Luca Biazi's questions to BRAZILIAN DISTRIBUTION CO COMPANHIA BRASILEIRA DE DISTR CBD (CBDBY) leadership • Q4 2024
Question
Luca Biazi from UBS Group AG asked two questions: first, about the drivers of market share gains in Sao Paulo and the potential for further growth; and second, about the reasons for the slowdown in gross margin expansion during Q4 compared to previous quarters of 2024.
Answer
Executive Rafael Russowsky attributed market share gains to Pão de Açúcar's comprehensive value proposition, which he described as more complete than competitors who may specialize in only certain categories. He also highlighted the complementary role of the Minuto Pão de Açúcar proximity format in capturing a growing urban demographic. Regarding the gross margin, he explained that the Q4 slowdown was a direct result of successful high-volume seasonal promotions for Black Friday and Christmas, and a product mix shift towards lower-margin beverages due to unusually warm weather. He added that as the higher-margin premium segment grows, the company's overall margin is expected to increase naturally.