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    Gustavo Fratini • Bank of America Corporation

    Gustavo Fratini's questions to Companhia Brasileira de Distribuicao SA (CBDBY) leadership

    Gustavo Fratini's questions to Companhia Brasileira de Distribuicao SA (CBDBY) leadership • Q1 2025

    Question

    Gustavo Fratini from Bank of America pointed out that same-store sales growth, while strong, had slowed from Q4 and was slightly below inflation. He asked for management's view on this trend and the competitive landscape.

    Answer

    Marcelo Pimentel, an executive, contextualized the 7.3% growth as a very strong result against a tough comparison from 2024. He emphasized that growth was driven by volume, not just price, and highlighted the robust 16.9% increase in online sales, which achieved a 9.9% EBITDA margin. Pimentel asserted that the performance demonstrates the strategy's strength despite macroeconomic uncertainties and competitive pressures.

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    Gustavo Fratini's questions to Companhia Brasileira de Distribuicao SA (CBDBY) leadership • Q4 2024

    Question

    Gustavo Fratini from Bank of America Corporation asked for details on the company's tax contingencies, focusing on the growing PIS/COFINS line and seeking clarity on the nature of the discussions and potential cash disbursement timing.

    Answer

    Executive Rafael Russowsky explained that the BRL 6 billion PIS/COFINS contingency relates to two main market-wide theses (bonus thesis and essential inputs) used by the entire retail sector. He emphasized these are relatively new, are still in administrative instances rather than final court rulings, and are considered sound by their consultants. While not providing a specific timeline, he stated the company is actively seeking transactional solutions to mitigate these risks, similar to the successful ICMS agreements it previously secured with the states of Sao Paulo and Bahia.

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