1Q24 EARNINGS

PRESENTATION

May 8th, 2024

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DISCLAIMER

Statements contained in this release regarding the Company's business outlook, projections of operating / financial profit and loss, the Company's growth potential, and related to market and macroeconomic estimates constitute mere forecasts and were based on the beliefs, intentions, and expectations of the Management regarding the future of the Company. These estimates are highly dependent on changes in the market, the general economic performance of Brazil, the industry, and international markets and, therefore, are subject to change

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1Q24 HIGHLIGHTS

Marcelo Pimentel, CEO

Gross Revenue

GPA

+8.1%

Same Store(1)

+8.2%

4,4964,867

1Q231Q24

Gross Revenue

Pão de Açúcar banner

+9.3%

Same Store(1)

+10.3%

2,2062,433

1Q231Q24

1Q24 HIGHLIGHTS

Continuous operational improvement with an increase of 1.8 p.p. in the adjusted EBITDA

margin and material reduction of R$ 1.4 billion in net debt vs. 1Q23

  • R$ 428 million of operational free cash flow(2) in the last 12 months, representing an improvement of
    R$ 736 million vs. 1Q23
  • Gross revenue growth of 8.2% vs. 1Q23
    • Sales growth of 10.3% in Pão de Açúcar and 22.8% in Proximity
    • Strong growth of 25.1% in E-commerce
  • Increase of 8.1% in Same-Store Sales (5.4% ex. calendar effect) vs. 1Q23
    • Strong growth of 9.3% (6.7% ex. calendar effect) in Pão de Açúcar and 7.2% (4.5% ex. calendar effect) in Extra Mercado
  • Sixth consecutive quarter of market share gains, with a 0.2 p.p. increase vs. self-servicemarket in 1Q23
  • Gross Profit reached R$ 1.2 billion with 27.2% margin, 1.5 p.p. higher than 1Q23 and 0.2 p.p. vs. 4Q23
  • Adjusted EBITDA GPA Brasil(3) totaled R$ 372 million, with 8.1% adjusted margin, 1.8 p.p. above 1Q23 and growth of 41,4% in the same period
  • Net Debt reduction of R$ 1.4 billion with 6.8x of deleverage pre-IFRS16 vs. 1Q23
  • Adhesion to the settlement program of ICMS' taxes with the government of the state of São Paulo, which allowed a reduction, according to the discounts due to this deal, of approximately 80% to the settlement of contingencies that totaled R$ 3.6 billion

(1) Without the -2.7 p.p. adjustment of calendar effect; (2) Adjusted EBITDA pre-IFRS16, excluding equity income, minus variation in working capital, minus Capex; (3) Adjusted Earnings before interest, taxes, depreciation & amortization and other operating revenues & expenses;

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1Q24 STRATEGIC PILLARS HIGHLIGHTS

CONSISTENCY AND CONTINUOUS IMPROVEMENTS OF RESULTS

01 TOP LINE

  • Growth in same-store sales driven by Pão de Açúcar Banner
  • Consistency in market share(1) gains, progress by the sixth consecutive quarter, concomitantly with profitability improvement
    • +0.2 p.p. in self-service market vs. 1Q23
    • +0.9 p.p. in proximity format vs. small supermarkets in metropolitan region of São Paulo vs. 1Q23
  • Stockout(2) reach 5.9%, improvement of 1.7 p.p. vs. 1Q23

02 Clients

NPS reached 77 points, a strong evolution of 13 pts. on last 12 months

    • The highlights were the improvement in price perception and time spent in check out
  • Premium & Valuable customers growing 5.9%
  • In Private Labels, 12,0% of sales increase with 21% of penetration in total sales (0.9 p.p. higher than 1Q23). High level of costumer loyalty with frequency 2.4x higher in comparison with other clients

03 DIGITAL

E-commerce revenue growth of 25.1%, the best growth rate of the last 7 quarters

  • 12% of penetration in relation to total food sales, 1.6 p.p. higher than previous year
  • High perishables penetration of 34% on digital format, improvement of 6.3 p.p. when compared to 1Q23
  • Leadership(3) in digital food retail in 1P and 3P

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(1) Internal analysis based on Nielsen disclosed data; (2) March 2024; (3) Internal analysis considering public and internal data

1Q24 STRATEGIC PILLARS HIGHLIGHTS

CONSISTENCY AND CONTINUOUS IMPROVEMENTS OF RESULTS

04 EXPANSION

9 stores opened in 1Q24

7 Minuto Pão de Açúcar and 2 Mini Extra

64 stores opened in the last 12 months

61 Proximity stores: 53 Minuto Pão de Açúcar and 8 Mini Extra

  • 3 Pão de Açúcar stores

R$ 659 million of incremental sales in the quarter, generated by

stores opened since 2022

05 PROFITABILITY

Acceleration in gross margin gains, that reached 27.2%

  • Improvement of 1.5 p.p and 0.2 p.p. when compared to 1Q23 and 4Q23, respectively

Best adjusted EBITDA margin of the last 9 quarters

  • Adjusted EBITDA margin reached 8.1%, 1.8 p.p. higher than 1Q23

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1Q24 STRATEGIC PILLARS HIGHLIGHTS

CONSISTENCY AND CONTINUOUS IMPROVEMENTS OF RESULTS

06 ESG & CULTURE

Promotion of diversity and inclusion

3rd class of the Internship program exclusive for black and brown people started in 1Q24

More than 17 actions in celebration of International Women's Day

Combating climate change

8% reduction in scope 1 and 2 emissions compared to 1Q23, as a result of the "gas replacement" and "machine room retrofit" projects

Transformation in the value chain

We continue to advance our commitment to animal welfare

We ended 1Q24 with 44.5% of cage-free eggs

Social impact and promotion of opportunities

Launch of another social product, in partnership with the NGO Gerando Falcões, with all profits from sales going to the NGO's projects, which work to interrupt the cycle of poverty in favelas with innovation and technology, reinforcing our purpose of feeding dreams and lives

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PRIMARY OFFERING AND NEW GOVERNANCE

Financial Delevarege Acceleration

New Board of Directors

  • 2Q23 - 1Q24: Non-core asset sales totaling R$ 1.5 billion
  • 1Q24: Primary offering of shares of R$ 704 million with 100% proceeds to pre-paydebt
  • 2Q24 (subsequent event): GPA's headquarters sale, totaling R$ 218 million

Financial Net Debt(1) (R$ million) and

Financial Net Debt (1) / Adjusted EBITDA LTM pre-IFRS 16 (x)

-1,407

9.8x

3.0x

3,013

1,606

1Q231Q24

9,8x

Renan Bergmann

Chairman and Independent member

Marcelo Pimentel

Management Representative

Eleazar de Carvalho

Independent member

Luis Augusto de Castro

Independent member

Christophe Hidalgo

Philippe Alarcon

New independent

members

José Gutierrez

Márcia de Melo

Rachel Maia

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(1) Including non-discounted receivables of credit cards

FINANCIAL PERFORMANCE

Rafael Russowsky, CFO

FINANCIAL PERFORMANCE

TOTAL SALES

(R$ million)

+8.1% SAME STORE SALES (+5.4% ex. calendar effect)

8.2%

Total sales of GPA totaled R$ 4.9 billion in 1Q24 with an increase of

8.2%

Same Store Sales growth of 8.1% (5.4% ex. calendar effect) compared to 1Q23

In e-commerce, Gross Sales grew by 25.1% (R$ 503 million) in 1Q24 and online penetration of 12%

Same Stores Sales in 1Q24 with highlight to Pão de Açúcar:

4,496

49.1%

4,867

50.0%

+9.3% (+6.7% ex. calendar effect) driven by the increase of volume and in average price. Highlight to fruits & vegetables, seafood and complementary grocery, the last two with a positive impact driven by seasonal events in the quarter

34.2%

33.2%

9.7%

5.7%

11.0%

4.5%

1.4%

1.3%

1Q23

1Q24

Pão de Açúcar Proximity Other Business

Extra Mercado Aliados

+4.9% (+2.3% ex. calendar effect) in Proximity format, above a hard comp in 1Q23 (+8.8%), and highlight to opened stores from 2021 on (+14.1%)

+7.2% (4.5% ex. calendar effect), best improvement since 2Q22. In line with Pão de Açúcar, the highlights also were fruits & vegetables and groceries, this last one driven by resumption of inflation in some items

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Disclaimer

CBD - Companhia Brasileira de Distribuição published this content on 07 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 May 2024 08:37:05 UTC.