Companhia Brasileira de Distribuicao : 3Q16 Results

São Paulo, October 27, 2016- GPA [BM&FBOVESPA: PCAR4; and NYSE: CBD] releases its third quarter (3Q16) of 2016 earnings results.

Consolidated

- Consolidated net sales reached R$15.1 billion, driven mainly by the following factors:

• Assaí's total sales growth accelerates to 45.7%, with double-digit SSS growth;
• Extra's sales volume and market share begin to recover, primarily in the Hyper format;
• Via Varejo's sales growth outperforms the market average;
• 40 stores opened in the last 12 months.

- Consolidated Adjusted EBITDA of R$619 million, with margin of 4.1%, an improvement compared to 2Q16:

• Multivarejo's adjusted EBITDA margin expands 140 bps, driven by the 230 bps recovery in EBITDA margin at Extra stores vs. 2Q16;
• Assaí's existing and new store base posts a solid performance, supporting Adjusted EBITDA growth of 62.2%;
• Via Varejo's adjusted EBITDA margin expands 140 bps to 3.6%, reflecting its capacity to adapt to market conditions.

- Solid cash position of R$5.2 billion in highly liquid resources, besides R$1.3 billion in pre-approved/confirmed credit facilities. Reduction of net debt of brick-and-mortar stores compared to June 2016:

• Improvement in the Food segment of R$130 million, even with the organic expansion of Assaí;
• Via Varejo continues to strengthen its solid financial position, with improvement of R$ 180 million.

Multivarejo

- Effectiveness of new commercial strategy confirmed by a stronger sales trend at Extra (Hyper and Super), with Extra Hiper's SSS growth accelerating 720 bps and its sales volume recovering 1210 bps vs. 1Q16, with market share volume gains in the Hyper format in the last 5 measurements (April to August);

- Adjusted EBITDA of R$313 million with margin of 4.9%, up 140 bps from 2Q16, led by the strong decrease in SG&A. The highlight was the 230 bps EBITDA margin recovery at Extra stores (Hyper and Super);

- Continued profitability at Pão de Açúcar and gradual improvement in the Proximity business.

Assaí

- Strong growth of 45.7% in total sales: double-digit SSS growth, with solid double-digit growth in customer traffic and continued organic expansion;

- Focus on expansion: 8 stores under construction, including 2 conversions of Extra Hiper to Assaí;

- Adjusted EBITDA Margin of 4.4% (+40 bps vs. 3Q15), despite the opening of 12 stores in the last 12 months;

- Net income growth of 75.6% to R$65 million supported by the higher operational leverage.

Via Varejo

- Consistent market share gains combined with growing profitability;

- Adjusted EBITDA margin expansion of 30 bps, demonstrating the better trend compared to 2Q16.

Cnova Brasil

- Expansion in marketplace share of GMV to 21.2% (up 930 bps vs. 3Q15), with significant acceleration when compared to previous quarters;

- Focus on increasing traffic, capturing logistics efficiency gains and encouraging active clients to return.

(a) Excluding non-recurring tax credits. (b) Includes credit card receivables available for sale, (c) Excludes CDCI.

Click on the link below in order to access:

3Q16 Earnings Release

CONFERENCE CALL WITH WEBCAST
October 28 , 2016
11:00 a.m. (Brasília time) | 9:00 a.m. (NY) | 2:00 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 2820-4012
Access code for audio in English: 7887044#
Access code for audio in Portuguese: 2291494#
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