UPDATE 1-Brazil's Pao de Acucar Q1 net down on merger costs

Fri May 13, 2011 8:29am EDT

Related Topics

* Retail group's net falls 35 pct

* EBITDA 609.4 million reais (Recasts, adds merger impact, analyst expectations, revenue figures)

SAO PAULO May 13 (Reuters) - First-quarter net profit at Grupo Pao de Acucar (CBD.N)(PCAR4.SA), Brazil's biggest diversified retailer, fell 35 percent as the incorporation of appliance chain Casas Bahia boosted expenses.

The company on Friday posted net income of 110.85 million reais ($68.4 million), compared with 170.4 million reais in the same period of 2010.

Five analysts polled by Reuters forecast, on average, net profit of 133 million reais, excluding the Nova Globex appliance unit.

Last year the Sao Paulo-based company merged its Globex unit with former rival Casas Bahia to form Brazil's biggest home appliance chain.

Net revenue for the group rose 56 percent to 10.869 billion reais.

Earnings before interest, tax, depreciation and amortization -- an indication of a company's ability to generate cash from operations known as EBITDA -- were 609.4 million reais. ($1=1.621 reais) (Reporting by Vanessa Stelzer and Alberto Alerigi Jr.; Writing by Luciana Lopez; Editing by Derek Caney and John Wallace)

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