Luca Biazi's questions to Companhia Brasileira de Distribuicao SA (CBDBY) leadership • Q4 2024
Question
Luca Biazi from UBS Group AG asked about market share gains in Sao Paulo, including who the company is taking share from, and also questioned the drivers behind the slowdown in gross margin expansion during Q4.
Answer
Executive Rafael Russowsky attributed market share gains to Pão de Açúcar's complete value proposition, which competitors lack, and the complementary nature of the Minuto Pão de Açúcar proximity format. Regarding gross margin, he explained the Q4 slowdown was a natural result of a successful promotional mix for Black Friday and Christmas, which drove high sales volumes at slightly lower margins. He also noted a higher penetration of lower-margin beverages due to warm weather contributed to this dynamic.