Bompreco Reports 2Q01 Consolidated Results.Business Editors RECIFE, Brazil--(BUSINESS WIRE)--Aug. 15, 2001 Bompreco S.A. Supermercados do Nordeste (Bovespa: BPCO BPCO Bronchopneumopathie Chronique Obstructive BPCO Broncopneumopatia Cronica Ostruttiva 4; 144A: BMPA BMPA Bombay Master Printers' Association LX; e Reg REG, n.pr See random event generator. S: BMPG LX) today reported consolidated results for the three-month period ended June 30, 2001. For this quarter, the consolidated net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight result of R$676.2 million represents a growth of 6.0 percent in comparison to the same period of last year - R$637.7 million. Consolidated gross profit for the second quarter increased by 5.0 percent to R$169.5 million, from R$161.4 million for the same period last year. Consequently, consolidated gross margin for the period declined to 25.1 percent, from 25.3 percent in the same quarter last year. Consolidated sales expenses for the quarter, as a percentage of net sales, increased to 16.9 percent from 16.7 percent in the same period last year. Consolidated administrative expenses for the period, as a percentage of net sales, decreased year-over-year to 4.0 percent, from 4.2 percent in the second quarter of 2000. Combined, consolidated operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the quarter, as a percentage of net sales, were flat year-over-year at 20.9 percent. Consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the second quarter was flat year-over-year - R$28,3 million in 2001 and R$28,0 million in 2000. As a percentage of net sales, consolidated EBITDA for the quarter declined to 4.2 percent from 4.4 percent in the year-ago period. It is worth highlighting the EBITDA presented at Bompreco Bahia, which increased by 54.4 percent during the quarter to R$12.9 million, from R$8.4 million in the same quarter last year. Consequently, consolidated EBITDA margin at Bompreco Bahia improved to 5.5 percent for the quarter, from 4.0 percent in the equivalent period of last year. This performance reflects the consolidation of the company's operating processes in that state. Consolidated EBIT EBIT See: Earnings Before Interest and Taxes EBIT See earnings before interest and taxes (EBIT). for the quarter declined to R$11.7 million, from R$14.4 million in the same quarter of last year. Consolidated EBIT margin for the quarter decreased year-over-year to 1.7 percent, from 2.3 percent in last year's same period. For the quarter, Bompreco posted consolidated financial expenses of R$40.5 million, compared with R$19.1 million in the same period of last year, mainly as a consequence of a devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. of the Real against the U.S. dollar during the second quarter of 2001. As a result of the increase presented in net financial expenses, commented above, the company reported a net loss for the period of R$22.5 million compared with a net income of R$1.3 million in the second quarter of last year. At June 30, 2001, HiperCard, Bompreco's main credit tool, counted 1.7 million cardholders, of which more than one million were accountholders. HiperCard is accepted at all Bompreco's stores and in approximately 50,000 third-party retailers from Bahia to Maranhao. HiperCard's operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. for the quarter increased year-over-year by 31.2 percent, while accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying from clients rose by 15.5 percent to R$338.2 million. Regarding past due accounts, HiperCard accounts over 30 days past due for the quarter increased to 4.6 percent of total accounts receivable, from 4.3 percent in the same quarter of last year. Losses for the period were within expectations, around one percent of credit sales. HiperCard's net income for the quarter rose by 38.6 percent to R$8.4 million, from R$6.0 million in second quarter of the previous year. During the second quarter, Bomclube, Bompreco's loyalty program, was used in approximately 73 percent of all transactions carried out at the company's stores. To date, the program, which was launched over five years ago, has awarded in excess of 4.8 million prizes to Bompreco's customers. INVESTMENT PLAN During the quarter, Bompreco took over the operations of the five stores acquired from the Stoc chain, which were previously operated by Carrefour Comercio e Industria Ltda., and are located in the cities of Joao Pessoa João Pes·so·a A city of northeast Brazil near the Atlantic Ocean north of Recife. Founded in 1585, it has excellent examples of colonial architecture. Population: 635,000. Noun 1. and Campina Grande Campina Grande (kəmpē`nä grän`dĭ), city (1991 pop. 326,307), Paraíba state, NE Brazil, on the Borborema plateau. , both in the state of Paraiba, Petrolina, state of Pernambuco Pernambuco (pərnəmb  `k ), state (1991 pop. 7,127,855), 37,946 sq mi (98,280 sq km), NE Brazil, on the Atlantic Ocean. , and Teresina, state of Piaui. The stores feature an
average selling area of 4,000 square meters Noun 1. square meter - a centare is 1/100th of an arecentare, square metre area unit, square measure - a system of units used to measure areas , with one unit being converted into the company's supermarket format and four being converted into compact hypermarkets, offering approximately 30,000 food and non-food items. With the new store in Teresina, the company now operates in all nine states that comprise the Northeast of Brazil. In July, the company opened its second hypermarket hy·per·mar·ket n. A very large commercial establishment that is a combination of a department store and a supermarket. hypermarket Noun a huge self-service store [translation of French in the city of Natal Natal, city, Brazil Natal (nətäl`), city (1991 pop. 606,887), capital of Rio Grande do Norte state, NE Brazil, just above the mouth of the Potengi River. , state of Rio Grande do Norte Rio Grande do Norte (rē` grän`dĭ th nôr`tĭ), state (1996 pop. . The new unit, Hiper Bompreco Ponta
Negra, features a total selling area of 7,200 square meters and 44
check-outs, in addition to 800 spaces available for parking and a
Bompreco pharmacy.Bompreco S.A. Supermercados do Nordeste is the largest chain of retail stores in the North and Northeast of Brazil. The company currently operates, including the stores recently acquired from the Stoc chain and the new hypermarket in Natal, 111 stores, for a total selling area of 314.920 square meters over the nine states that comprise the Northeast of Brazil. The company operates its stores through four formats, with 26 hypermarkets, 64 supermarkets, 19 minimarkets and 2 magazine stores. Gross sales Gross Sales A measure of overall sales that isn't adjusted for customer discounts or returns, calculated simply by adding all sales invoices, and not including operating expenses, cost of goods sold, payment of taxes, or any other charge. for fiscal year 2000 were R$3.1 billion and EBIT of R$71.1 million. Bompreco's preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. are listed on the Bovespa in Brazil. The company's GDSs, each representing two preferred shares, trade on the Luxembourg Exchange. On December 30, 2000, Bompreco had 67,367,970 shares outstanding. For additional information, please refer to the company's web site at www.bompreco.com.br
Additional Information and Operational Breakdowns:
Net sales:
Bompreco Nordeste Comparison with 2Q00
Same stores All stores Industry(1)
Nominal Real(2) Nominal Real(2) Real(2)
2Q01 (1.9) (8.4) 3.9 (3.0) 2.7
Bompreco Bahia Comparison with 2Q00
Same stores All stores Industry(1)
Nominal Real(2) Nominal Real(2) Real(2)
2Q01 6.3 (0.8) 11.4 4.0 2.7
Consolidated Comparison with 2Q00
Same stores All stores Industry(1)
Nominal Real(2) Nominal Real(2) Real(2)
2Q01 0.9 (5.8) 6.5 (0.6) 2.7
(1) As reported by the Brazilian Supermarket Association (ABRAS)
(2) Adjusted by IPCA/IBGE
Net Sales(1) M(2)
2Q01 YTD Stores Check-outs Associates Selling
Bompreco Area
Nordeste
Hypermarkets 281.720 559.423 18 882 7.509 117.361
Supermarkets 114.988 226.153 29 522 4.315 55.833
Minimarkets 10.847 21.479 10 94 394 7.365
Magazines 12.170 24.353 2 42 300 5.512
Bompreco
Bahia
Hypermarkets 95.702 190.121 7 277 2.477 39.934
Supermarkets 126.009 250.644 34 603 4.330 72.469
Minimarkets 12.492 25.035 9 74 494 6.806
Total 653.928 1.297.208 109 2.494 19.819 305.280
(1) In thousands of Reais
Sales Breakdown
Bompreco Bompreco Consolidated
Nordeste Bahia
2Q01 2Q00 2Q01 2Q00 2Q01 2Q00
Cash Purchases 36.6% 38.6% 42.1% 42.1% 38.5% 39.8%
HiperCard 47.6% 46.4% 26.6% 25.0% 40.4% 39.3%
Post-dated checks - - 5.3% 7.0% 1.8% 2.3%
Others 15.8% 15.0% 26.0% 25.9% 19.3% 18.6%
For Tabular Information Contact Taylor-Rafferty
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