Pao de Acucar Second-Quarter Net Falls 53% on Taxes
Cia. Brasileira de Distribuicao Grupo Pao de Acucar, Brazil’s largest retailer, posted a 53 percent decline in second-quarter profit after a one-off tax payment.
Net income fell to 62.3 million reais ($35.2 million) from 131.7 million reais a year earlier, the Sao Paulo-based company said today in a regulatory filing. The results include the Ponto Frio retail chain, which Pao de Acucar agreed to buy in June 2009.
Profit was lowered by a tax installment of 64.5 million reais, Pao de Acucar said. Net sales jumped 39 percent to 6.98 billion reais after customers bought more beverages, household appliances and televisions for the World Cup soccer tournament.
The outlook for the second half of this year “could be clouded by a possible slowdown in durable goods sales,” David Belaunde, an analyst at Barclays Plc in New York, wrote in a July 14 report. Pao de Acucar “retains its mid-term appeal as share gains in both food and electronics retail should deliver a superior top-line profile and — in electronics in particular — higher return on invested capital.”
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Tags: barclays plc, brazil retailer, Cia. Brasileira de Distribuicao Grupo Pao de Acucar, net income, one-off tax payment, ponto frio