Carrefour Brasil reports Q1 net profit thanks to rise in food inflation

From Investing.com: 2024-05-07 20:29:17

Carrefour Brasil, backed by Carrefour France, saw a Q1 net profit of 39 million reais ($7.7 million), a turnaround from last year’s losses. Adjusted profit reached 52 million reais, falling short of analyst forecasts. Food inflation boosted sales by 2.5%, with Atacadao driving a 6.6% increase in sales.

CEO Maquaire credited the positive profit turnaround to a rise in food inflation, prompting increased sales to smaller grocery stores. Atacadao saw a boost in corporate customer purchases, signaling a positive trend.

Although the retail segment saw a more than 10% sales decrease, management is experimenting with lower prices to improve performance. Consolidated EBITDA rose 36.6% to 1.42 billion reais, surpassing analyst predictions.

Carrefour Brasil temporarily closed seven stores in flood-affected Rio Grande do Sul, freezing prices until month-end. Adjusted EBITDA margins increased to 5.7% from 4.3%. The company aims to navigate challenges due to the recent floods.



Read more at Investing.com: Brazil’s Carrefour swings to profit in first quarter By Reuters