CBD Cia Brasileira De Distr-pao De Acucar - ADR

Guillaume Gras VP of Finance
Jorge Faical CEO
Carlos Mario Giraldo CEO, Grupo Exito
Ruy Souza CFO, Grupo Exito
Call transcript
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Good morning, everyone. Thanks for standing by and welcome to the Earnings Conference Call to discuss the results of the Third Quarter of GPA.

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participants of company's instructions] microphone and [Operator disabled. during have the presentation as made that the conference out GPA point that start During operational contained will Q&A assumptions and in and statements we'll and this the the goals currently well the available. management, all presentation, session. projections We Then be the information may business of financial regarding the information company's beliefs constitute prospects, the as any

circumstances those should and call Jorge Faical; other for Forward statements. expressed economic CFO differ guarantee risks, future materially from performance. looking conditions, and involve understand conditions, are could may market could factors Exito, that I'll GPA They of results Guillaume no and to not Giraldo; occur. Relations Investor Grupo Carlos may CEO CFO to Gras presentation. the Gras and Mario Ruy Today are that Officer, the that the Grupo lead Exito, in or turn depending general Investors assumptions, GPA's affect and statements with CEO on operating uncertainties and the therefore, to of of us Guillaume of such and him Souza. forward-looking results start

Guillaume Gras

compared the Slide to by strategy also the consolidated present over numbers Four, rate X.X performance will thank to in dilution and the The of environment, and or would financial hand on decreased business same to of the of I BRLXX.X I morning, the the Jorge a of compared which for In year, you attending who On and the talking I of consolidated bps year. you. XX.X% SG&A, floor nine period, Thank group's the challenging quarter, will everyone. briefly performance. the and the control about presentation call XXXX the quarter start like we perspectives. QX results the for third Good GPA then Group. highlights bps last by this we third XXXX, of our line will earnings operational of XX in growing with the totaled in to the by 'XX. quarter billion of which maintained sales period in first months a of strict presents comment

the Our by period discussed X.X same million be year reached consolidated an which the line in first EBITDA in last nine we months, versus XXXX. will later. that down period points In BRLXXX and XX% the EBITDA higher BRLX.X than Brazilian with of activities, impacted the XXXX, billion of of had

as the of order seasonal quarter. a of account importance were as a that 'XX, our by the 'XX and compared third BRLXXX GMV had online in drugstores, and the of seen rate business Proximity Christmas the X.X% GMV QX put high and than that XX% which million food to is In in higher in of XXXX, In in same even Moving such the efficiency 'XX to effect productivity were gross grew highlights the mitigate expected, strict improve months first order the SG&A of the of growing in In QX effect in effect X.X% sales of versus in line quarter, Brazil, the unemployment the double-digit still discontinued in strategy. formats of Friday. the months will results the also XXth operations investment below in margin the which excluding of margin the the in prices and quarter more and we nine XXXX now, some with of consecutive the context, growth remained carry. and comparison to XXXX. by Brazil, of continue XX.X%, the of and XX.X% From sales Gross the rate both difficult work five we the period slide of inflation promotions, and which In and point high mitigate X.X the between and nine of distribution of of broke in strong bp quarter the macroeconomic record was XX.X%. cash this XXXX to grew for are of posting quarter when and first E-commerce reaching operation growth at reflecting centers. announced XXXX gain hyper repositioning in format paper nine view, rates our and inflation, versus QX the was versus resumption group's of vision In our that on be competition to control the XXXX. for quarter. period increased revenues than the consumption. models QX a sales, the this GPA recovery stable margin, and presented unemployment holding pressure we strong extra in price, the QX regular the stores faced store month back that mainly much XXXX, Black we

to last of dilution months. of the XXXX, to months last the of XX.X% quarter, net initiatives X.X compared revenue level This revenue. X.X delusion In year by reached XX XX% nine reaching net first we of bp the implemented a the over had driven bp of

quarter the in which loss last includes rate impact. to the by remains an quarter XXXX, X% driven consolidated we date XXXX EBITDA quarter, million At presented in XX XX.X% increase in XX.X% largely XXXX, down when year which third third to foreign company rate. six, year, rates, prices, economy As to by exchange at the reaching from of XXXX that exchange by value concentrated the versus the effects, we Exito and constant results in onto million BRLXXX recovery. was a investment year of penetration and for sales Exito Grupo in events, compared drop strategy Grupo of to the BRLX.X sales accounted as XX% of format, stable Growth Slide reaching the both bps driven versus show by of of reopening the of positive and Colombian the with The compared compared sales of of total last points continues Well, billion negative BRLXXX the results third XXXX. is third move the to digital hypermarket quarter these where an result of a the adjusted X.X grew commercial sales. X.X% quarter against

customers [indiscernible] in inflation in growth in and galleries. complimentary from the recorded Tuya an of estate the last Grupo finally share in potent that both countries and the all Argentina, regard worth in traffic negotiation inflation profit result expenses, recovery activity Exito an XXXX, by important With expenses better efficiency performance its complimentary third up of they gains the restrictions BRLXX Grupo such In contributions in was physical expenses context the and greater in X.X% increase stores, sales, of improvement stores Columbia stores? and with BRLX of the against has above country good the to with businesses. of and in mentioning of addition In a business, as net result operates, of reaching delusion billion as below year, it's real to card digital increase and in the in this managed where a activities. the we In driven reduction in with and circulating below of of totalled the revenue. operational suppliers gross in Exito an grew to quarter inflation improve XX.X% Thus the credit

amount of to XXXX, X.X we growth adjusted the And As low a in EBITDA reaching third these EBITDA. quarter XX.X% It's short-term in versus to third compared BRLX.X still presented position, ensures effects, with the an like and a group presentation impact from of to an X.X revenue. million stores adjusted quarter times the over floor ended result of important the billion. kept of end cash in to our would that XXXX. level you. mention our leverage turn net corresponding quarter BRLXXX here the of Slide haven't third two the which to this my the position XXXX finally BRLX.X Thank margin excellent at of of transactions bp we quarter our debt, a seven, We on I the times EBITDA now X.X% The and George. liquidity. had hyper billion we I

Jorge Faical

call. and for I results results Guillaume. everybody. on will for to up our earnings us of the of factors the date highlight of to joining Guillaume year strategic our Thank Thank operating showed business you, you everyone us QX

has our GPA some our stores. in close XX because the converted is XX within to We and transformation is carried order assets QX, of understand This our GPA First and to site stores We're be four recent strategic a the not highlight transaction its the most in hypermarket now in decision points of and it exit the in foremost, This call transforming strengthening I'm to important that important only is to this performance out country. announced this billion, this to understand stores. or and carried BRLX.X of Ex. out and We a is them Mercado format. story stores all but transaction in format transaction also a XX of stores these all going future. remaining including of the will to

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[indiscernible] E-commerce positive reality to is have through e-commerce. obviously that formats country into do we that in brand, a show Here, groceries the their our and proximity trend buying

more Now our we foundations structure basis with retail. much the have of leaner a and focused main will on this, with

to out to better here day, logistic broaden a operational to shareholders, and in results the the our order are provide focus of customers. the also We to stocks. or day avoid retail strategies, change quality going providing on only These value going our customers, on best of operations our and but to focus our are not we're service to best to product more on to more assortment

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you with going to number have of of that hundreds one, this great is that neighborhood it would be convinced compete there call These for these is first are in to is and three in are green pillars. stores. country are order a grocery the stores this GPA this convenience in in pillars format of believe because mind, because a success being would we pillars, new GPA We and strong bear the three that are more the the can demand achieve I we expertise opened. the result I formally, growth format units work leaner growth. This of And futures and that to like GPA and because what fluid deal a faster to the formats, the

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Soares Joao Our from at instructions] analyst [ph] comes Citibank. sell first question side [Operator

that ask we're please. Soares to open can microphone going [ph] so you your question, your

proceed. may You

Unidentified Analyst

you me? Good morning, hear everyone. Can

Jorge Faical

ahead, Go please. Yes.

Unidentified Analyst

And Thank you for the a idea opportunity dynamics is the to the to ask for the on understand what's question. side year. promotional our

macroeconomics. some had terms difficulties You in of

fourth looking to main be the especially the for we refer XXXX, you So positioned the what group, are to going [ph]. ahead And in have when mind Suka XXXX? banners in quarter how for do

Jorge Faical

that In quarter we for quarter, going Felipe, a to the supermarkets. be the is that Thank understand with fourth question. the you, of this a transition

empty of in site the merchandise, goods, stores no with stores to middle our going no the are the We deliver to XX January.

levels. in we terms end So we very terms of cautious are are of year. promotions the in very of And the purchases for the inventory the cautious with

we're to sufficient a opportunity. -- So a are adopt going creating destocking of going we to model

are going going are we proceeds out Friday is our the are those be Part to those going stocks So Christmas used project the this marking used be inventories constructions have as and to for to our also costs. and and down also part it, to Black of related stocks of site. to of sell our or

going So as like of Fridays the the selling Friday stocks. was on is so first first say -- Black years the the to very Black focused to traditional be in United the States that in

to So intention. store out our we going inventory, the are sell

there They're a to promotions. focused other demand formats, from is on more growing for consumers As price.

considering key the price So is situation. macroeconomic

are high. the probably and of gone is very when we that inflation income low facing distinct the We situations is the most through one very have

price So is now. key

important So Suka a to Christmas. are for price is and have Black [ph] both component Friday going price. a related to key strong factor for and in very promotion Mercado very is promotions,

some growth that weak. expect XXXX for Christmas very was considering We Christmas

So to of we have gifts repressed may a demand families. an a with their expect will And gather and expect situation food. for be that people we effect together where

strategic and scenario The For the our XXXX, are we midst is in cautious. very volatile. have of very planning we been

So it's to any difficult very of sort projection Philippe. make

would not to provide So risks like very take honestly, scenarios could I precise. to and be that any future

market. to happening to we point the the are attentive is So what's very that

can are looking that at We happen. everything

be be scenario somehow it's are demands watching any by very support whether that to We also us the a to government there's cautious. going but government,

Unidentified Analyst

Okay. Clear.

Okay. Thank you, Faical.


and pose [indiscernible] from question you next proceed your Our may question.

Unidentified Analyst

digit. another but margin know, I that know with your adjustments? pound? on have about XXXX, that very the have in EBITDA is planning because question close hyper hypermarket? to double have margin regarding you what see Now, And Can their don't for profit close to can [indiscernible] we we fresh, something You you visibility total the planning, piggybacking we when now how of double-digit expect is after markets

Jorge Faical

happen. this second are the model made question. double-digit Well, is to fresh, All Fresh, for I'll we start pursuing profit. the by business yes,

soon as as this for by, appetite of replication will what format. and go So we a months will two be know operation three

margin. Now regarding the EBITDA

Now, mechanically, of it exit the will increase hypermarkets. with

expect of We margin transition EBITDA an increase that the take until QX. will stage place after

will Something we right transition now, not I'm for is this next bps. in to year. QX remain give of end the the here of organic but end QX is But And you target observe at XXXX. perhaps guidance of growth. any going our will growth to

EBITDA between XX% and a entire hypermarkets. that have is new next sales [ph] digit, having will the this XX% the of Suka Now, with in year. in will QX of please we're margin Therefore double of natural the that bear consequence GPA growth mind be transactions as that it


Q&A company has over remarks. hand to [Operator the end. to I now for would to like And the final instructions] Our come it session an

Jorge Faical

Well, a our all to suppliers, of I like to challenging to because us I in as the all evolution that of in challenge us. would of partners We've for the the that company. thank well, of joining you thank one the participants, because this another. would constantly from This our supported QX of all it's have the being a undergoing had quarter the like is addition it company we're transition end year. a industries

and a a GPA prospect large, towards by stakeholders levers the going group entire the with and our with new shareholders, the opening. are we So -- positive growth business for that lever are

being opportunity new reality, Now, and challenges important. overcome scenario. And them in we a We continue there must is challenge the macroeconomic must them.

this grow year proposition, to an And used our our to the plans. opportunity value opportunity doing, throughout I've model. action digital, in business after we're the word something this is budgets, also to change after different that different We and have change

deliver. their operational Here pathways forgetting strongly taking still a and of but we have would and convinced focus on the our are Brazil, to country. a like without we on is adaptation customer. losing we bets the constant to -- to and about efficiency I effort, this team reality, GPA resilient GPA, convinced on for on we the thank the that power betting there lot without are of are the all

to you morning good everyone very much. and So thank


conference end. The very all and good answer an further have much Thank the to participants any come questions. is a to your disposal department Our at to day. has you IR call video