whole. a marketplace the to So best technologies strengthen our as but that I don't want and using into technicalities, platform certainly we are

specific you answer If you more we hope Joao. Thank are clear, you. have more information question, any question, Joao, need. my I we a if provide available, was so that can


[ph] question next Felipe Our Goldman Sachs. from from comes

Unidentified Analyst

inflation and add you on everyone. Hello, color strategies some to your fight Can please it?

Jorge Faical

we thank for pressure and compared that last it’s question. what categories very see talk many is, about inflation year much to we stable that When Felipe, for we you your have.

relevant see quarter, this not price for decrease any we For consumers. first did

rate. and price For BRL speak are of a right companies that's increase saw exchange some raw our that using that materials now dollar foreign exchange we categories, stable, that at But are are particularly now those and imported, we adjusting rates. because manufactured to so work is is X.X what see to

not to tables. have decrease consumers. did this see that we of new and for And So pass over first have we some to did also cost quarter, course, we any

cannot grocery. And But Now right a for for that's we say vegetables, for a particularly products, see in a trend. QX, saw example, now we drop. to decrease that some even we expect

we very may we that or related other nor we resell. And weather, pressure. Thank why be and price -- don't increase, that So products factors. We to that that's much. you think we when conditions very neutral a decrease inflation many find major see about sell seasonality, environment expect


question comes from of from Robert Ford Our America. next Bank Mr.

Robert Ford

my taking for you Thank everyone. morning, question. Good

this in how program profile please? What's evolve, And the it expect so to Aliados the And do what Brazil? you about business? of

Jorge Faical

I'm Thank launched not ago we Brazil three you, in Robert, if mistaken. XXXX, for the question. Well, in years Aliados Aliados XXXX, -- well,

The - -- in maturing business rates. adjust BXB, started in terms hours that there -- When business, period, XXXX in year it logistics especially first were satisfactory was with at our rendering, to The growth mid-XXXX to logistics. managed two past the the the was we service XX experience XX%. growing very delivering were chain customers years, of the

non-marginal proximity logistics are We quite small chain logistics of distribution in this our to still format. -- Paulo. same about to own the is our sales We This them going numbers. a distribute use to makes that They're I'm stores. same significant. in limited significant specific proximity not Greater retailers. already the using are area disclose We're numbers distribution São the talking numbers There here. of those

side we be we the that contributes in And chains, is just It also that inter we next zero. times in interesting infrastructure, practically increase array, has CapEx and in managed and does minor CapEx. segments. to grow We selling and And fresh and serve the And more today it's of GPA. that this will say, clients are an things, now satisfactory. a and contributor our is we refrigerated It to the profitability involve or years year, new high. the our costs Paulo CapEx over we practically positively logistics can some EBITDA for have some some of that use CapEx. of no is but is perishables São have migrating are business the negligible, categories, of X,XXX quite are not Aliados I'd positive non-refrigerated GPA. kind products. of through digit it going Many to a to These one -- profitability our is and revenue

Robert Ford

consolidated, is this being business where And please?

Jorge Faical

consolidated This business is in proximity being business. the

Robert Ford

Okay, very much. you great. Thank

Jorge Faical

you. Thank


not from question in we're to Mr. English next be from Morgan it. going Stanley, will translate Andrew Our and

Andrew Ruben

in Hi. translate specifically very Brazil? mile if from think how use for I'm last behaviors, you they and much. Thanks is what wondering service? question. it's Thank last the the the partnership much you e-commerce your and when very Rappi frequency on consumer size question mile. use to could My that seeing Exito, you're And basket

Jorge Faical

talk Carlos, like Rappi? would you about to

Carlos Mario Giraldo

groceries. [Technical Difficulty] of

from launch stores, Rappi Medigene, of For that. think times and and service and going with Bogota, that protest, consumer we parts are to delivery service is the in [Indiscernible] we continue our of is and main going especially and affluent become XX up input establish stores alliance The in that are announced our social the we a the working most places we restrictions opening to for also but service delivery what stores of to from customers. Kali already key this minutes the a future of home expanding these in for dark has trend our absolutely

Jorge Faical

Carlos for see milers, platforms. last last see only milers food and we And -- drastic other We platforms Supermercado, answer through other consumption keep Mario's consumers a change online where of Brazil, buy. would on and we platforms to in here now change us. also Brazil a We like the will can that these in adding that and is Brazil, able on retailer believe be to the platform have, MercadoLibre the

consumers. of apps supermarkets of And convenience last to increasingly milers their their So, strengthening we the the benefit of aligned a country. see technology, to those of milers, wave large the usability in the last

compete part also websites. we see something to on So of on those beyond of going other actually is our going what change, are we on terms in the behavior to selling that we're website consumers,

So those through competition to happens platforms within market. time

basket, delivery -- XX-minute the country as promotions of of not this for and fresh platform was consumer Carlos the initiatives delivering XX, cost see on the from the having ability prices of products, a So ability the fair initiatives of convenience. food we charge saying, complete and

attentive And competition we competitive face, only trend the on in Brazil industry third So, face, that party party be in our supermarket through platforms to those of this will we not player very new specializing global are we're platforms. main platforms. attributes the all will third to

Andrew Ruben

Very much. very helpful. Thanks

Jorge Faical

Carlos. you Sorry, add like anything? to Would


next Our [ph] Mr. comes from Paulo from BBI. Jan question Bradesco

Unidentified Analyst

consumers like on service platforms. a morning good and I'd on ask all, of of your to question regarding results. congratulations digital of quality First

your to own You've compared market. other platforms the the talked about or partners

-- for Thank So on considering you KPS relevant? initiatives that? whether KPI If you. what's are the NPS and that's you comment envisaging could the

Jorge Faical

that are your we customer own Thank actually you the constantly we is order think three they were delivery significant reached we we what we or of our for satisfaction much focused for consumers. NPS perfect past platforms, and of very question. quite KPIs that to deliver the what every that consumers two we week months -- of of levels consumers call which quite have Within What's SLA we've were KPI in look that is ordered. have regarding improvement a percentage

The it in is time. KPI as call in delivery logistic we Basically, second terms on and full. if time

delivery have on order of perfect the had flaws. picker above the getting inventory this to greatly So NPS. this every the and time and hour XX% consumers below shipping to And the levels and And customers is two what happening actually online the like this is around in the so obtained We when time. in that in order. totally the expect is those XX% we every needs and indices complete in XX% relationship full delivery past and hours. time, we third delivery. customer the And to first done of satisfaction NPIs we the the with is would -- attaining of of picking NPS are certain to and seek the In delivery desirable, integration higher or Many delivery of is quarter above to over still we're actually level, XX%. especially we within other satisfaction the On evolved have yet for our is us times words, have are consumers to at in have. today different three are platform. some presents level sounds is that some is rate. not improves low third-party integration a XX% that own levels perfection inventory XX%. around have of inventory that be dissatisfaction integration levels also not In platforms, actually cities at XX%, we or we to close products or in this to it aware process we cities, And from platforms, one

is our the I you I your you for So Richard world. satisfactory some key in for have managed hope digital examples growth give to customer to question? satisfaction

Unidentified Analyst

you. Yes. Thank


remarks We company. ended. is The would Q&A give for floor the to session the of like final the

Jorge Faical

you the We to growth this for through more much with quarter, despite We us. the cash basics as profitable shareholders our results, of stakeholders of through on Brazilian, reinstate and Colombian for our last controlling were growth, like our your to you Thank some a American time business and the would the year Latin sales the prepared of since for by reflect on our hindered first just defense much to shareholders. opportunity had we very time first dedicated that going that is economy strength non-expected whole. at having to quarter profitable volatility the

reflecting stores our three Our also have a planning from formatting past is to our productivity of been levels expenses reversion that positive efforts and initiatives our a negative consolidation of whole. and lot for always consolidating. about various profitability with costs new path are years The have strategic no the we a favorably made with are as a now It been to is growing GPA business. we've It's highlight that talked for a continuous trajectory. as American return Digital and with world company. road the it. We Latin over group

not are company. only Brazilian We

We company whole. for a as results. reach cash for the sound continuous sound cash have X lot Stock Exchange the that a in billion of helps that our Éxito and group this group Group Colombian to has is the BRL worth The a evolve generation

to terms results. especially GPA for our of future. suppliers our Thank thank thanks for to our in partnerships strategic next confident, you my in successful we'd and confident Very with team, company of like you very development the much. you. very our another are all of the partners, associates all in internal quarter time. We the Thank See


good GPA closed. wish the very for Department questions of group and and is participation The call you IR The answer a you earnings to further conference doubts. day. We is thank your available