Cencosud has 4.9% drop in revenue in Brazil

Chile's largest retail network and operation in Brazil, Cencosud-Doña Basavaraju networks, g. Barbosa and Prezunic-registered a 63.1% reduction in net income from January to March in their operations in the world. The fall was due to an increase of 23.5% in operating expenses, a higher pressure losses and provisions. Second report of results published yesterday, the net revenue reached 13.8% in the period to grow, reaching $ 5.22 billion ($ 10.4 billion), but this did not occur due to business in Brazil.
In the country the Cencosud lost sales, while competitors Grupo Pão de Açúcar, Carrefour and Walmart have grown.
The Chilean Group stores, 206 between supermarkets and hypermarkets, found net revenue of $ 1.08 billion ($ 2.1 billion) in the first quarter, indentation of 4.9% as compared to the same period in 2012. The Brazil was the only country with fall indicator. The recipe of grupo Pão de Açúcar advanced 10.9% in the same period. Walmart and Carrefour shall inform only gross sales, but in both there was growth. Brazil's participation in the operation of the business in Chile, Argentina, Peru and Colombia-fell from 25% from January to March 2012 to 20.6% over the same period from 2013.
The company did not inform the reason for fall or if the Brazilian operation registers profit or loss. In addition to the difficulty of local growth, Cencosud operates in the country the business that registers the lowest margins. Food retail has profitability below building material retail and apparel, other two operations of the group, who are not in Brazil. There are rumors that Cencosud already studied the entry of new business in the country, where it operates with networks g. Barbosa, Perini, Mercantil Rodrigues, Prezunic and Bashir.
When you look at same-store "sales, which only considers points existed for more than 12 months, the Cencosud in the country grew by 2.3% from January to March down Carrefour (10.6%), Sugar Loaf (9.6%) and Walmart (3.7%). Although weak, the expansion of the Chilean network showed some improvement. In the third quarter of 2012, this rate was negative 1.4% and rose to 1% from October to December. The inclusion of Prezunic network numbers, the River, (whose purchase was announced in November 2011) helped in performance.
"Comparative basis, the same store sales in Brazil has improved its performance. The network with the negative indicator was Bashir [located in Minas Gerais State] and the company is changing logistics and commercial team to improve these results, "according to the network, founded by German Horst Paulmann.
According to the company, the Brazilian operation pushed the costs because of higher spending on compensation, but there has been an increase in the gross margin of the Group's supermarkets in the five countries where it operates (0.5 point to 25.1% from January to March) thanks to improvements in trading conditions with Brazilian industries.