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GRUPO GIGANTE ANNOUNCES THIRD QUARTER RESULTS

 MEXICO CITY, Oct. 29 /PRNewswire/ -- During the nine months ended September 30, 1993, Grupo Gigante's sales amounted to N$5,477,531 thousand new pesos, a 25.5 percent increase in real terms over the N$4,363,628 thousand new pesos reported in the same period of 1992. During the third quarter of 1993 (July-September), sales increased by 28.6 percent with respect to the third quarter of 1992.
 During the January-September period, the Group's gross margin decreased from 22.4 percent in 1992 to 22.1 percent in 1993 due to a higher sales mix in food.
 For the nine months ended September 30, 1993, operating expenses increased by 26.9 percent compared to the same period of 1992. Operating expenses during the third quarter (July-September) of 1993 increased by 17 percent with respect to the same quarter a year ago. These figures show how operating expenses are leveling as the integration of the Blanco acquisition has evolved.
 In this context, operating earnings for the January-September period amounted to N$86,705 thousand new pesos, an 8.5 percent decrease compared to N$94,797 thousand new pesos reported in the same period of 1992. As a percentage of sales, the group's operating margin decreased from 2.2 percent in 1992 to 1.6 percent in the nine months ended September 30, 1993.
 Net earnings for the January-September 1993 period were N$75,476 thousand new pesos compared to N$109,408 thousand new pesos reported in the same period of 1992. The 31 percent decrease in net earnings was mainly due to the reduction in the benefit provided by integral result of financing (IRF) which decreased from N$35,354 thousand new pesos in 1992 to N$11,219 thousand new pesos in 1993. The main cause for the decrease in IRF's benefit was the incorporation of Blanco's high level of indebtedness. It is worth highlighting that Blanco's debt was reduced during the second quarter with the funds that Grupo Gigante raised through a rights issue at the end of May. The positive effects of these measures are reflected in the N$6,520 thousand new pesos benefit provided by IRF during the July-September 1993 quarter versus a N$10,002 thousand new pesos negative impact during the April-June 1993 quarter.
 One of the most important events of the third quarter of 1993 was the launching of a US$150 million Euro-Commercial Paper program in which Citibank International plc and Citicorp Securities, Inc. were appointed as dealers under the program. This program marks the first time Grupo Gigante has utilized international debt markets. The new program will allow Grupo Gigante to expand its funding base and reduce its overall interest expense. A first issue of US$40 million was placed under the program on September 28.
 During the July-September period, the Group opened 1 Gigante store in Guadalajara, 1 Bodega Gigante in Mexico City's metropolitan area, 2 SuperMarts (1 in Mexico City and 1 in Lagos de Moreno, Jalisco), 1 Toks coffee shop in Mexico City, and 3 Radio Shack stores (1 in Guadalajara, 1 in Acapulco, and 1 in Mexico City). In addition, 1 Bodega Gigante unit was closed in Puebla and is being remodeled to reopen as a Gigante Store in December.
 Grupo Gigante, S.A. de C.V., is one of Mexico's largest retailers. As of September 30, 1993, the company operated a network of 151 food and general merchandise stores under the "Gigante" name in 31 cities in Mexico, 30 Bodega stores, 27 Cafeterias Toks family-style restaurants and five specialty restaurants. The company also operated four SuperMart stores through its subsidiary Gigante-Fleming, and 34 Radio Shack Mexico stores through its joint venture with Tandy International Corporation. Total sales for the company in 1992 reached US$l.9 billion.
 GRUPO GIGANTE, S.A. DE C.V. Y SUBSIDIARIAS/ AND SUBSIDIARIES
 DATOS A SEPTIEMBRE 30, 1993/DATA AS OF SEPTEMBER 30, 1993
 MILES DE NUEVOS PESOS (B)
 THOUSANDS OF NEW PESOS (B)
 PERCENT
 VARIACION
 RESULTADOS ACUMULADOS/ACCRED RESULTS 1993 1992 CHANGE
 VENTAS NETAS/Net Sales 5,477,531 4,363,628 25.5
 UTILIDAD DE OPERACION/Operating Earnings 86,706 94,797 -8.5
 RESULTADO INTEGRAL DE FINANCIAMIENTO/
 Integral Result of Financing (11,219) (35,354) -68.3
 PROVISION PARA IMPUESTOS Y PTU/
 Tax and Empl. Profit Sharing Provision 27,748 20,743 33.8
 UTILIDAD NETA CONSOLIDADA/Consolidated Net
 Earnings 75,476 109,408 -31.0
 SITUACION FINANCIERA/FINANCIAL POSITION
 ACTIVO TOTAL/Total Assets 4,652,338 3,127,542 48.8
 ACTIVO CIRCULANTE/Current Assets 1,524,583 1,048,191 45.4
 INVENTARIOS/Inventories 862,569 651,180 32.5
 OTROS/Others 662,014 397,011 66.7
 ACTIVO NO CIRCULANTE/Non Current Assets 3,127,755 2,079,351 50.4
 PASIVO TOTAL/Total liabilities 1,963,236 819,854 139.5
 PASIVO A CORTO PLAZO/Current Liabilities 1,640,722 819,854 100.1
 PROVEEDORES/Trade Accounts Payable 969,752 630,934 53.7
 PRESTAMOS BANCARIOS/Bank Loans 391,852 97,060 303.7
 PRESTAMOS BURSATILES/Stock Market Loans 124,740 0 0.0
 OSTROS PASIVOS/Other Liabilities 154,378 91,860 68.1
 PASIVO A LARGO PLAZO/Long Term Liabilities 322,614 0 0.0
 CAPITAL CONTABLE/Shareholders' Equity 2,689,102 2,307,688 16.5
 INDICADORES FINANCIEROS/FINANCIAL RATIOS
 ROTACION DE INVENTARIOS (DIAS)/Inventory
 turnover (days) 54 49
 ROTACION C x P PROVEEDORES (DIAS)/Trade
 Accounts Payable Turnover (days) 61 48
 UTILIDAD NETA POR ACCION(A)/Net Earnings
 per Share (new pesos) 0.03 0.08
 UTILIDAD DE OPERACION/VENTAS (PCT.)/Operating
 Earnings/Sales(PCT.) 1.6 2.2
 RIF/VENTAS (PCT.)/IRF/Sales(PCT.) -0.2 -0.8
 UTILIDAD NETA/VENTAS(PCT.)/Net
 Earnings/Sales(PCT.) 1.4 2.5
 PASIVO TOTAL/CAPITAL CONTABLE(PCT.)/Total
 Liabilities/Stockholders' Equity(PCT.) 73.0 35.5
 ACTIVO CIRCULANTE/PASIVO CORTO PLAZO(VECES)/
 Current Assets/Current Liabilities (times) 0.93 1.28
 (A) Utilidad ultimos doce meses. Base 2,201,641,481, acciones./
 (A) Earnings for last 12 months. Basis 2,201,641,481, shares.
 (B) Nuevos pesos de poder adquisitivo de Septiembre 30, 1993/
 (B) New Mexican pesos of purchasing power at September 30, 1993.
 -0- 10/29/93
 /CONTACT: Juan Carlos Mateos of Grupo Gigante, 011-52-5-724-8369, or John McInerney of Dewe Rogerson, 212-688-6840/


CO: Grupo Gigante, S.A. de C.V. ST: IN: REA SU: ERN

LG-PT -- NY014 -- 8404 10/29/93 10:06 EDT
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