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GRUPO GIGANTE REPORTS 1992 RESULTS

 MEXICO CITY, March 9 /PRNewswire/ -- Grupo Gigante, S.A. de C.V., one of Mexico's largest retailers, today reported sales of 5,912.19 million new pesos for the year ended Dec. 31, 1992, compared to sales of 5,717.36 million new pesos for the year ended Dec. 31, 1991. This figure represents a 3.4 percent increase in real terms.
 Operating earnings for the year ended Dec. 31, 1992, were 63.60 million new pesos, compared to the 286.45 million new pesos reported in 1991. Consolidated net income for 1992 amounted to 98.90 million new pesos, compared to 293.91 million new pesos reported the year before.
 Commenting on these results, Angel Losada Moreno, director general of Grupo Gigante, said: "Last year, Grupo Gigante continued the aggressive, nationwide growth strategy needed to assure the company's future position in an increasingly competitive market. We increased the number of Gigante self-service stores by 47 percent to 148 stores. Most of this growth came about through our acquisition of eight El Sardinero stores and our agreement to acquire the assets of Blanes, which included 89 Blanco stores throughout Mexico.
 "The 1992 results were primarily affected by lower-than-expected sales in the second half of the year, the costs of disposing of the non-strategic Blanes stores and assets, as well as refurbishing the remaining 31 Blanco stores to meet Gigante standards. While these former Blanco stores were operating during the remodeling, revenues were low while fixed and operating costs were high.
 "After this period of aggressive growth, we will continue to consolidate our nationwide position, and in this context we expect 1993 will be a year of moderate growth."
 Operating expenses as a percentage of sales increased from 18 percent to 20 percent mainly due to the incorporation of the previously mentioned Blanco stores into the Gigante subsidiary. Total sales area for the group's self-service stores increased 23 percent to 7.2 million square feet.
 During 1992, the group invested 246.5 million new pesos in remodeling and capital expenditures. The group continued upgrading its technology, a program that is crucial to bring about increased efficiency. While original plans called for 65 stores to have POS and scanners, 89 stores had such equipment at year end.
 On Dec. 9, Grupo Gigante opened the first store of its Gigante- Fleming subsidiary, a joint venture with Oklahoma City-based Fleming Companies, Inc. The store operates under the name SuperMart in San Juan del Rio, Queretaro, and others are planned in the future.
 GRUPO GIGANTE, S.A. DE C.V., AND SUBSIDIARIES
 Thousands of New Pesos (B)
 Year ended Dec. 31 1992 1991 Pct. Change
 ACCRUED RESULTS
 Net sales 5,912,190 5,717,357 3.41
 Operating earnings 63,599 286,446 (77.80)
 Integral result of financing 46,532 64,124 (27.43)
 Tax and employment profit
 sharing provision 27,597 56,659 (51.29)
 Consolidated net earnings 98,903 293,911 (66.35)
 FINANCIAL POSITION
 Total assets 3,275,045 2,985,970 9.68
 Current assets 1,310,424 1,185,464 10.54
 Inventories 691,595 599,565 15.35
 Others 618,829 585,899 5.62
 Non-current assets 1,964,621 1,800,506 9.11
 Total liabilities 1,200,008 855,139 40.33
 Current liabilities 1,200,008 855,139 40.33
 Trade accounts payable 957,304 678,243 41.14
 Bank loans 99,690 -- --
 Other liabilities 143,014 176,896 (19.15)
 Log term liabilities -- -- --
 Shareholders' equity 2,075,037 2,130,831 (2.62)
 FINANCIAL RATIOS
 Inventory Turnover (days) 54 50
 Trade accounts payable
 turnover (days) 75 56
 Net earnings per share
 (new pesos) (A) 0.05 0.15
 Operating earnings/sales 1.1 pct 5.0 pct
 IRF/sales 0.8 pct 1.1 pct
 Net earnings/sales 1.7 pct 5.1 pct
 Total liabilities/stockholders'
 equity 57.8 pct 40.1 pct
 Current assets/current
 liabilities (times) 1.09 1.39
 (A) -- Earnings for last 12 months. Basis 1,969,641,481 shares.
 (B) -- Mexican new pesos of purchasing power at Dec. 31, 1992.
 -0- 3/9/93
 /CONTACT: Juan Carlos Mateos of Grupo Gigante, in Mexico City, 52-5-724-8369; or John McInerney of Dewe Rogerson, in New York, 212-688-6840, for Grupo Gigante/


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

GK-TH -- NY062 -- 4592 03/09/93 14:51 EST
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Date:Mar 9, 1993
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