In Q4 of 2017, its results were hurt by food price deflation.
Nasdaq.com provides details (Feb. 20, 2018):
Companhia Brasileira de Distribuicao CBD or Grupo Pao de Acucar reported fourth-quarter 2017 results, wherein adjusted net income from continuing operations came in at R$159 million ($48.9 million), down 18.4% from R$195 million ($60 million) recorded in the year-ago period. Results were impacted by soft EBITDA margin that in turn was hurt by food deflation. However, sales grew year on year, driven by continued strength at Assai and the ongoing recovery at Extra Hiper.
Results in Detail
Net revenue in the fourth quarter came in at R$12,510 million ($3,849 million), compared with R$11,740 million ($3,612.1 million) in fourth-quarter 2016. Net revenues increased 6.6% year over year in local currency.
Adjusted gross profit climbed 2% to R$2,755 million ($847.6 million), whereas the adjusted gross margin contracted 100 basis points (bps) to 22%. Adjusted EBITDA slumped nearly 20% to R$582 million ($179.1 million), while EBITDA margin shrank 150 bps to 4.7%, due to softness in both segments, largely stemming from food deflation.
EWI's analysts are not surprised by the food price deflation.
More than a year ago, EWI's November 2016 Financial Forecast said:
Since June, EWFF has been tracking an all-important change in consumer behavior. So far, we’ve detected its presence by deflationary tremors in grocery prices … .