Companhia Brasileira de Distribuicao : 2Q16 Earnings

São Paulo, July 28, 2016- GPA [BM&FBOVESPA: PCAR4; and NYSE: CBD] releases its second quarter (2Q16) of 2016 earnings results.

Consolidated

- Consolidated net sales reach R$16.7 billion, driven by a solid performance from Assaí, better sales trend at Multivarejo and the ongoing recovery at Via Varejo;

- Consolidated adjusted EBITDA of R$760 million and margin of 4.6%, with Assaí and Via Varejo reporting growth of 117.4% and 50.8%, respectively;

- 9 stores opened in the quarter (5 Minuto Pão de Açúcar, 1 Assaí, 1 Pão de Açúcar, 1 Casas Bahia and 1 Ponto Frio), a total of 59 new stores in the last 12 months.

Multivarejo

- Improved sales trend and progressive volume growth of food categories, the highlight being the Extra banner, reflecting the initial effects of new commercial actions launched during the course of the quarter, to reinforce the image of competitive daily prices;

- Increase in selling, general and administrative expenses by 7.9%, below inflation in the period, due to initiatives to optimize expenses, particularly the revision of processes and implementation of operational improvements at the stores;

- Maintenance of profitability at Pão de Açúcar and gradual improvement of Proximity;

- Adjusted EBITDA of R$384 million, with margin of 6.0%.

Assaí

- Acceleration of net sales growth, at 36.9%: double-digit same-store sales significantly above inflation and strong organic expansion of 10 new stores in the last 12 months;

- 10 stores are currently under construction, of which two Extra Hiper stores in the process of being converted to Assaí stores;

- Decrease of 30 bps in selling, general and administrative expenses as a percentage of net sales due to higher operational leverage and disciplined control of costs;

- Adjusted EBITDA of R$168 million, with margin of 5.0%.

Via Varejo

- Resumption of growth in total and same-store sales as a result of strategic projects implemented, the competitiveness strategy and the solid performance of the telephone and services category;

- Consistent market share gains in both Specialist market (April and May 2016: +150 bps) and Total market (April and May 2016: +220 bps) bringing Via Varejo's share of these markets to the highest levels in its history;

- Adjusted EBITDA of R$375 million, with margin of 8.7%.

Cnova Brasil

- Conclusion of the investigation at Cnova Brasil;

- Increase in share of marketplace in GMV to 16.6%, up 780 bps from 2Q15;

- The key focus of Cnova Brasil is to improve operational management and pursue the growth of its business.

Click on the link below in order to access:

2Q16 Earnings Release

CONFERENCE CALL WITH WEBCAST
July 28 , 2016
10:30 a.m. (Brasília time) | 9:30 a.m. (NY) | 2:30 p.m. (London)
Conference in English (simultaneous translation)
+1 (646) 843-6054
Webcast: click here.
Conference in Portuguese (original language)
+55 (11) 2188-0155
Webcast: click here.

Replay: +55 (11) 2188-0400
Access code for audio in English: GPA
Access code for audio in Portuguese: GPA
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.