Casino’s two major Latin American subsidiaries – Grupo Pao de Acucar and Almacenes Exito – have both reported strong profit growth for their first quarter.
GPA (also known as CBD), Brazil’s largest retailer, saw its net profit jump up 23% to 338m reais, helped by a more aggressive price strategy and a cost-savings programme. EBITDA grew by 22% to 1.05bn reais, while revenue was up 12% to 16.6bn reais, helped by like-for-like growth of 6.3%.
The group also gained market share, although its gross profit margin was hurt by its tactics. Sales were up at all its banners – GPA Food reported a 9.1% rise, Viavarejo saw 6% growth, and Nova Pontocom was up 54.1%.
Meanwhile, Exito – Colombia’s largest retailer, saw its net profit grow by 10.8% to 98.9bn pesos. Sales for the period were more modest, rising by just 1.3% to 2.64trn pesos. Like-for-like sales in the home market were down 3.2%, but they rose by 5.9% in neighbouring Uruguay (in local currency terms).