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Brazil’s Gpa Expects to Raise R$500m From Asset Sales in Coming Quarters

Brazilian retailer GPA expects to raise about 500 million reais (€93.7 million) from asset sales in coming quarters, chief financial officer Rafael Russowsky said in an earnings call with analysts.

That would add to the $156 million (€147.64 million) raised by the company from the divestment of its 13.31% stake in Almacenes Exito earlier this month, according to Russowsky, as it keeps searching for ways to reduce its debt.

GPA, which is controlled by France’s Casino, reported third quarter results on Monday (30 October), posting a wider net loss mainly driven by non-cash effects from the Exito spin-off but a nearly 10% growth in sales.

In October, Casino agreed an initial deal to sell its stake in Éxito to Grupo Calleja for $400 million. Grupo Calleja is the primary food retailer in El Salvador, operating as Super Selectos.

The third-quarter results showed an improving trend in the retailer’s Brazilian operations while the deleveraging process remains in the spotlight, BTG Pactual analysts led by Luiz Guanais said.

“Despite the (gradual) deleveraging process, we see less room for the company to expand its sales area and margins in Brazil,” they added, “making it a riskier call than other food retailers in our coverage universe.”

Gross revenue for the quarter amounted to 5.1 billion reais (€960 million), registering an increase of 10% year on year.

Same store sales for the period increased by 6.6%, with Pão de Açúcar witnessing 7.2% growth.

GPA opened 20 stores in the quarter, comprising 18 proximity stores (17 Minuto Pão de Açúcar and 1 Mini Extra) and two Pão de Açúcar stores in the cities of Atibaia and Sorocaba.

Source: Esmmagazine