SAO PAULO, May 7 (Reuters) - Carrefour Brasil, which is

controlled by France's Carrefour, reported a net

profit of 39 million reais ($7.7 million) for the first quarter,

reversing losses in the same period last year, as higher food

inflation expanded its profits.

On an adjusted basis, it also swung back to the green with a

52-million-real net profit, although this profit came in below

the forecast of 137.4 million reais from analysts polled by

LSEG.

Carrefour Brasil had already disclosed its first-quarter

sales figures in late April, which rose 2.5% year-on-year.

"We have seen a recovery of food inflation to positive

levels, which obviously had positive effects in our prices and

volumes," CEO Stephane Maquaire told journalists on Tuesday.

He added that recent food inflation trends have

triggered improved sales to corporate customers, mainly smaller

grocery stores, which had reduced their purchases due to a

financial pressure from lower margins.

Carrefour Brasil said its adjusted earnings before interest,

taxes, depreciation and amortization (EBITDA) rose 36.6% to 1.42

billion reais, slightly above analysts forecast of 1.33 billion

reais.

Adjusted EBITDA margins rose to 5.7% from 4.3% a year

earlier.

($1 = 5.0744 reais)