The Brazilian retailer GPA expects to obtain about 500 million reais ($98.71 million) from the sale of assets in the coming quarters, Chief Financial Officer Rafael Russowsky said in a telephone conversation with analysts on Tuesday.
According to Russowsky, this would be added to the US$156 million obtained by the company from the sale of its stake in the 13.31% at Almacenes Éxito earlier this month, as he continues to look for ways to reduce his debt.
GPA, controlled by the French Casino group, presented its third quarter results on Monday, in which it reported an increase in net loss due mainly to the non-monetary effects of the demerger of Éxito, but with sales growth of almost he 10%.
The company’s shares, which are listed on the Sao Paulo Stock Exchange, rose up to 8.7% in the session, before cutting profits to a 2.5%. So far this year, however, GPAs have fallen more than a 25%.
Third-quarter results showed an improving trend in the retailer’s Brazilian operations, while the deleveraging process remains in focus, according to BTG Pactual analysts.
“Despite the (gradual) deleveraging process, we see less room for the company to expand its area of sales and its margins in Brazil”they added, “making it a riskier option than other food retailers in our coverage universe.”
Source: Reuters
Source: Gestion
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