November 7, 2019 / 1:06 AM / 3 months ago

Carrefour Brasil net up 21% on best third-quarter sales in five years

FILE PHOTO: A general view of a Carrefour supermarket in Sao Paulo, Brazil July 18, 2017. REUTERS/Paulo Whitaker

BRASILIA (Reuters) - Brazilian supermarket chain Carrefour Brasil SA (CRFB3.SA) reported a third quarter net income slightly below market expectations, based on the best quarterly sales performance in the last five years.

In a securities filing on Wednesday night, the Brazilian subsidiary of France’s Carrefour SA (CASP.PA) said its net profit grew 21.1% to 430 million reais ($105.3 million) in the third quarter, based on international accounting norms known as IFRS 16. Pre-IFRS net income was 448 million reais.

Analysts on average expected a net income of 466.08 million reais ($114.81 million), according to Refinitiv data.

As anticipated on Oct. 21, gross sales at Carrefour Brasil rose 8.9% in the third quarter to 14.44 billion reais, underpinned by an ongoing expansion of its wholesale unit Atacadao and e-commerce growth.

Operating expenses climbed 8.9% year-on-year to 1.95 billion reais.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 13.9% to 1.129 billion reais compared to a consensus estimate of 1.08 billion reais compiled by Refinitiv.

Carrefour Brasil shares have climbed more than 7 percent so far this year, outperforming rival Grupo Pão de Açúcar SA (PCAR4.SA), whose stocks have risen around 5% in this same period.

On Oct. 30, GPA announced a 30% increase in its quarterly net income, adding sales are likely to further improve after it completes supermarket conversions and renovations in early 2020.

Reporting by Anthony Boadle; Editing by Sandra Maler and Sonya Hepinstall

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