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{LOGO] Companhia Brasileira de Distribuicao
THIRD QUARTER 2000 RESULTS
Sao Paulo, Brazil, October 30, 2000 - Companhia Brasileira de Distribuicao (CBD)
today announced 3rd quarter 2000 results.
o EBITDA margin of 8.2%, the highest one since the company went public
(1995). EBITDA grew 40.5% compared to 3rd quarter 1999
o 4 stores of the Extra Division were inaugurated in the quarter, adding
39,191 m2 to sales area
o New Distribution Centers in operation in the quarter
o Sales grew 35.5% in the 3rd quarter of 2000 compared to the same period in
1999
o Same store sales grew 6.9%
o Net Income of R$90.2 million, representing a growth of 121.7% compared to
3rd quarter 1999 (EPS of R$0.84 per thousand shares)
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
Highlights
------------------------------------------------------------------------ ------------------------------------------
(R$ million) 3Q2000 3Q1999 Var.(%) 9 months 2000 9 months 1999 Var.(%)
------------------------------------------------------------------------ ------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Sales 1,936.5 1,429.6 35.5 5,335.5 4,003.7 33.3*
Gross margin (%) 27.2 28.1 27.3 27.5
EBITDA 157.9 112.4 40.5 406.3 281.7 44.2
EBITDA Margin (%) 8.2 7.9 7.6 7.0
Net Income 90.2 40.7 121.7 204.7 (21.4) -
Income per thousand shares (R$) 0.84 0.45 86.7 1.91 (0.23) -
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</TABLE>
* Total sales figures do not include net sales of the Peralta chain in the
month of February 1999, period prior to its incorporation into the CBD group.
Sales Performance
In the 3rd quarter of 2000, Companhia Brasileira de Distribuigao - CBD
registered consolidated net revenues of R$1,936.5 million, a 35.5% growth
compared to the same period in 1999. In the first nine months of 2000,
consolidated net sales totaled R$5,335.5 million, a 32.4% increase compared to
the same period in 1999. Sales of the 65 stores acquired in 2000 confirmed the
projections previously announced by the Company.
CBD obtained this growth by means of continuous investments made to the
expansion of its store basis, store remodelings, distribution, technology and
training. In the first nine months of 2000, the Company increased its store
basis by 69 units compared to December 1999, a 18.9% increase in sales area. The
number of transactions in this same period reached 239 million, a 31% growth
compared to the first nine months of 1999.
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Total Net Sales Evolution by Division - Consolidated*
(Nominal Currency/Corporate Law)
Variation (%) 2000/1999
--------------------------------------------------------------------------------
1st Quarter 2nd Quarter 3rd Quarter 9 months
--------------------------------------------------------------------------------
Pao de Acucar 8.6% 18.8% 23.9% 17.2%
Barateiro 64.4% 58.5% 64.8% 62.4%
Extra 42.1% 40.3% 37.1% 39.7%
Eletro 16.4% 27.2% 34.3% 26.5%
--------------------------------------------------------------------------------
CBD 27.2% 34.0% 35.5% 32.4%
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* Total sales figures include net sales of the Peralta chain in the month of
February 1999, period prior to its incorporation into the CBD group.
Productivity gains also marked the period, generating a 6.9% growth in same
store sales in the third quarter and 5.0% in the nine months of 2000. The
scenario was more favorable for consumption in the third quarter compared to the
first half. This improvement is a result of an environment scenario
characterized by decreasing interest rates and greater confidence on the part of
the consumers with respect to Brazil's economy. The Company registered an
improvement in sales of food and non-food products, mainly of electronic and
computer products. Due to the fact that CBD is inserted and well-positioned in
the consumer goods market, it has been profiting from this recovery, as can be
seen below:
Same Store Net Sales Evolution by Division - Consolidated*
(Nominal Currency/Corporate Law)
Variation (9/6) 2000/1999
--------------------------------------------------------------------------------
1st Quarter 2nd Quarter 3rd Quarter 9 months
--------------------------------------------------------------------------------
Pao de Acucar 4.4% 7.0% 5.6% 5.6%
Barateiro 9.6% 5.3% 7.7% 7.5%
Extra -1.8% -0.7% 3.8% 0.5%
Eletro 22.9% 33.5% 37.8% 31.9%
--------------------------------------------------------------------------------
CBD 3.3% 4.6% 6.9% 5.0%
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* Total sales figures include net sales of the Peralta chain in the month of
February 1999, period prior to its incorporation into the CBD group.
The Pao de Acucar Division registered a 5.6% growth in same store sales in the
third quarter of 2000 and 5.6% in the year. Apart from the benefits of the Store
Remodeling Program, we highlight the success of this banner's Fidelity Program,
through the Pao de Acucar Mais relationship card. The Company already has more
than 1 million enrolled families and has been identifying an average of 50% of
the tickets. As a result, CBD has been accumulating valuable information about
its clients' consumption behavior, which enables the adoption of more efficient
marketing strategies and operating actions.
The Barateiro stores once more presented a 7.7% growth in same store sales in
the 3rd quarter of 2000 and 7.5% in the year. Among the main factors that
contributed to the performance of this Division, we highlight the consolidation
of this banner's image of low prices, the evolution of the model of stores with
low operating costs and the fast development of the Barateiro private brand
(currently with 650 products), whose share in sales of this Division was 8% in
the 3rd quarter.
The Extra Division, in spite of a very competitive scenario to the hypermarkets
segment, presented a 3.8% growth, representing an important recovery compared to
the first two quarters (-1.8% and -0.7% respectively) and accumulating 0.5% in
the nine months of 2000. The Company highlights as main drivers for this
recovery: the strategy of attracting clients with basic and frequently consumed
products, the improvement of sales of non-food products and the beginning of the
Private Brands Program, having launched 350 products so far.
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The Eletro Division registered a 37.8% growth in same store sales, accumulating
31.9% in the nine months of 2000, reflecting a sustainable recovery of sales in
the durable goods segment. The store remodeling program also contributed to the
performance of this Division. This program has been producing operating
improvements in terms of commercial, marketing and credit aggressiveness.
Total Net Sales Evolution by Division - Consolidated*
Constant currency (IPCA)
Variation (%) 2000/1999
--------------------------------------------------------------------------------
1o Trimestre 2o Trimestre 3o Trimestre 9 meses
--------------------------------------------------------------------------------
Pao de Acucar 0.7% 11.5% 15.2% 9.1%
Barateiro 52.8% 48.7% 53.3% 51.4%
Extra 31.8% 31.6% 27.5% 30.2%
Eletro 7.8% 19.4% 24.8% 17.7%
--------------------------------------------------------------------------------
CBD 18.0% 25.7% 25.9% 23.3%
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* Total sales figures include net sales of the Peralta chain in the month of
February 1999, period prior to its incorporation into the CBD group.
Same Store Net Sales Evolution by Division - Consolidated*
Constant currency (IPCA)
Variation (%) 2000/1999
--------------------------------------------------------------------------------
1o Trimestre 2o Trimestre 3o Trimestre 9 meses
--------------------------------------------------------------------------------
Pao de Acucar -3.2% 0.4% -1.9% -1.6%
Barateiro 1.7% -1.2% 0.2% 0.2%
Extra -8.9% -6.8% -3.4% -6.3%
Eletro 13.8% 25.3% 28.1% 22.8%
--------------------------------------------------------------------------------
CBD -4.2% -1.8% -0.6% -2.2%
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* Total sales figures include net sales of the Peralta chain in the month of
February 1999, period prior to its incorporation into the CBD group.
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[LOGO] Companhia Brasileira de Distribuicao 3rd Quarter 2000 Results
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Management's Comments
Third quarter 2000 results: a record EBITDA margin of 8.2%
In the 3rd quarter of 2000, CBD registered a Gross Income of R$ 526.3 million, a
31.1% growth compared to the same period in 1999. In the nine months of 2000,
the Gross Income totaled R$ 1,454.5 million, representing a 32.1% increase
compared to the same period in 1999. The gross margin reached 27.2% in the 3rd
quarter and 27.3% in the nine months, compared to 28.1% and 27.5% respectively
in 1999.
Despite the tough competition in the sector, and due to a higher participation
of the Extra and Barateiro formats, CBD has been able to maintain the gross
margin around 27%, as a result of increasing productivity and scale gains. It is
important to remember that the 3rd quarter of 1999 represents a strong
comparative basis in terms of gross margin, since this period coincided with the
opening of 9 hypermarkets leased from the Paes Mendonca chain, which generated a
high volume of bonuses and discounts with suppliers.
In the 3rd quarter of 2000, the shrinkage level reached 1.5%, excluding the 65
stores that were acquired during the year. If we consider all the stores, the
index was 1.6% compared to 1.8% in the same period in 1999.
The electronic relationship between CBD and the suppliers, through purchases
made via EDI (Electronic Data Interchange) and PD@ NET (a system which uses the
Internet as an interface) reached 78% in September/00, heading towards the
80-90% levels expected for the end of the year. Productivity gains in
distribution as a result of the expansion of the Company's storing area also
contributed to this performance.
The great highlight of the period was the EBITDA (income before interest, tax,
depreciation and amortization), which reached R$157.9 million in the third
quarter of 2000, a 40.5% growth compared to the same period in 1999. In
the first nine months of 2000, the Company's EBITDA reached R$406.3 million, a
44.2% growth compared to the same period in 1999. CBD's EBITDA margin was 8.2%
in the 3rd quarter of 2000 (7.9% in the third quarter of 1999), the highest one
since the company went public (1995), confirming once more the CBD's capacity to
dilute expenses with scale and efficiency gains. In the first nine months of
2000, the EBITDA margin reached 7.6% compared to 7.0% in the first nine months
of the previous year.
CBD's third quarter financial result was R$ 12.7 million, compared to a negative
result of R$9.7 million in the same period of 1999. The currency variation line
(R$4.5 million) refers only to the amortization of the deferred exchange loss in
the 1st quarter of 1999. This improvement of the Company's financial results
already reflects the reduction of its debt level due to the conversion of
debentures of the 1st and 3rd issues, and better results in credit operations.
In the nine months of 2000, CBD recorded a loss of R$16 million, compared to a
loss of R$199.1 million in the nine months of 1999 - period in which the company
was strongly affected by currency devaluation.
3rd quarter 2000 net result was R$90.2 million, compared to R$40.7 million in
the same period of the previous year, representing an 121.6% increase. In the
first nine months of 2000, the Company registered a net income of R$204.7
million, compared to a loss of R$21.3 million in the same period of 1999.
Debentures
During the 3rd quarter of 2000, the 85,246 debentures remaining from the 1st
issue were converted, as well as 10,519 debentures of the 2nd issue and the
totality of the debentures of the 3rd issue (297,000), generating 9,470,331 new
shares to the Company as shown in the table below:
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<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
Common Shares (thousand) Preferred Shares (thousand) Total of Shares (thousand)
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
End of 2nd quarter 62,858,755 34,869,181 97,727,936
1st issue 3,119,707
2nd issue 350,630
3rd issue 5,999,994
End of 3rd quarter 62,858,755 44,339,512 107,198,267
------------------------------------------------------------------------------------------------------------
</TABLE>
In Shareholders Meeting held on October 17th, 2000, CBD approved its 4th private
issue of debentures, amounting to R$100 million. These resources will be used by
the Company to finance its investments in new stores, distribution, technology
and store remodelings. We present below the main characteristics of the issue:
Date of issue: September 1, 2000
Priority rights period: 30 days from 10/20/2000 onwards
Amount of Debentures: 100,000
Nominal Value of each debenture: R$1,000
Type: Convertible into preferred shares
Duration and expiration date: 5 years expiring on August 31, 2005
Indexing: TJLP (Long-Term Interest Rate) + 3.5% per year. The portion of TJLP
that exceeds 4.5% will be capitalized and incorporated to the nominal value of
the debentures.
Amortization: on 08. 31.2003 - 33.3%; on 08.31.2004 - 33.3% and on 08. 31.2005 -
33.4%.
Criteria to conversion: the conversion may occur at any time, from the
debenture's subscription date onwards, and the conversion price is fixed in R$78
per one thousand shares, indexed by the portion of TJLP that exceeds 4.5%.
Investments
Investments totaled R$317.0 million in the third quarter, accumulating R$792.0
million in the first nine months of 2000, compared to R$191.8 million and
R$473.7 million in the same periods of 1999, directed to new stores,
acquisitions, distribution, technology and stores remodeling. We highlight the
following investments:
o Opening of 4 Extra hypermarkets, located in the cities of Sorocaba (SP),
Fortaleza (CE), Brasilia (DF) and Rio de Janeiro (RJ), aggregating 39,191
m2 of sales area to the Company. During this period, CBD also continued the
construction of 3 hypermarkets that will be inaugurated during the 4th,
quarter, in the cities of Sao Paulo (old Mappin Itaim), Araraquara
(interior of SP) and Santos (coast of SP).
o Opening of 1 new Pao de Acucar store in Sao Paulo and start-up of the
construction of another one that will be inaugurated in the State of Sao
Paulo (Granja Viana) in the 4th quarter of 2000.
o The Company also inaugurated one more Barateiro supermarket in the city of
Sao Paulo.
o Acquisition of two lands for the construction of hypermarkets, one in the
city of Belo Horizonte and the other in Sao Vicente (coast of Sao Paulo).
The Company also acquired 3 lands for the construction of Pao de Acucar
stores, 2 in Curitiba and 1 in Recife.
o Opening of the new electronic products Distribution Center in the city of
Sao Paulo, with 40,000m2 of storing area, as well as start-up of the
operations of the Regional Distribution Centers of Curitiba (state of
Parana) and Brasilia (Federal District). CBD currently has 350,000m2 of
storing area.
o Remodeling of 16 Barateiro stores, 4 Eletro stores and 4 Pao de Acucar
stores.
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[LOGO] Companhia Brasileira de Distribuicao 3rd Quarter 2000 Results
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CONSOLIDATED INCOME STATEMENT - CORPORATE LAW METHOD*
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
3rd Quarter Accumulated nine months
----------------------------------- ----------------------------------
R$thousand 2000 1999 % 2000 1999 %
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Sales Revenue 1,936,469 1,429,608 35.5% 5,335,455 4,003,742 33.3%
Cost of Sales (1,410,160) (1,028,246) 37.1% (3,880,931) (2,902,311) 33.7%
Gross Profit 526,309 401,362 31.1% 1,454,524 1,101,431 32.1%
Operating Income (Expenses)
Selling Expenses (293,890) (233,212) 26.0% (825,185) (648,977) 27.2%
General and Administrative (74,496) (55,749) 33.6% (223,005) (170,730) 30.6%
Total Operating Expenses (368,386) (288,961) 27.5% (1,048,190) (819,707) 27.9%
Operating Income Before Taxes, Deprec.
and Fin. Income (Exp.) - EBITDA 157,923 112,401 40.5% 406,334 281,724 44.2%
Depreciation (56,138) (40,610) 38.2% (148,910) (112,128) 32.8%
Operating Income Before Taxes and
Financial Income (Exp.)- EBIT 101,785 71,791 41.8% 257,424 169,596 51.8%
Taxes and Charges (9,051) (6,716) 34.8% (32,772) (19,791) 65.6%
Financial Income 104,542 123,394 -15.3% 281,278 263,007 6.9%
Financial Expense (87,396) (128,646) -32.1% (283,907) (314,423) -9.7%
Currency variation (4,477) (4,477) 0.0% (13,431) (147,728) -90.9%
Net Financial Income (Loss) 12,669 (9,729) -230.2% (16,060) (199,144) -91.9%
---------------------------
Operating Income (Loss) 105,403 55,346 90.4% 208,592 (49,339)
Losses in Invested Companies - 195 - (1,199)
Equity Income - - - -
Non-Operating Results (1,194) 586 -303.9% 1,321 927 42.4%
-------------------------------------------------------------------------------------------------------------
Income (Loss) Before Income Tax 104,209 56,127 85.7% 209,913 (49,611)
-------------------------------------------------------------------------------------------------------------
Income Tax (13,967) (15,427) (5,181) 28,257
-------------------------------------------------------------------------------------------------------------
Net Income (Loss) 90,242 40,700 121.7% 204,732 (21,354)
Net Income (Loss) per 1,000 shares 0.84 0.45 86.7% 1.91 (0.23)
No. of shares (in thousand)
at the end of the period 107,198,267 91,096,308 107,198,267 91,096,308
-------------------------------------------------------------------------------------------------------------
% of Net Sales
Gross Profit 27.2% 28.1% 27.3% 27.5%
Total Operating Expenses -19.0% -20.2% -19.6% -20.5%
Selling Expenses -15.2% -16.3% -15.5% -16.2%
General and Administrative -3.8% -3.9% -4.2% -4.3%
EBITDA 8.2% 7.9% 7.6% 7.0%
Depreciation -2.9% -2.8% -2.8% -2.8%
EBIT 5.3% 5.0% 4.8% 4.2%
Taxes and Charges -0.5% -0.5% -0.6% -0.5%
Net Financial Income (Expense) 0.7% -0.7% -0.3% -5.0%
Income Before Income Tax 5.4% 3.9% 3.9% -1.2%
Income Tax -0.7% -1.1% -0.1% 0.7%
Net Income (Loss) 4.7% 2.8% 3.8% -0.5%
-------------------------------------------------------------------------------------------------------------
</TABLE>
* 1999 values do not include Peralta chain's sales in February (period prior to
its incorporation into the CBD group).
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[LOGO] Companhia Brasileira de Distribuicao 3rd Quarter 2000 Results
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CONSOLIDATED BALANCE SHEET - CORPORATE LAW METHOD
--------------------------------------------------------------------------------
RS thousand 3rd Quarter/00 2nd Quarter/00
--------------------------------------------------------------------------------
ASSETS
Current Assets
Cash and Banks 50,637 29,047
Short-Term Investments 426,243 566,262
Accounts Receivable 653,492 531,943
Installment Sales 229,098 163,764
Post-Dated Checks 115,065 101,490
Credit Card and Other 337,429 291,637
Allowance for Doubtful Accounts (28,100) (24,948)
Advances to Suppliers 25,386 14,577
Taxes Recoverable 101,161 85,387
Other Credits 32,254 27,317
Inventories 697,793 590,524
Prepaid Expenses 13,136 24,848
Total Current Assets 2,000,102 1,869,905
--------------------
Long Term Assets
Deferred Income Tax 73,646 69,270
Judicial Deposits 64,689 60,485
Credit with Invested Companies 12,362 12,362
Prepaid Expenses 2,800 3,218
Other Credits 144,522 126,761
Total Long Term Assets 303,019 272,096
----------------------
Permanent Assets
Investments 448,393 438,148
Properties and Equipment 2,447,696 2,237,435
Deferred Charges 541,607 463,898
Currency Variation 44,777 49,254
Total Permanent Assets 3,437,696 3,139,481
----------------------
TOTAL ASSETS 5,740,817 5,281,481
------------
LIABILITIES
Current Liabilities
Suppliers 750,107 605,754
Loans and Financing 571,283 421,143
Domestic Currency 553,945 403,781
Foreign Currency 17,338 17,362
Payable on Purchase of Assets 143,653 158,961
Debentures 6,153 7,795
Taxes on Sales 16,793 19,010
Income Tax 68,382 49,231
Salaries and Payroll Charges 87,277 76,619
Dividends 20 1,721
Others 87,708 93,321
Total Current Liabilities 1,731,376 1,433,555
-------------------------
Long Term Liabilities
Financing 332,031 351,768
Domestic Currency 297,231 312,869
Foreign Currency 34,800 38,899
Payable on Purchase of Assets 60,351 62,143
Debentures 183,227 289,582
Deferred Income Tax and Installments 6,440 6,846
Other Accruals 409,680 352,419
Total Long Term Liabilities 991,729 1,062,758
---------------------------
Convertible Debentures -3rd issue - 332,694
Shareholders' Equity
Capital 1,988,663 1,513,668
Capital Reserves 348,292 348,292
Profit Reserves 680,757 590,515
Total Shareholders' Equity 3,017,712 2,452,475
Total Convertible Debentures (3rd issue)
and Shareholders'Eguity 3,017,712 2,785,169
----------------------------------------
TOTAL LIABILITIES 5,740,817 5,281,482
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[LOGO] Companhia Brasileira de Distribuicao 3rd Quarter 2000 Results
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Stores by Division
<TABLE>
<CAPTION>
-------------------------------------------------- -------------------------
Pao de Sales area No. of
Acucar Extra Eletro Barateiro CBD (m2) Employees
----------------------------------------------------------------- -------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
06/30/99 154 32 74 70 330 514,229 36,539
Open - 9 - 1 10
Close - - - - -
Converted - - - - -
09/30/99 154 41 74 71 340 611,254 36,762
Open 6 - 4 10
Close (1) - - - (1)
Converted (8)+ 1 (1) - 8 -
12/31/99 146 46 74 83 349 663,237 39,642
Open 9 - - 2 11
Close (1) - (3) - (4)
Converted 1 - - (1) -
03/31/00 155 46 71 84 356 677,102 39,613
Open 33 - 1 24 58
Close - - - - -
Converted - - - - -
06/30/00 188 46 72 108 414 750,063 46,478
Open 1 4 - 1 6
Close (1) - (1) (2)
Converted - - - - -
----------------------------------------------------------------- -------------------------
09/30/00 188 50 71 109 418 788,336 48,498
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</TABLE>
Summary of Store Conversions
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------
3rd Quarter 99 4th Quarter 99 1st Quarter 00 2nd Quarter 00 3rd Quarter 00
------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Barateiro => Pao de Acucar 1
Extra => Pao de Acucar 1
Pao de Acucar => Barateiro 8
Superbox => Extra
Barateiro => Extra
------------------------------------------------------------------------------------------------------------------
</TABLE>
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Sales Breakdown per Division - Consolidated*
In R$ thousand - Nominal (Corporate Law)
-------------------------------------------- ----------
JULY 2000 % 1999 % Var.(%)
------------------------------------------------------------------ ----------
Pao de Acucar 214,097 33.0% 174,633 37.0% 22.6%
Extra 306,013 47.2% 212,211 45.1% 44.2%
Barateiro 94,781 14.6% 58,018 12.3% 63.4%
Eletro 33,705 5.2% 26,498 5.6% 27.2%
------------------------------------------------------------------ ----------
CBD 648,596 100.0% 471,360 100.0% 37.6%
------------------------------------------------------------------ ----------
-------------------------------------------- ----------
AUGUST 2000 % 1999 % Var.(%)
------------------------------------------------------------------ ----------
Pao de Acucar 218,767 33.6% 175,610 37.1% 24.6%
Extra 303,585 46.7% 213,664 45.1% 42.1%
Barateiro 92,874 14.3% 57,163 12.1% 62.5%
Eletro 34,985 5.4% 26,972 5.7% 29.7%
------------------------------------------------------------------ ----------
CBD 650,211 100.0% 473,409 100.0% 37.3%
------------------------------------------------------------------ ----------
-------------------------------------------- ----------
SEPTEMBER 2000 % 1999 % Var.(%)
------------------------------------------------------------------ ----------
Pao de Acucar 209,543 32.9% 168,359 34.7% 24.5%
Extra 301,777 47.3% 238,658 49.2% 26.4%
Barateiro 91,389 14.3% 54,102 11.2% 68.9%
Eletro 34,953 5.5% 23,721 4.9% 47.4%
------------------------------------------------------------------ ----------
CBD 637,662 100.0% 484,840 100.0% 31.5%
------------------------------------------------------------------ ----------
-------------------------------------------- ----------
3RD QUARTER 2000 % 1999 % Var.(%)
------------------------------------------------------------------ ----------
Pao de Acucar 642,407 33.2% 518,602 36.3% 23.9%
Extra 911,374 47.1% 664,533 46.5% 37.1%
Barateiro 279,044 14.4% 169,283 11.8% 64.8%
Eletro 103,644 5.4% 77,191 5.4% 34.3%
------------------------------------------------------------------ ----------
CBD 1,936,469 100.0% 1,429,609 100.0% 35.5%
------------------------------------------------------------------ ----------
-------------------------------------------- ----------
ACUM. 9 MONTHS 2000 % 1999 % Var.(%)
------------------------------------------------------------------ ----------
Pao de Acucar 1,752,502 32.8% 1,494,980 37.1% 17.2%
Extra 2,557,820 47.9% 1,830,529 45.4% 39.7%
Barateiro 756,564 14.2% 465,888 11.6% 62.4%
Peralta - - 27,049 0.6% -
Eletro 268,569 5.0% 212,345 5.3% 26.5%
------------------------------------------------------------------ ----------
CBD 5,335,455 100.0% 4,030,791 100.0% 32.4%
------------------------------------------------------------------ ----------
* Includes net sales of the Peralta chain in February/1999, period prior to its
incorporation into the CBD group.
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Productivity Indexes
In R$ - Nominal (Corporate Law)
Sales per m2/month
<TABLE>
<CAPTION>
----------------------------- --------------------------------
3Q/00 3Q/99 Var (%) 9M/00 9M/99 Var (%)
-------------------------------------------------- --------------------------------
<S> <C> <C> <C> <C> <C> <C>
Pao de Acucar 933 982 -5.0% 968 990 -2.2%
Extra 807 855 -5.6% 790 865 -8.7%
Barateiro 725 647 12.1% 712 660 7.9%
Eletro 826 662 24.8% 727 605 20.2%
-------------------------------------------------- --------------------------------
CBD 831 849 -2.1% 823 852 -3.4%
-------------------------------------------------- --------------------------------
</TABLE>
Sales per employee/month
<TABLE>
<CAPTION>
----------------------------- --------------------------------
3Q/00 3Q/99 Var (%) 9M/00 9M/99 Var (%)
-------------------------------------------------- --------------------------------
<S> <C> <C> <C> <C> <C> <C>
Pao de Acucar 14,232 12,942 10.0% 15,212 13,104 16.1%
Extra 17,643 16,780 5.1% 17,444 17,437 0.0%
Barateiro 16,309 13,717 18.9% 16,306 13,664 19.3%
Eletro 23,334 16,856 38.4% 19,589 13,688 43.1%
-------------------------------------------------- --------------------------------
CBD 16,361 13,087 25.0% 16,526 13,115 26.0%
-------------------------------------------------- --------------------------------
</TABLE>
Average Ticket
<TABLE>
<CAPTION>
----------------------------- --------------------------------
3Q/00 3Q/99 Var (%) 9M/00 9M/99 Var (%)
-------------------------------------------------- --------------------------------
<S> <C> <C> <C> <C> <C> <C>
Pao de Acucar 16.3 16.3 0.0% 16.8 16.8 0.0%
Extra 37.1 35.2 5.4% 36.4 35.9 1.4%
Barateiro 11.7 11.4 2.6% 12.0 11.9 0.8%
Eletro 245.8 199.9 23.0% 223.2 194.1 15.0%
-------------------------------------------------- --------------------------------
CBD 22.0 21.7 1.4% 22.4 22.1 1.4%
-------------------------------------------------- --------------------------------
</TABLE>
Sales per Checkout/month
<TABLE>
<CAPTION>
----------------------------- --------------------------------
3Q/00 3Q/99 Var (%) 9M/00 9M/99 Var (%)
-------------------------------------------------- --------------------------------
<S> <C> <C> <C> <C> <C> <C>
Pao de Acucar 85,974 91,271 -5.8% 89,850 92,363 -2.7%
Extra 118,817 115,250 3.1% 115,793 117,049 -1.1%
Barateiro 73,888 64,820 14.0% 74,551 65,994 13.0%
Eletro 193,154 137,596 40.4% 164,920 125,574 31.3%
-------------------------------------------------- --------------------------------
CBD 99,493 97,774 1.8% 99,810 98,328 1.5%
-------------------------------------------------- --------------------------------
</TABLE>
* Results referring to sales area, employees and checkouts were calculated based
on average values proportional to the period in which the stores were open.
Sales Breakdown (% of net sales)
--------------------------------------------------------------------------------
1999 1Q/00 2Q/00 Jul/00 Aug/00 Sep/00 3Q/00
--------------------------------------------------------------------------------
Cash 56.3% 55.1% 53.6% 52.9% 53.3% 53.3% 53.1%
Credit Card 22.7% 26.6% 27.6% 26.6% 27.3% 26.8% 26.9%
Food Voucher 6.4% 6.5% 6.3% 6.3% 5.9% 6.2% 6.1%
Credit 14.6% 11.8% 12.5% 14.2% 13.5% 13.7% 13.9%
Post-Dated Checks 10.2% 7.2% 7.2% 6.8% 6.7% 6.9% 6.8%
Installments 4.4% 4.6% 5.3% 7.4% 6.8% 6.8% 7.1%
--------------------------------------------------------------------------------
Data by Division on September 30, 2000
----------------------------------------------------
# Checkouts # employees # stores Sales area (m2)
----------------------------------------------------
Pao de Acucar 2,473 14,983 188 229,103
Extra 2,643 17,201 50 389,975
Barateiro 1,270 5,780 109 129,182
Eletro 173 1,473 71 40,076
--------------------------------------------------------------------------------
Total Stores 6,559 39,437 418 788,336
--------------------------------------------------------------------------------
Administration 3,719
--------------------------------------------------------------------------------
Loss prevention (security) 2,740
--------------------------------------------------------------------------------
Distribution Centers 2,602
--------------------------------------------------------------------------------
CBD 6,559 48,498 418 788,336
--------------------------------------------------------------------------------
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[LOGO] Companhia Brasileira de Distribuicao 3rd Quarter 2000 Results
<PAGE>
11
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NON-CONSOLIDATED INCOME STATEMENT - CORPORATE LAW METHOD (only CBD)*
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
3Q Quarter Accumulated 9 months
-------------------------------------------------------------------------------
R$ thousand 2000 1999 % 2000 1999 %
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Sales Revenue 1,751,308 1,390,411 26.0% 4,791,092 3,960,410 21.0%
Cost of Sales (1,268,142) (1,012,316) 25.3% (3,460,458) (2,884,766) 20.0%
Gross Profit 483,166 378,095 27.8% 1,330,634 1,075,644 23.7%
Operating Income (Expenses)
Selling Expenses (263,023) (214,860) 22.4% (726,213) (628,131) 15.6%
General and Administrative (73,238) (55,792) 31.3% (217,385) (170,773) 27.3%
Total Operating Expenses (336,261) (270,652) 24.2% (943,598) (798,904) 18.1%
Operating Income Before Taxes, Deprec
and Fin. Income (Exp.) - EBITDA 146,905 107,443 36.7% 387,036 276,740 39.9%
Depreciation (51,588) (39,665) 30.1% (136,159) (111,150) 22.5%
Operating Income Before Taxes and
Financial Income (Expenses) - EBIT 95,317 67,778 40.6% 250,877 165,590 51.5%
Taxes and Charges (9,009) (6,146) 46.6% (29,285) (19,184) 52.7%
Financial Income 113,624 120,814 -6.0% 319,593 260,510 22.7%
Financial Expense (85,762) (121,721) -29.5% (278,143) (307,408) -9.5%
Currency Variation (4,477) (4,477) 0.0% (13,431) (147,728) -90.9%
Net Financial Income (Loss) 23,385 (5,384) 28,019 (194,626)
---------------------------
Operating Income (Loss) 109,693 56,248 95.0% 249,611 (48,220)
Losses in Invested Companies (6,220) (633) (28,267) (2,047)
Equity Income -- -- -- (1)
Non-Operating Results 879 586 50.0% 3,326 927 258.8%
-------------------------------------------------------------------------------------------------------------------------
Income (Loss) Before Income Tax 104,352 56,201 85.7% 224,670 (49,341)
-------------------------------------------------------------------------------------------------------------------------
Income Tax (14,110) (15,697) (19,938) 27,987
-------------------------------------------------------------------------------------------------------------------------
Net Income (Loss) 90,242 40,504 122.8% 204,732 (21,354)
Net Income (Loss) per 1,000 shares 0.84 0.44 90.9% 1.91 (0.23)
No. of shares (in thousand))
at the end of the period 107,198,267 91,096,308 107,198,267 91,096,308
-------------------------------------------------------------------------------------------------------------------------
% of Net Sales
Gross Profit 27.6% 27.2% 27.8% 27.2%
Total Operating Expenses -19.2% -19.5% -19.7% -20.2%
Selling Expenses -15.0% -15.5% -15.2% -15.9%
General and Administrative -4.2% -4.0% -4.5% -4.3%
EBITDA 8.4% 7.7% 8.1% 7.0%
Depreciation -2.9% -2.9% -2.8% -2.8%
EBIT 5.4% 4.9% 5.2% 4.2%
Taxes and Charges -0.5% -0.4% -0.6% -0.5%
Net Financial Income (Expenses) 1.3% -0.4% 0.6% -4.9%
Income Before Income Tax 6.0% 4.0% 4.7% -1.2%
Income Tax -0.8% -1.1% -0.4% 0.7%
Net Income (Loss) 5.2% 2.9% 4.3% 0.5%
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
* 1999 values do not include Peralta chain's sales in February (period prior to
its incorporation into the CBD group).
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[LOGO] Companhia Brasileira de Distribuicao 3rd Quarter 2000 Results
<PAGE>
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NON-CONSOLIDATED BALANCE SHEET-CORPORATE LAW METHOD (only CBD)
--------------------------------------------------------------------------------
R$ thousand 3rd Quarter/00 2nd Ouarter/00
--------------------------------------------------------------------------------
ASSETS
Current Assets
Cash and Banks 44,787 25,452
Short-Term Investments 426,243 566,262
Accounts Receivable 623,236 504,021
Installment Sales 229,278 162,344
Post-dated Checks 95,769 88,636
Credit Card and Other 324,818 276,941
Allowance for Doubtful Accounts (26,629) (23,900)
Advances to Suppliers 25,157 14,614
Taxes Recoverable 101,848 86,324
Other Credits 31,750 26,938
Inventories 634,975 530,059
Prepaid Expenses 11,871 22,171
Total Current Assets 1,899,867 1,775,841
--------------------
Long-Term Receivables
Deferred Income Tax 58,517 54,284
Judicial Deposits 64,559 60,382
Credit with Invested Companies 344,930 353,423
Prepaid Expenses 2,800 3,218
Other Credits 18,178 7,397
Total Long-Term Receivables 488,984 478,704
---------------------------
Permanent Assets
Investments 448,393 438,148
Properties and Equipment 2,341,025 2,124,963
Deferred Charges 508,816 429,508
Currency Variation 44,777 49,254
Total Permanent Assets 3,298,234 2,992,619
----------------------
TOTAL ASSETS 5,687,085 5,247,164
------------
LIABILITIES
Current Liabilities
Suppliers 717,682 587,851
Loans and Financing 531,745 392,192
Domestic Currency 514,407 374,830
Foreign Currency 17,338 17,362
Payable on Purchase of Assets 143,653 158,961
Debentures 6,153 7,795
Taxes on Sales 14,212 16,389
Income Tax 68,382 49,231
Salaries and Payroll Charges 81,420 71,369
Dividends 20 1,721
Others 114,476 113,780
Total Current Liabilities 1,677,743 1,399,289
-------------------------
Long-Term Liabilities
Loans and Financing 332,031 351,768
Domestic Currency 297,231 312,869
Foreign Currency 34,800 38,899
Payable on Purchase of Assets 60,351 62,143
Debentures 183,227 289,582
Deferred Income Tax and Installments 6,440 6,846
Other Accruals 409,581 352,367
Total Long-Term Liabilities 991,630 1,062,706
---------------------------
Convertible Debentures -3rd issue -- 332,694
Shareholders' Equity
Capital 1,988,663 1,513,668
Capital Reserves 348,292 348,292
Revenue Reserves 680,757 590,515
Total of Shareholders' Equity 3,017,712 2,452,475
Total Convertible Debentures (3rd issue)
and Shareholders' Equity 3,017,712 2,785,169
----------------------------------------
TOTAL LIABILITIES 5,687,085 5,247,164
-----------------
--------------------------------------------------------------------------------
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[LOGO] Companhia Brasileira de Distribuicao 3rd Quarter 2000 Results
<PAGE>
13
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Amelia.com.br
Sales Performance
In the third quarter of 2000, the Amelia Division presented a 24.50% average
growth of monthly net sales compared to the monthly average recorded in the 1St
half of 2000. In the third quarter of 2000, the monthly average of net sales
reached R$2.26 million, compared to a monthly average of R$1.82 million recorded
in the first half of 2000. This result derives from the 66.30% average growth of
monthly sales via Internet compared to the average recorded in the first half of
2000.
Third quarter 2000 results
The division recorded a loss of R$6.5 million in the third quarter of 2000,
derived from investments made to sales and marketing, which reached the amount
of R$6.1 million. These investments, anticipated by the division's strategic
planning, aimed at gaining customers' fidelity and at increasing the customer
base, which grew 27% in the quarter, reaching the base of 160,000 customers.
Operating Highlights
This period was marked by improvements in operating efficiency, as a result of
the policies that are being implemented to improve the division's performance
and potentialize the synergies between Amelia division and Companhia Brasileira
de Distribuicao.
Amelia Division managed to achieve, in the third quarter, high levels of
customer satisfaction. According to a survey, 91% of the customers are satisfied
with their purchase experience, with the quality of the products and of customer
service. In addition, 94% of the customers reported that they will buy again at
Amelia.
The Amelia Division has made efforts in order to increase its customers'
satisfaction, having increased its products mix by 3,000 items, reaching the
amount of 15,000 products.
Aiming to expand the logistic capacity and to gain efficiency in the delivery of
food products orders, the Division implemented a new advanced distribution
station next to the Extra Morumbi store, in Sao Paulo, increasing the
fulfillment capacity in Sao Paulo by 50%. Meanwhile, a new advanced home
appliances distribution station was also implemented, next to the new home
appliances distribution center of Companhia Brasileira de Distribuicao, located
in Sao Paulo.
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[LOGO] Companhia Brasileira de Distribuicao 3rd Quarter 2000 Results
<PAGE>
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HIGHLIGHTS OF AMELIA.COM.BR DIVISION
--------------------------------------------------------------------------------
2000
----------------------------------------
R$ thousand 1st Half 3rd Quarter Accum. 9
months
--------------------------------------------------------------------------------
Net Sales Revenue 10,920.0 6,800.7 17,720.7
Cost of Sales (7,698.4) (4,897.3) (12,595.7)
Gross Profit 3,221.6 1,903.4 5,125.0
Operating Income (Expenses)
Selling Expenses (6,538.7) (6,071.0) (12,609.7)
General and Administrative (2,080.6) (2,155.7) (4,236.3)
Total Operating Expenses (8,619.3) (8,226.7) (16,846)
Operating Income Before Taxes,
Depreciation and Fin. Income
(Expenses) - EBITDA (5,397.7) (6,323.3) (11,721)
Depreciation (34.7) (153.0) (187.7)
Operating Income Before Taxes
and Financial Income - EBIT (5,432.4) (6,476.3) (11,908.7)
--------------------------------------------------------------------------------
% of Net Sales
Gross Profit 29.5% 28.0% 28.9%
Total Operating Expenses -78.9% -121.0% -95.1%
Selling Expenses -59.9% -89.3% -71.2%
General and Administrative -19.1% -31.7% -23.9%
EBITDA -49.4% -93.0% -66.1%
Depreciation -0.3% -2.2% -1.1%
EBIT -49.7% -95.2% -67.2%
--------------------------------------------------------------------------------
Companhia Brasileira de Distribuicao and its affiliated company operate a total
of 419 stores in 11 Brazilian states through four formats. In addition to the
Pao de Acucar and Barateiro supermarket divisions, CBD operates Extra
hypermarkets, Eletro home appliance stores and Amelia electronic commerce
division.
<TABLE>
<CAPTION>
<S> <C>
-----------------------------------------------------------------------------------------
Aymar Giglio Junior Fernando Tracanella
Investor Relations Director Investor Relations Manager
Phone: 55 (11) 3886 0421 Fax: 55 (11) 3884 2677 Phone: 55 (11) 3886 0421
Email: [email protected] Email: [email protected]
-----------------------------------------------------------------------------------------
Website: http:/www grupopaodeacucar.com.br
-----------------------------------------------------------------------------------------
</TABLE>
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[LOGO] Companhia Brasileira de Distribuicao 3rd Quarter 2000 Results
