July 26, 2018 / 12:24 AM / 3 months ago

Carrefour Brasil beats quarterly profit estimates

SAO PAULO, July 25 (Reuters) - Carrefour Brasil, the nation’s largest retailer, beat second-quarter profit estimates, helped by an expansion in sales of its cash-and-carry division, known as Atacadao, the company said in a securities filing on Wednesday.

The Brazilian unit of France’s Carrefour SA posted second-quarter net income of 440 million reais ($119.31 million), 47 percent above the same period last year, topping the Reuters consensus estimate of 366 million reais. Earnings before interest, taxes, depreciation and amortization (Ebitda) rose 13 percent to 934 million reais in the period.

Ebitda for the Atacadão unit rose 20 percent in the second quarter over a year earlier, to 593 million reais. The company said the unit, whose stores have large stocks of products, did not suffer a “significant impact” from a truckers’ strike over rising diesel prices that paralyzed Latin America’s top economy in May.

Carrefour Brasil, like arch rival GPA, owned by France’s Casino Guichard Perrachon SA, has made a significant bet on the cash-and-carry format, a no-frills wholesale-style shopping experience for final customers.

On Tuesday, GPA posted a second-quarter net income that beat estimates, sending its shares up over 5 percent on Wednesday. ($1 = 3.6879 reais) (Reporting by Alberto Alerigi Jr and Gram Slattery Editing by Leslie Adler)

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