D&S net profits increased by 23.7% en 2007

Tue Feb 26, 2008 8:36pm EST
 
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Totaling Ch$52,681 million (US$106.0 million):

SANTIAGO, Chile, Feb. 26 /PRNewswire-FirstCall/ -- D&S showed a 23.7%
increase in profits, to Ch$52,681 million (US$ 106 million) in 2007 from
Ch$42,587 million (US$85.7 million) in 2006.
    The company presented strong growth in operating profits, amounting to
Ch$97,096 million (US$195.4 millones), a 38.0% over the previous year, driven
by the expansion in consolidated revenues and the operating expenses
reduction, due in turn to the consolidation of its Operational Excellence
program.
    Meanwhile, EBITDA also featured vigorous growth, reaching Ch$157,451
million (US$316.9 million), 24.7% higher than in the previous year.
    Net revenues increased by 4.6%, from Ch$1,822,218 million in 2006 to
Ch$1,905,780 million (US$ 3,835.4 million) in 2007.
    The breakdown of revenues by business area areas de negocio shows that the
retail area with the different supermarket formats (hypermarket, supermarkets,
warehouse and discount stores) contributed Ch$1,763,510 million, a 3,2%
increase in 2007.  The financial services division presented a 25.9% revenues
growth, and real state revenues increased by 22.7%.
    According to D&S's Chief Financial Officer, Alejandro Droste, "the
positive results are primarily attributable to the consistency in the
Company's execution of its development strategy, involving on one hand
sustained revenue growth and productivity increases on the other, which was
consolidated during 2007."
    Non-operating expenses amounted to Ch$37,684 million, an increase of 28.4%
compared to 2006, explained by higher financial expenses and other non-
operating expenses.
    During the January-December period the Company added 28,220 sq.m. of sales
area due to the opening of 11 LIDER stores and 2 warehouse stores along with
the remodeling of  Express La Dehesa supermarket, which added 800sq.m. of
sales area.  Additionally, 32 Ekono discount stores were opened during 2007.
    Operating income for the fourth quarter 2007 amounted to Ch$30,999
million, a 35.4% increase compared to Ch$22,901 million for the same period in
2006.  Net income for this quarter decreased by 6.6%.


    Consolidated Results Period January-December
                                                            2007
                                          Ch$ millions  US$ millions  %of Rev.
     Sales                                   1,564,643     3,148.9      82.1%
     Other Income                              341,137       686.5      17.9%
     Net revenues                            1,905,780     3,835.4     100.0%
     Cost of sales                           1,365,292     2,747.7      71.6%
     Gross Income / Margin                     540,488     1,087.7      28.4%
     Recurring Operating Expenses              381,446       767.7      20.0%
     Start-up Expenses                           1,592         3.2       0.1%
     Total Operating Expenses (SG&A)           383,038       770.9      20.1%
     EBITDA                                    157,451       316.9       8.3%
     Depreciation                               60,355       121.5       3.2%
     Total Operating Expenses                  443,393       892.3      23.3%
     Operating Income                           97,096       195.4       5.1%
     Financial Expenses                        (29,101)      (58.6)     -1.5%
     Other Non-operating Income
      (Expenses)                                (5,898)      (11.9)     -0.3%
     Monetary Correction                          (484)       (1.0)      0.0%
     Non-Operating Income                      (35,483)      (71.4)     -1.9%
     Income before Tax                          61,613       124.0       3.2%
     Income Tax                                 (8,930)      (18.0)     -0.5%
     Minority Interest                              (1)       (0.0)      0.0%
     Income                                     52,681       106.0       2.8%
     Amortization of Goodwill                      -           -         0.0%
     Net Income                                 52,681       106.0       2.8%


                                                             2006
                                          Ch$ millions  US$ millions  %of Rev.
     Sales                                   1,519,434     3,057.9      83.4%
     Other Income                              302,784       609.4      16.6%
     Net revenues                            1,822,218     3,667.2     100.0%
     Cost of sales                           1,320,395     2,657.3      72.5%
     Gross Income / Margin                     501,823     1,009.9      27.5%
     Recurring Operating Expenses              374,529       753.7      20.6%
     Start-up Expenses                           1,025         2.1       0.1%
     Total Operating Expenses (SG&A)           375,554       755.8      20.6%
     EBITDA                                    126,269       254.1       6.9%
     Depreciation                               55,910       112.5       3.1%
     Total Operating Expenses                  431,464       868.3      23.7%
     Operating Income                           70,359       141.6       3.9%
     Financial Expenses                        (25,508)      (51.3)     -1.4%
     Other Non-operating Income
      (Expenses)                                 1,520         3.1       0.1%
     Monetary Correction                         1,361         2.7       0.1%
     Non-Operating Income                      (22,628)      (45.5)     -1.2%
     Income before Tax                          47,731        96.1       2.6%
     Income Tax                                 (5,177)      (10.4)     -0.3%
     Minority Interest                              33         0.1       0.0%
     Income                                     42,587        85.7       2.3%
     Amortization of Goodwill                      -           -         0.0%
     Net Income                                 42,587        85.7       2.3%


                                                           Change
                                                           % YoY
     Sales                                                  3.0%
     Other Income                                          12.7%
     Net revenues                                           4.6%
     Cost of sales                                          3.4%
     Gross Income / Margin                                  7.7%
     Recurring Operating Expenses                           1.8%
     Start-up Expenses                                     55.3%
     Total Operating Expenses (SG&A)                        2.0%
     EBITDA                                                24.7%
     Depreciation                                           7.9%
     Total Operating Expenses                               2.8%
     Operating Income                                      38.0%
     Financial Expenses                                    14.1%
     Other Non-operating Income
      (Expenses)                                         -488.2%
     Monetary Correction                                 -135.5%
     Non-Operating Income                                  56.8%
     Income before Tax                                     29.1%
     Income Tax                                            72.5%
     Minority Interest                                   -103.7%
     Income                                                23.7%
     Amortization of Goodwill
     Net Income                                            23.7%

    Currency of December 2007, exchange rate 1US$=Ch$496.89 of December 31,
    2007.

SOURCE  D&S

Alejandro Droste, CFO, +56-2-484-7755, adroste@dys.cl. or Miguel Nunez,
Finance manager Retail, +56-2-484-7754, mnunez@dyscorp.cl, or Loreto Bradford,
IRO, +56-2-484-7757, lbradford@dys.cl all of D&S

 

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