Brazil’s Carrefour swings to profit in first quarter By Reuters

SAO PAULO (Reuters) – Carrefour (EPA:) Brasil, which is controlled by France’s Carrefour, reported a net profit of 39 million reais ($7.7 million) for the first quarter, reversing losses in the same period last year, as higher food inflation expanded its profits.

On an adjusted basis, it also swung back to the green with a 52-million-real net profit, although this profit came in below the forecast of 137.4 million reais from analysts polled by LSEG.

Carrefour Brasil had already disclosed its first-quarter sales figures in late April, which rose 2.5% year-on-year.

“We have seen a recovery of food inflation to positive levels, which obviously had positive effects in our prices and volumes,” CEO Stephane Maquaire told journalists on Tuesday.

He added that recent food inflation trends have triggered improved sales to corporate customers, mainly smaller grocery stores, which had reduced their purchases due to a financial pressure from lower margins.

Carrefour Brasil said its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 36.6% to 1.42 billion reais, slightly above analysts forecast of 1.33 billion reais.

Adjusted EBITDA margins rose to 5.7% from 4.3% a year earlier.

($1 = 5.0744 reais)