Alibaba Shares Fall After Anthropic Alleges Massive AI Model Distillation Campaign 
Bain Capital Nears Deal for Majority Stake in Volkswagen Marine Engine Unit Everllence 
Fortescue Faces Class Action Over Sexual Harassment Claims at Australian Mining Sites 
SK Hynix Moves Closer to New York ADR Listing Amid AI Chip Boom 
Tencent Reviews Marvelous Stake as Gaming Giant Reassesses Global Investment Strategy 
Kioxia Targets U.S. Listing as AI Chip Boom Accelerates 
Tesla and NatPower Partner on $5 Billion Battery Storage Expansion in Europe 
KPMG Australia Chairman and Senior Partners Exit Amid Escalating Whistleblower Scandal 
OpenAI May Delay IPO to 2027 Amid $1 Trillion Valuation Goal 
Alphabet Replaces Verizon in Dow Jones Industrial Average 
Meta Reportedly Developing ‘Arena’ Prediction Market App to Rival Polymarket and Kalshi 
Cerebras Revenue Forecast Tops Expectations, but Margin Concerns Weigh on Stock 
Micron Stock Surges on Strong AI Demand, Record Revenue, and Bullish Q4 Forecast 
Trump Orders DOJ Investigation Into Exxon, Chevron Over High Gas Prices 
Doncasters Raises $919 Million in NYSE IPO as Aerospace Growth Accelerates 
Samsung Electronics Stock Surges on Report of Massive $59 Billion Share Buyback Plan 
SK Hynix Targets $29.4 Billion Nasdaq Listing to Expand AI Chip Business 
In a striking reversal of fortunes, Carrefour Brasil, under the control of France's Carrefour, declared a net profit of 39 million reais ($7.7 million) for the first quarter. This marks a significant turnaround from the losses experienced in the same period last year.
According to Reuters, the company attributed this recovery partly to the higher food inflation, which expanded its profits beyond expectations. On an adjusted basis, the firm also returned to profitability with a 52-million-real net profit, although this figure fell short of the anticipated 137.4 million reais projected by analysts surveyed by LSEG.
Sales Growth and Inflation Impact
US News reported that revelations showed Carrefour Brasil's first-quarter sales increased by 2.5% year-on-year in late April. A notable performer within the group, the hybrid wholesale unit Atacadao, which constitutes nearly 70% of the group's activity, saw its sales grow by an impressive 6.6%. "Recovery of food inflation to positive levels had a positive effect on our prices and volumes," commented CEO Stephane Maquaire during a press briefing.
The recent upward trends in food inflation have particularly benefitted sales to corporate customers, especially smaller grocery outlets, which previously curbed their purchases amid financial strains from dwindling margins.
Strategic Adjustments and EBITDA Growth
In response to the declining sales in its retail segment, which dropped over 10% in the quarter, Maquarie revealed that Carrefour Brasil is exploring lower pricing strategies for some basic items to enhance performance.
Furthermore, the conglomerate reported a 36.6% increase in its consolidated adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to 1.42 billion reais, slightly surpassing analyst forecasts of 1.33 billion reais. Adjusted EBITDA margins also improved, rising to 5.7% from 4.3% a year earlier.
Navigating Natural Disasters
The CEO also disclosed the temporary closure of seven Rio Grande do Sul stores due to the devastating floods affecting Brazil's southernmost state. Demonstrating community support, Maquaire announced a price freeze on all products in the region until the end of May to aid those impacted by the natural disaster.
This gesture underscores Carrefour Brasil's commitment to navigating economic fluctuations and supporting its customer base during critical times.
Photo: Carrefour Newsroom
