Brazilian grocery retailer GPA reported a net loss of R$311 million (€51 million) in the third quarter of 2024, reflecting a decline of 76%, compared to the same period last year.
Excluding discontinued operations, the net loss amounted to R$253 million (€41 million) – a significant drop from the R$805 million (€131 million) profit recorded in the third quarter of 2023.
Despite the net loss, GPA saw positive developments in some key metrics.
The adjusted EBITDA margin grew by 1.5 percentage points, to 8.9%, while the adjusted EBITDA reached R$399 million (€65 million) – down by 64.7%, year on year – while the company’s gross margin also improved by 1.1 percentage points, to 27.7%, driven by successful commercial negotiations and operational efficiencies.
GPA’s total revenue grew by 2.8% in the third quarter, reaching R$4.49 billion (€733 million). This was driven by a 1.9% increase in overall sales, to R$4.8 billion (€783 million).
Quarterly Highlights
The Pão de Açúcar banner saw a 3% rise in sales, to R$2.42 billion (€395 million), while Extra Mercados reported sales growth of 2.7%, to R$1.52 billion (€248 million).
Proximity store sales grew by 13.7% in this period, to R$555 million (€90.6 million).
E-commerce sales accounted for 12.5% of total food sales in the third quarter – an increase of 1.4 percentage points, compared to the same period last year.
GPA attributes the positive net income in continuing operations during the third quarter of 2023 to non-recurring gains totalling R$1.1 billion (€179 million), including the reversal of losses at Cnova, the separation of Éxito, and the monetary correction of tax credits.
The company’s financial performance remained under pressure, as net debt rose to R$2 billion (€326 million), from a debt of R$1.7 billion (€277 million) reported at the end of June.
Twelve new stores opened in the third quarter, including 11 Proximity stores (seven Minuto Pão de Açúcar and four Mini Extra) and one Pão de Açúcar Fresh outlet.
