May 9, 2019 / 1:21 AM / 5 months ago

Brazil's GPA net profit falls in 1st quarter despite higher revenues

SAO PAULO, May 8 (Reuters) - Brazilian supermarket chain Grupo Pão de Açúcar SA reported on Wednesday a double-digit drop in its first-quarter net consolidated income, undershooting market expectations, even as wholesale unit Assaí drove revenue growth.

In a securities filing, the Brazilian subsidiary of French group Casino said its quarterly net consolidated profit hit 219 million reais, down 17.9 percent year-on-year, based on new international accounting norms known as IFRS 16. Excluding the effects from the shift in accounting standards, consolidated net income fell by 27.4 percent in the first quarter to 164 million reais.

Considering only continuing operations, net income attributed to controlling shareholders grew by 94.5 percent to 149 million reais.

Analysts on average expected a net profit of 222.67 million reais ($56.67 million), according to Refinitiv data, although it was not clear if this took the accounting change into account.

Earnings before interest, taxes, depreciation and amortization rose by 15.1 percent to 824 million reais by the IFRS standard.

GPA shares traded on the Brazilian stock market ended down 7.43 percent on Wednesday at 87.78 reais, making them the worst performing among stocks listed in the Ibovespa index, which ended 1.28 percent up.

So far this year, GPA shares have risen over 10 percent, while rival Carrefour Brasil has gained 16.6 percent. (Reporting by Aluisio Alves and Gabriela Mello; Writing by Jake Spring; Editing by Leslie Adler)

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