Brazil retailer CBD's quarterly profit quadruples

SAO PAULO, March 4 (Reuters) - Brazilian retailer CBD (PCAR4.SA: Quote, Profile, Research)(CBD.N: Quote, Profile, Research) on Tuesday posted a fourth-quarter net profit of 112.7 million reais ($66 million), four times higher than a year ago as sales rose and cost increases were reined in.

The earnings report was the first since CBD, worried about declining profits, fired its chief executive in December. It brought in Claudio Galeazzi, a seasoned executive known for turning around struggling companies, to boost sales in the face of competition from U.S.-based Wal-Mart Stores Inc (WMT.N: Quote, Profile, Research) and French retailer Carrefour (CARR.PA: Quote, Profile, Research).

For the whole of 2007, net profit rose nearly 147 percent to 210.9 million reais, CBD said in a statement.

Earnings before interest, taxes, depreciation and amortization (EBITDA) -- a key measure of cash flow -- rose 42 percent in the quarter to 325 million reais and 15.7 percent in 2007, reaching about 1.03 billion reais.

Operating costs before taxes remained practically unchanged at about 843 million reais in the quarter and edged up 3.6 percent to 3 billion reais for the year. The costs-sales ratio in the quarter effectively dropped to 19.5 percent from 21.3 percent a year ago.

"We can say costs are under control," Eneas Pestana, CBD's financial director, told a conference call, calling the overall result the best in five years for the fourth quarter.

"Obviously, it isn't the result of Galeazzi's actions yet, but he had a lot of luck," he added. "He will be looking to revise the budget, reduce costs and simplify the structure and management so we can expect even better results further on."

Net sales rose about 10 percent in the quarter and 7.4 percent for the year.

CBD's rival Wal-Mart, the world's biggest retailer, plans to invest 1.2 billion reais in Brazil this year to build 36 new outlets and a distribution center.