Companhia Brasileira de Distribuicao (NYSE:CBD) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 09:30 am ET

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Companhia Brasileira de Distribuicao (NYSE:CBD) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning and thank you for waiting. Welcome to GPA Conference Call to present the Results for the Second Quarter of 2020. This event is also being broadcasted via webcast, which can be accessed at www.gpari.com.br. With the respective presentation, the slide selection will be managed by you. There will be a replay facility for this call on the site. We inform you that the company's press release is also available at its IR website. [Operator Instructions]

Before proceeding, let me mentioned that forward-looking statements are being made under the Safe Harbor of the Securities Litigation Reform Act of 1996. Forward-looking statements are based on the beliefs and assumptions of GPA management, and on information currently available on the company. They involve risks, uncertainties and assumptions, because they relate to future events, and therefore, depends on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions and other operating factors could also affect the future results of GPA and could cause our results to differ materially from those expressed in such forward-looking statements.

Now, I would like to turn the floor over to Mrs. Ana Carolina Bastos, Investor Relations Manager of the company.

Executive
Ana Carolina Bastos

Good morning, and welcome to our conference call. I would like to thank you all for your time and participation and I hope that you are all healthy and safe. We have Ronaldo from of our Board; Peter, our CEO, Christophe, our CFO; Belmiro, CEO of Assai and Multivarejo CEO. A brief representation of our second quarter presentation, then we are going to open for Q&A.

Now I'd like to give the floor for our initial considerations to our CEO.

Executive
Peter Paul Lorenco Estermann

Good morning, ladies and gentlemen. And thank you so much for being -- participating at our second quarter earning results. I will make a brief introduction and then I will let Christophe to go on with the detail information, followed by Faical and Belmiro who will address the development of Assai in retail operations. I'd like to start highlighting that we closed our second quarter with a consolidated gross revenue of BRL22.9 billion, amounting a growth of 61.1% in total revenue. That is a consequence of a stronger work on Multivarejo operations, a stronger Assai performance and a positive a performance of our operations, collaborating to our business that led to a decrease of our expenditures leading us to our current results. We see EBITDA increase in all our business with very healthy margins. We see operational improvement and activity of our business strategy, thanks to our stronger work in the past months adjusting our stores portfolio with the conversions at Assai, Extra, some renovating stores. And let me remind you that proximity in performance for several quarters, our plant to growth, thanks to our digital platform, which is a very important lever to our results. Such a set of actions led us to a net income of $274 million with that growth over 322% versus second quarter 2019.