Companhia Brasileira de Distribuicao : 1Q16 Results

São Paulo, May 10, 2016- GPA [BM&FBOVESPA: PCAR4; and NYSE: CBD] releases its first quarter (1Q16) of 2016 earnings results.

Consolidated

- GPA net sales reach R$17.8 billion in 1Q16, with a remarkable 10.9% growth in the food segment;

- Same-store sales in the food segment up 6.0%, the best performance in the last 12 months;

- Selling, general and administrative expenses were below the inflation rate: Highlighting the optimization of expenses at Via Varejo, with nominal reduction from 1Q15, and Assaí, where the increase in expenses was lower than sales growth as a result of greater discipline in controlling costs;

- Greater selectivity in the expansion plan, with the focus on formats with higher returns: opening of 1 Minimercado Extra and 1 Assaí store, in addition to 15 stores currently under construction;

- Cash management strategy enabled 12.6% growth in financial results, below the interest rate.

Multivarejo:

• Improved sales trend across all banners;
• Intensification of price competitiveness and adjustment of commercial dynamics to the current scenario, especially in the Extra banner, with the launch of the '1,2,3 Steps to Saving' campaign;
• Adjusted EBITDA of R$308 million reflects the initial impacts of the new strategy at Extra. This dynamic of more competitive pricing should be compensated by increased customer traffic and volume in coming quarters;
• Profitability level of Pão de Açúcar and Proximity similar to 1Q15.

Assaí:

• Total net sales increased by 36.2%, the highest quarterly growth since 1Q14, combined with strong double-digit same-store performance, significantly above inflation;
• EBITDA up 43.9%, significantly outpacing sales growth in the period;
• Strong net income growth of 103% in the quarter;
• Financial structure of low leverage finances organic expansion of the banner; between 12 and 15 stores expected to be opened in 2016.

Via Varejo:

• Consistent market share gains and acceleration of the dynamics of recovery on same-store sales;
• Gross margin of 30.6%, down 250 bps from 1Q15 but stable in relation to 4Q15, underlining the promotional strategy adopted in the period;
• Adjustments to cost structure made in 2015 and 1Q16 led to nominal reduction in selling, general and administrative expenses. Via Varejo will continue the initiatives to adjust the cost structure;
• Net income attributable to controlling shareholders, adjusted for other revenues and expenses, amounted to R$33 million in 1Q16.

Cnova Brasil:

• Marketplace already has more than 2,300 partner stores, with 15.6% share of GMV, up 850 bps from the previous year;
• Significant stock-out level reduction, providing a better customer service;
• Acceleration of synergies in distribution centers with Via Varejo.

Click on the links below in order to access:

1Q16 Earnings Release

CONFERENCE CALL WITH WEBCAST
May 11 , 2016
10:30 a.m. (Brasília time) | 9:30 a.m. (NY) | 2:30 p.m. (London)
Conference in English (simultaneous translation)
+1 (786) 924-6977
Webcast: click here.
Conference in Portuguese (original language)
+55 (11) 3193-1001 or +55 (11) 2820-4001
Webcast: click here.

Replay: +55 (11) 3193-1012
Access code for audio in english: 5525951#
Access code for audio in portuguese: 2425462#
The conference call will also be available in audio format on http://www.gpari.com.br/.

Please dial in five minutes prior to the scheduled conference call time.