SAO PAULO, March 5 (Reuters) - Brazilian drugstore chain
RD posted on Tuesday a 5.9% decrease on its adjusted
net profit for the fourth quarter from a year earlier, amid
higher selling expenses and sales growth slowdown.
The firm posted 283.3 million reais ($57.14 million)
adjusted net profit for the quarter ended in December.
Its net revenue was at 9.6 billion reais in the quarter, up
14% year-on-year, with gross revenue increasing in all products
segments. Same stores sales rose 7.7% - a year earlier it had
risen 16%.
Meanwhile, the firm's sales expenses rose 19.8% in the
quarter.
It said lower level of sales growth "resulted in a momentary
loss of operating leverage", adding "with the normalization of
our sales growth, as observed in January and February, we expect
a return to the level of expenses posted recently."
RD, which is Brazil's largest drugstore chain by number of
stores, said preliminary numbers showed same stores sales rising
11.6% in January and February year-on-year.
The company's adjusted earnings before interest, taxes,
depreciation and amortization (EBITDA) was at 614.5 million
reais in the quarter, increasing 2.5%.
Its margin measured by the gross profit/gross revenue ratio
was at 28.1% from 28%.
($1 = 4.9581 reais)