Boldness that Inspires
Economic and Financial Performance
Revenue
In 2013, GPA’s net revenue grew 13.4%, to R$57.73 billion. This performance was driven by same-store sales, which reached 9.0% growth, 300 basis points above IPCA inflation, closing the year with growth in each business.
At Multivarejo, growth accelerated under all the banners, highlighted by Minimercado Extra, which continues to present above-average same-store growth, and Assaí, which continued to grow at an elevated pace.
Nova Pontocom growth outpaced the market, with gains in market share. This performance was driven by the acceleration of growth over the course of the year, especially as of the 3Q13, when gains in efficiency in processes, strategic investments and advances in the level of service were cemented.
At Via Varejo, there was double-digit sales growth and important gains in market share. Highlights included the wireless and computer categories, which continued the trend of accelerated sales, confirming the continued cycle of technology consumption in the country. <2.8>
REVENUE |
|||
R$ – Million |
2013 |
2012 |
Δ |
Gross Revenue |
64,405 |
57,234 |
12.5% |
Net Revenue |
57,730 |
50,924 |
13.4% |
Same-Store Sales Growth |
9.0% |
6.5% |
250 bps |
Gross Profit
Gross profit grew 9.2%, from R$13.757 billion in 2012 to R$15.026 billion in 2013. Gross margin fell 100 basis points to 26.0% in 2013, due mainly to the investment strategy of reducing prices in Retail Food, supported by the reduction of selling and general and administrative expenses.
Gross margin was also impacted by Black Friday promotions at Via Varejo and Nova Pontocom at year-end, in addition to the increased share of sales for the e-commerce channel, whose business model operates with lower margins than bricks-and-mortar stores. <2.8>
Gross Profit |
|||
R$ – Million |
2013 |
2012 |
∆ |
Net Revenue |
57,730 |
50,924 |
13.4% |
Gross Profit |
15,026 |
13,757 |
9.2% |
Gross Margin |
26.0% |
27.0% |
–100 bps |
Selling Expenses |
(9,180) |
(8,360) |
9.8% |
General and Administrative Expenses |
(1,485) |
(1,754) |
–15.3% |
Equity Income |
47 |
11 |
337.3% |
Other Operating Revenue (Expenses) |
(673) |
(33) |
- |
Total Operating Expenses |
(11,291) |
(10,136) |
11.4% |
% Net Sales Expenses |
19.6% |
19.9% |
–30 bps |
Earnings before Interest, Taxes, Depreciation, Amortization – EBITDA |
3,814 |
3,703 |
3.0% |
EBITDA Margin |
6.6% |
7.3% |
–70 bps |
Operating Expenses
Operating expenses increased 11.4%, from R$10.136 billion in 2012 to R$11.291 billion in 2013. The ratio of selling and general and administrative expenses to net revenue decreased from 19.9% in 2012 to 18.5% in 2013, mainly as a result of reduced corporate expenses and control of selling expenses at Multivarejo, in addition to gains in operating efficiency at Via Varejo. <2.8>
Financial Result
The net financial expense in 2013 was R$1.193 billion, the same level as in 2012. The ratio of the net financial expense to net revenue decreased from 2.3% in 2012 to 2.1% in 2013, due mainly to the improved financial result at Via Varejo. <2.8>
| FINANCIAL RESULT | |||
Financial Result |
|||
R$ – Million |
2013 |
2012 |
∆ |
Financial Revenue |
643 |
593 |
8.3% |
Financial Expenses |
(1,836) |
(1,786) |
2.8% |
Net Financial Revenue |
(1,193) |
(1,193) |
0% |
% of Net Revenue |
2.1% |
2.3% |
–20 bps |
Charges on Net Bank Debt |
(224) |
(238) |
–5.6% |
Cost of Discount of Receivables |
(268) |
(282) |
–5.1% |
Cost of Discount of Receivables |
(618) |
(497) |
24.3% |
Restatement of Other Assets and Liabilities |
(83) |
(176) |
–52.6% |
Net Financial Revenue |
(1,193) |
(1,193) |
0% |
Indebtedness <2.8>
Net debt, including Viavarejo’s paymentbook operation, totaled R$ 1.102 billion at the end of December 2013. The reduced level of debt was mainly due to higher cash generation in the period, driven by efforts to improve working capital.
In addition, the gross inflow of R$896 million from Via Varejo’s Public Offering also contributed to the lower debt position.
The ratio of Net Debt/EBITDA, including the consumer financing payment vouchers, fell to 0.29x at the end of 2013, significantly lower than the figure in 2012.
The Company’s cash reserves at the end of December of 2013 amounted to approximately R$8.4 billion. <2.8>
Short Term Debt |
||
R$ – Million |
12.31.2013 |
12.31.2012 |
Short Term Debt |
(2,445) |
(1,712) |
Loans and Financing |
(1,200) |
(1,044) |
Debentures |
(1,245) |
(668) |
Long Term Debt |
(4,181) |
(6,151) |
Loans and Financing |
(1,583) |
(2,409) |
Debentures |
(2,599) |
(3,741) |
Total Gross Debt |
(6,626) |
(7,863) |
Cash1 |
8,392 |
7,086 |
Net Cash (Debt) |
1,765 |
(777) |
Ebitda1 |
3,814 |
3,703 |
Net Debt/Ebitda1 |
N/A(2) |
0.21x |
Payment book – short term |
(2,726) |
(2,499) |
PAyment book – long term |
(141) |
(130) |
Net Debt with payment book |
(1,102) |
(3,406) |
Net Debt/Ebitda1 |
0.29x |
0.91x |
1 Include real estate projects. EBITDA for the last 12 months.
2 Net cash position higher than gross debt.
Statement of Value Added <EC1>
In 2013, the wealth generated by GPA totaled R$64.4 billion, an increase of 12.5% in relation to 2012 (R$57.2 billion). The net value added available to the Company grew 11.7% over the year prior, totaling R$14.1 billion for the year. These funds were distributed as follows:
> R$5.8 billion – to pay employees;
> R$3.8 billion – to pay taxes and fees;
> R$3.2 billion – to pay interest on bank loans, to pay indexing on tax installment payments and contingencies to the government, and to pay rent;
> R$1.3 billion – to pay dividends and to be retained and incorporated into shareholders’ equity.
Net Income
Net income increased 20.7% to R$1.396 billion in 2013. Net margin grew 10 basis points, from 2.3% in 2012 to 2.4% in 2013.
Cash flow
At December 31, 2013, GPA’s cash position was R$8.367 billion. The increase of R$1.281 billion in relation to December 31, 2012 was due mainly to the gross influx of R$896 million in cash from Via Varejo’s Public Offering. The Company did not need to refinance or take on new debt in 2013. <2.8>
SIMPLIFIED CASH FLOW |
||
GPA Consolidated |
||
R$ – Million |
2013 |
2012 |
Cash Balance at beginning of period |
7,086 |
4,970 |
Cash Flow from operating activities |
4,892 |
5,299 |
Ebitda |
3,814 |
3,703 |
Cost of Discount of Receivables |
(886) |
(780) |
Working Capital |
1,355 |
2,243 |
Assets and Liabilities Variation |
609 |
133 |
Cash Flow from Investment Activities |
(2,027) |
(1,339) |
Net Investment |
(1,752) |
(1,306) |
Acquisitions and Others |
(275) |
(33) |
Change on net cash after investments |
2,865 |
3,960 |
Cash Flow from Financing Activities |
(1,584) |
(1,844) |
Dividends Payments and Others |
(453) |
(186) |
Net Proceeds |
(1,132) |
(1,658) |
Change on net cash |
1,281 |
2,116 |
Cash Balance at end of period |
8,367 |
7,086 |
