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 February, 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]
<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: February 12, 1999 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
[LOGO]
- --------------------------------------------------------------------------------
FOR IMMEDIATE RELEASE
For More Information Please Contact:
Ricardo Florence dos Santos David Carey / Rosemary Otero
Companhia Brasileira de Distribuicao Edelman Financial
(55-11) 886-0421 (212) 704-4449 / 4486
[email protected] [email protected]
COMPANHIA BRASILEIRA DE DISTRIBUICAO REPORTS
FOURTH QUARTER AND YEAR-END 1998 RESULTS
1998 Year-End Operating Income Increases 22.0%
Sao Paulo, Brazil, February 10, 1999 - Companhia Brasileira de Distribuicao
(NYSE:CBD; BOVESPA:PCAR4) today announced fourth quarter and year-end 1998
financial results. As a result of stable price levels in the Brazilian economy
in 1998, CBD has been releasing its results in accordance with the accounting
principles defined by the corporate law method (R$ in nominal values). However,
in order to compare figures released by ABRAS regarding sector growth, CBD also
reports sales data in constant currency, indexed by the IGP-DI inflation index,
which is used by ABRAS.
Net Sales
During 1998, nominal net sales reached R$4.4 billion compared to R$3.1 billion
during 1997, a 42.2% increase. Fourth quarter 1998 net sales amounted to
R$1,401.5 million compared to R$903.5 million in the same period of 1997,
representing a 55.1% increase due to the following factors:
o Addition of 13 stores to the Extra hypermarket division during the second
half of 1998: conversion of 4 Superbox stores and 6 Barateiro supermarkets,
as well as 2 new store openings in November. One Superbox store will be
converted in the second half of 1999;
o Performance of the 32 Barateiro supermarkets acquired in June 1998;
o Performance of 18 remodeled and reopened Pao de Acucar stores;
o Fourth quarter 1998 same store sales growth in the Eletro division of 3.5%
compared to the same period of 1997 and 34.8% for all stores;
o Success of Grupo Pao de Acucar's corporate campaign celebrating the
Company's 50th anniversary, enhancing sales of the Extra and Pao de Acucar
divisions.
Total sales variations are presented below in constant currency compared to
sector performance figures for total stores published by ABRAS (Brazilian Food
Retailers Association):
- more -
<PAGE>
2
---------------------------
CBD ABRAS
1998 x 1997 (All Stores) (All Stores)
--------------------- ------------ ------------
Fourth Quarter 52.6% 9.1%
Accumulated Year-End 37.2% 6.0%
--------------------------------------------------
Same store sales during the fourth quarter of 1998 increased 17.4% compared to
the fourth quarter of 1997. For the accumulated year-end period, net sales
registered a growth of 12.5% compared to the same period in 1997.
The Brazilian retail sector reacted positively and overcame the lack of optimism
resulting from the Brazilian government's response to the effects of the Asian
crisis at the end of 1997 (higher interest rates and taxes). The ABRAS
(Brazilian Food Retailers Association) index registered a 6.0% increase in total
gross sales during 1998 in the supermarket and hypermarket sectors in Brazil,
compared to 1997, in results indexed by IGP-DI. The accumulated variation in
1998 was 1.7%, taking into account the deflation registered by the IPC-FIPE -
Home Food Consumption Index (-0.4% in 1998), which otherwise would have allowed
for a higher consumption increase.
Net Sales by Division 1998/1997 - Variation (%)
--------------------------------------------------------------
Nominal Currency
(Corporate Law)
--------------------------------------------------------------
Fourth Quarter Accumulated Year-End
----------------------------- -------------------------------
All Same All Same
Stores Stores Stores Stores
- --------------------------------------------------------------------------------
Pao de Acucar 37.6% 22.5% 23.8% 14.1%
Extra 100.8% 16.1% 94.2% 20.1%
Eletro 34.8% 3.5% 14.7% -3.3%
Barateiro - 3.2% - 3.2%
- --------------------------------------------------------------------------------
CBD 55.1% 17.4% 42.2% 12.5%
- --------------------------------------------------------------------------------
--------------------------------------------------------------
Constant Currency
(Indexed by IGP-DI)
--------------------------------------------------------------
Fourth Quarter Accumulated Year-End
---------------------------- -------------------------------
All Same All Same
Stores Stores Stores Stores
- --------------------------------------------------------------------------------
Pao de Acucar 35.3% 20.5% 19.3% 10.0%
Extra 97.6% 14.3% 87.6% 16.2%
Eletro 32.6% 1.8% 10.7% -6.6%
Barateiro - 1.5% - 1.5%
- --------------------------------------------------------------------------------
CBD 52.6% 15.5% 37.2% 8.5%
- --------------------------------------------------------------------------------
<PAGE>
3
Sales Breakdown (% of Net Sales)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------
4Q97 1Q98 2Q98 3Q98 4Q98 1997 1998
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Cash 49.3% 50.0% 49.5% 51.8% 53.8% 48.5% 51.6%
Credit 50.7% 50.0% 50.5% 48.2% 46.2% 51.5% 48.4%
Checks with interest 17.7% 15.5% 14.8% 12.8% 11.9% 22.7% 13.5%
Installments 8.8% 5.4% 6.0% 5.8% 5.5% 9.1% 5.7%
Credit Cards 17.5% 21.2% 22.3% 22.1% 21.5% 13.9% 21.7%
Food Vouchers 6.7% 7.9% 7.4% 7.5% 7.3% 5.8% 7.5%
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
As a consequence of higher interest rates in Brazil, there continues to be a
trend toward decreasing credit sales of CBD. Accordingly, there was a
significant decrease in installment sales from 1997 to 1998. At the same time,
there was an increase in cash and credit card sales, since 1998 was the first
year that CBD began accepting all major credit cards.
Operating Performance
Gross profit during the year amounted to R$1,189.1 million compared to R$830.0
million in 1997, an increase of 43.3%. Gross margin increased from 26.7% to
27.1%, mainly due to reduced shrinkage and improved negotiations with suppliers.
The Company also registered higher sales volumes and improved purchasing
centralization at the Distribution Center, which were compensated by the change
in store mix with higher participation of hypermarkets.
Earnings before interest, taxes, depreciation and amortization (EBITDA) during
1998 increased 71.3% to R$271.7 million or 6.2% of net sales, compared to 5.1%
in the previous year. EBITDA for the fourth quarter of 1998 was 4.8% of total
net sales compared to 5.9% in the same period of 1997, mainly due to:
o Expenses related to employee training or transfer to other stores during
the period when 8 Extra hypermarkets were being inaugurated or renovated
(one month per store on average) without producing sales for the period;
o Reduction in the number of Pao de Acucar, Extra and Barateiro employees in
anticipation of a more conservative operating scenario for 1999;
o Increase in transportation expenses as a result of costs previously
incurred by suppliers, although at lower level than gross margin gains;
o Investment in advertising during the consolidation of the Extra
hypermarkets in the states of Sao Paulo and Rio de Janeiro;
o Restructuring the Commercial, Logistics and Marketing departments,
according to the "Business Units" concept (Management by Category);
o Expenses related to the "Millennium Bug" and systems development
(consulting);
Other factors which contributed to these results were:
Productivity Gains:
o Optimization of capacity utilization at the distribution center,
increasing cross-docking operations to 8% and E.D.I. (Electronic Data
Interchange) purchases to 32% by year end;
<PAGE>
4
o Implementation of inventory control systems by product category and
electronic orders (CAO - Computer Assisted Order), allowing for faster and
more efficient management, reducing stockout level to 4% compared to 10%
in December, 1997.
Depreciation and Amortization: increased to R$30.8 million during the fourth
quarter of 1998 compared to R$16.9 million in the same period of 1997, an 81.9%
increase, mainly due to investments made during the quarter, as well as
realization of goodwill amortization from the Barateiro and Millo's store
acquisitions.
Earnings
Accumulated net income for the year increased 10.6% to R$159.0 million compared
to R$143.7 million in 1997. Net income was partially affected by lower revenues
as a result of cash flow used for investments and lower credit sales compared to
1997.
Within the concept of efficiency and productivity gains and in anticipation of
possible economic changes during 1999, CBD proactively implemented its
organizational restructuring, resulting in higher results despite the increase
in Income Tax expenses (24.7% in 1998 versus 11.0% in 1997).
Net earnings per 1,000 shares reached R$2.035 compared to R$1.840 in 1997. As of
December 31, 1998, total number of shares were 78,116,125 which remained
constant compared to December 31, 1997.
Dividends
According to laws 9.249/95 and 9.430/96, as well as CVM (Brazilian Securities
and Exchange Commission) regulation 207/96, CBD's Management Committee submitted
to the Board of Directors, a proposal to distribute interest on capital in the
amount of R$40 million, from which a 15% income tax payment would be deducted in
the amount of R$6 million.
According to the law, CBD's Board chose to propose that the interest on capital
credited to shareholders be deducted from the minimum obligatory dividend
payment. Therefore, the Board of Directors approved the submission of the
proposed distribution of net dividends totaling R$39,013 thousand, corresponding
to R$0.499423 per 1,000 shares (compared to R$0.461458 in 1997), to be approved
at the Annual Shareholders Meeting.
Investments
Investments totaled R$159.7 million in the fourth quarter compared to R$152.8
million in the same period of 1997. During 1998, investments totaled R$930.4
million compared to R$430.5 million in the previous year, a 116% increase.
Investments during the year consisted of:
o Acquisition of the Barateiro supermarket chain, with 32 stores located in
the state of Sao Paulo. Barateiro had 1997 annual gross revenues of R$574
million and 77,141 m2 of floor space;
<PAGE>
5
o Acquisition of the Millo's chain, composed by 2 hypermarkets and one
supermarket, in addition to the operational concession of 3 supermarkets
from the state owned company SAB in Brasilia, adding a total of 19,500 m2
of floor space and annual gross revenues of R$250 million;
o Conversion of 4 Superbox discount stores into Extra hypermarkets;
o Conversion of 6 Barateiro stores into Extra hypermarkets;
o Opening of 2 Pao de Acucar stores in Brasilia, D.F., originating from the
SAB acquisition and following a complete renovation and modernization
process;
o Complete renovation of 18 Pao de Acucar supermarkets, which resumed
operations in 1998;
o Opening of 6 new Pao de Acucar stores, highlighting the inauguration of the
"Pao de Acucar Portal" in a prestigious area of Sao Paulo;
o Completion of the Distribution Center renovation, maximizing storage
capacity and distribution efficiency;
o Completion of new facilities at the Distribution Center, aimed at
increasing cross-docking operations and adding 12,000 square meter of
storage area;
o Inauguration of the second Extra hypermarket in Curitiba, with 8,300 m2 of
floor space;
o Inauguration of 2 Extra hypermarkets in Sao Paulo (Guarulhos and Penha) in
November 1998;
o Remodeling of the Extra Barra store in Rio de Janeiro (formerly Freeway),
acquired in the third quarter of 1997; and
o Implementation of a satellite communications system between the main
office, the distribution center and 64 stores located outside Sao Paulo
State.
Year 2000 Compliance
Since July 1997, CBD has undertaken a series of improvements to its systems and
business processes to guarantee uninterrupted operations before, during and
after the year 2000. The objectives of the Project Year 2000 consist of
identifying the impact and risks on processes and business units, establishing
methodology and chronogram, determining costs and allocating the necessary
resources.
CBD's management is fully aware of the importance of a solution to the Year 2000
bug to ensure continuity of its business operations. Therefore, the Company
chose a project coordinator and created a working group for its development.
The project is being executed in 6 phases: (1) inventory; (2) impact analysis;
(3) planning; (4) conversion; (5) test, and (6) implementation. Several systems
are currently in the test phase and a few are in the implementation phase. The
deadline for concluding the Year 2000 project is March 1999.
Management is also adopting measures to ensure that by the end of March 1999,
all software will be Y2K compliant. As part of this process, software developed
internally as well as acquired from third parties will be analyzed for potential
operational problems in conjunction with regard to Y2K compliance.
Investments involving program conversion and updates, substitution of software,
change of equipment, third party service contracting and utilization of internal
resources, are estimated at approximately R$5.3 million.
<PAGE>
6
Stores Closings
As of October 1, 1998, the Superbox store in Belem was closed. Two Pao de Acucar
stores in Ribeirao Preto were also closed on December 24, 1998. In all cases,
the main reason was the lack of synergy with the Company's overall strategy.
Recent Events
o Shareholder control of Peralta Comercial e Importadora S.A.: On February 1,
1999, CBD became the majority shareholder of Peralta Comercial e Importadora
S.A. through a subscription of common shares. From a total of 38 stores, 37
supermarkets will be converted into Pao de Acucar and Barateiro stores,
adding approximately 48,000 m2 of total floor space, and the only
hypermarket from this chain will be operated under the Extra format. The
transaction will be amortized through a 15-month period with the majority
proceeds derived from Peralta cash flow.
Note: In addition, 1998 accumulated sales figure is reported in this release
according to Income Statement Pro-Forma, including June 1998 sales from the
Barateiro division.
Store by Division
<TABLE>
<CAPTION>
Pao de Extra Superbox Eletro Barateiro CBD Floor Space Number of
Acucar (m2) Employees
------------------------------------------------------------------------ ------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/97 147 14 10 67 - 238 350,410 19,653
Opened 3 2 - - - 5
Closed (2) - - (5) - (7)
03/31/98 148 16 10 62 - 236 364,429 21,069
Opened 2 1 - 1 32 36
Closed (1) - - (1) - (2)
06/30/98 149 17 10 62 32 270 446,768 26,842
Opened 1 - - 13 - 14
Converted - 5 (3) - (2) -
09/30/98 150 22 7 75 30 284 464,315 28,153
Opened - 2 - 1 - 3
Closed (2) - (1) - - (3)
Converted (1) + 2a 6b (6) - (4) + 3c -
- -------------------------------------------------------------------------------------------------------------------------
12/31/98 149 30 - 76 29 284 470,591 31,343
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
a - Superbox stores converted into Pao de Acucar supermarkets
b - Barateiro and Superbox stores converted into Extra hypermarkets
c - Pao de Acucar and Superbox stores converted into Barateiro supermarkets
Following the Peralta transaction, Companhia Brasileira de Distribuicao now
operates a total of 322 stores in 11 Brazilian states through three formats. 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
(5 Pages to Follow)
<PAGE>
7
COMPANHIA BRASILEIRA DE DISTRIBUICAO
Income Statement - Corporate Law Method
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
R$ thousand Fourth Quarter Accumulated Year
------------------------------------------ -------------------------------------------
1998 1997 % 1998 1997 %
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Sales Revenue 1,401,530 903,493 55.1% 4,383,513 3,113,800 40.8%
Cost of Sales (1,011,791) (662,528) 52.7% (3,194,373) (2,283,310) 39.9%
Gross Profit 389,739 240,965 61.7% 1,189,140 829,990 43.3%
Operating Income (Expenses)
Selling Expense (258,053) (149,148) 73.0% (726,590) (541,075) 34.3%
General and Administrative (64,524) (38,977) 65.5% (190,835) (130,259) 46.5%
Total Operating Expenses (322,577) (188,125) 71.5% (917,425) (671,334) 36.7%
Operating Income Before Taxes, Deprec.
and Fin. Income (Exp.) - EBITDA 67,162 52,840 27.1% 271,715 158,656 71.3%
Depreciation & Amortization (30,769) (16,916) 81.9% (102,669) (60,582) 69.5%
Operating Income Before Taxes and
Financial Income (Exp.) - EBIT 36,393 35,924 1.3% 169,046 98,074 72.4%
Taxes and Charges (6,170) (6,029) 2.3% (21,268) (18,801) 13.1%
Financial Income 85,396 60,870 40.3% 263,193 212,325 24.0%
Financial Expense (81,419) (41,511) 96.1% (215,401) (131,591) 63.7%
Net Financial Income 3,977 19,359 -79.5% 47,792 80,734 -40.8%
Patrimonial Equivalence 0 0 (420) 0
Operating Income 34,200 49,254 -30.6% 195,150 160,007 22.0%
Non-Operating Results 230 (3,026) -107.6% 3,089 (2,880) -207.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Income Before Income Tax 34,430 46,228 -25.5% 198,239 157,127 26.2%
- -----------------------------------------------------------------------------------------------------------------------------------
Income Tax 10,513 (5,602) -287.7% (27,877) (14,505) 192.2%
Deferred Income Tax (11,358) 0 (11,358) 1,106
(11.358) 0
- -----------------------------------------------------------------------------------------------------------------------------------
Net Income 33,585 40,626 -17.3% 159,004 143,728 10.6%
Net Income per 1,000 shares 0,430 0,520 -17.3% 2,035 1,840 10.6%
No. of shares (in thousand)
at the end of the period 78,116,125 78,116,125 78,116,125 78,116,125
- -----------------------------------------------------------------------------------------------------------------------------------
% of Net Sales
Gross Profit 27.8% 26.7% 27.1% 26.7%
Total Operating Expenses -23.0% -20.8% -20.9% -21.6%
Selling Expenses -18.4% -16.5% -16.6% -17.4%
General and Administrative -4.6% -4.3% -4.4% -4.2%
EBITDA 4.8% 5.9% 6.2% 5.1%
Depreciation & Amortization -2.2% -1.9% -2.3% -1.9%
EBIT 2.6% 4.0% 3.9% 3.1%
Taxes and Charges -0.4% -0.7% -0.5% -0.6%
Net Financial Income (Expense) -0.3% 2.1% 1.1% 2.6%
Income Before Income Tax 2.5% 5.1% 4.5% 5.0%
Income Tax -0.1% -0.6% -0.9% -0.4%
Net Income (Loss) 2.4% 4.5% 3.6% 4.6%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Note: CBD exercised its right according to Law 9.249/95,as amended by Law
9430/96, which allows the deduction for tax purposes of a notional interest
charge computed on the Company's own capital based on the variation of the
Long-term Interest Rate-TJLP during the year.
<PAGE>
COMPANHIA BRASILEIRA DE DISTRIBUICAO
Consolidated Income Statement - Pro-Forma
(Including Barateiro - June 1998)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
R$ thousand Accumulated Year
----------------------------------------------
1998 1997 %
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Sales Revenues 4,429,230 3,113,800 42.2%
Cost of Sales (3,226,590) (2,283,810) 41.3%
Gross Profit 1,202,640 829,990 44.9%
Operating Income (Expenses)
Selling Expenses (741,101) (541,075) 37.0%
General and Administrative (192,277) (130,259) 47.6%
Total Operating Expenses (933,378) (671,334) 39.0%
Operating Income Before Taxes, Deprec. and Fin. Income
(Exp.) - EBITDA 269,262 158,656 69.7%
Depreciation & Amortization (103,441) (60,852) 70.7%
Operating Income Before Taxes and Financial Income (Exp.)
- - EBIT 165,821 98,074 69.1%
Taxes and Charges (21,506) (18,801) 14.4%
Financial Income 266,892 212,325 25.7%
Financial Expenses (215,851) (131,591) 64.0%
Net Financial Income 51,041 80,734 -36.8%
Operating Income 195,356 160,007 22.1%
Non-operating Results 3,089 (2,880) -207.3%
- -----------------------------------------------------------------------------------------------------------
Income Before Income Tax 198,445 157,127 26.3%
- -----------------------------------------------------------------------------------------------------------
Income Tax (39,235) (14,505) 170.5%
Deferred Income Tax 0 1,106
- -----------------------------------------------------------------------------------------------------------
Net income 159,210 143,728 10.8%
Net Income per 1,000 shares 2.038 1.840 10.8%
No. of Shares (in thousand)
at the end of period 78,116,125 78,116,125
- -----------------------------------------------------------------------------------------------------------
% of Net Sales
Gross Profit 27.2% 26.7%
Total Operating Expenses -21.1% -21.6%
Selling Expenses -16.7% -17.4%
General and Administrative -4.4% -4.2%
EBITDA 6.1% 5.1%
Depreciation & Amortization -2.3% -1.9%
EBIT 3.8% 3.1%
Taxes and Charges -0.5% -0.6%
Net Financial Income (Expense) 1.2% 2.6%
Income Before Income Tax 4.5% 5.0%
Income Tax -0.9% -0.4%
Net Income (Loss) 3.6% 4.6%
- -----------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
9
COMPANHIA BRASILEIRA DE DISTRIBUICAO
Balance Sheet
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
R$ thousand
-------------------- -------------------- -------------------
4Q98 4Q97 3Q98
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Current Assets
Cash and Banks 36,403 27,346 23,229
Short-term Investments 333,824 397,588 322,289
Accounts Receivable 446,996 360,856 365,392
Installment Sales 150,575 141,993 140,963
Post Dated Checks 134,039 121,016 112,415
Credit Card and Other 182,904 121,787 132,355
Allowance for Doubtful Accounts (20,522) (23,940) (20,341)
Advances to Suppliers 9,435 7,311 11,199
Taxes Recoverable 63,663 2,288 37,572
Other Receivables 15,740 12,318 15,249
Inventories 344,967 220,798 320,553
Prepaid Expenses 5,779 5,577 7,720
Total Current Assets 1,256,807 1,034,082 1,103,203
Long-term Receivables
Installment Sales 4,951 23,157 6,644
Deferred Income Tax 18,584 31,191 19,664
Judicial Deposits 34,089 21,268 30,318
Associated Companies 1,721 0 0
Prepaid Expenses 5,728 8,518 11,260
Total Long-term Receivables 65,073 84,134 67,886
Investments 5,622 11,665 1,372
Property and Equipment 1,389,822 917,531 1,251,873
Deferred Charges 307,155 32,007 314,243
Total Permanent Assets 1,702,599 961,203 1,567,488
TOTAL ASSETS 3,024,479 2,079,419 2,738,577
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Suppliers 604,323 377,378 437,793
Loans and Financing 347,891 254,653 285,992
Payable on Purchase of Assets 44,502 46,790 50,290
Debentures 15,813 2,702 6,944
Taxes on Sales 28,304 19,137 13,813
Tax Installments 9,567 7,949 9,052
Salaries and Payroll Charges 57,515 38,018 63,579
Associated Companies 0 2,910 4,430
Dividends 39,013 36,047 0
Other 30,629 23,408 17,470
Total Current Liabilities 1,177,557 808,992 889,363
Long-term Liabilities
Financing 417,816 210,711 392,054
Payable on Purchase of Assets 3,504 2,310 3,076
Debentures 314,860 103,104 310,752
Deferred Income Tax 8,341 9,590 8,653
Tax Installments 25,758 32,637 27,468
Other Accruals 104,912 54,335 124,053
Total Long-term Liabilities 875,191 412,687 866,056
Shareholders' Equity
Capital 537,730 537,730 537,730
Capital Reserves 4,050 4,050 4,050
Revenue Reserves 429,951 315,960 441,378
Total Shareholders' Equity 971,731 857,740 983,158
3.030,433 2.079,419 2.738.577
TOTAL LIABILITIES AND SHAREH. EQUITY 3,024,479 2,079,419 2,738,577
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
10
Sales Breakdown per Division
In R$ thousand - Nominal (Corporate Law)
<TABLE>
<CAPTION>
------------------------------------------------------ --------------
OCTOBER 1998 % 1997 % Var.(%)
- -------------------------------------------------------------------------------- --------------
<S> <C> <C> <C> <C> <C>
Pao de Acucar 162,161 38.9% 110,046 43.7% 47.4%
Extra 178,349 42.8% 81,795 32.4% 118.0%
Eletro 30,314 7.3% 21,934 8.7% 38.2%
Barateiro 45,519 11.0% - - -
- -------------------------------------------------------------------------------- --------------
CBD 416,343 100.0% 251,957 100.0% 65.2%
- -------------------------------------------------------------------------------- --------------
------------------------------------------------------ --------------
NOVEMBER 1998 % 1997 % Var.(%)
- -------------------------------------------------------------------------------- --------------
Pao de Acucar 149,751 38.0% 110,961 41.2% 35.0%
Extra 179,256 45.4% 99,591 37.0% 80.0%
Eletro 30,672 7.8% 23,301 8.7% 31.6%
Barateiro 34,919 8.8% - - -
- -------------------------------------------------------------------------------- --------------
CBD 394,598 100.0% 268,874 100.0% 46.8%
- -------------------------------------------------------------------------------- --------------
------------------------------------------------------ --------------
DECEMBER 1998 % 1997 % Var.(%)
- -------------------------------------------------------------------------------- --------------
Pao de Acucar 202,691 34.3% 153,051 40.0% 32.4%
Extra 290,292 49.2% 141,272 36.9% 105.5%
Eletro 52,057 8.8% 38,647 10.1% 34.7%
Barateiro 45,549 7.7% - - -
- -------------------------------------------------------------------------------- --------------
CBD 590,589 100.0% 382,662 100.0% 54.3%
- -------------------------------------------------------------------------------- --------------
------------------------------------------------------ --------------
4th QUARTER 1998 % 1997 % Var.(%)
- -------------------------------------------------------------------------------- --------------
Pao de Acucar 514,603 36.7% 374,058 41.4% 37.6%
Extra 647,897 46.2% 322,659 35.7% 100.8%
Eletro 113,043 8.1% 83,881 9.3% 34.8%
Barateiro 125,987 9.0% - - -
- -------------------------------------------------------------------------------- --------------
CBD 1,401,530 100.0% 903,493 100.0% 55.1%
- -------------------------------------------------------------------------------- --------------
------------------------------------------------------ --------------
YEAR 1998 % 1997 % Var. (%)
- -------------------------------------------------------------------------------- --------------
Pao de Acucar 1,724,924 38.9% 1,392,846 44.8% 23.8%
Extra 1,821,067 41.1% 937,958 30.1% 94.2%
Superbox 272,576 6.2% 502,479 16.0% -45.8%
Eletro 321,807 7.3% 280,517 9.1% 14.7%
Barateiro 288,856 6.5% - - -
- -------------------------------------------------------------------------------- --------------
CBD 4,429,230 100.0% 3,113,800 100.0% 42.2%
- -------------------------------------------------------------------------------- --------------
</TABLE>
<PAGE>
11
Productivity Indexes
In R$ - Nominal (Corporate Law)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------
Sales per m2/month Fourth Quarter Accumulated Year
------------------------------------ -----------------------------------------
1998 1997 % 1998 1997 %
- --------------------------------------------------------------- -----------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Pao de Acucar 1,041 812 28.2% 894 775 15.4%
Extra 1,159 978 18.5% 1,011 896 12.8%
Superbox - 1,016 - 843 1,023 -17.6%
Eletro 964 770 25.2% 729 728 0.1%
- --------------------------------------------------------------- -----------------------------------------
CBD* 1,090 885 23.2% 900 837 7.5%
- --------------------------------------------------------------- -----------------------------------------
Barateiro 758 - - 597 - -
- --------------------------------------------------------------- -----------------------------------------
------------------------------------------------------------------------------
Sales per Employee/ Fourth Quarter Accumulated Year
------------------------------------ -----------------------------------------
month 1998 1997 % 1998 1997 %
- --------------------------------------------------------------- -----------------------------------------
Pao de Acucar 14,376 12,491 15.1% 13,373 12,091 10.6%
Extra 19,642 27,670 -29.0% 20,368 19,078 6.8%
Superbox - 26,260 - 19,540 20,061 -2.6%
Eletro 18,535 16,134 14.9% 15,227 14,718 3.5%
- --------------------------------------------------------------- -----------------------------------------
CBD* 14,816 15,324 -3.3% 16,040 13,493 18.9%
- --------------------------------------------------------------- -----------------------------------------
Barateiro 15,919 - - 12,179 - -
- --------------------------------------------------------------- -----------------------------------------
------------------------------------------------------------------------------
Average Ticket Fourth Quarter Accumulated Year
------------------------------------ -----------------------------------------
1998 1997 % 1998 1997 %
- --------------------------------------------------------------- -----------------------------------------
Pao de Acucar 17.4 17.0 2.4% 16.7 16.7 0.0%
Extra 43.0 46.2 -6.9% 43.1 46.6 -7.5%
Superbox - 43.2 - 40.6 45.1 -10.0%
Eletro 204.8 172.5 18.7% 194.5 189.1 2.9%
- --------------------------------------------------------------- -----------------------------------------
CBD* 28.3 28.0 1.1% 26.9 26.8 0.4%
- --------------------------------------------------------------- -----------------------------------------
Barateiro 15.6 - - 15.0 - -
- --------------------------------------------------------------- -----------------------------------------
------------------------------------------------------------------------------
Sales per Check-out/ Fourth Quarter Accumulated Year
------------------------------------ -----------------------------------------
month 1998 1997 % 1998 1997 %
- --------------------------------------------------------------- -----------------------------------------
Pao de Acucar 97,260 74,797 30.0% 83,738 72,329 15.8%
Extra 158,487 127,583 24.2% 136,953 108,673 26.0%
Superbox - 106,127 - 90,527 100,778 -10.2%
Eletro 199,724 161,623 23.6% 149,915 153,037 -2.0%
- --------------------------------------------------------------- -----------------------------------------
CBD* 120,260 98,131 30.7% 103,361 89,717 15.2%
- --------------------------------------------------------------- -----------------------------------------
Barateiro 79,038 - - 68,877 - -
- --------------------------------------------------------------- -----------------------------------------
</TABLE>
*CBD efficiency ratios are calculated excluding Barateiro Division
Selected Data per Division - December 31, 1998
-------------------------------------------------------------
# # # Floor
Check-outs Employees Stores Space (m2)
-------------------------------------------------------------
Pao de Acucar 1,764 11,932 149 166,052
Extra 1,584 10,995 30 215,682
Superbox - - - -
Eletro 191 2,033 76 39,549
Barateiro 499 2,638 29 49,308
- -------------------------------------------------------------------------------
Total Stores 4,038 27,598 284 470,591
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Headquarters - 3,745 - -
- -------------------------------------------------------------------------------
CBD 4,038 31,343 284 470,591
- -------------------------------------------------------------------------------
