(Adds EBITDA details, profit estimates, company strategy)
SAO PAULO, Nov 9 (Reuters) - Grupo Carrefour Brasil reported a near doubling in third-quarter net profits to 581 million reais ($179 million) on Thursday, up from 292 million reais a year ago as stronger demand and solid sales at its Atacadão wholesale stores boosted revenue.
The company, which was listed in July by its parent, French retail giant Carrefour, reported earnings before interest, tax, depreciation and amortization (EBITDA) of 845 million reais when adjusted for non-recurring items, up 6.9 percent from a year earlier.
Carrefour Brasil, like the local unit of French rival Casino , has invested heavily in the so-called cash-and-carry format, which offers wholesale discounts to bargain-seeking Brazilians still recovering from a deep ecomoic recession.
In the third quarter revenues from Carrefour Brasil’s Atacadão cash-and-cash format drove the company’s performance, as strong sales and controlled costs at the chain drove a large margin expansion.
Adjusted EBITDA at Atacadão jumped 35 percent in yearly terms.
Carrefour Brasil’s profit beat a forecast of 413 million reais by analysts at Itaú BBA led by Thiago Macruz. EBITDA slightly missed the Itaú estimate of 868 million reais.
In October, the company said sales at its Atacadão cash-and-carry stores open for at least 12 months, were up 1.6 percent from the same period a year before, while same-store sales at the group’s more traditional formats were up 0.1 percent. ($1 = 3.2545 reais) (Reporting by Gram Slattery and Bruno Federowski; Editing by Susan Fenton, Greg Mahlich)
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