Net sales of Grupo Pão de Açúcar rise 8.1% in Q3

The Grupo Pão de Açúcar (GPA) reported 8.1% growth in net revenues in the third quarter of 2017 in comparison with the same period of the previous year. Revenue amounted to R $10.909 billion between July and September, a result that considers all the food retail business in the group, but does not include the Via retail, operation treated by company as a discontinued activity.
In the first nine months of the year net of GPA reaches R $32.125 billion, a growth of 8.7% in comparison with the same period in 2016.
In same stores, which considers only outlets open more than a year, GPA sales rose 3.3% in the third quarter compared with the same period in 2016. The result includes the network of hypermarkets Extra stores that have been converted to the flag of "atacarejo" Assai. That considers a 0.1 percentage point calendar.
Sales rose in Assam, but there was a fall of sales in other flags, including Extra and Sugarloaf.
The network of atacarejo Assai grew 25.2% in net revenues in the third quarter compared with the same period in 2016, reaching a turnover of RS $4.684 billion. In the same store criterion, this increase was 7.7 percent on the same comparison.
The GPA noted in comment on sales revenue growth after converting Extra stores in Assam. According to the company, sales increased by 3 times in these points of sale.
Already in business called "multivarejo", which includes the networks of super and hypermarkets and Extra Sugar Loaf, in addition to the neighborhood markets, the company recorded a 2.1% drop in sales. The multivarejo had net revenue of R $6.225 billion in the third quarter. In the same store, there was high criterion of 0.6% compared to the previous year.
The GPA noted that multivarejo sales were affected by the closure of supermarkets which are passing through the conversion process in Assam stores. This negative impact on sales was 3 percentage points, said the company.
The retailer assesses that the nominal revenue performance is affected by deflation. Inflation of food categories in the home had reached 16.3% in the third quarter of 2016. This year, the same category of products registered a deflation of 4.5% in the third quarter.
"The performance of Extra Supermarket format continued to be impacted by strong food deflation and the challenging economic scenario. However, in real terms there was better performance compared to the second quarter of 2017, as well as an important evolution in volume trend throughout the third quarter, "said the company.