GPA almost zeroes profit in the 2nd quarter and cites effects of the pandemic

O GPA profit nearly zeroed in the second quarter, with the retail group citing the effects of restrictions on the operation of stores due to a spike in the covid-19 and the strong annual comparison base.

The group controlled by French Casino announced this Wednesday that it had consolidated net income of 4 million reais in the period, down 95.9% compared to a year earlier.

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Its operating result measured by earnings before taxes, interest, amortization and depreciation (Ebitda) adjusted totaled 899 million reais, a decrease of 7.7% year on year. The Ebitda margin was down 0.2 percentage point, to 7.6%.

GPA’s net revenue in the period totaled 11.879 billion reais, down 5.3% year-on-year, driven by a low of 9.7% in Brazil.

Sales in Brazil reached 7.1 billion reais, down 12.1%, which GPA attributed to the strong basis for comparison with the same stage in 2020, when consumers stocked more products in the initial months of the pandemic.

The company also cited decrees that forced to close stores and reduce opening hours and restrictions on non-essential items such as alcoholic beverages and electronics. This pressure was partially alleviated by the 13.4% drop in selling, general and administrative expenses.

Grupo Éxito’s sales, on the other hand, rose by 1.3%, with strong performance in Argentina alleviating declines in Colombia and Uruguay.

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