Carrefour Brazil 68% more profit in 3Q with less financial expenses, ecommerce grows 106%

(Reuters)-Carrefour Brazil had a jump in net profit for the third quarter, with solid operational performance and sharp reduction of financial expenses. The Division of French retailer Group had adjusted profit of 391 million dollars from July to September, up 67.6 on same period of 2017, exceeding the average estimate of analysts of 386.5 million reais, according to the Refinitiv survey. Already operating results as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) rose 32,6% adjusted year by year, the 991 million reais, with adjusted Ebitda margin rising 1.44 percentage points, to 7,8%. The Group had already announced previously high of 8,1% in the quarter, gross sales to 13.97 billion dollars, confirming the trend reversal of food deflation of four quarters in a row. In the atacarejo segment, Atacadão, the gross sales jumped 11,2%, for 9.5 billion reais. "The contribution of the expansion is increasing consistently every quarter this year as a result of our decision to accelerate store openings for 20 new units per year, against 10 to 12 stores earlier," said the conglomerate. From July to September, the company opened four new units of Atacadão, including the conversion of a Carrefour hypermarket and two attacked in Alagoas and Rondonia delivery, rising to 185 points in operation. Seven more stores in the traditional format should be opened until December. Carrefour Retail Division, gross sales grew 2,2% in the quarter, to 4.5 billion dollars, reflecting the recovery of hypermarkets and the strengthening of e-commerce, the fastest growing channel inside the unit. The so-called gross merchandise volume (GMV), which measures the total sold on online platform, including third-party transactions, jumped 106% year after year, with the marketplace represents 16% of the online sales. Consolidated, General and administrative expenses rose 4,3% in the quarter, to 1.79 billion reais. Already the financial expenses shrank 28,8% compared to the previous year, to 120 million dollars, due to the reduction of 42,4% in cost of debt amid the lowest interest. The retailer also reduced in 5,7% investments between July and September, to 392 million dollars, of which 266 million reais to expand and the rest in maintenance, renovation and technology. On 25 October, the GPA announced consolidated net profit of 138 million dollars in the third quarter, surpassing in 37% the amount discharged a year earlier, with high double digits in recipes.