FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of November, 1998
Brazilian Distribution Company (Companhia Brasileira de Distribuicao - CBD)
(Translation of Registrant's Name Into English)
Av. Brigadeiro Luiz Antonio,
3126 Sao Paulo, SP 01402-901
Brazil
(Address of Principal Executive Offices)
(Indicate by check mark whether the registrant files or will file
annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F [X] Form 40-F [ ]
(Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.)
Yes [ ] No [X]
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
COMPANHIA BRASILEIRA DE DISTRIBUICAO
Date: November 20, 1998 By: /s/ Augusto Marques da Cruz Filho
-----------------------------------------
Name: Augusto Marques da Cruz Filho
Title: Chief Financial Officer
By: /s/ Ricardo Florence dos Santos
-----------------------------------------
Name: Ricardo Florence dos Santos
Title: Market Relations Officer
[Companhia Brasileira de Distribuicao
Grupo Pao de Acucar LOGO]
- --------------------------------------------------------------------------------
FOR IMMEDIATE RELEASE
For additional information please contact:
Ricardo Florence dos Santos
Companhia Brasileira de Distribuicao
(5511) 886-0421
[email protected]
David Carey / Rosemary Otero
Edelman Financial
(212) 704-4449 / 4486
[email protected]
COMPANHIA BRASILEIRA DE DISTRIBUICAO (CBD) ANNOUNCES
OCTOBER 1998 NET SALES FIGURES
October 1998 Same Store Sales Increase 21.1%
Sao Paulo, Brazil, November 18, 1998 - Companhia Brasileira de Distribuicao
(NYSE:CBD, BOVESPA:PCAR4) today announced preliminary, non-audited October 1998
net sales figures. The information discussed below represents net sales
variations of all CBD stores and same store formats, indexed by the accumulated
inflation index for the period, IGP-DI.
Total net sales for October 1998 increased 65.3% to R$ 416.4 million compared to
October 1997. Accumulated 10 month total net sales for 1998 reached R$ 3,444.1
million, a 39.9% increase compared to the same period of 1997.
Same store net sales in October grew 21.1% compared to October 1997. Accumulated
10 month 1998 same store sales increased 7.2% compared to the same period of the
previous year.
Total store sales variations are presented below in constant currency compared
to the sector performance figures for total stores published by ABRAS (Brazilian
Food Retailers Association):
---------------------------------------
CBD ABRAS
1998 x 1997 (All Stores) (All Stores)
---------------------- ------------------ ------------------
October 61.3% 13.7%
Accumulated 10 mos. 34.1% 5.7%
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Factors which contributed to these results were:
o Efficiency gains and increased CBD brand loyalty increased number of clients
by 75.7% compared to the same period of last year;
o Continuity of Grupo Pao de Acucar (CBD)'s corporate campaign celebrating the
company's 50th anniversary, boosting sales of Extra and Pao de Acucar
divisions;
o Promotions associated with the anniversary of the Barateiro division in
October, resulting in a 15.8% sales increase in this division compared to the
previous month;
o Performance of the 11 remodeled and reopened Pao de Acucar stores, and 2
Barateiro stores converted into Extra hypermarkets;
o Introduction of the promotional campaign "One Real is Worth More" in the
Extra division during October, stimulating sales of non-food products and
generating higher store traffic for food products;
- more -
<PAGE>
Companhia Brasileira de Distribuicao
Page 2
As previously announced, the Superbox division was retired as of October 1,
1998, including conversion of 2 stores into Barateiro supermarkets, 2 into Extra
hypermarkets, 2 into Pao de Acucar supermarkets and 1 store closed in Belem,
Para.
Net Sales by Division 1998/1997 - Variation (%)
(Preliminary, non-audited)
--------------------------------------------
Nominal Currency Constant Currency
(Corporate Law) (Indexed by IGP-DI)
--------------------- ----------------------
October October
--------------------- ----------------------
Total Same Total Same
---------------------------------------------- ----------------------
Pao de Acucar 47.3% 25.0% 43.8% 22.0%
Extra 118.1% 27.6% 112.8% 24.6%
Eletro 38.2% 3.2% 34.9% 0.8%
Barateiro - 10.0% - 7.4%
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CBD 65.3% 24.0% 61.3% 21.1%
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--------------------------------------------
Nominal Currency Constat Currency
(Corporate Law) (Indexed by IGP-DI)
--------------------- ----------------------
Accum. 10 Months Accum. 10 Months
--------------------- ----------------------
Total Same Total Same
---------------------------------------------- ----------------------
Pao de Acucar 21.6% 12.1% 16.5% 7.5%
Extra 93.9% 23.2% 85.9% 18.2%
Eletro 9.4% -5.4% 4.9% -9.3%
Barateiro - 10.0% - 7.4%
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CBD 39.9% 11.8% 34.1% 7.2%
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Barateiro division same stores sales, as shown in the above table, include the
performance of 2 Superbox stores added to the division. In addition, same store
sales figures exclude sales from 7 and 6 Pao de Acucar stores which were
partially or totally closed for renovations during October 1998 and October
1997, respectively.
New Store Openings / Conversions
o Conversion of 4 Barateiro hypermarkets into Extra stores by the end of
November 1998, including 1 store which operates as Extra division since
November 5, 1998.
o Inauguration of 1 Extra hypermarket in Sao Paulo on November 12, 1998 and the
opening of another store by the end of November 1998. This will mark the
completion of 30 hypermarkets in operation at year-end, according to the
Company's Investment Plan.
Companhia Brasileira de Distribuicao operates a total of 283 stores in four
formats in 11 Brazilian states. In addition to the Pao de Acucar and Barateiro
supermarket divisions, the Company operates Extra hypermarkets and Eletro home
appliance stores.
http://www.grupopaodeacucar.com.br
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