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 August, 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: August 25, 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
[COMPANY LOGO - GRAPHIC OMITTED]
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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 (CBD) Preferred Shares
to be Included in MSCI Brazil Index
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Sao Paulo, Brazil, August 20, 1999 - Companhia Brasileira de Distribuicao
(NYSE:CBD; BOVESPA:PCAR4) today announced that the Company's preferred shares
trading on Brazil's Bovespa stock exchange will be added to the MSCI Brazil
Index and related emerging market indices beginning September 1, 1999.
Augusto Cruz, Chief Financial Officer of CBD said "We are honored to join other
leading Brazilian companies that comprise the index and are pleased that CBD has
been selected to represent the merchandise sector." Ricardo Florence, Planning
Investor Relations Director added "We look forward to the increased exposure
inclusion in the Index offers CBD, especially among Latin American institutional
investors."
Companhia Brasileira de Distribuicao and its affiliated company NOVASOC operates
a total of 334 stores in 11 Brazilian states through four 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
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[COMPANY LOGO - GRAPHIC OMITTED]
[COMPANY LOGO - GRAPHIC OMITTED]
Grupo Pao de Acucar
Investor Relations
Av. Brig. Luis Antonio, 3.126
1 andar - Jd. Paulista
CEP: 01402-901
Sao Paulo - SP - Brasil
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HIGHLIGHTS
July 1999 same store sales
increased 6.3%
compared to July 1998.
Number of clients
grew 30%
compared to July 1998.
Floor space
increased 14% in
the same period.
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Companhia Brasileira de Distribuicao (CBD)
Announces July 1999 Net Sales
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Sao Paulo, Brazil, August 24, 1999 - Companhia Brasileira de Distribuicao
(NYSE:CBD, BOVESPA:PCAR4) today announced preliminary, non-audited July 1999 net
sales figures. The information discussed below represents net sales variations
of CBD all store and same store formats.
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Total net sales for July 1999 increased 24.1% to R$467.6 million compared to the
same period in 1998. Total sales in constant currency indexed by IGP-DI
increased 14.0% compared to 0.24% sector growth recorded by ABRAS (Brazilian
Food Retailers Association).
Same store net sales in July 1999 grew 6.3% compared to July 1998.
Net Sales by Division 1999/1998 - Variation (%)
(Preliminary, non-audited)
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Nominal Currency Constant Currency
Corporate Law Indexed by IGP-DI
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July July
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All Same All Same
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Pao de Acucar 31.3% 13.7% 20.6% 4.4%
Barateiro 44.7% 9.6% 32.9% 0.6%
Extra 33.6% 2.4% 22.7% -6.0%
Eletro 12.5% -11.7% 3.3% -18.9%
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CBD 24.1% 6.3% 14.0% -2.4%
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Factors which contributed to these results were:
o Continued positive performance of supermarket operations (represented by the
Pao de Acucar and Barateiro divisions) demonstrating the continued favorable
scenario for food products.
o Extra hypermarkets recorded growth of 2.4% compared to July 1998, in
spite of strong comparative basis of last year, when this division
reported same store sales growth of 25.2% (in constant currency 20.6%)
compared to July 1997. This strong performance reflects benefits from
store remodeling, employee training and gains from economies of scale.
The trucks strike in the end of July resulted in a slight impact for the
distribution of perishable goods for stores located far from the
distribution center, but did not significantly affect the majority of
stores inventory.
o CBD continues to increase its customer base. Taking into account the number
of transactions, CBD's customer base increased by 30% compared to July 1998,
significantly higher than sales area variation in the same period of 14.1%.
1
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o The Eletro division recorded a negative variation of 11.8% compared to July
1998, indicating a slight recovery from the effects of the currency
devaluation at the beginning of 1999. This improved figure was mainly due to
increased demand for non-food products, which is the result of the current
lower interest rate scenario in Brazil.
There continues to be a trend toward a slight growth in credit sales, from 3.9%
in second quarter of 1999 to 4.6% in July 1999.
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Form of Payment 4Q98 1Q99 2Q99 July 99
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Cash 53.8% 56.2% 55.8% 55.6%
Credit Card 21.5% 22.9% 23.0% 22.5%
Food Voucher 7.3% 7.2% 6.9% 6.4%
Credit 17.4% 13.7% 14.3% 15.5%
Post-dated Checks 11.9% 10.5% 10.4% 10.9%
Installments 5.5% 3.2% 3.9% 4.6%
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NOVASOC
During July 1999, 3 hypermarkets leased from the Paes Mendonca chain began
operations under the Extra format (1 in Sao Paulo and 2 in Rio de Janeiro).
Currently, Novasoc operates a total of 13 stores, including 9 Pao de Acucar
supermarkets, 1 Barateiro supermarket and 3 Extra hypermarkets. It is important
to mention that these stores are operating under the same marketing strategies
and systems, showing a high synergy level with CBD stores in these regions.
Products supplied to these stores from CBD's distribution center totaled R$15.7
million during July 1999.
The remaining Novasoc supermarkets and hypermarkets are being been converted to
CBD store formats and are expected to open during the third quarter of 1999.
Companhia Brasileira de Distribuicao and its affiliated company, Novasoc,
operate a total of 334 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.
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Ricardo Florence dos Santos Rosemary Otero
Investor Relations Director - CBD Edelman Financial
Tel: (55-11) 886 0421 Fax: (55-11) 884 2677 Tel: (212) 704 4486
Email: [email protected] Fax: (212) 768 1025
Email: [email protected]
Fernando Tracanella
Email: [email protected]
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