Brazil's CBD Forecasts '09 Gross Sales Of BRL23 Billion, +10% On Year
09 Junio 2009 - 8:29AM
Noticias Dow Jones
Brazilian grocer Companhia Brasileira de Distribuicao (CBD), or
CBD, expects gross sales to reach 23 billion reals ($11.8 billion),
up 10% on the year, as it continues to seek greater market share to
the backdrop of resilient domestic demand, Chief Executive Claudio
Galeazzi said early Tuesday.
Using the same store concept, sales are seen rising more than
2.5%, up from 2.6% in 2008, Galeazzi told an investors' meeting in
Sao Paulo.
With a tight rein maintained on costs, earnings before interest,
taxes, depreciation and amortization, or Ebitda, is seen topping
BRL1.5 billion this year, up from BRL1.36 billion in 2008.
The net debt to Ebitda ratio isn't expected to top a multiple of
1, up from 0.6 in 2008, despite the purchase of electric goods
retailer Ponto Frio in a deal that could cost BRL1.16 billion.
"We have adopted a very conservative debt policy, looking to
maintain the health of the company," Galeazzi said.
Capital expenditures will total BRL755 million this year, up
from BRL503 million in 2008, he said.
According to Galeazzi, CBD was very timid with investments in
the first four months while management monitored the economic
slowdown. But the company is ready to accelerate investments
through the end of the year, he added.
The figures don't include Ponto Frio numbers.
CBD is jointly controlled by the Diniz family of Sao Paulo, the
chain's founders, and by French retail company Casino Guichard
Perrachon SA (12558.FR). Its main competitors in Brazil includes
U.S. retail giant Wal-Mart Stores Inc. (WMT) and France's Carrefour
SA (12017.FR).
-By Alastair Stewart; Dow Jones Newswires; 5511 2847-4520;
alastair.stewart@dowjones.com