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{LOGO] Companhia Brasileira de Distribuicao (NYSE: CBD)
2nd QUARTER 2000 RESULT
Sao Paulo, Brazil, August 7, 2000 - Companhia Brasileira de Distribuicao (CBD)
announces today the results of the 2nd quarter of year 2000.
o Net Income of R$72.3 million in the 2nd quarter of year 2000, representing
a growth of 329.1% compared to the same period in 1999.
o EBITDA reached R$129.9 million, increasing 51.5% compared to the 2nd
quarter of 1999.
o Same stores sales grew 4.6% and total sales grew 34.0% in the 2nd quarter
of 2000 compared to the same period of 2000.
o 65 stores, acquired in 2000, represent 81,268 m2 in sales area and around
R$ 1 billion in annual sales.
------------------------------------
Highlights
------------------------------------ ---------
(R$ thousand) 2nd Quarter/2000 2nd Quarter/1999 Var. (%)
---------------------------------------------------------------------- ---------
Net Sales 1,764.2 1,316.3 34.0
Gross Margin (%) 27.2 27.1
EBITDA 129.9 85.7 51.5
EBITDA Margin (%) 7.4 6.5
Net Income 72.3 16.9 329.1
Income per thousand shares (R$) 0.74 0.22 236.4
Sales Performance
In the 2nd quarter of year 2000, Companhia Brasileira de Distribuicao - CBD
registered consolidated net sales of R$1,764.2 million, a 34.0% growth compared
to the same period of 1999. In the 1st semester of 2000, consolidated net sales
totaled R$3,399.0 million, an increase of 32.0% compared to the 1st half of
1999. This growth was a result of investments made by the company in the
expansion of its store base, store remodelings, distribution/logistics,
technology and training. It is important to note that the number of clients that
visited the stores in the first semester of 2000 was 30.0% higher compared to
the amount registered in the same period of 1999, reaching the mark of 151
million transactions made. In relation to the performance of the stores acquired
in the first semester of 2000, it is valid to state that the sales level
confirmed the projections presented by the company, that is, it continues to be
valid to affirm that these stores aggregate gross annual sales of R$1 billion.
The most important fact to point out is that same stores sales grew 4.6% in the
2nd quarter of 2000 compared to the same period in 1999 and 4.0% in the 1st
semester of 2000 compared to the 1st semester of 1999, reflecting productivity
gains, with the following highlights per division:
Pao de Acucar: even taking into account a strong comparative basis (growth of
11.1% in the 2nd Quarter/99) this format continued to register a positive
performance, with a growth in same stores of 7.0% in the second quarter of 2000.
This performance reflects the solid positioning of this format, as well as the
constant investments made to store remodelings and customer service. We also
highlight the Fidelity Program initiated in January/00, through the launching of
the Pao de Acucar Mais relationship card. Currently, this program is covering
all the stores of the Pao de Acucar Division in the State of Sao Paulo, where
the company already has more than 920 thousand enrolled families. Besides a
higher level of fidelity from the consumer, this program has been playing an
important role in the increase of CBD's knowledge about its client basis,
which
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{LOGO] Companhia Brasileira de Distribuicao 2nd Quarter 2000 Results
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enables the adoption of more efficient marketing strategies and
operational actions.
Extra: As a result of a series of actions that have enabled a consistent
improvement in sales of this format, the hypermarkets registered a result close
to zero in the same store criteria (-0.7%), which represents an improvement in
the recent performance of sales, taking into account that the hypermarkets were
negatively affected by the deflation noted in several lines of food and non-food
products. The strategy adopted is based on the review of the sales mix,
maintaining the share of food products and non-food products, but with great
emphasis to frequently consumed products, enabling a higher traffic of customers
in the stores. Besides this, CBD is expanding the 1st price product line and in
the second semester will be launching its Extra Private Brand.
Barateiro: the Barateiro format registered a growth of 5.3%, as a result of
efforts directed towards more consolidation of this format and the reinforcement
of its low prices image among lower income class consumers. Besides the broad
line of 1st price products, CBD developed in this first semester 520 products
with its Barateiro Private Brand and will probably reach 1,000 products by the
end of the year. The participation of the Barateiro brand in the sales of this
Division was around 6% in the first semester of 2000.
Eletro: with a growth in same stores of 33.5%, the Eletro Division not only
benefited from the weak base of comparison, but also registered a recovery in
sales due to investments made to store remodelings (Eletro do Futuro Project)
and the more favorable macroeconomic scenario, with decreasing interest rates.
Net Sales Evolution by Division - Consolidated
Variation 00/99 (%)
------------------------------------------------------------
Corporate Law
------------------------------------------------------------
2nd Quarter 1st Semester
------------------------------- ---------------------------
All Stores Same Stores All Stores Same Stores
--------------------------------------------------- ---------------------------
Pao de Acucar 18.8% 7.0% 13.7% 5.7%
Extra 40.3% -0.7% 41.2% -1.2%
Barateiro 58.5% 5.3% 61.0% 7.3%
Eletro 27.2% 33.5% 22.0% 28.3%
--------------------------------------------------------------------------------
CBD 34.0% 4.6% 30.7% 4.0%
--------------------------------------------------------------------------------
------------------------------------------------------------
Constant currency (IPCA)
------------------------------------------------------------
2nd Quarter 1st Semester
------------------------------- ---------------------------
All Stores Same Stores All Stores Same Stores
--------------------------------------------------- ---------------------------
Pao de Acucar 11.5% 0.4% 6.0% -1.4%
Extra 31.6% -6.8% 31.7% -7.8%
Barateiro 48.7% -1.2% 50.4% 0.2%
Eletro 19.4% 25.3% 13.7% 19.6%
--------------------------------------------------------------------------------
CBD 25.7% -1.8% 21.9% -3.0%
--------------------------------------------------------------------------------
The figures of total sales include net sales of the Peralta chain in
February/1999, the period in which these stores were not yet incorporated to the
other Divisions of the Company. The sales figures of same stores include only
the stores that are at least 12 months in operation.
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CONSOLIDATED INCOME STATEMENT - CORPORATE LAW METHOD
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
2nd Quarter 1st Semester
------------------------------------- -------------------------------------
R$ thousand 2000 1999 % 2000 1999 %
-------------------------------------------------------------------------------- -------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Sales Revenue 1,764,186 1,316,307 34% 3,398,986 2,574,134 32%
Cost of sales (1,283,854) (959,440) 34% (2,470,771) (1,874,065) 32%
Gross Profit 480,332 356,867 35% 928,215 700,069 33%
Operating Expenses (Revenues)
Selling Expenses (275,260) (214,204) 29% (531,295) (415,765) 28%
General and Administrative (75,146) (56,914) 32% (148,509) (114,981) 29%
Total Operating Expenses (350,406) (271,118) 29% (679,804) (530,746) 28%
Operating Income Before Taxes, Deprec.
and Fin. Income (Exp.) - EBITDA 129,926 85,749 52% 248,411 169,323 47%
Depreciation (48,171) (37,254) 29% (92,772) (71,518) 30%
Operating Income before Taxes and
Financial Income (Expenses) - EBIT 81,755 48,495 69% 155,639 97,805 59%
Taxes and Charges (11,394) (7,094) 61% (23,721) (13,075) 81%
Financial Income 83,993 74,857 12% 176,736 139,613 27%
Financial Expense (96,067) (90,596) 06% (196,511) (185,777) 06%
Currency Variation (4,477) (4,477) 00% (8,954) (143,251) -94%
Net Financial Revenue(Loss) (16,551) (20,216) -18% (28,729) (189,415) -85%
---------------------------
Operating Profit (Loss) 53,810 21,185 154% 103,189 (104,685)
Losses in invested companies - (30) - (1,394)
Equity Income
- - - -
Non-Operating Results 1,401 640 118.9% 2,515 341 637.5%
----------------------------------------------------------------------------------------------------------------------
Income (Loss) before Income Tax 55,211 21,795 153% 105,704 (105,738)
----------------------------------------------------------------------------------------------------------------------
Income Tax 17,134 (4,935) 8,786 43,684 -79.9%
----------------------------------------------------------------------------------------------------------------------
Net Income (Loss) 72,345 16,860 329% 114,490 (62,054)
Net Income (Loss) per 1,000 shares 0.74 0.22 236.364% 1.17 (0.79)
No. of Shares (in thousand)
at end of period 97,727,936 78,405,280 97,727,936 78,405,280
----------------------------------------------------------------------------------------------------------------------
% of Net Sales
Gross Profit 27.2% 27.1% 27.3% 27.2%
Total Operating Expenses -19.9% -20.6% -20.0% -20.6%
Selling Expenses -15.6% -16.3% -15.6% -16.2%
General and Administrative -4.3% -4.3% -4.4% -4.5%
EBITDA 7.4% 6.5% 7.3% 6.6%
Depreciation -2.7% -2.8% -2.7% -2.8%
EBIT 4.6% 3.7% 4.6% 3.8%
Taxes and Charges -0.6% -0.5% -0.7% -0.5%
Net Financial Income (Expenses) -0.9% -1.5% -0.8% -7.4%
Income before Income Tax 3.1% 1.7% 3.1% -4.1%
Income Tax 1.0% -0.4% 0.3% 1.7%
Net Income (Loss) 4.1% 1.3% 3.4% -2.4%
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</TABLE>
* The figures of 1999 do not include the Peralta chain's sales (period prior
to its incorporation into the CBD group).
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CONSOLIDATED BALANCE SHEET - CORPORATE LAW METHOD
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
R$ thousand 2nd Quarter/00 1st Quarter/00 2nd Quarter /99
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Current Assets
Cash and Banks 29,047 24,032 21,230
Short-Term Investments 566,262 901,126 199,514
Accounts Receivable 531,943 464,334 361,356
Installment Sales 163,764 143,516 106,529
Post-dated checks 101,490 100,081 111,915
Credit Card and Other 291,637 241,212 162,189
Allowance for Doubtful Accounts (24,948) (20,475) (19,277)
Advances to Suppliers 14,577 15,532 10,553
Taxes Recoverable 85,387 81,026 52,183
Other Credits 27,317 18,499 19,403
Inventories 590,524 522,694 335,659
Prepaid Expenses 24,848 38,759 9,122
Total of Current Assets 1,869,905 2,066,002 1,009,020
-----------------------
Long Term Receivables
Deferred Income Tax 69,270 42,756 61,668
Judicial Deposits 60,485 56,032 37,674
Credits with Invested Companies 12,362 12,362 61,199
Prepaid Expenses 3,218 3,637 4,892
Other credits 126,761 107,936 2,857
Total Long Term Receivables 272,096 222,723 168,290
---------------------------
Permanent Assets
Investments 438,148 227,536 151,566
Properties and Equipment 2,237,435 1,988,932 1,499,617
Deferred Charges 463,898 444,473 360,198
Currency Variation 49,254 53,731 67,162
Total of Permanent Assets 3,139,481 2,660,941 2,011,381
-------------------------
TOTAL ASSETS 5,281,482 4,949,666 3,188,691
------------
LIABILITIES
Current Liabilities
Suppliers 605,754 577,324 453,892
Loans and Financing 421,143 341,746 744,451
Domestic Currency 403,781 324,902 77,295
Foreign Currency 17,362 16,844 667,156
Payable on Purchase of Assets 158,961 99,424 107,471
Debentures 7,795 24,769 8,093
Taxes on Sales 19,010 18,666 14,075
Tax Installments 49,231 21,945 10,466
Salaries and Payroll Charges 76,619 63,767 59,304
Dividends 1,721 15,957 -
Others 93,321 75,788 32,422
Total of Current Liabilities 1,433,555 1,239,386 1,430,174
Long Term Liabilities
---------------------
Financing 351,768 358,514 266,366
Domestic Currency 312,869 316,902 260,906
Foreign Currency 38,899 41,612 5,430
Payable on Purchase of Assets 62,143 57,205 46,092
Debentures 289,582 271,489 336,565
Deferred Income Tax and Installments 6,846 8,716 29,438
Other Accruals 352,419 319,722 165,256
Total of Long Term Liabilities 1,062,758 1,015,646 843,687
------------------------------
Convertible Debentures - 3rd issuance 332,694 321,253 -
Shareholders' Equity
Capital 1,513,668 1,506,918 542,687
Capital Reserves 348,292 348,292 4,050
Profit Reserves 590,515 518,171 368,093
</TABLE>
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<TABLE>
<CAPTION>
<S> <C> <C> <C>
Total of Shareholders' Equity 2,452,475 2,373,381 914,830
Total of Convertible Debentures and Shareholders' Equity 2,785,169 2,694,634 914,830
TOTAL LIABILITIES 5,281,482 4,949,666 3,188,691
-----------------
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</TABLE>
Management Comments
2nd quarter 2000 results (consolidated): EBITDA grows 51.5%
In the 2nd quarter of 2000, CBD registered a gross profit of R$ 480.3 million,
growing 34.6% compared to the same period of 1999. In the first semester, the
gross profit totaled R$ 928.2 million, representing a 32.6% increase compared to
the first semester of 1999. The gross margin reached 27.2% in the 2nd quarter
and 27.3% in the 1st semester, against 27.1% and 27.2% respectively in 1999.
We would like to state once again that, despite the tough competition in the
sector, and higher participation of Extra and Barateiro Divisions, CBD was able
to maintain gross margin around 27%. The explanation for this performance is
based on increasing scale gains with suppliers and investments in productivity.
In the 2nd quarter/2000, shrinkage was maintained at the 1.7% level registered
in the 1st quarter/2000 and below the 2.0% registered in the 2nd quarter/99 - in
accordance with the goal of 1.35% for the end of year 2000. New advancements
were also noticed in the electronic relationship between CBD and the suppliers.
Purchases made via EDI (Electronic Data Interchange) and PD@ NET (system that
uses Internet as an interface) reached 67% in June/00, heading towards the
80/90% levels expected for the year end.
The EBITDA (income before interest, tax, depreciation and amortization) of the
second quarter reached R$ 129.9 million, a 51.5% growth compared to the same
period of 1999. In the first semester, the EBITDA reached R$248.4 million, a
46.7% growth compared to the first semester of 1999. The EBITDA margin was 7.4%
in the 2nd quarter and 7.3% in the 1st semester, against 6.5% and 6.6% in the
corresponding periods of the previous year. The EBITDA growth is due to the
maintenance of the gross margin around 27%, in combination with the dilution of
operating expenses. Among the many expenses that the company has managed to
dilute with scale gains, we point out the expenses with personnel, distribution
and advertising.
In the 2nd quarter of 2000, CBD recorded a negative financial result of R$16.6
million, compared to a negative result of R$20.2 million in the same period of
1999. The exchange variation line (R$4.5 million) refers only to the
amortization of the deferred exchange loss in the 1st quarter of 1999. In the
semester, the financial result was negative by R$28.7 million, compared to a
negative result of R$189.4 million in the 1st semester/1999 - the period in
which the company was strongly affected by the currency devaluation.
2nd quarter/00 net profit was R$72.3 million, compared to R$16.9 million in the
same period of the previous year, representing an increase of 329.1%. CBD,
through the obtainment of a favorable judicial sentence, registered a reversion
of income tax, based on the effects of the monetary correction of the so-called
"Plano Verao" (1989) over its fixed assets.
In the first semester of 2000, the Company registered a net income of R$114.5
million, against a loss of R$62.0 million in the same period of 1999.
The number of shares of the Company was increased by 33,333 thousand preferred
shares compared to the 1st quarter/00, totaling 97,727,936 thousand, as a result
of the conversion into shares of 1,000 debentures of the 2nd issuance. Net
income per thousand shares in the 2nd quarter was R$0.74, against R$0.22 in the
same period of 1999, representing an increase of 236.4%.
Investments
Investments totaled R$317.6 million in the 2nd quarter and R$475.0 million in
the 1st semester of 2000, against R$109.6 million and R$313.3 million in the
same periods of 1999.
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In the first semester of 2000, CBD acquired 65 stores, adding 81,268 m2 of floor
space and around R$1 billion of annual gross sales. This amount already includes
the acquisition of the Boa Esperanca chain through which CBD expects to reach
gross sales of R$100.0 million/year, based on the sales of these stores in the
previous years.
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
Acquisitions
---------------------------------------------------------------------------------------------------------------
Chain No. of stores Format Location Area (m2) Acquired in
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Sao Luiz 9 Pao de Acucar Fortaleza - CE 9,932 March
Reimberg 9 Barateiro Sao Paulo - SP 7,673 April
Nagumo 12 Barateiro Sao Paulo - SP 16,210 April
Parati 11 Pao de Acucar Curitiba - PR 14,830 April
Rosado 13 Pao de Acucar Vale do Paraiba - SP 15,600 April
Boa Esperanca 6 Pao de Acucar Joao Pessoa - PB 10,100 June
Other stores 5 Barateiro Sao Paulo - SP 6,923
---------------------------------------------------------------------------------------------------------------
Total 65 81,268
---------------------------------------------------------------------------------------------------------------
</TABLE>
Besides the acquisitions made in the period, we highlight the following
investments:
New stores and Remodeling
o Start up of the construction of 6 hypermarkets, to be inaugurated in the
second semester, in the following cities: Fortaleza (CE), Brasilia (DF),
Rio de Janeiro (RJ), Sao Paulo (old Mappin Itaim), Araraquara (interior of
SP) and Santos (coast of SP); besides the hypermarket that was already
inaugurated in Sorocaba (interior of SP). These 7 new stores are expected
to aggregate an additional 63,600 m2 of floor space for the Company.
o Opening of 3 new Pao de Acucar stores located in Sao Paulo (Shopping Villa
Lobos), Rio de Janeiro (old Paes Mendonca) and Fortaleza (CE).
o Opening of 1 new Eletro store in Sao Paulo (Shopping Villa Lobos).
o Remodeling of 16 Pao de Acucar stores, 2 Extra hipermarkets and 21
Barateiro stores.
o Renovation of 11 Eletro stores, adapting them for the new "Eletro do
Futuro" concept.
o Acquisition of new equipment and land for construction of new stores.
Distribution and Logistics
o Start up of operations at the new Distribution Center in the city of
Cajamar, State of Sao Paulo, km 33 of the Anhanguera Highway, with an area
of approximately 30,000m2. This new warehouse has been used for the storage
of fruit and vegetables, as well as cross-docking operations, which was
previously performed at the Distribution Center (D1) located at km 17.5 of
the Anhanguera highway (SP).
o Construction of new Distribution Center for appliances, increasing the
storage capacity of this product line from 25,000m2 to 40,000m2.
o Remodeling and placement of equipment at warehouses located in Fortaleza
(40,000m2), Brasilia (14,000m2) and Curitiba (12,000m2). These regions
reached a significant scale with the last acquisitions and opening of
stores, making the construction of Distribution Centers feasible to
maximize logistic gains. These warehouses have stored grocery items and
perishable goods.
o All the stores acquired in the 1st semester/2000 have already been
integrated to the operations of the Company. So far, all the stores of Sao
Luiz, Reimberg, Nagumo, GePires, Cibus, Ita and Panamericano chains and 6
stores of the Rosado
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chain have already had their brands altered to the banners used by CBD.
Stores by Division
<TABLE>
<CAPTION>
-------------------------------------------------------- ------------------------------
Pao de Floor space Num. of
Acucar Extra Eletro Barateiro CBD (m2) Employees
------------------------------------------------------------------------ ------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
03/31/99 146 31 74 70 321 514,229 33,653
Open 10 - - 2 12
Closed (2) - - (1) (3)
Converted - 1 - (1) -
06/30/99 154 32 74 70 330 514,229 36,539
Open - 9 - 1 10
Closed - - - - -
Converted - - - - -
09/30/99 154 41 74 71 340 611,254 36,762
Open 6 - 4 10
Closed (1) - - - (1)
Converted (8) + 1 (1) - 8 -
12/31/99 146 46 74 83 349 663,237 39,642
Open 9 - - 2 11
Closed (1) - (3) - (4)
Converted 1 - - (1) -
03/31/00 155 46 71 84 356 677,102 39,613
Open 33 - 1 24 58
Closed - - - - -
Converted - - - - -
------------------------------------------------------------------------ ------------------------------
06/30/00 188 46 72 108 414 750,063 46,478
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</TABLE>
Summary of the Store Conversions
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------
2nd Quarter 99 3rd Quarter 99 4th Quarter 99 1st Quarter 00 2nd Quarter 00
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Barateiro --> Pao de Acucar 1
Extra --> Pao de Acucar 1
Pao de Acucar --> Barateiro 8
Superbox --> Extra
Barateiro --> Extra 1
--------------------------------------------------------------------------------------------------------------------
</TABLE>
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Sales Breakdown per Division - Consolidated*
In R$ thousand - Nominal (Corporate Law)
------------------------------------------------ ----------
APRIL 2000 % 1999 % Var.(%)
--------------------------------------------------------------------- ----------
Pao de Acucar 187,200 31% 159,539 37% 17%
Extra 294,890 49% 194,233 45% 52%
Barateiro 90,669 15% 58,153 13% 56%
Eletro 25,862 04% 19,926 05% 30%
--------------------------------------------------------------------- ----------
CBD 598,621 100% 431,851 100% 39%
--------------------------------------------------------------------- ----------
------------------------------------------------ ----------
MAY 2000 % 1999 % Var.(%)
--------------------------------------------------------------------- ----------
Pao de Acucar 192,527 33% 163,641 36% 18%
Extra 266,752 46% 205,414 46% 30%
Barateiro 91,149 16% 55,606 12% 64%
Eletro 33,371 06% 25,797 06% 29%
--------------------------------------------------------------------- ----------
CBD 583,799 100% 450,458 100.0% 30%
--------------------------------------------------------------------- ----------
------------------------------------------------ ----------
JUNE 2000 % 1999 % Var.(%)
--------------------------------------------------------------------- ----------
Pao de Acucar 198,900 34% 163,774 38% 21%
Extra 263,632 45% 188,591 43% 40%
Barateiro 89,429 15% 57,381 13% 56%
Eletro 29,805 05% 24,252 06% 23%
--------------------------------------------------------------------- ----------
CBD 581,766 99% 433,998 100% 34%
--------------------------------------------------------------------- ----------
------------------------------------------------ ----------
2nd QUARTER 2000 % 1999 % Var.(%)
--------------------------------------------------------------------- ----------
Pao de Acucar 578,628 33% 486,954 37% 19%
Extra 825,274 47% 588,238 45% 40%
Barateiro 271,247 15% 171,140 13% 58%
Eletro 89,037 05% 69,975 05% 27%
--------------------------------------------------------------------- ----------
CBD 1,764,186 100% 1,316,307 100% 34%
--------------------------------------------------------------------- ----------
------------------------------------------------ ----------
1st SEMESTER 2000 % 1999 % Var.(%)
--------------------------------------------------------------------- ----------
Pao de Acucar 1,110,095 33% 976,378 38% 14%
Extra 1,646,446 48% 1,165,996 45% 41%
Barateiro 477,520 14% 296,606 11% 61%
Peralta - - 27,049 01% -
Eletro 164,925 05% 135,154 05% 22%
--------------------------------------------------------------------- ----------
CBD 3,398,986 100% 2,601,183 100% 31%
--------------------------------------------------------------------- ----------
Include net sales of the Peralta chain in February/1999, the period in which
these stores were not yet incorporated to the other Divisions of the Company.
* The growth in year 2000 was of 30.0%not considering the above mentioned sales.
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Productivity Indexes
In R$ - Nominal (Corporate law)
<TABLE>
<CAPTION>
Sales per m2/month
--------------------------------------- -------------------------------------------
2Q/00 2Q/99 Var. (%) 1S/00 1S/99 Var. (%)
------------------------------------------------------------ ------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Pao de Acucar 949 983 -3.5% 985 994 -0.9%
Extra 784 864 -9.3% 782 872 -10.3%
Barateiro 730 663 10.1% 706 666 6.0%
Eletro 727 600 21.2% 672 576 17.7%
------------------------------------------------------------ -------------------------------------------
CBD 818 849 -3.7% 818 855 -4.3%
------------------------------------------------------------ -------------------------------------------
</TABLE>
<TABLE>
Sales per Employee/month
--------------------------------------- -------------------------------------------
2Q/00 2Q/99 Var. (%) 1S/00 1S/99 Var. (%)
------------------------------------------------------------ ------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Pao de Acucar 14,261 14,777 -3.5% 15,703 15,357 2.3%
Extra 17,046 17,477 -2.5% 17,345 17,847 -2.8%
Barateiro 16,049 13,655 17.5% 16,305 13,599 19.9%
Eletro 19,418 13,487 44.0% 17,716 12,416 42.7%
------------------------------------------------------------ -------------------------------------------
CBD 15,965 15,218 4.9% 16,551 15,568 6.3%
------------------------------------------------------------ -------------------------------------------
</TABLE>
<TABLE>
Average Ticket
--------------------------------------- -------------------------------------------
2Q/00 2Q/99 Var. (%) 1S/00 1S/99 Var. (%)
------------------------------------------------------------ ------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Pao de Acucar 17.0 17.0 0.0% 17.1 17.0 0.6%
Extra 36.2 36.0 0.6% 36.0 36.4 -1.1%
Barateiro 12.2 11.7 4.3% 12.2 12.6 -3.2%
Eletro 213.1 192.0 11.0% 211.8 191.7 10.5%
------------------------------------------------------------ -------------------------------------------
CBD 22.1 22.0 0.5% 22.5 22.4 0.4%
------------------------------------------------------------ -------------------------------------------
</TABLE>
<TABLE>
Sales per Checkout/month
--------------------------------------- -------------------------------------------
2Q/00 2Q/99 Var. (%) 1S/00 1S/99 Var. (%)
------------------------------------------------------------ ------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Pao de Acucar 87,393 91,984 -5.0% 91,788 92,959 -1.3%
Extra 114,872 117,261 -2.0% 114,280 118,182 -3.3%
Barateiro 74,780 66,291 12.8% 74,882 66,431 12.7%
Eletro 163,308 124,749 30.9% 150,804 119,614 26.1%
------------------------------------------------------------ -------------------------------------------
CBD 98,057 97,919 0.1% 99,969 98,742 1.2%
------------------------------------------------------------ -------------------------------------------
</TABLE>
* Results referring the floor space, employees and checkouts were calculated
based on average values proportional to the period in which the stores were
open.
Breakdown of Sales (% of net sales)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
1999 1st Quart/00 Apr/00 May/00 June/00 2nd
Quart/00
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Cash 56.3% 55.1% 53.7% 53.4% 53.9% 53.6%
Credit Card 22.7% 26.6% 28.5% 27.1% 27.0% 27.6%
Food Voucher 6.4% 6.5% 6.4% 6.2% 6.2% 6.3%
Credit 14.6% 11.8% 11.4% 13.3% 12.9% 12.5%
Post-dated checks 10.2% 7.2% 7.3% 7.0% 7.1% 7.2%
Installments 4.4% 4.6% 4.1% 6.3% 5.8% 5.3%
------------------------------------------------------------------------------------------------------
</TABLE>
Data by Division on June 30, 2000
<TABLE>
<CAPTION>
------------------------------------------------------------------
# Checkouts # employees # stores Floor space (m2)
------------------------------------------------------------------
<S> <C> <C> <C> <C>
Pao de Acucar 2,451 14,586 188 230,315
Extra 2,388 16,332 46 350,794
Barateiro 1,249 5,601 108 127,819
Eletro 182 1,489 72 41,135
-----------------------------------------------------------------------------------------------
Total Stores 6,270 38,008 414 750,063
-----------------------------------------------------------------------------------------------
Administration* 3,650
-----------------------------------------------------------------------------------------------
Loss Prevention (security) 2,369
-----------------------------------------------------------------------------------------------
Distribution Centers 2,451
-----------------------------------------------------------------------------------------------
CBD 6,270 46,478 414 750,063
-----------------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
{LOGO] Companhia Brasileira de Distribuicao 2nd Quarter 2000 Results
<PAGE>
10
--------------------------------------------------------------------------------
NON-CONSOLIDATED INCOME STATEMENT - CORPORATE LAW METHOD (only CBD)
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
2nd Quarter 1st Semester
--------------------------------------- --------------------------------------
R$ thousand 2000 1999 % 2000 1999 %
------------------------------------------ --------------------------------------- --------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Sales Revenue 1,583,409 1,312,172 20.7% 3,039,784 2,569,999 18.3%
Cost of sales (1,146,273) (957,825) 19.7% (2,192,316) (1,872,450) 17.1%
Gross Profit 437,136 354,347 23.4% 847,468 697,549 21.5%
Operating Income (Expenses)
Selling Expenses (241,424) (211,710) 14.0% (463,190) (413,271) 12.1%
General and administrative (72,239) (56,914) 26.9% (144,147) (114,981) 25.4%
Total Operating Expenses (313,663) (268,624) 16.8% (607,337) (528,252) 15.0%
Operating Income before Taxes, Deprec. 44.0%
and Fin. Income (Exp.)- EBITDA 123,473 85,723 240,131 169,297 41.8%
Depreciation (43,870) (37,221) 17.9% (84,571) (71,485) 18.3%
Operating Income before Taxes and 64.1%
Financial Income (Expenses) - EBIT 79,603 48,502 155,560 97,812 59.0%
Taxes and Charges (9,834) (7,057) 39.4% (20,276) (13,038) 55.5%
Financial Income 99,599 74,940 32.9% 205,969 139,696 47.4%
Financial Expense (94,405) (90,505) 4.3% (192,381) (185,686) 3.6%
Currency Variation (4,477) (4,477) 0.0% (8,954) (143,251) -93.7%
Net Financial Income (Loss) 717 (20,042) 4,634 (189,241)
---------------------------
Operating Income (Loss) 70,486 21,403 229.3% 139,918 (104,467)
Losses in invested companies (8,619) (51) (22,047) (1,415)
Equity Income - (1) - (1)
Non-Operating Results 1,333 640 118.9% 2,447 341 637.5%
-------------------------------------------------------------------------------------------------------------------------
Income (Loss) before Income Tax 63,200 21,991 187.4% 120,318 (105,542)
-------------------------------------------------------------------------------------------------------------------------
Income Tax 9,145 (4,935) (5,828) 43,684
-------------------------------------------------------------------------------------------------------------------------
Net Income (Loss) 72,345 17,056 324.2% 114,490 (61,858)
Net Income (Loss) per 1,000 shares 0.74 0.22 236.4% 1.17 (0.79)
No. of Shares (in thousand)
at the end of the Period 97,727,936 78,405,280 97,727,936 78,405,280
-------------------------------------------------------------------------------------------------------------------------
% of Net sales
Gross Profit 27.6% 27.0% 27.9% 27.1%
Total Operating Expenses -19.8% -20.5% -20.0% -20.6%
Selling Expenses -15.2% -16.1% -15.2% -16.1%
General and Administrative -4.6% -4.3% -4.7% -4.5%
EBITDA 7.8% 6.5% 7.9% 6.6%
Depreciation -2.8% -2.8% -2.8% -2.8%
EBIT 5.0% 3.7% 5.1% 3.8%
Taxes and Charges -0.6% -0.5% -0.7% -0.5%
Net Financial Income (Expenses) 0.0% -1.5% 0.2% -7.4%
Income before Income Tax 4.0% 1.7% 4.0% -4.1%
Income Tax 0.6% -0.4% -0.2% 1.7%
Net Income (Loss) 4.6% 1.3% 3.8% -2.4%
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
* The figures of 1999 do not include the Peralta chain's sales (period prior to
its incorporation into the CBD group).
--------------------------------------------------------------------------------
{LOGO] Companhia Brasileira de Distribuicao 2nd Quarter 2000 Results
<PAGE>
11
--------------------------------------------------------------------------------
NON-CONSOLIDATED BALANCE SHEET - CORPORATE LAW METHOD (only CBD)
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
R$ thousand 2nd Quarter/00 1st Quarter/00 2nd Quarter/99
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Current Assets
Cash and Banks 25,452 20,980 21,230
Short-Term Investments 566,262 901,126 199,514
Accounts Receivable 504,021 443,504 361,356
Installment Sales 162,344 142,460 106,529
Post-dated checks 88,636 88,029 111,915
Credit Card and Other 276,941 232,493 162,189
Allowance for Doubtful Accounts (23,900) (19,478) (19,277)
Advances to Suppliers 14,614 15,670 10,553
Taxes Recoverable 86,324 80,631 52,183
Other Credits 26,938 18,197 19,403
Inventories 530,059 463,534 335,659
Prepaid Expenses 22,171 34,843 9,122
Total of Current Assets 1,775,841 1,978,485 1,009,020
-----------------------
Long-Term Receivables
---------------------
Deferred Income Tax 54,284 35,760 61,668
Judicial Deposits 60,382 55,998 37,674
Credit with Invested Companies 353,423 336,889 61,199
Prepaid Expenses 3,218 3,637 4,892
Other credits 7,397 3,360 2,857
Total Long-Term Receivables 478,704 435,644 168,290
---------------------------
Permanent Assets
Investments 438,148 227,536 151,566
Properties and Equipment 2,124,963 1,878,157 1,499,617
Deferred Charges 429,508 409,017 360,198
Currency Variation 49,254 53,731 67,162
Total Permanent Assets 2,992,619 2,514,710 2,011,381
TOTAL ASSETS 5,247,164 4,928,839 3,188,691
------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Suppliers 587,851 561,815 453,892
Loans and Financing 392,192 331,945 744,451
Domestic Currency 374,830 315,101 77,295
Foreign Currency 17,362 16,844 667,156
Payable on Purchase of Assets 158,961 99,424 107,471
Debentures 7,795 24,769 8,093
Taxes on Sales 16,389 15,733 14,075
Tax Installments 49,231 21,945 10,466
Salaries and Payroll Charges 71,369 59,201 59,304
Dividends 1,721 15,957 -
Interest on own capital and withholding tax - - -
Others 113,780 87,770 32,422
Total of Current Liabilities 1,399,289 1,218,559 1,430,174
Long Term Liabilities
---------------------
Loans and Financing 351,768 358,514 266,336
Domestic Currency 312,869 316,902 260,906
Foreign Currency 38,899 41,612 5,430
Payable on Purchase of Assets 62,143 57,205 46,092
Debentures 289,582 271,489 336,565
Deferred Income Tax and Installments 6,846 8,716 29,438
Other Accruals 352,367 319,722 165,256
Total of Long-Term Liabilities 1,062,706 1,015,646 843,687
Convertible Debentures - 3rd issuance 332,694 321,253 -
Shareholders' Equity
Capital 1,513,668 1,506,918 542,687
Capital Reserves 348,292 348,292 4,050
Revenue Reserves 590,515 518,171 368,093
Total of Shareholders' Equity 2,452,475 2,373,381 914,830
Total of Convertible Debentures and Shareholders' Equity 2,785,169 2,694,634 914,830
TOTAL LIABILITIES 5,247,164 4,928,839 3,188,691
------------------
----------------------------------------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
{LOGO] Companhia Brasileira de Distribuicao 2nd Quarter 2000 Results
<PAGE>
12
--------------------------------------------------------------------------------
CONVERTIBLE DEBENTURES
Conversion of Debentures into Preferred Shares -1999 and 2000
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
Debentures Issued Debentures Closing PN shares converted Increase in Equity (R$
(balance) Converted Balance thousand)
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1st issue 100,000 (14,754) 85,246 544,496,103 19,058
2nd issue 175,000 (23,375) 151,625 779,158,875 27,121
-----------------------------------------------------------------------------------------------------------------------
Total 1999 (38,129) 1,323,654,978 46,179
-----------------------------------------------------------------------------------------------------------------------
1st issue 85,246 - 85,246 - -
2nd issue 151,625 (13,000) 138,625 433,329,000 15,800
-----------------------------------------------------------------------------------------------------------------------
Total 1st (13,000) 433,329,000
quarter/2000
-----------------------------------------------------------------------------------------------------------------------
1st issue 85,246 - 85,246 - -
2nd issue 138,625 (1,000) 137,625 33,333,000 1,220
-----------------------------------------------------------------------------------------------------------------------
Total 2nd (1,000)
quarter/2000
-----------------------------------------------------------------------------------------------------------------------
1st issue* 100,000 (14,754) 85,246 544,496,103 19,058
2nd issue* 175,000 (37,375) 137,625 1,245,820,875 44,141
-----------------------------------------------------------------------------------------------------------------------
TOTAL * (52,129) 1,790,316,978 63,199
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
* Refers to the accumulated total converted in the years of 1999 and 2000.
amelia.com.br
Since May of 2000, CBD has concentrated its e-commerce activities on its new
site, amelia.com.br, which is based on Pao de Acucar Delivery and Eletro Online
programs, but also including an innovative and broad marketing concept.
amelia.com.br aims at offering integrated home solutions, improving the quality
of life of people. The project represents to the Company an important new
distribution channel and establishes CBD's fifth banner , together with Pao
de Acucar, Extra, Barateiro and Eletro
In the 2nd quarter of 2000, sales of the Amelia.com.br Division reached R$5.9
million, totaling R$10.9 million in the 1st semester of 2000, representing 0.3%
of total Company sales. The gross margin of the 2nd quarter reached 33.1%,
against 25.2% in the 1st quarter; most of the increase is accounted for by
bonuses obtained with suppliers at the launching of the site in the month of
May. The increase registered in the operating expenses of the 2nd quarter
compared to the 1st quarter occurred basically due to the beginning of the
site's promotional campaign and the administrative structuring of the
Division. In the 1st semester of 2000, the Division recorded a negative
operating result of R$5.4 million.
With the intention of boosting the existing synergies with the traditional
retail operation of the company, as well as to assure the maintenance of its
leading market position, amelia.com.br announced in July 2000 a few
administrative structure changes. The Financial and Administrative Areas are
being incorporated by the respective corporate areas of CBD.
The investments predicted for year 2000 and 2001 are within the range of
respectively R$45-47 million and R$40-60 million, directed to technology,
distribution/logistics, marketing and content. CBD reaffirms once again its
commitment to the development of Amelia division, focusing on e-commerce
operations, continuously aiming at productivity and market share gains.
--------------------------------------------------------------------------------
{LOGO] Companhia Brasileira de Distribuicao 2nd Quarter 2000 Results
<PAGE>
13
--------------------------------------------------------------------------------
HIGHLIGHTS OF AMELIA.COM.BR DIVISION
--------------------------------------------------------------------------------
2000
------------- ------------- ---------
R$ thousand 1st Quarter 2nd Quarter 1st
Semester
---------------------------------------- ------------- ------------- ---------
Net Sales Revenue 4,992.3 5,927.7 10,920.0
Cost of sales (3,733.5) (3,964.9) (7,698.4)
Gross Profit 1,258.8 1,962.8 3,221.6
Operating Income (Expenses)
Selling Expenses (775.9) (5,762.8) (6,538.7)
General and Administrative (484.9) (1,595.7) (2,080.6)
Total Operating Expenses 1,260.8 7,358.5 (8,619.3)
Operating Income Before Taxes, (2.0) (5,395.7) (5,395.7)
Depreciation and Fin. Income (Expenses)
- EBITDA
Depreciation - (34,7) (34,7)
Operating Income before Taxes and (2.0) (5,430.4) (5,432.4)
Financial Income (Expenses) - EBIT
--------------------------------------------------------------------------------
% de Net sales
Gross Profit 25.2% 33.1% 29.5%
Total Operating Expenses -25.3% -124.1% -78.9%
Selling Expenses -15.5% -97.2% -59.9%
General and Administrative -9.7% -26.9% -19.1%
EBITDA 0.0% -91.0% -49.4%
Depreciation 0.0% -0.6% -0.3%
EBIT 0.0% -91.6% -49.7%
--------------------------------------------------------------------------------
CBD operates 415 stores in 11 Brazilian states through four different formats.
In addition to the Pao de Acucar and Barateiro supermarkets divisions, the
Company operates Extra hypermarket, Eletro home appliances stores and
e-commerce, through the Amelia Division.
--------------------------------------------------------------------------------
Aymar Giglio Junior Rosemary Otero
Dir. of Investor Relations - CBD Email: [email protected]
Tel: 55 (11) 3886 0421 Tel: (212) 704 4486
Fax: 55 (11) 3884 2677
Email: [email protected] Gustavo Bernhoeft
----------------------------- Email: [email protected]
Tel: 55 (11) 3846-8400
Fernando Tracanella
Email: [email protected]
Tel: 55 (11) 3886 0421
--------------------------------------------------------------------------------
Website: http://www.grupopaodeacucar.com.br
