Nicolas Larrain's questions to BRAZILIAN DISTRIBUTION CO COMPANHIA BRASILEIRA DE DISTR CBD (CBDBY) leadership • Q1 2025
Question
Nicolas Larrain of JPMorgan Chase & Co. asked about the company's high rental expenses as a percentage of revenue and whether there were plans to reduce them. He also inquired about the potential to recognize tax credits in the near future.
Answer
Executive Rafael Russowsky explained that higher rental costs are a strategic choice tied to operating in prime locations, which enables the company to achieve higher gross margins. On tax credits, he noted that recognition depends on future profitability but could be accelerated by pending federal tax settlements, which may allow the use of over BRL 2 billion in existing tax loss credits to settle liabilities.