Companhia Brasileira de Distribuicao : 1T17 Results

São Paulo, April 27, 2017- GPA [BM&FBOVESPA: PCAR4; and NYSE: CBD] announces its results for the first quarter of 2017 (1Q17). The comments refer to the consolidated results of the Group or of its business units. All comparisons are with the same period in 2016, except where stated otherwise.

Food segment net sales reach R$10.5 billion, driven by consistent growth at Assaí and recovery at Extra Hiper

Multivarejo

• Sequential volume recovery and improved customer traffic trend translated into market share gains in the period
  
  • Notable growth in same-store sales at Extra Hiper of 5.4%, with recovery in market share. This performance reflects the successful commercial strategies without additional pressure on gross margin.

Assaí

• Revenue reached R$4.4 billion, increasing 28.9% in the year, due to:
  
  • Strong performance of same-store sales, of 12.9%, and double-digit growth in customer traffic, though impacted by lower food inflation

Adjusted EBITDA margin grew 60 bps, and net income(*) grew 97% in the quarter:

Multivarejo

• Maintenance of price competitiveness initiatives, with higher accuracy and assertiveness on promotional investments;
• Decrease of 1.3% in selling, general and administrative expenses as a result of efficiency and productivity projects;
  
• Increase of 60 bps in adjusted EBITDA margin, which reached 5.3%. Adjusted EBITDA grew 9.2% to R$345 million, despite the negative impact of the calendar effect;
  
• Net income(*) growth of 72.2% in the quarter.

Assaí

• Gross margin grew 80 bps to 14.4%, due to maturation of stores, optimization of commercial dynamics and higher share of individual customers in sales;
• Operating expenses fell 10 bps as a percentage of sales, despite the strong store expansion in the last 12 months;
  
• Adjusted EBITDA margin reached 4.0%, increasing 80 bps, mainly due to store maturation;
  
• Net Income(*) reached R$68 million in 1Q17, up 103.3%, accompanied by margin expansion of 60 bps;
  

Financial result stood at 1.7% of net sales, reducing 10 bps from 1Q16.

Net debt(**) improved R$286 million and net debt(**) / EBITDA ratio remained stable at 1.5 times.

(*) Adjusted net income attributable to controlling shareholders - continued operations

(**) Includes credit card receivables not discounted of R$404 million in 1Q17 and R$37 million in 1Q16.

Click on the link below in order to access:

1Q17 Earnings Release

CONFERENCE CALL WITH WEBCAST
April 28 , 2017
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 ou 2820-4001
Webcast: click here.

Replay: +55 (11) 3193-1012 ou +55 (11) 2820-4012
Access code for audio in English: 2325602#
Access code for audio in Portuguese: 1449444#
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.

Departamento de Relações com Investidores - Investor Relations Team
+55 (11) 3886-0421
gpa.ri@gpabr.com
www.gpari.com.br