July 24 (Bloomberg) -- Cia. Brasileira de Distribuicao Grupo Pao de Acucar, Brazil’s biggest retailer, said profit more than doubled in the second quarter, benefiting from gains in the company’s real estate business and beating analysts’ estimates.
Pao de Acucar’s net income attributable to controlling shareholders was 255 million reais ($125 million) in the quarter, compared with 91 million reais a year earlier, according to a regulatory filing sent late yesterday. That compares with an average estimate for adjusted profit of 143.5 million reais among six analysts surveyed by Bloomberg. Net income excluding the company’s property business rose 75 percent to 159 million reais, according to a separate filing today.
Brazilian consumers, whose spending has powered economic growth, have been supported by a strong labor market even as job creation slows. The unemployment rate was 5.8 percent in May, a record low for the month. In the same month, the economy created 139,679 jobs, 45 percent fewer than a year earlier.
Pao de Acucar’s margin on earnings before interest, taxes, depreciation and amortization rose to 6.5 percent in the quarter, from 5.7 percent a year earlier. Sales increased by 6.8 percent to 12 billion reais in the period.
Pao de Acucar yesterday named Christophe Hidalgo as chief financial officer, according to a regulatory filing. The company will keep its 1.8 billion reais investment guidance for 2012, Chief Executive Officer Eneas Pestana said in a call with investors.
Pao de Acucar’s shares fell 2.2 percent to 76.98 reais at 12:27 p.m. in Sao Paulo while the benchmark Bovespa index dropped 0.3 percent.
Billionaire Abilio Diniz handed control of the retailer founded by his father to Casino Guichard-Perrachon SA on June 22. The transfer stemmed from an agreement signed between the French retailer and Diniz in 1999 and amended in 2005.
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