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 December, 1999
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]
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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: December 14, 1999 By: /s/ Augusto Marques da Cruz Filho
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Name: Augusto Marques da Cruz Filho
Title: Chief Financial Officer
By: /s/ Ricardo Florence dos Santos
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Name: Ricardo Florence dos Santos
Title: Market Relations Officer
Companhia Brasileira de Distribucao (CBD)
Announces October 1999 Net Sales
Grupo Pao de Acucar
Investor Relations
3,126 Av. Brig. Luis Antonio
1st floor - Jd. Paulista
CEP: 01402-901
Sao Paulo - SP - Brazil
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Sao Paulo, Brazil, December 1, 1999 - Companhia Brasileira de Distribuicao
(NYSE:CBD, BOVESPA:PCAR4) today announced preliminary, non-audited October 1999
net sales figures. The information discussed below represents net sales
variations of CBD all store and same store formats.
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October 1999 total net sales (banner sales, including affiliated company) in
nominal currency totaled R$533.7 million, a 28.2% increase compared to the same
period in 1998.
October 1999 same store net sales grew 2.1% compared to October 1998.
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Highlights
October 1999 same store sales increased by 2.1%.
Number of clients grew 36.1% compared to October 1998.
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Net Sales by Division 1999/1998 - Variation (%)
(Preliminary, non-audited)
-----------------
Nominal Currency
Corporate Law
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October
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All Same
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Pao de Acucar 9.1% 4.9%
Barateiro 35.5% -1.7%
Extra 50.1% 2.7%
Eletro -9.4% -9.3%
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CBD 28.2% 2.1%
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CBD total net sales reached R$493.7 million in nominal value in October 1999,
representing an 18.6% increase compared to October 1998.
CBD has been adopting the IGP-DI index to calculate its constant currency sales.
The IGP-DI index is also used by ABRAS (Brazilian Supermarket Association) to
calculate total sales evolution for the sector. Taking into consideration
existing discrepancies between the IGP-DI and inflation indices which best
represent the sector's price evolution, ABRAS has been developing studies aimed
at a possible change of the indexer. Assuming that ABRAS confirms this change,
CBD will also adopt the same indicator to present its sales performance in real
terms upon completion of the ABRAS studies.
Sales in constant currency (indexed by the IGP-DI) presented an 11.0% increase
compared to a -4.3% sector decrease recorded by ABRAS.
1
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Net Sales Evolution by Division 99/98 - Variation (%)
(Preliminary, non-audited)
-----------------
Constant Currency
Indexed by IGP-DI
-----------------
October
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All Same
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Pao de Acucar -5.5% -9.1%
Barateiro 17.4% -14.8%
Extra 30.0% -11.0%
Eletro -21.5% -21.4%
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CBD 11.0% -11.6%
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Factors that contributed to these results include:
o The Pao de Acucar division reported same store sales growth of 4.9% despite
a strong comparative basis last October, when the Company celebrated Pao de
Acucar Group's 50-year Anniversary and the stores recorded the
strongest sales performance of any month in 1998 (25.1%).
o Extra Hypermarkets also faced a strong comparative basis given that in
October 1998 this Division recorded a 27.6% nominal increase. In addition,
sales of non-food products, which comprise 27% of its sales mix, continued
to affect performance. Even considering these two factors, the Extra
Division reported a nominal same store sales growth of 2.7%, reflecting the
benefits from store remodelings, employee training and gains from stronger
brand positioning.
o Stores of the Barateiro Division are currently undergoing a remodeling
process (project "New Face") and the Company expects to realize benefits
from these investments in the first quarter of 2000.
o The Eletro division continued to be penalized by the Brazilian macro
economic scenario and there has been no significant change in its
performance compared to previous months.
Form of Payment
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1998 1H99 3Q99 Oct/99
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Cash 51.6% 56.1% 55.9% 55.5%
Credit Card 21.7% 22.8% 22.8% 23.0%
Food Voucher 7.5% 7.0% 6.2% 6.2%
Credit 19.2% 14.2% 15.1% 15.3%
Post-dated Checks 13.5% 10.5% 10.5% 10.4%
Installments 5.7% 3.6% 4.6% 4.9%
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During October 1999, product transfers from CBD's Distribution Centers to
Novasoc (its affiliated company) represented R$29.9 million.
Companhia Brasileira de Distribuicao and its affiliated company operate a total
of 349 stores in 11 Brazilian states through three formats. In addition to the
Pao de Acucar and Barateiro supermarket divisions, CBD operates Extra
hypermarkets and Eletro home appliance stores.
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Richardo Florence dos Santos David Carey
Investor Relations Director - CBD Edelman Financial
Tel: (55-11) 886 0421 Fax: (55-11) 884 2677 Tel: (212) 704 4449
Email: [email protected] Fax: (212) 768 1025
Email: [email protected]
Fernando Tracanella
Email: [email protected]
Tel: (55-11) 886 0421
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Website: http://www.grupopaodeacucar.com.br
