FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of November, 2024
Brazilian
Distribution Company
(Translation of Registrant’s Name Into English)
Av. Brigadeiro Luiz Antonio,
3142 São Paulo, SP 01402-901
Brazil
(Address of Principal Executive Offices)
(Indicate
by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F)
Form 20-F X Form
40-F
(Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule
101 (b) (1)):
Yes ___ No X
(Indicate by check mark if the registrant
is submitting the Form 6-K in paper as permitted by Regulation S-T Rule
101 (b) (7)):
Yes ___ No X
(Indicate
by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information
to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
Yes ___ No X
Earnings release 3Q24
São Paulo, November
5, 2024. GPA [B3: PCAR3] announces the results for the 3rd quarter of 2024.
As a result of the process
of discontinuing the activities of the Extra hypermarkets, in 2021, and Almacenes Éxito S.A. (“Éxito”), in 2022,
as disclosed in the material facts and notices to the market, these activities are accounted for as discontinued (IFRS 5 / CPC 31). Accordingly
the income statement were retroactively adjusted, as defined by CVM Deliberation 598/09 – Non-current assets held for sale and discontinued
operations.
From 1Q24, gas stations activities
(“Gas Stations”) passed to be accounted as discontinued activities (IFRS 5 / CPC 31). Accordingly the Income statement and
the notes of financial statement were retroactively adjusted, as defined by CVM Deliberation 598/09 – Non-current assets held for
sale and discontinued operations.
The following comments refer
to the results of continued operations, including the effects of IFRS 16/CPC 06 (R2), and comparison relative to the same period in 2023,
unless otherwise indicated.
The adjusted EBITDA margin
reached 8.9%, the highest level since 2021, marking eight consecutive quarters of growth.
| · | Gross Margin reached 27.7%,
a progress of 1.1 p.p. vs. 3Q23, supported by commercial negotiations and operational improvements; |
| · | Adjusted EBITDA Margin(1)(2)
of 8.9%, an increase of 1.5 p.p. vs. 3Q23, and adjusted EBITDA growth(1)(2) of 22.6% vs. 3Q23; |
| · | R$ 366 million in Operational
Free Cash Flow(3) in the last 12 months, an improvement of R$ 216 million vs. last 12 months ended in 3Q23,
driven by increased profitability; |
| · | Same-store sales grew by
5.0% compared to 3Q23, with acceleration compared to 2Q24 (3.4%); |
| o | Extra Mercado banner grew by
5.8%, improving compared to 2Q24 (+3.4%); |
| o | Pão de Açúcar
banner increased by 4.6%, with accelerating compared to 2Q24 (+2.7%); |
| o | Proximity format grew by 4.6%; |
| · | E-commerce grew by 17.2%
continuing its strong expansion trajectory for another quarter; |
| · | Reduction in pre-IFRS 16(4)
financial leverage reaching 2.9x, compared to 8.8x in 3Q23. |
|
INCOME STATMENT
(R$ million, except when indicated) |
GPA Consolidated |
|
| 3Q24 |
3Q23 |
Δ |
|
9M24 |
9M23 |
Δ |
|
| Gross Revenue |
4,809 |
4,721 |
1.9% |
|
14,463 |
13,905 |
4.0% |
|
| Net Revenue |
4,494 |
4,371 |
2.8% |
|
13,569 |
12,909 |
5.1% |
|
| Gross Profit |
1,244 |
1,161 |
7.2% |
|
3,754 |
3,380 |
11.1% |
|
| Gross Margin |
27.7% |
26.6% |
1.1 p.p. |
|
27.7% |
26.2% |
1.5 p.p. |
|
| Selling, General and Administrative Expenses |
(892) |
(878) |
1.6% |
|
(2,726) |
(2,621) |
4.0% |
|
| % of Net Revenue |
19.8% |
20.1% |
-0.3 p.p. |
|
20.1% |
20.3% |
-0.2 p.p. |
|
| National Equity Income |
17 |
12 |
36.4% |
|
49 |
36 |
37.1% |
|
| Adjusted EBITDA GPA Brazil (1)(2) |
399 |
325 |
22.6% |
|
1,166 |
882 |
32.3% |
|
| Adjusted EBITDA Margin - GPA Brazil (1)(2) |
8.9% |
7.4% |
1.5 p.p. |
|
8.6% |
6.8% |
1.8 p.p. |
|
| International Equity Income (5) |
0 |
804 |
-100.0% |
|
0 |
717 |
-100.0% |
|
| Adjusted EBITDA GPA Consolidated (2) |
399 |
1,130 |
-64.7% |
|
1,166 |
1,599 |
-27.0% |
|
| Adjusted EBITDA Margin - GPA Consolidated (2) |
8.9% |
25.8% |
-16.9 p.p. |
|
8.6% |
12.4% |
-3.8 p.p. |
|
| Other Operating Revenue (Expenses) |
(52) |
(48) |
7.4% |
|
(311) |
(124) |
150.4% |
|
| Net Income Controlling Shareholders - Continued Operations |
(253) |
805 |
- |
|
(932) |
162 |
- |
|
| Net Margin Controlling Shareholders - Continued Operations |
-5.6% |
18.4% |
-24.0 p.p. |
|
-6.9% |
1.3% |
-8.2 p.p. |
|
| Net Income Controlling Shareholders - Discontinued Operations (6) |
(58) |
(2,100) |
-97.2% |
|
(371) |
(2,130) |
-82.6% |
|
| Net Income Controlling Shareholders Consolidated (7) |
(311) |
(1,295) |
-76.0% |
|
(1,303) |
(1,968) |
-33.8% |
|
(1) GPA Brazil excludes
impacts from the international perimeter (Cnova); (2) Operating income before interest, taxes, depreciation and amortization adjusted
by other Operating Income and Expenses; (3) Adjusted EBITDA pre-IFRS 16, excluding equity income, minus variation in working capital,
minus Capex; (4) Net Debt divided by GPA Brasil Adjusted EBITDA pre-IFRS 16 LTM; (5) As of 4Q23, due to the sale of the total participation
held in Cnova, the equity income from international operations is null; (6) It includes the results from the discontinued operation of
hypermarkets, gas stations and Éxito Group; (7) It considers results from continued and discontinued operations.
| | | |
| | 2 |  |
Message
from the CEO
We
closed the third quarter of the year with encouraging numbers and progress, the result of our discipline in executing the plan focused
on our six strategic pillars.
We maintained focus on actions
to recover profitability and improve the customer experience, and we achieved excellent results, of which I highlight the following:
The acceleration of same-store
sales growth, with improved results at Pão de Açúcar, stability in Proximidade, and a highlight for Extra, which
recorded the best same-store sales since 1Q22, with a 5.8% increase. This result already reflects the work of revising the business value
proposition, with adjustments in assortment and category management, as well as store remodelings that we have already started in some
locations, in line with the strategy of replicating the work we have already done at Pão de Açúcar.
|
 |
The best Adjusted EBITDA
margin since 2021, at 8.9%, with an improvement of 1.5 p.p. compared to 3Q23, which reinforces the consistency of our strategic plan.
In the coming quarters, we will continue advancing on commercial and operational efficiency initiatives, which will sustain the evolution
of these gains. In addition to the consistent gross margin (27.7%), driven by the acceleration of gains from commercial negotiations,
operational adjustments in banners and formats, cost reduction, and the results of our evolving retail media efforts, which are already
contributing to this outcome.
And the double-digit
growth (17.2%) in E-commerce sales, further accelerating the strong growth from previous quarters, which reinforces our strategy with
a higher penetration of perishable items in shopping baskets, surpassing the 35% mark this quarter.
We continue to make progress
in maintaining our customers' satisfaction level (measured by NPS), with an impressive improvement of 20 points over the last 24 months,
and with our expansion plan, which is moving forward at full speed, focusing on the premium proximity store format, under the Minuto Pão
de Açúcar banner, which has already proven to be highly effective and precise.
The fourth quarter brings
important seasonal opportunities. We are motivated and committed to finalizing and delivering our turnaround, given the consistent results
we have achieved. We are preparing for the upcoming periods with strong focus and discipline, confident in our strategy, which remains
supported by our differentiated position in the market.
Marcelo Pimentel
GPA CEO
| | | |
| | 3 | |
Sales Performance
Total sales growth
GROSS REVENUE
(R$ million) |
3Q24 |
Variation 3Q24/3Q23 |
| Total sales |
Share of Sales (%) |
Total sales |
Same-Store Sales ex. calendar effect(5) |
| Pão de Açúcar |
2,425 |
50.4% |
3.0% |
4.6% |
| Extra Mercado(1) |
1,523 |
31.7% |
2.7% |
5.8% |
| Proximity |
555 |
11.5% |
13.7% |
4.6% |
| Other Businesses(2) |
71 |
1.5% |
30.5% |
n.d. |
| GPA ex. Aliados |
4,574 |
95.1% |
4.5% |
5.0% |
| Aliados(3) |
235 |
4.9% |
-31.5% |
n.d. |
| GPA(4) |
4,809 |
100.0% |
1.9% |
5.0% |
(1) Remaining Compre bem stores
were converted into Extra Mercado between July and August 2023; (2) Revenues mainly from commercial centers rentals agreements and Stix
Fidelidade; (3) Direct sales model for small businesses; (4) Excludes Gas Stations revenue, which was classified as discontinued activities
since 1Q24; (5) Adjustment of +0.6 p.p. of calendar effect in same-store sales
Total sales reached R$ 4.8
billion in 3Q24, an increase of 1.9%. Excluding the Aliados format, a direct sales model for small businesses, sales reached R$ 4.6 billion,
with a growth of 4.5%.
The Proximity format continues
being a highlight, with an increase of 13.7%, supported by the opening of 43 stores in the last 12 months (12 of which were opened in
3Q24). The new stores continue to show accelerated maturation (approximately seven months on average).
The 3Q24 experienced a lower
seasonal impact compared to the previous quarter, with annual growth accelerating month by month. Throughout the quarter, we maintned
our discipline executing the profitability recovery plan and improving the customer experience. For yet another quarter, we achieved an
increase in the volume of our operations and gained market share.
Same-store sales growth
by banner and format
YoY Growth
Same-Store Sales(1) |
3Q22 |
4Q22 |
1Q23 |
2Q23 |
3Q23 |
4Q23 |
1Q24 |
2Q24 |
3Q24 |
| Pão de Açúcar |
5.5% |
6.7% |
7.5% |
8.6% |
7.2% |
4.2% |
6.7% |
2.7% |
4.6% |
| Extra Mercado |
2.0% |
4.1% |
2.2% |
3.5% |
2.5% |
2.0% |
4.5% |
3.4% |
5.8% |
| Proximity |
13.1% |
13.5% |
8.8% |
5.4% |
0.4% |
0.2% |
2.3% |
6.9% |
4.6% |
(1) Excludes calendar effect
of 0.6 p.p. in 3Q24
Same-store sales increased
by 5.0% ex. calendar effect.
In
Pão de Açúcar, same-store sales grew by 4.6, showing
an acceleration compared to the previous quarter. This growth was driven by an increase in both sales volume and average price, especially
in September. The categories that stood out with the highest increases in volume and average price were primarily in perishables. Additionally,
the Fruits, Vegetables, and Legumes (FLV) and Basic Grocery categories also saw a strong rise in average price, reflecting inflation in
key items.
In Extra Mercado, same-store
sales had an increase of 5.8%, marking the highest growth since the series began in 1Q22. This growth is primarily attributed to an
increase in volume, with a focus on the Perishables category. Similar to the Pão de Açúcar banner, the Fruits, Vegetables,
and Legumes (FLV) and Basic Grocery categories also performed well due to a significant rise in average price, influenced by inflation
in key items.
In 2Q24, we launched a project
to review the assortment and category management of the Extra Mercado banner. In this process, we have already defined the new value proposition
for the brand, revised store profiles, and established the roles of each category in alignment with this new proposition. We are making
progress to complete these changes by 2024, with the following initiatives: (i) conversion of 60 stores (27 stores completed) with new
departmentalization and adjustments to the frontage; (ii) review of pricing and promotion clustering; and (iii) a strategic review of
the assortment.
The results so far are promising,
both in margin and sales, confirming the potential for growth and improvement in the profitability of the banner. It is worth noting that
the new value proposition is to position Extra Mercado as a mainstream neighborhood supermarket, with excellence in service and integration
into customers' replenishment journeys, while strengthening the categories of Meats, Poultry, and Bakery, as well as maintaining a focus
on a competitive Basic Grocery offering.
In the Proximity format,
in the same-store comparison, we presented an increase of 4.6%. Stores opened since 2022 continue to contribute significantly to
this increase, showing double-digit growth in same-store sales, highlighting the efficiency of the expansion projects in recent years.
In 3Q24, as in previous quarters, we continued to advance market share (+1.5 p.p.) compared to small supermarkets (under
1,000 m²), maintaining our profitability discipline in a format that promotes attractive margins for the Company.
| | | |
| | 4 | |
The “Aliados”
format, model of direct sales to small businesses, generated R$ 235 million in sales this quarter, representing a decrease of 31.5%
compared to 3Q23. Starting in early 2024, we began a process to rebalance this format with a focus on profitability, which explains the
reduction in sales volume compared to 3Q23.
An increase of 1.9 percentage
points in market share in the state of São Paulo over 24 months
Consistency in market share
gains, in line with our strategic plan to enhance profitability
Since
April 2022, with the kick off of GPA’s turnaround plan, we have maintained discipline and consistency in delivering the objectives
of the six strategic pillars, resulting in growing recognition from our customers, as evidenced by the significant progress we have made
in gaining market share.
In 3Q24, we recorded an increase
of 0.2 p.p. in market share in the state of São Paulo, maintaining the trend from previous quarters. Over a two-year period,
the advancement was even more significant, with a growth of 1.9 p.p.
|
 |
This continuous evolution
is primarily a reflection of our strategic focus on the premium segment, with expansion concentrated in the convenience format, especially
in the region where we have the majority of our operations. This strengthens the sustainability of the progress we are achieving.
The proximity format,
with the Minuto Pão de Açúcar and Mini Extra banners, continued to show significant market share growth, gaining
1.5 p.p. compared to small supermarkets in the Greater São Paulo area, confirming the success of the value proposition delivered
to customers in this format.
Expansion: Success in maturing
proximity stores. Opening of 43 stores in the last 12 months, including 12 stores in 3Q24
R$
694 million of incremental sales in the quarter generated by opened stores since 2022
The focus of our stores expansion
project is the proximity format, with the Minuto Pão de Açúcar banner. This banner has a scalable and mature format,
with strong capillarity potential, foreseeing the densification and verticalization of the city of São Paulo and its metropolitan
region. The stores, focused on the high income public, are in premium locations and present a quickly maturation, seven months in average,
with high performance, and the newest stores, opened in 2022, 2023 e 2024, overcome, in terms of profitability, the stores opened previously,
and with an average profitability higher than the Company’s consolidated profitability.
|
 |
In 3Q24, we opened 12 Proximity
stores: 7 Minuto Pão de Açúcar, 4 Mini Extra and 1 Pão de Açúcar Fresh. The Proximity model
of Pão de Açúcar Fresh offers customers a differentiated experience, combining a wider assortment of perishables,
similar to a supermarket format, with the convenience of a grocery store tailored to everyday needs, similar to Minuto Pão de Açúcar
stores.
Currently, we operate 5 Pão
de Açúcar Fresh stores, with the first one opened at the end of 2021. These establishments have shown exceptional results,
reinforcing our confidence in the continued opening of new stores in this format in the coming years.
In the last 12 months, we accumulate
43 new stores, being: (i) 41 in proximity format, 29 Minuto Pão de Açúcar, 11 Mini Extra and 1 Pão de Açúcar
Fresh; and (ii) 2 Pão de Açúcar.
| | | |
| | 5 | |
Leader in food E-commerce channels
1P and 3P
Another quarter of solid
growth, with a 35% penetration of perishables in digital sales exceeding our expectations
In
3Q24, we presented a significant increase of 17.2% in e-commerce revenue, accelerating the strong growth of previous quarters. E-commerce
sales penetration in total food sales reached 12.5%, representing a 1.4 p.p. increase from the previous year. It’s worth noting
that we are the leader in sales through the e-commerce channel in Brazil, considering B2C sales through our own channels (1P) and partner
platforms (3P).
One of the pillars of our differentiation
in e-commerce is the focus on perishables, which requires superior quality in product curation and the picking process. As a result of
excellent execution of these processes, we ensure the trust and shopping experience of our customers. In 3Q24, we achieved a penetration
of 35.4% in perishables sales through the 1P channel, advancing 2.1 p.p. compared to the previous year and surpassing, for the first time,
the 35% mark, an important milestone that helps sustain growth and strengthen the profitability of our e-commerce operations
|
 |
Following the efficiency gains
process started in 4Q22 and more recently with the migration of e-commerce operations from the Distribution Center to 100% ship-from-store,
the contribution margin of this channel has significantly improved, positively contributing to the plan to improve the consolidated margin.
The Customer at the Center of
Everything: Excellence in Service with 82 points in NPS
Greater customer satisfaction
translates into increased share of wallet of premium costumers
In 3Q24, we continued to show
significant improvement in service quality, achieving an NPS score of 82. This result crowns the journey of reconnection with our
customers that began in 2022, reflecting an advance of 7 points compared to 3Q23 and an impressive 20 points compared to last 24 months.
It is worth noting that all of our banners improved, demonstrating the consistency and sustainability of these results.
This progress is the result
of various initiatives, with a focus on continuous training for employees and the revitalization of stores, as well as improvements in
the customer experience, particularly regarding price perception, wait times in lines, and product availability. In this last aspect,
we achieved an excellence rate of 94.3% in product availability.
In the quarter,
we launched the new media campaign for the Pão de Açúcar banner, titled “Você Feliz É Tudo de
Pão” (link). In an increasingly omnichannel shopping environment, we emphasized
that our brand is available wherever the customer wants, offering value in products, services, and customer service, while also inspiring
and creating moments of happiness. The campaign boosted brand recall, particularly in the freshness and quality categories, significantly
differentiating us from competitors. Another relevant point was the increase in the number of downloads of our app, which more than doubled
compared to the previous year.
Another encouraging result
of our strategy is the increased customer loyalty with the growth of the share of wallet of premium customers, showing a 5 p.p.
increase over the last 12 months, combined with the constant growth of the Premium & Valuable customer base supported by the loyalty
program (Programa Mais).
On customer loyalty, we also
have a strong position in Private Labels and significant potential for developing this platform, connected to the high trust our
customers have in our banners and brands. The value proposition of Private Labels aims to offer high-quality products that are comparable
to category leaders at extremely competitive prices. The effectiveness of our private label loyalty is evident in their share of shopping
baskets. Our products are present in 8 out of every 10 baskets, and customers who buy Private Labels have an average purchase frequency
2.4 times higher than those who do not.
In 3Q24, we achieved a penetration
of 21.7% in total sales across our banners, with the Extra Mercado banner standing out at 25.9% penetration.
Another important front in customer
loyalty is Stix, an ecosystem of loyalty programs from major brands, with GPA as the majority partner. This ecosystem brings together
leading retail partners such as Pão de Açúcar, Extra Mercado, Raia, Drogasil, Sodimac, C&A, and Shell, and includes
Livelo as a financial partner to attract new customers.
In 3Q24, Stix reached 10.2 million
customers, a significant increase of 71% compared to the end of 2023, driven by the onboarding of customers from Livelo and Shell, who
recently joined the coalition. The goal of Stix is to increase average spending and purchase frequency by integrating loyalty programs,
allowing customers to conveniently accumulate and redeem points. In the period of 9M24, the number of points accumulated grew by 200%
compared to the same period last year, and point redemptions also saw a 200% increase.
| | | |
| | 6 | |
Notably, 93% of redemptions
occur in the “Stix at checkout” mode, which plays a crucial role in increasing customer frequency and average spending in
our stores.
Financial Performance
Evolution of gross margin supported
by commercial negotiations and operational improvements
Solid expansion of 1.1 p.p. when compared to
3Q23
Gross Profit totaled
R$ 1.2 billion in 3Q24, with a margin of 27.7%, representing an improvement of 1.1 p.p. 3Q23. The continuous improvement in Gross Profit
compared to the previous year is mainly due to: (i) acceleration of gains from commercial negotiations; (ii) operational adjustments in
our banners and formats; (iii) growth in retail media revenue; and (iv) a reduction in logistics costs, partially driven by the zero base
budget project.
The Retail Media project
has progressed in its value proposition for suppliers, offering an integrated solution that combines physical and digital assets, commercial
intelligence, and actions based on customer behavior insights, enabling the optimization of their marketing investments. As a result,
we engaged with over 100 suppliers in 9M24, more than doubling revenue generation compared to 9M23.
Selling, General and Administrative
Expenses totaled R$ 892 million in the quarter, representing 19.8% of net revenue The efficiency gain of 0.3 p.p. compared to 3Q23
was mainly due to savings in utilities expenses, and the dilution of general and administrative expenses, which remained stable in nominal
terms year-over-year.
Equity Income, formed
by GPA's participation in FIC's results, totaled R$ 17 million, an increase of 36,4% compared to 3Q23. The highlights of the FIC in the
quarter were the continued control of delinquencies and a significant increase in the use of our own cards in our sales channels, particularly
in e-commerce channels, effectively contributing to the rise in customer loyalty to our brands.
| | | |
| | 7 | |
Adjusted EBITDA Margin reached its highest level since
2021
Expansion of 1.5 p.p. when compared to 3Q23
As a result of the effects
mentioned above, GPA's Adjusted EBITDA was R$ 399 million, representing a growth of 22.6% vs. 3Q23, and adjusted EBITDA margin
of 8.9%, showing an improvement of 1.5 p.p. vs. 3Q23. These results demonstrate the consistency of the Company's turnaround process, with
the sequential expansion in the Adjusted EBITDA margin.
For the upcoming quarters,
we will continue to make progress: (i) in negotiating with our suppliers on commercial aspects; (ii) in the completion of projects that
will impact the rebalancing of categories in light of the new value proposition of Pão de Açúcar and Extra Mercado
banners; (iii) maturation of the retail media project; (iv) improving shrinkage management; (v) capturing expense reductions through the
implementation of new phases of the zero base budget project.
Other Operating Income and Expenses
In the quarter, Other Revenues
and Expenses amounted to R$ (52) million. This result is primarily due to expenses related to the closure of five Extra Mercado stores
and provisions for tax and legal contingencies.
Financial Result
FINANCIAL RESULT
(R$ million) |
GPA |
| 3Q24 |
3Q23 |
Δ % |
9M24 |
9M23 |
Δ % |
| Financial Revenue |
56 |
246 |
-77.1% |
182 |
418 |
-56.5% |
| Financial Expenses |
(246) |
(301) |
-18.4% |
(745) |
(920) |
-19.0% |
| Cost of Debt |
(144) |
(222) |
-35.1% |
(447) |
(669) |
-33.2% |
| Cost of Receivables Discount |
(17) |
(17) |
0.0% |
(50) |
(56) |
-10.7% |
| Other financial expenses |
(85) |
(62) |
36.3% |
(248) |
(195) |
27.2% |
| Net Financial Revenue (Expenses) |
(189) |
(55) |
243.8% |
(563) |
(502) |
12.2% |
| % of Net Revenue |
-4.2% |
-1.3% |
-2.9 p.p. |
-4.1% |
-3.9% |
-0.2 p.p. |
| Interest on lease liabilities |
(122) |
(114) |
7.0% |
(365) |
(336) |
8.6% |
| Net Financial Revenue (Expenses) - Post IFRS 16 |
(311) |
(169) |
84.1% |
(928) |
(838) |
10.7% |
| % of Net Revenue - Post IFRS 16 |
-6.9% |
-3.9% |
-3.0 p.p. |
-6.8% |
-6.5% |
-0.3 p.p. |
In 3Q24, the Net Financial
Result totaled R$ (189) million, representing 4.2% of net revenue. The following are the main impacts compared to 3Q23:
| · | Financial Revenues decreased
by 77.1%, primarily due to the recognition in 3Q23 of an exceptional effect related to the monetary update of tax credits, totaling R$
133 million. Excluding this effect, the reduction would be 50.1%, due to a decrease in cash position and interest rates. |
| | | |
| | 8 | |
| · | Financial Expenses showed a
decrease of 18.4%, influenced by the reduction in gross debt and a lower interest rate in the comparison period. |
In 3Q24, the Net Financial
Result, including interest on lease liabilities, reached R$ (311) million, equivalent to 6.9% of net revenue.
Net Income of Continued and Descontinued Operations
In 3Q24, the Net Loss from
continued operations was R$ (253) million. In comparison, during the same period in 2023, we recorded a Net Income from continued
operations of R$ 805 million, impacted by positive and non-recurring effects, which totaled R$ 1.1 billion. These effects include:
(i) R$ 804 million related to the reversal of losses from Cnova; (ii) R$ 163 million related to the segregation of Éxito; and (iii)
R$ 133 million from the monetary update of tax credits.
Additionally, in 3Q24, the Net Loss from discontinued
operations totaled R$ (58) million, primarily due to labor contingencies related to Extra Hipermercados.
Cash Generation and Net Debt
NET DEBT VARIATION – MANAGERIAL VIEW
(R$ milhões) |
GPA |
| 3Q24 |
3Q23 |
Δ R$ |
LTM(5) 3Q24 |
LTM(5) 3Q23 |
Δ R$ |
| Adjusted EBITDA GPA Brazil pre IFRS16(1) |
188 |
116 |
72 |
694 |
339 |
354 |
| (-) Share Profit of Associates Brazil |
(17) |
(12) |
(5) |
(64) |
(46) |
(18) |
| Income tax paid |
(0) |
(0) |
(0) |
(1) |
(0) |
(0) |
| Working Capital of Goods Variation |
(29) |
(66) |
37 |
71 |
288 |
(217) |
| Inventory Variation |
(15) |
(28) |
13 |
(19) |
(11) |
(7) |
| Suppliers Variation |
(58) |
22 |
(79) |
56 |
319 |
(262) |
| Receivable Variation |
44 |
(60) |
104 |
33 |
(19) |
52 |
| Other Operational Asset and Liabilities Variation |
(12) |
77 |
(88) |
326 |
420 |
(93) |
| Operational Cash Flow |
130 |
114 |
16 |
1,026 |
1,001 |
25 |
| Capex adjusted by BTS(2) |
(182) |
(220) |
38 |
(660) |
(852) |
191 |
| Operational Free Cash Flow |
(52) |
(106) |
54 |
366 |
150 |
216 |
| Other Operation Income and Expenses |
(165) |
(252) |
87 |
(801) |
(1,044) |
242 |
| Dividends |
30 |
0 |
30 |
124 |
250 |
(126) |
| Adjusted Operational Free Cash Flow |
(187) |
(358) |
171 |
(312) |
(644) |
333 |
| Sale of Assets(3) |
87 |
454 |
(367) |
1,920 |
1,912 |
8 |
| Cash Flow after Sale of Assets |
(100) |
97 |
(197) |
1,609 |
1,268 |
341 |
| Net Financial Cost(4) |
(143) |
(177) |
34 |
(612) |
(760) |
148 |
| Net Debt Variation |
(243) |
(80) |
(163) |
997 |
508 |
489 |
(1) it considers EBITDA adjusted by
Other Operating Income and Expenses, with the result of Equity Income from National Operations and with rental costs and expenses; (2)
net from the financing of built to suit (BTS) format to the new stores of Pão de Açúcar; (3) it Includes revenues
of asset sales and strategic projects, such as Follow-on, sale of Extra Hiper stores and the sale of participation in Éxito; (4)
It includes interest of gross debt, cash profitability, cost with banks guarantees and cost with discount of receivables; (5) Last twelve
months
In the 12-month period ending
in 3Q24, net debt was reduced by R$ 1.0 billion, excluding non-discounted receivables. This reduction was driven by the sale of non-core
assets and the primary public offering of shares, which totaled R$ 1.9 billion, as well as Free Cash Flow Generation, which reached R$
366 million, reflecting an improvement of R$ 216 million compared to the same period last year.
This improvement in Free Cash
Flow is primarily due to the increase in EBITDA pre-IFRS 16 and the decrease in Capex.
Additionally, in other lines
of the cash flow statement, the following highlights are noted: (i) an improvement of R$ 242 million in Other Operating Income and Expenses,
mainly due to the reduction of labor contingencies; (ii) an improvement of R$ 148 million in Net Financial Costs, resulting from the decrease
in financial leverage; and (iii) receipt of R$ 30 million in dividends paid by FIC in 3Q24.
Below is a table detailing working
capital of goods, demonstrating stability in terms compared to 3Q23.
| | | |
| | 9 | |
WORKING CAPITAL OF GOODS
(R$ million) |
GPA |
| 3Q23 |
4Q23 |
1Q24 |
2Q24 |
3Q24 |
3Q24 vs 3Q23 |
3Q24 vs 2Q24 |
| |
|
|
|
|
|
|
|
| (+) Suppliers |
2,219 |
3,020 |
2,225 |
2,333 |
2,276 |
56 |
(58) |
| (-) Inventory |
(1,992) |
(1,950) |
(1,882) |
(1,996) |
(2,011) |
(19) |
(15) |
| (-) Receivables |
(352) |
(468) |
(405) |
(363) |
(319) |
33 |
44 |
| (=) Cash Flow After Receivables |
(126) |
603 |
(62) |
(26) |
(55) |
71 |
(29) |
| |
|
|
|
|
|
|
|
| In Days of COGS |
|
|
|
|
|
|
|
| (+) Suppliers |
54 |
73 |
53 |
56 |
54 |
(0) |
(2) |
| (-) Inventory |
(49) |
(47) |
(45) |
(48) |
(48) |
0 |
(1) |
| (-) Receivables |
(9) |
(11) |
(10) |
(9) |
(8) |
1 |
1 |
| (=) Cash Flow After Receivables |
(3) |
15 |
(1) |
(1) |
(2) |
1 |
(2) |
Net Debt Consolidated
Pre-IFRS 16 leverage improves sequentially, reaching
2.9x with a reduction of R$ 1 billion in net debt.
INDEBTEDNESS
(R$ milhões) |
GPA |
| 09.30.2024 |
09.30.2023 |
Δ R$ |
| Short-Term Debt |
1,660 |
1,411 |
249 |
| Loans and Financing |
435 |
1,331 |
(896) |
| Debentures |
1,225 |
80 |
1,145 |
| Long-Term Debt |
2,656 |
4,640 |
(1,984) |
| Loans and Financing |
463 |
1,371 |
(908) |
| Debentures |
2,193 |
3,269 |
(1,076) |
| Total Gross Debt |
4,316 |
6,051 |
(1,735) |
| Cash and Financial investments |
(2,289) |
(3,028) |
739 |
| Net Debt |
2,027 |
3,023 |
(996) |
| On balance Credit Card Receivables non-discounted |
(24) |
(54) |
29 |
| Net Debt incl. Credit Card Receivables non-discounted |
2,003 |
2,969 |
(967) |
| EBITDA Ajustado GPA Brasil (LTM) |
1,564 |
1,166 |
398 |
| Net Debt including Credit Card Receivables non-discounted / |
1.3x |
2.5x |
-1.3x |
| Adjusted EBITDA GPA Brasil (LTM) |
| Adjusted EBITDA GPA Brasil pre-IFRS16 (LTM) |
694 |
339 |
354 |
| Net Debt including Credit Card Receivables non-discounted / |
2.9x |
8.8x |
-5.9x |
| Adjusted EBITDA GPA Brasil pre-IFRS16 (LTM) |
Net debt, including the
balance of non-discounted receivables, reached R$ 2.0 billion, a reduction of R$ 1.0 billion compared to the same period last year. Financial
leverage pre-IFRS 16, measured by net debt divided by GPA Brazil’s Adjusted EBITDA pre-IFRS 16 (which includes rental expenses)
decreased to 2.9x, a significant reduction of 5.9x compared to 3Q23.
| | | |
| | 10 | |
Investments
ADJUSTED CAPEX(1)
(R$ million) |
GPA |
| 3Q24 |
3Q23 |
Δ R$ |
LTM24(2) |
LTM23(2) |
Δ R$ |
| Expansion |
29 |
72 |
(43) |
126 |
188 |
(62) |
| Store Renovations, Conversions and Maintenance |
76 |
53 |
23 |
238 |
308 |
(71) |
| IT, Digital and Logistics |
77 |
95 |
(18) |
296 |
356 |
(59) |
| Total |
182 |
220 |
(38) |
660 |
852 |
(191) |
(1) Net from the financing of built to-suit format to the
new stores of Pão de Açúcar; (2) Last twelve months
In 3Q23, Adjusted Capex
for built-to-suit operations ("Adjusted Capex") reached R$ 182 million, representing a reduction of R$ 38 million compared to
3Q23, primarily in the new store category.
For the 12-month period, Adjusted
Capex totaled R$ 660 million, a decrease of R$ 191 million compared to the 12 months ending in 3Q23. This decline is largely due to reduced
investments in Renovations, Conversions, and Maintenance, which during the LTM period of 3Q23 were more focused on renovations for converting
Extra hypermarkets into supermarkets.
| | | |
| | 11 | |
ESG AT GPA
Agenda with and for society and the environment
Promotion of diversity
and inclusion: GPA has intensified its commitment to business mobilization and strengthening the Gender Equity pillar. The company
joined the campaign “Vozes Entrelaçadas - Quem escuta uma mulher cala a violência,” contributing to Agosto Lilás,
in partnership with the Business Coalition for Ending Violence Against Women and Girls, of which it is a signatory. Aiming to achieve
the goal of 50% of women in leadership positions by 2025, we have maintained and expanded affirmative actions in all selection processes
within the company. Additionally, promoting Age Diversity, GPA hosted the first in-person workshop of the Generations Forum and the Future
of Work, with the theme “Sociotechnical Intergenerational Learning – Building Career and Post-Career Journeys,” featuring
participation from Executive Secretary Ricardo Sales and advisory board members Cléa Klouri and Mórris Litvak.
Combating climate change
and waste management: For the third consecutive year, GPA received the gold seal from the Brazilian GHG Protocol Program, the highest
qualification level awarded to companies meeting all transparency criteria in publishing their greenhouse gas inventory. To combat food
waste, GPA partnered with Food To Save, Brazil's leading app dedicated to this cause, aiming to prevent over 1.5 tons of food waste by
the end of the year. The pilot, carried out in five stores over 10 days, yielded positive results, with 95% of the bags sold. In October,
the initiative was already rolled out to more than 200 Pão de Açúcar and Extra Mercado stores.
Responsible Value Chains:
In the fight against deforestation, GPA commits to transparency in the supply chain of palm oil used in our Private Label and Exclusive
products. In 3Q24, we achieved 100% certification from the Roundtable on Sustainable Palm Oil (RSPO) for the volume of imported palm oil
and derivatives, minimizing the risk of these products originating from deforested areas or properties with inadequate labor conditions.
This initiative also promotes the acceleration of sustainable oil palm cultivation.
Social Impact Through
the GPA Institute, we launched the first class of the Mãos na Massa program, which trains individuals in vulnerable situations
from communities near our stores in retail skills. In partnership with the Arrastão Project, this class includes 20 students, all
over 40 years old, who will receive training to become cooks. Additionally, we donated 272.6 tons of food through the Partnership Against
Waste program, plus another 122.7 tons donated by our customers during monthly collection campaigns in our Pão de Açúcar
and Extra stores.
| | | |
| | 12 | |
Breakdown of Store Changes
by Banners
In 3Q24, we opened 12 new stores,
all in the proximity format. During the same period, we closed 10 stores (6 proximity stores, 3 Extra Mercado stores, and 1 Pão
de Açúcar store).
The closures made in the quarter
are in line with the process of adjusting the store network based on the evaluation of store performance, competitive market conditions,
and movements within the rest of the network. The Pão de Açúcar store was closed due to the launch of a real estate
project that will be developed on the land where it is located.
| Stores by Banner |
2Q24 |
3Q24 |
| No. of Stores |
Openings |
Openings by conversion |
Closing |
Closing to conversion |
No. of Stores |
Sales area ('000 sq. m.) |
| GPA |
701 |
12 |
0 |
-10 |
0 |
703 |
553 |
| Pão de Açúcar |
194 |
0 |
0 |
-1 |
0 |
193 |
265 |
| Extra Mercado |
173 |
0 |
0 |
-3 |
0 |
170 |
201 |
| Mini Extra |
147 |
4 |
0 |
-3 |
0 |
148 |
37 |
| Minuto Pão de Açúcar |
186 |
8 |
0 |
-3 |
0 |
191 |
48 |
| Stores under Conversion / Analysis |
1 |
0 |
0 |
0 |
0 |
1 |
2 |
| | | |
| | 13 | |
Consolidated Financial Statments
Balance Sheet
| BALANCE SHEET |
| (R$ million) |
ASSETS |
| Consolidated |
| 09.30.2024 |
09.30.2023 |
| Current Assets |
5,876 |
7,936 |
| Cash and Marketable Securities |
2,289 |
3,028 |
| Financial Applications |
15 |
711 |
| Accounts Receivable |
321 |
352 |
| Credit Card |
24 |
54 |
| Sales Vouchers and Trade Account Receivable |
274 |
276 |
| Allowance for Doubtful Accounts |
(3) |
(2) |
| Resulting from Commercial Agreements |
26 |
25 |
| Inventories |
2,011 |
1,993 |
| Recoverable Taxes |
720 |
1,416 |
| Noncurrent Assets for Sale |
204 |
0 |
| Prepaid Expenses and Other Accounts Receivables |
316 |
436 |
| Noncurrent Assets |
13,798 |
14,749 |
| Long-Term Assets |
5,015 |
5,518 |
| Recoverable Taxes |
2,413 |
2,439 |
| Deferred Income Tax and Social Contribution |
1,158 |
1,345 |
| Amounts Receivable from Related Parties |
5 |
50 |
| Judicial Deposits |
412 |
629 |
| Prepaid Expenses and Others |
1,027 |
1,055 |
| Investments |
789 |
849 |
| Property and Equipment |
6,116 |
6,450 |
| Intangible Assets |
1,878 |
1,932 |
| TOTAL ASSETS |
19,674 |
22,685 |
| | | |
| | 14 | |
Consolidated Financial Statments
Balance Sheet
| BALANCE SHEET |
| (R$ million) |
LIABILITIES |
| Consolidated |
| 09.30.2024 |
09.30.2023 |
| Current Liabilities |
6,295 |
6,032 |
| Suppliers |
2,374 |
2,274 |
| Trade payable, agreement |
109 |
192 |
| Loans and Financing |
435 |
1,331 |
| Debentures |
1,225 |
80 |
| Lease Liability |
465 |
503 |
| Payroll and Related Charges |
397 |
359 |
| Taxes and Social Contribution Payable |
402 |
373 |
| Financing for Purchase of Fixed Assets |
125 |
102 |
| Debt with Related Parties |
6 |
81 |
| Advertisement |
22 |
16 |
| Provision for Restructuring |
6 |
14 |
| Unearned Revenue |
258 |
160 |
| Liabilities on Noncurrent Assets for Sale |
132 |
0 |
| Others |
339 |
547 |
| Long-Term Liabilities |
9,345 |
11,634 |
| Loans and Financing |
463 |
1,371 |
| Debentures |
2,193 |
3,269 |
| Lease Liability |
3,767 |
3,570 |
| Income tax payable |
280 |
0 |
| Deferred Income Tax and Social Contribution |
0 |
4 |
| Tax Installments |
626 |
56 |
| Provision for Contingencies |
1,471 |
2,891 |
| Unearned Revenue |
60 |
80 |
| Others |
485 |
393 |
| Shareholders' Equity |
4,034 |
5,019 |
| Attributed to controlling shareholders |
4,026 |
5,016 |
| Capital |
2,511 |
1,807 |
| Capital Reserves |
(68) |
21 |
| Profit Reserves |
1,582 |
3,189 |
| Other Comprehensive Results |
(0) |
(1) |
| Minority Interest |
8 |
3 |
| TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY |
19,674 |
22,685 |
| | | |
| | 15 | |
Consolidated Financial Statments
Income Statement – 3rd Quarter
of 2024
| (R$ Million) |
Consolidated |
| 3Q24 |
3Q23 |
Δ |
| Gross Revenue |
4,809 |
4,721 |
1.9% |
| Net Revenue |
4,494 |
4,371 |
2.8% |
| Cost of Goods Sold |
(3,220) |
(3,181) |
1.2% |
| Depreciation (Logistics) |
(30) |
(30) |
-0.2% |
| Gross Profit |
1,244 |
1,161 |
7.2% |
| Selling Expenses |
(735) |
(721) |
1.9% |
| General and Administrative Expenses |
(157) |
(157) |
0.1% |
| Selling, General and Adm. Expenses |
(892) |
(878) |
1.6% |
| Equity Income |
17 |
817 |
-97.9% |
| Other Operating Revenue (Expenses) |
(52) |
(48) |
7.4% |
| Depreciation and Amortization |
(265) |
(253) |
4.5% |
| Earnings before interest and Taxes - EBIT |
53 |
799 |
-93.4% |
| Financial Revenue |
56 |
245 |
-77.4% |
| Financial Expenses |
(367) |
(415) |
-11.6% |
| Net Financial Result |
(311) |
(169) |
83.7% |
| Income (Loss) Before Income Tax |
(258) |
629 |
- |
| Income Tax |
6 |
175 |
-96.4% |
| Net Income (Loss) Company - continuing operations |
(252) |
805 |
- |
| Net Result from discontinued operations |
(58) |
(2,090) |
-97.2% |
| Net Income (Loss) - Consolidated Company |
(310) |
(1,285) |
-75.9% |
| Net Income (Loss) - Controlling Shareholders - continuing operations |
(253) |
805 |
- |
| Net Income (Loss) - Controlling Shareholders - discontinued operations |
(58) |
(2,100) |
-97.2% |
| Net Income (Loss) - Consolidated Controlling Shareholders |
(311) |
(1,295) |
-76.0% |
| Minority Interest - Non-controlling - continuing operations |
1 |
0 |
1563.9% |
| Minority Interest - Non-controlling - discontinued operations |
(253) |
805 |
- |
| Minority Interest - Non-controlling - Consolidated |
(252) |
805 |
- |
| Earnings before Interest, Taxes, Depreciation, Amortization - EBITDA |
347 |
1,082 |
-67.9% |
| Adjusted EBITDA(1) |
399 |
1,130 |
-64.7% |
| |
|
|
|
| % of Net Revenue |
Consolidated |
| 3Q24 |
3Q23 |
Δ |
| Gross Profit |
27.7% |
26.6% |
1.1 p.p. |
| Selling Expenses |
-16.4% |
-16.5% |
0.1 p.p. |
| General and Administrative Expenses |
-3.5% |
-3.6% |
0.1 p.p. |
| Selling, General and Adm. Expenses |
-19.8% |
-20.1% |
0.2 p.p. |
| Equity Income |
0.4% |
18.7% |
-18.3 p.p. |
| Other Operating Revenue (Expenses) |
-1.2% |
-1.1% |
0.0 p.p. |
| Depreciation and Amortization |
-5.9% |
-5.8% |
-0.1 p.p. |
| Earnings before interest and Taxes - EBIT |
1.2% |
18.3% |
-17.1 p.p. |
| Net Financial Result |
-6.9% |
-3.9% |
-3.0 p.p. |
| Income (Loss) Before Income Tax |
-5.7% |
14.4% |
-20.1 p.p. |
| Income Tax |
0.1% |
4.0% |
-3.9 p.p. |
| Net Income (Loss) Company - continuing operations |
-5.6% |
18.4% |
-24.0 p.p. |
| Net Income (Loss) - Consolidated Company |
-6.9% |
-29.4% |
22.5 p.p. |
| Net Income (Loss) - Controlling Shareholders - continuing operations |
-5.6% |
18.4% |
-24.0 p.p. |
| Net Income (Loss) - Consolidated Controlling Shareholders |
-6.9% |
-29.6% |
22.7 p.p. |
| Minority Interest - Non-controlling - continuing operations |
0.0% |
0.0% |
0.0 p.p. |
| Minority Interest - Non-controlling - Consolidated |
-5.6% |
18.4% |
-24.0 p.p. |
| Earnings before Interest, Taxes, Depreciation, Amortization - EBITDA |
7.7% |
24.7% |
-17.0 p.p. |
| Adjusted EBITDA(1) |
8.9% |
25.8% |
-17.0 p.p. |
(1) Adjusted EBITDA excludes Other Operating Income and
Expenses
| | | |
| | 16 | |
SIGNATURES
Pursuant
to the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
| |
|
|
| |
|
COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO
|
| Date: November
5, 2024 |
By: /s/ Marcelo Pimentel
|
| |
|
Name: |
Marcelo Pimentel |
| |
|
Title: |
Chief Executive Officer |
| |
|
|
|
| |
|
By: /s/
Rafael Sirotsky Russowsky |
| |
|
Name: |
Rafael Sirotsky Russowsky |
| |
|
Title: |
Investor Relations Officer |
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements.
These statements are statements that are not historical facts, and are based on management's current view and estimates offuture
economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes",
"estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended
to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal
operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends
affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect
the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected
events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic
and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual
results to differ materially from current expectations.
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