Brazil’s Carrefour turns profitable in the first quarter – Reuters

Sao Paulo (Reuters) – Carrefour (EPA:) Brazil, controlled by France’s Carrefour, reported a net profit of 39 million reais ($7.7 million) in the first quarter, reversing losses in the same period last year as profits expanded due to rising food inflation.

Even on an adjusted basis it was back in the green with a real net profit of 52 million reais, although this profit was lower than the 137.4 million reais forecast by analysts surveyed by LSEG.

Carrefour Brazil has already released its first quarter sales figures at the end of April, showing a 2.5% increase compared to the previous year.

“We have seen food inflation return to positive levels, which has clearly had a positive impact on our prices and volumes,” CEO Stephane Maquaire told reporters on Tuesday.

He added that recent trends in food inflation have improved sales to corporate customers, primarily small grocers, who have seen fewer purchases due to financial pressures from lower margins.

Carrefour Brasil said adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 36.6% to 1.42 billion reais, slightly above analysts’ forecasts of 1.33 billion reais.

Adjusted EBITDA margin increased to 5.7% from 4.3% in the year-ago quarter.

($1 = 5.0744 reals)