SANTIAGO, Chile, April 28 /PRNewswire-FirstCall/ -- Distribucion y Servicio D&S S.A. (Latibex: XDYS) announced results for the first quarter 2006.
Figures in this report are expressed in US$ Millions, drawn from figures in Chilean pesos restated by the CPI at March 31, 2006, and converted into dollars using the observed exchange rate for the same date (1US$=Ch$526.18).
Highlights I Quarter 2006
-- Net revenues remained constant year-over-year at Ch$376,279 million
(US$715.1 million).
-- Gross income up 1.7%, gross margin rose 50 bp., from 27.4% in 2005 to
27.9% in 2006.
-- Operating income down 22.4% to Ch$12,126 million (US$23.0 million)
profit, operating margin dropped 90 bp. to 3.2% of revenues.
-- 12.5% decrease in EBITDA. EBITDA margin decreased 100 bp. to 6.7% of
revenues.
-- 46.1% decrease in net profit to Ch$5,319 million (US$10.1 million),
representing 1.4% of revenues.
-- New store openings in the quarter: One LIDER store in Copiapo, III
Region (5,859 square meters of sales area) and one LIDER Vecino store
in Linares, VII Region (4,200 square meters). Additionally, during the
course of the second quarter 2006, two LIDER Express stores were
opened: Temuco Centro in the IX Region (480 square meters) and
Huerfanos in the Metropolitan Region (downtown Santiago, 1,039 square
meters). Total sales area at March 31, 2006, increased by 7.8% to
436,185 square meters compared to 404,467 square meters of sales area
at March 31, 2005.
-- Capex (investment in buildings, land and infrastructure) for the period
amounted to US$31.4 million.
-- Financial debt as of March 31, 2006, totaled US$712.7 million, 69.4%
short term and 52.9% in public offering instruments (bonds and
commercial papers).
-- Presto outstanding receivables increased by 25.6% to Ch$192,181 million
(US$365.2 million), from Ch$152,977 million (US$290.7 million) at the
same date in 2005.
-- Number of Presto cards in good standing increased by 13.3% to
1.5 million accounts.
2006 Compared to 2005 -- First Quarter
For the first quarter 2006, net revenues remained constant (0.1% decrease) compared to the same period in 2005, amounting to Ch$376,279 million (US$715.1 million). This is the result of the 5.8% decrease in same-store sales, which is partially offset by the new sales contributed by the new LIDER and Farmalider stores opened in the period of April 2005 to March 2006, resulting in a 1.5% decrease in total Company sales compared to figures recorded in the first quarter of 2005. Other revenues from commercial, logistic, real estate and financial services operations increased by 7.7%. Gross income increased 1.7% to Ch$105,032 million (US$199.6 million), while gross income margin rose to 27.9% from 27.4% (50 bp. increase) in the same quarter of 2005. This increase is mainly attributable to the 31.7% increase in revenues from the PRESTO financial services division and to a higher share of private label products in mass consumption products -- 17.0% growth in private label sales compared to the same period in 2005. Selling and administrative expenses for this period increased by 6.0%, totaling Ch$92,906 million (US$176.6 million), representing 24.7% of revenues, compared to Ch$87,636 million (US$166.6 million), equivalent to 23.3% of revenues in the first quarter 2005. This is attributable to the nine new stores opened during the period of April 2005 to March 2006: three LIDER Vecinos in the cities of Talagante, Ovalle and Linares, four LIDER Express stores in the cities of Arica, Temuco, Puerto Varas and Punta Arenas, one LIDER hypermarket in Copiapo and one reopened LIDER store (formerly Carrefour Velazquez, closed in June 2004).
Operating income decreased by 22.4%, amounting to Ch$12,126 million (US$23.0 million), compared to operating profit of Ch$15,627 million (US$29.7 million) for the same period in 2005. Operating margin dropped by 90 bp. to 3.2% of revenues in the first quarter 2006, from 4.1% in the first quarter of 2005. EBITDA for this quarter decreased by 12.5% compared to the same period in 2005, totaling Ch$25,337 million (US$48.2 million), equivalent to 6.7% of revenues, a 100 bp. decrease compared to EBITDA margin of 7.7% in the first quarter of 2005. Non-operating income showed a 30.0% loss increase to a Ch$5,736 million loss (US$10.9 million), compared to a Ch$4,413 million (US$8.4 million) loss in the same period in 2005. This is explained by 19.8% higher financial expenses resulting from the Company's higher indebtedness and higher interest rates on debt.
Net income decreased by 46.1%, amounting to Ch$5,319 million (US$10.1 million), representing 1.4% of revenues compared to results for the same period in 2005 when the Company recorded a net profit of Ch$9,863 million (US$18.7 million) equivalent to 2.6% of revenues.
For an extended version of this report, please visit our website http://www.dys.cl/ .
First Quarter Consolidated Results
2006
Ch$ US$ %
million million
Sales 314,619 597.9 83.6%
Other Income 61,661 117.2 16.4%
Net revenues 376,279 715.1 100.0%
Cost of sales 271,247 515.5 72.1%
Gross Income / Margin 105,032 199.6 27.9%
Recurring Operating Expenses 79,322 150.8 21.1%
Start-up Expenses 373 0.7 0.1%
Total Operating Expenses (SG&A) 79,696 151.5 21.2%
EBITDA 25,337 48.2 6.7%
Depreciation 13,211 25.1 3.5%
Total Operating Expenses 92,906 176.6 24.7%
Operating Income 12,126 23.0 3.2%
Financial Expenses (5,080) (9.7) -1.4%
Other Non-operating Income
(Expenses) (105) (0.2) 0.0%
Monetary Correction (550) (1.0) -0.1%
Non-Operating Income (5,736) (10.9) -1.5%
Income before Tax 6,391 12.1 1.7%
Income Tax (1,081) (2.1) -0.3%
Minority Interest 10 0.0 0.0%
Income 5,319 10.1 1.4%
Amortization of Goodwill -- 0.0 0.0%
Net Income 5,319 10.1 1.4%
2005
Ch$ US$
million million %
Sales 319,363 606.9 84.8%
Other Income 57,251 108.8 15.2%
Net revenues 376,614 715.8 100.0%
Cost of sales 273,351 519.5 72.6%
Gross Income / Margin 103,263 196.3 27.4%
Recurring Operating Expenses 74,303 141.2 19.7%
Start-up Expenses 5 0.0 0.0%
Total Operating Expenses (SG&A) 74,308 141.2 19.7%
EBITDA 28,955 55.0 7.7%
Depreciation 13,329 25.3 3.5%
Total Operating Expenses 87,636 166.6 23.3%
Operating Income 15,627 29.7 4.1%
Financial Expenses (4,241) (8.1) -1.1%
Other Non-operating Income
(Expenses) (34) (0.1) 0.0%
Monetary Correction (139) (0.3) 0.0%
Non-Operating Income (4,413) (8.4) -1.2%
Income before Tax 11,213 21.3 3.0%
Income Tax (1,429) (2.7) -0.4%
Minority Interest (13) (0.0) 0.0%
Income 9,771 18.6 2.6%
Amortization of Goodwill 92 0.2 0.0%
Net Income 9,863 18.7 2.6%
Change
%
Sales -1.5%
Other Income 7.7%
Net revenues -0.1%
Cost of sales -0.8%
Gross Income / Margin 1.7%
Recurring Operating Expenses 6.8%
Start-up Expenses 7,367.3%
Total Operating Expenses (SG&A) 7.3%
EBITDA -12.5%
Depreciation -0.9%
Total Operating Expenses 6.0%
Operating Income -22.4%
Financial Expenses 19.8%
Other Non-operating Income
(Expenses) 211.0%
Monetary Correction 296.5%
Non-Operating Income 30.0%
Income before Tax -43.0%
Income Tax -24.3%
Minority Interest -175.6%
Income -45.6%
Amortization of Goodwill -100.0%
Net Income -46.1%
Currency of March 2006, exchange rate 1US$=Ch$526.18 on March 31, 2006.
