Retailer expects profit from investment in Brazil
Date added: 11th May, 2010 at 09:16
(view all articles from May, 2010)
Categories: Economy
Brazil's largest retailer Grupo Pao de Acucar released its first-quarter results yesterday, announcing a rise in net sales of 50.2 per cent.
The firm forecasted further growth in the future following its investment in the acquisition of Globex last year.
The company posted a total of 7,785.7 million reais (£2.97 billion) in consolidated gross sales in the first three months of the year, an increase of 47.1 per cent compared with the same point in 2009. It also reported a 33 per cent rise in consolidated net income and a 31.4 per cent gain in consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA).
A poll of five analysts by Reuters predicted Grupo Pao de Acucar profits would reach 140 million reais in quarter one, a figure the firm fell short of. However, Jose Antonio Filippo, finance vice president at the company, expects future growth from an investment in Brazil of the retailer Globex.
"The current trend is for (Globex) to post a profit soon, especially because of the increase in electronics sales due to the World Cup," he told the news provider.
According to Reuters, Brazil rose out of the global financial crisis after a brief recession through strong consumer spending, which makes up around 60 per cent of Brazil's economy.
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