Cia. Brasileira de Distribuicao Grupo Pao de Acucar, Brazil’s biggest food retailer, rose the most in three weeks after reporting that third-quarter sales were the highest this year.
The shares climbed 3.4 percent to 108.60 reais at 1:11 p.m. in Sao Paulo. A close at that level would be the highest since May 28. It was the best performer on the MSCI Brazil/Consumer Staples Index, which gained 2.1 percent.
Sales increased 16 percent in the three months ended in September to 14.1 billion reais ($6.5 billion), the retailer said in a regulatory filing today on preliminary results for the period. Revenue was 13.4 billion reais in the previous two quarters, according to data compiled by Bloomberg.
“The preliminary sales number was very positive,” Henrique Kleine, the head analyst at Sao Paulo-based brokerage Magliano SA, said by phone. “We had been believing that with the increase in salaries and purchasing power, Pao de Acucar could benefit, and it has.”
Consumer confidence rose for a second month in September, rebounding from a four-year low in July, according to the Getulio Vargas Foundation. Average personal income for Brazilians rose 1.7 percent in August to 1,883 reais, the national statistics agency said Sept. 26.
Pao de Acucar is scheduled to release its third-quarter earnings report on Oct. 16, according to the filing.
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