Cover
Cover | 12 Months Ended |
Dec. 31, 2019shares | |
Cover [Abstract] | |
Entity Registrant Name | BRAZILIAN DISTRIBUTION CO COMPANHIA BRASILEIRA DE DISTR CBD |
Entity Central Index Key | 0001038572 |
Document Type | 20-F |
Amendment Flag | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2019 |
Current Fiscal Year End Date | --12-31 |
Entity Incorporation, State or Country Code | D5 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 99,679,851 |
Entity Preferred Stock, Shares Outstanding | 168,317,573 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Continued operations | |||
Net operating revenue | R$ 56635 | R$ 49388 | R$ 44634 |
Cost of sales | (44,445) | (37,779) | (33,585) |
Gross profit | 12,190 | 11,609 | 11,049 |
Operating expenses, net | |||
Selling expenses | (7,431) | (6,553) | (6,323) |
General and administrative expenses | (923) | (1,049) | (1,026) |
Depreciation and amortization | (1,413) | (1,202) | (1,117) |
Other operating expenses, net | (459) | (203) | (576) |
Total operating expenses | (10,226) | (9,007) | (9,042) |
Profit from continued operations before net financial expenses and share of profit (loss) of associates | 1,964 | 2,602 | 2,007 |
Financial expenses, net | (1,206) | (1,061) | (1,295) |
Share of profit (loss) of associates | 2 | 28 | (93) |
Income before income tax and social contribution | 760 | 1,569 | 619 |
Income tax and social contribution | (272) | (413) | (262) |
Net income for the year from continuing operations | 488 | 1,156 | 357 |
Net income for the year from discontinued operations | 348 | 128 | 500 |
Net income for the year | 836 | 1,284 | 857 |
Items that may be subsequently reclassified to the statement of operations in subsequent periods: | |||
Foreign currency translation | 214 | (26) | (20) |
Fair value of trade receivable and derivatives | (10) | 17 | (18) |
Income taxes related to other comprehensive income | 16 | 3 | |
Items that will not be reclassified to the statement of operations in subsequent periods: | |||
Other comprehensive income | (2) | (1) | |
Other comprehensive income (loss) for the year, net of income tax | 218 | (9) | (36) |
Total comprehensive income (loss) for the year | 1,054 | 1,275 | 821 |
Net income for the year attributable to: | |||
Controlling shareholders from continuing operations | 478 | 1,156 | 357 |
Controlling shareholders from discontinuing operations | 312 | (7) | 150 |
Total of controlling shareholders | 790 | 1,149 | 507 |
Non-controlling interest - Continuing Operations | 10 | ||
Non-controlling shareholders from- discontinued operations | 36 | 135 | 350 |
Total of non-controlling from shareholders | 46 | 135 | 350 |
Total comprehensive income attributable to: | |||
Controlling shareholders | 945 | 1,132 | 478 |
Non-controlling shareholders | 109 | 143 | 343 |
Total comprehensive income (loss) for the year | R$ 1054 | R$ 1275 | R$ 821 |
Basic | |||
Common - continuing and discontinued operations | R$ 2.95804 | R$ 4.31209 | R$ 1.90551 |
Common - continuing operations | 1.78980 | 4.33836 | 1.34175 |
Diluted | |||
Common - continuing and discontinued operations | 2.95353 | 4.29350 | 1.89737 |
Common - continuing operations | R$ 1.78696 | R$ 4.31977 | R$ 1.33637 |
Consolidated Balance Sheets
Consolidated Balance Sheets - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | |||
Cash and cash equivalents | R$ 7954 | R$ 4369 | R$ 3792 |
Trade receivables, net | 727 | 384 | 618 |
Other receivables | 381 | 302 | 267 |
Inventories, net | 8,631 | 5,909 | 4,822 |
Recoverable taxes | 1,692 | 679 | 596 |
Derivative financial instruments | 73 | 43 | |
Other current assets | 287 | 145 | 131 |
Assets held for sale | 223 | 28,687 | 26,663 |
Total current assets | 19,968 | 40,518 | 36,889 |
Noncurrent assets | |||
Trade receivables, net | 1 | 4 | 80 |
Other receivables | 192 | 128 | 642 |
Recoverable taxes | 2,702 | 2,745 | 1,747 |
Derivative financial instruments | 13 | 44 | 28 |
Deferred income tax and social contribution | 337 | 298 | 252 |
Related parties | 104 | 34 | 25 |
Restricted deposits for legal proceedings | 795 | 776 | 762 |
Other noncurrent assets | 177 | 17 | 7 |
Investments in associates | 609 | 203 | 156 |
Investment properties | 3,051 | 20 | 21 |
Property and equipment, net | 24,290 | 14,052 | 13,292 |
Intangible assets, net | 6,236 | 2,818 | 1,878 |
Total noncurrent assets | 38,507 | 21,139 | 18,890 |
Total assets | 58,475 | 61,657 | 55,779 |
Current liabilities | |||
Trade payable, net | 14,887 | 9,246 | 8,128 |
Borrowings and financing | 3,488 | 1,981 | 1,200 |
Lease liabilities | 937 | 507 | 445 |
Payroll and related taxes | 980 | 686 | 640 |
Taxes and contributions payable and taxes payable in installments | 531 | 370 | 301 |
Related parties | 215 | 145 | 153 |
Dividends payable | 168 | 57 | 78 |
Financing of property and equipment | 231 | 149 | 116 |
Deferred revenue | 365 | 250 | 146 |
Transfer to third | 164 | 11 | 14 |
Acquisition of non-controlling interest | 466 | 20 | |
Other current liabilities | 703 | 289 | 227 |
Liabilities related to assets held for sale | 23,545 | 21,864 | |
Total current liabilities | 23,135 | 37,256 | 33,312 |
Noncurrent liabilities | |||
Borrowings and financing | 10,706 | 3,392 | 3,193 |
Lease liabilities | 7,730 | 5,280 | 4,822 |
Deferred income tax and social contribution | 1,195 | 523 | 347 |
Tax payable in installments | 376 | 471 | 566 |
Provision for contingencies | 1,305 | 1,235 | 1,107 |
Deferred revenue | 26 | 13 | 22 |
Provision for losses on investment in associates | 386 | 279 | 201 |
Other noncurrent liabilities | 68 | 49 | 53 |
Total noncurrent liabilities | 21,792 | 11,242 | 10,311 |
Shareholders' equity | |||
Share capital | 6,857 | 6,825 | 6,822 |
Capital reserves | 447 | 413 | 355 |
Earning reserves | 3,529 | 3,062 | 2,256 |
Other comprehensive income (loss) | 107 | (66) | (49) |
Total shareholders' equity | 10,940 | 10,234 | 9,384 |
Non-controlling interest | 2,608 | 2,925 | 2,772 |
Total shareholders' equity | 13,548 | 13,159 | 12,156 |
Total liabilities and shareholders' equity | R$ 58475 | R$ 61657 | R$ 55779 |
Statements of Changes in Shareh
Statements of Changes in Shareholders' Equity - BRL (R$) R$ in Millions | Share Capital | Other Reserves | Stock Options | Legal | Expansion | Treasury Shares | Retained Earnings | Governmental subsidy reserve | Appropriated earnings | Other comprehensive income | Controlling Shareholders [Member] | Non-controlling Interest | Total | |
Beginning balance, previously presented | R$ 6811 | R$ 7 | R$ 324 | R$ 426 | R$ 2299 | R$ 7 | R$ 75 | R$ 20 | R$ 9765 | R$ 2652 | R$ 12417 | |||
Effect of adoption of new accounting standard | (731) | (731) | (199) | (930) | ||||||||||
Beginning balance at Dec. 31, 2016 | 6,811 | 7 | 324 | 426 | 2,299 | (7) | (806) | (20) | 9,034 | 2,453 | 11,487 | |||
Other comprehensive income: | ||||||||||||||
Net income for the year | 507 | 507 | 350 | 857 | ||||||||||
Foreign currency translation | (20) | (20) | (20) | |||||||||||
Fair value of trade receivable | (10) | (10) | (8) | (18) | ||||||||||
Income taxes on other comprehensive income | 2 | 2 | 1 | 3 | ||||||||||
Other comprehensive income | (1) | (1) | (1) | |||||||||||
Comprehensive income for the year | 507 | (29) | 478 | 343 | 821 | |||||||||
Capital increase | 11 | 11 | 11 | |||||||||||
Stock options granted | 16 | 16 | 16 | |||||||||||
Stock options granted - subsidiaries | 8 | 8 | 3 | 11 | ||||||||||
Appropriation of net income to legal reserve | 31 | (31) | ||||||||||||
Transfer from expansion reserve | 429 | (429) | ||||||||||||
Interest on own capital | (81) | (81) | (20) | (101) | ||||||||||
Proposed dividends | (78) | (78) | (9) | (87) | ||||||||||
Others | (2) | (2) | 2 | |||||||||||
Transactions with non-controlling interest | (2) | (2) | (2) | |||||||||||
Ending balance at Dec. 31, 2017 | 6,822 | 7 | 348 | 457 | 2,728 | (7) | (4) | (918) | (49) | 9,384 | 2,772 | 12,156 | ||
Other comprehensive income: | ||||||||||||||
Net income for the year | 1,149 | 1,149 | 135 | 1,284 | ||||||||||
Foreign currency translation | (26) | (26) | (26) | |||||||||||
Fair value of trade receivable | 9 | 9 | 8 | 17 | ||||||||||
Comprehensive income for the year | 1,149 | (17) | 1,132 | 143 | 1,275 | |||||||||
Capital increase | 3 | 3 | 3 | |||||||||||
Share-based expenses | 44 | 44 | 44 | |||||||||||
Share-based expenses - subsidiaries | 14 | 14 | 6 | 20 | ||||||||||
Appropriation of net income to legal reserve | 60 | (60) | ||||||||||||
Transfer from expansion reserve | (211) | 58 | 153 | |||||||||||
Interest on own capital | (13) | (261) | (274) | (274) | ||||||||||
Proposed dividends | (56) | (56) | (56) | |||||||||||
Others | (4) | (4) | 1 | (3) | ||||||||||
Transactions with non-controlling interest | (2) | (7) | (9) | 3 | (6) | |||||||||
Ending balance at Dec. 31, 2018 | 6,825 | 7 | 406 | 517 | 2,504 | (7) | (10) | 58 | (66) | 10,234 | 2,925 | 13,159 | ||
Beginning balance at Dec. 31, 2018 | 6,825 | 7 | 406 | 517 | 2,504 | (7) | (10) | 58 | (66) | 10,234 | 2,925 | 13,159 | ||
Other comprehensive income: | ||||||||||||||
Net income for the year | 790 | 790 | 46 | 836 | ||||||||||
Foreign currency translation | 151 | 151 | 63 | 214 | ||||||||||
Fair value of trade receivable | (5) | (5) | (10) | (15) | ||||||||||
Income taxes on other comprehensive income | 6 | 6 | 10 | 16 | ||||||||||
Cash flow hedge | 5 | 5 | 5 | |||||||||||
Other comprehensive income | (2) | (2) | (2) | |||||||||||
Comprehensive income for the year | 790 | 155 | 945 | 109 | 1,054 | |||||||||
Capital increase | 32 | 32 | 32 | |||||||||||
Share-based expenses | 29 | 29 | 29 | |||||||||||
Share-based expenses - subsidiaries | 5 | 5 | 4 | 9 | ||||||||||
Appropriation of net income to legal reserve | 39 | (39) | ||||||||||||
Transfer from expansion reserve | 549 | (549) | ||||||||||||
Interest on own capital | (137) | (37) | (174) | (174) | ||||||||||
Proposed dividends | (156) | (156) | (38) | (194) | ||||||||||
Hyperinflation adjustment | [1] | 29 | 29 | 1 | 30 | |||||||||
Transactions with non-controlling interest | (13) | (4) | (17) | 342 | 325 | |||||||||
Non-controlling interest on Exito | 2,556 | 2,556 | ||||||||||||
Sale of Via Varejo | (5) | 18 | 13 | (3,291) | (3,278) | |||||||||
Ending balance at Dec. 31, 2019 | R$ 6857 | R$ 7 | R$ 440 | R$ 556 | R$ 2916 | R$ 7 | R$ 6 | R$ 58 | R$ 107 | R$ 10940 | R$ 2608 | R$ 13548 | ||
[1] | Refers to adjustments to foreign subsidiaries with hyperinflation economy. |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flow provided by operating activities | |||
Net income for the year | R$ 836 | R$ 1284 | R$ 857 |
Adjustments to reconcile net income for the year to net cash provided by the operating activities: | |||
Deferred income tax | 240 | 235 | 92 |
Losses on disposals of property and equipment | 88 | 17 | 329 |
Depreciation and amortization | 1,559 | 1,322 | 1,229 |
Financial charges | 1,668 | 1,730 | 1,998 |
Adjust to present value | 1 | 3 | |
Share of profit of associates | (18) | (69) | 73 |
Provision for contingencies | 194 | 730 | 675 |
Provision for write-off and impairment | 29 | 1 | |
Share-based payment | 38 | 41 | 24 |
Allowance for doubtful accounts | 263 | 634 | 737 |
Allowance for inventory losses and damages | 16 | (6) | (1) |
Deferred revenue | (344) | (478) | (394) |
Gain on write-off of lease liabilities | (116) | (80) | (14) |
Other operating income / expenses | 18 | (369) | (723) |
Gain on the sale of subsidiary | (598) | ||
Total | 3,845 | 5,023 | 4,883 |
Changes in operating assets and liabilities | |||
Trade receivables | (14) | (326) | (2,115) |
Inventories | (181) | (1,475) | (1,505) |
Recoverable taxes | (354) | (1,350) | (321) |
Other assets | (173) | (34) | (48) |
Related parties | (81) | 166 | 153 |
Restricted deposits for legal proceedings | (6) | (1) | (366) |
Trade payables, net | (1,215) | 2,149 | 3,059 |
Payroll and related taxes | (131) | 36 | 103 |
Taxes and social contributions payable | (15) | 249 | (127) |
Payments of income tax and social contributions | (231) | (410) | (119) |
Provision for contingencies | (453) | (1,021) | (447) |
Deferred revenue | 173 | 1,032 | (8) |
Other liabilities | (52) | 193 | 89 |
Receipts of dividends and interest on own capital | 23 | 36 | 309 |
Total | (2,710) | (756) | (1,343) |
Net cash provided by operating activities | 1,135 | 4,267 | 3,540 |
Cash flow from investing activities | |||
Purchase of property and equipment | (2,462) | (1,649) | (1,415) |
Purchase of intangible assets | (320) | (715) | (311) |
Proceeds from sales of property and equipment | 511 | 467 | 121 |
Acquisition of Exito, net of cash acquired | (3,309) | ||
Proceeds from the sale of subsidiary, Via Varejo | 2,326 | ||
Acquisition of investment property | (12) | ||
Net cash used in investment activities | (3,266) | (1,897) | (1,605) |
Cash flow from financing activities | |||
Capital increase | 32 | 3 | 11 |
Proceeds from borrowings and financing | 13,604 | 9,139 | 7,789 |
Payments of borrowings and financing | (9,952) | (8,687) | (9,692) |
Payments of lease liabilities | (1,498) | (1,743) | (1,725) |
Payments of dividends and interest on own capital | (268) | (351) | (101) |
Installment payments on the acquisition of subsidiary | (31) | (1) | (8) |
Transactions with non-controlling shareholders | 7 | (1) | |
Net cash provided by (used in) financing activities | 1,894 | (1,641) | (3,726) |
Net (decrease) increase in cash and cash equivalents | (237) | 729 | (1,791) |
Cash and cash equivalents at the beginning of the year | 8,080 | 7,351 | 9,142 |
Exchange variation on cash and cash equivalents | 111 | ||
Cash and cash equivalents at the end of the year | 7,954 | 8,080 | 7,351 |
Cash and cash equivalents reconciliation: | |||
Cash and cash equivalents as per the cash flow | 8,080 | 7,351 | 9,142 |
Cash and cash equivalents as per the balance sheet | 7,954 | 4,369 | 3,792 |
Cash included in assets held for sale and discontinuing operations | R$ 3711 | R$ 3559 |
1. Corporate information
1. Corporate information | 12 Months Ended |
Dec. 31, 2019 | |
Corporate Information | |
Corporate information | 1. Corporate information Companhia Brasileira de Distribuição ("Company" or “CBD”), directly or through its subsidiaries (“Group” or “GPA”) is engaged in the retail of food, clothing, home appliances, electronics and other products through its chain of hypermarkets, supermarkets, specialized stores and department stores especially under the trade names "Pão de Açúcar, “Minuto Pão de Açúcar”, "Extra Hiper/Mercado Extra", “Extra Super”, “Minimercado Extra”, “Assai”, and the neighborhood shopping mall brand “Conviva”. The Group’s headquarters are located in the city of São Paulo, State of São Paulo, Brazil. On November 27, 2019, the Company completed a public offering in Colombia to acquire the shares of Almacenes Éxito SA (“Éxito”) from the public including those owned by Casino Guichard Perrachon (“Casino”), our controlling shareholder. Éxito is a Colombian company that operates the supermarket and hypermarket banners Éxito, Carulla, Super Inter, Surtimax and Surtimayorista in Colombia, the Libertad banner in Argentina and the Disco and Devoto banners in Uruguay. Additionally, Éxito also operates shopping centers in Colombia under the banner Viva. The operations of Éxito and its subsidiaries will be/ considered an international operating segment named as Éxito Group, as disclosed in note 31. Éxito is listed on Colombian Securities Exchange. Further details of the acquisition are disclosed in note 13 of these financial statements. In June 2019, the Company disposed of all of its interest in Via Varejo S.A. (“Via Varejo”), a controlled subsidiary engaged in retail activities in the electronics and e-commerce segments operating the brands “Ponto Frio” and “Casas Bahia", as well as the e-commerce platforms “CasasBahia.com,” “Extra.com”, “Pontofrio.com” and “Barateiro.com”. Prior to the disposal, Via Varejo was presented as a discontinued operation (see note 12.3). The Company’s shares are listed in the São Paulo Stock Exchange (“B3”) called Novo Mercado, which requires the highest level of Corporate Governance under, the ticker symbol “PCAR3” and in the New York Stock Exchange (ADR level III), under the ticker symbol “CBD”. The Company is controlled by Wilkes Participações S.A. (“Wilkes”), and its ultimate parent company is Casino, a French company listed in the Paris Stock Exchange. 1.1. Allegations of fraud at Via Varejo In November 2019, Via Varejo’s management disclosed to the market anonymous allegations of fraud related to alleged accounting irregularities at Via Varejo, which had been brought to the attention of Via Varejo’s management at the end of September 2019. Subsequently, in December 2019, Via Varejo informed the market that its preliminary investigation had identified indications of alleged accounting irregularities. On March 25, 2020, Via Varejo disclosed to the market the conclusion of the investigation, which did not result in any material adjustment to be recorded by GPA 1.2. Company’s trading in “Novo Mercado” On December 30, 2019, the Company's shareholders at the Extraordinary General Meeting approved the Company’s share to be traded in the Novo Mercado of B3 S.A. - Brasil, Bolsa, Balcão (“B3”) “Novo Mercado”. Novo Mercado |
2. Basis of preparation
2. Basis of preparation | 12 Months Ended |
Dec. 31, 2019 | |
Basis Of Preparation | |
Basis of preparation | 2. Basis of preparation The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standard Board (“IASB”). The consolidated financial statements have been prepared on the historical cost basis except for certain financial instruments measured at their fair value. The consolidated financial statements are presented in millions of Brazilian Reais (“R$”), which is the functional currency of the Company. The functional currency of associates and subsidiaries located abroad is the local currency of each jurisdiction. The consolidated financial statements provide comparative information in respect of the prior periods. In addition, the Group presents an additional statement of financial position at the beginning of the preceding period when there is a retrospective application of an accounting policy, a retrospective restatement, or a reclassification of items in financial statements. An additional statement of financial position as at January 1, 2018 is presented in these consolidated financial statements due to the retrospective application of accounting policies as a result of the adoption of IFRS 16 Leases. See Note 4.2. These consolidated financial statements were approved by the Board of Directors on December 1, 2020. In June 2019, the Company disposed of all of its interest in its subsidiary Via Varejo (see note 12.3), which prior to the disposal was classified as a discontinued operation in accordance with IFRS 5 - Noncurrent Assets Held for Sale and Discontinued Operation. The consolidated statements of cash flow include the cash flow from continuing and discontinued operations. The details of the cash flows from discontinued operations are disclosed in Note 33.1. The consolidated financial statements include the financial information of all subsidiaries over which the Company exercises control directly or indirectly. The determination if a subsidiary is controlled by the Company and the basis of consolidation are in accordance with the requirements of IFRS 10 - Consolidated Financial Statements. The financial statements of the subsidiaries are prepared on the same closing date of the reporting period of the Company, using consistent accounting policies. All intercompany balances, transactions are eliminated upon consolidation. Gains or losses resulting from changes in equity interest in subsidiaries, which do not result in loss of control, are directly recorded in equity. Losses are attributed to the non-controlling interest, even if it results in a deficit balance. In the consolidated financial statements, the Company consolidates all its subsidiaries and reports non-controlling interests in a separate line item in shareholders’ equity and statements of operations. The list of subsidiaries and associates is presented in note 12.1 |
3. Significant accounting polic
3. Significant accounting policies | 12 Months Ended |
Dec. 31, 2019 | |
Significant Accounting Policies | |
Significant accounting policies | 3. Significant accounting policies The main significant accounting policies and practices are described in each corresponding explanatory note, except for those below that are related to more than one explanatory note. Accounting policies and practices have been consistently applied to the years presented in the Company's consolidated financial statements. 3.1. Financial Instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity Financial assets are recognized when the Group becomes party to the contractual provisions of the instrument. Financial assets are derecognized when the contractual rights to the cash flows from the financial asset expire or the Group transfers the contractual rights to receive the cash flows of the financial asset. (i) Classification and measurement of financial assets According to IFRS 9, on initial recognition, a financial asset is classified as measured: at amortized cost; fair value through other comprehensive income (“FVOCI”) - or fair value through profit or loss (“FVPL”). The classification of financial assets according to IFRS 9 is generally based on the business model in which a financial asset is managed and on its contractual cash flow characteristics. A derivative embedded with a hybrid contract containing a financial asset host is not accounted for separately. The financial asset host together with the embedded derivative is required to be classified in its entirety as a financial asset at fair value through profit or loss. A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as measured at FVPL: · It is held within a business model with the objective to hold financial assets in order to collect contractual cash flows; and · Its contractual terms give rise, on specified date, to cash flows that are solely payments of principal and interest on the principal amount outstanding. A financial asset is measured at FVOCI if it meets both of the following conditions and is not designated as measured at FVPL: · It is held within a business model with the objective of either receipt of contractual cash flows or sale of financial assets; and · Its contractual terms give rise on specified dates, to cash flows that are solely payments of principal and interest on the principal amount outstanding. Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under IAS 32, Financial Instruments: Presentation and are not held for trading. The classification is determined on an instrument-by-instrument basis. Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognized as other income in the statement of profit or loss when the right of payment has been established, except when the Group benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment. Group has not investments classified in OCI. Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. This includes all derivative financial assets. A financial asset (unless it refers to trade receivables without a significant component of financing that is initially measured at the transaction price) is initially measured at fair value, plus, for an item that is not measured at FVPL, any transaction costs directly attributable to its acquisition. (ii) Subsequent measurement of financial assets Financial assets measured at FVPL Financial assets at amortized cost Financial assets at FVOCI (iii) Impairment of financial assets IFRS 9 replaces the “incurred loss” model of IAS 39 with an expected credit losses model. The new impairment loss model applies to financial assets measured at amortized cost, contractual assets and debt instruments measured at FVOCI, but does not apply to investments in equity instruments (shares) or financial assets measured at FVPL. According to IFRS 9, provisions for losses are measured at one of the following bases: · Credit losses expected for 12 months (general model): these are credit losses that result in possible default events within 12 months from the balance sheet date. For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL- “Expected Credit Loss”). · Full lifetime expected credit losses (simplified model): these are credit losses resulting from all possible default events over the expected term of a financial instrument. · Practical expedient: these are expected credit losses that are consistent with reasonable and sustainable information available, at the balance sheet date about past events, current conditions and forecasts of future economic conditions, which enable the verification of probable future loss based on the historical credit loss occurred in accordance with the maturity. The Group chose to measure provisions for losses from accounts receivable, other receivables, and contractual assets at an amount that equals to the credit loss expected for the entire term, and for trade receivables, whose portfolio of receivables is fragmented, rents receivable, wholesale accounts receivable and accounts receivable from freight companies, the practical expedient was applied through the adoption of a matrix of losses for each maturity range. When determining whether the credit risk of a financial asset increased significantly since its initial recognition and while estimating the expected credit losses, the Group takes into account reasonable and sustainable information that is relevant and available free of cost or excessive effort. This includes quantitative and qualitative information and analysis, based on the Company’s historical experience, during credit assessment and considering information about projections. The Group assumes that the credit risk of a financial asset increased significantly if the asset is overdue more than 90 days. The Group considers a financial asset as in default when: · it is less likely that the debtor will fully pay its obligations to the Group, without considering actions such as execution of guarantees (if any), or · the financial asset is overdue more than 90 days. The Group determined the credit risk of a debt security by analyzing the payment history, financial and macroeconomic conditions of the counterparty and the assessment of rating agencies, when applicable, thereby assessing each debt security individually. The maximum period considered when estimating the expected credit loss is the maximum contractual period during which the Group is exposed to the credit risk. Measurement of expected credit losses Expected credit losses are discounted by the effective interest rate of the financial asset. Financial assets with credit recovery problems Presentation of impairment loss For financial instruments measured at FVOCI, the provision for losses is recognized in OCI, instead of deducting the carrying amount of the asset. Impairment losses related to trade receivables and other receivables, including contractual assets, are presented separately in the statement of operations and OCI. Impairment of other financial assets is reported under “selling expenses”. Accounts receivable and contractual assets The positions within each group were segmented based on common credit risk characteristics, such as: · Credit risk level and historical losses – for wholesale clients and property rental; and · Delinquency status, default risk and historical losses – for credit card operators and other clients. (iv) Initial recognition and measurement of financial liabilities Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Group’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, and derivative financial instruments. (v) Subsequent measurement of financial liabilities The measurement of financial liabilities depends on their classification, as described below: · Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Group that are not designated as hedging instruments in hedge relationships as defined by IFRS 9. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognized in the statement of profit or loss. Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the criteria in IFRS 9 are satisfied. The Group has not designated any financial liability as at fair value through profit or loss. · Loans and borrowings This is the category most relevant to the Group. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the effective interest rate (EIR) method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit or loss. This category generally applies to interest-bearing loans and borrowings. For more information, refer to Note 18. (vi) Derecognition of financial assets and liabilities A financial asset (or, as the case may be, part of a financial asset or part of a group of similar financial assets) is derecognized when: • The rights to receive cash flows from the asset have expired; or • The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full to a third party under a “pass-through” arrangement; and either (a) the Group has transferred substantially all the risks and rewards related to the asset; or (b) the Group has neither transferred nor retained substantially all the risks and rewards related to the asset, but has transferred control over the asset. When the Group has transferred its rights to receive cash flows from an asset or has entered into a “pass through” arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Group continues to recognize the transferred asset to the extent of it continued involvement. In that case, the Group also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations retained by the Group. A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender, on substantially different terms, or the terms of an existing liability are substantially modified, such exchange or modification is treated as the derecognition of the original liability and recognition of a new liability. The difference in the respective carrying amounts is recognized in profit or loss. (vii) Offsetting of financial instruments Financial assets and liabilities are offset and the net amount is reported in the consolidated statement of financial position if there is a currently enforceable legal right to offset the recognized amounts and there is an intention of settling them on a net basis, to realize the assets and settle the liabilities simultaneously. (viii) Derivative financial instruments The Company uses derivative financial instruments to limit the exposure to fluctuations not related to the local market such as interest rate and exchange rate swaps. These derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value at the end of each reporting period. Derivatives are accounted for as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. The gains or losses arising from changes in the fair value of derivatives are recognized as financial income or expenses. At the inception of a hedge relationship, the Company formally designates and documents the hedge relationship to which it intends to apply hedge accounting and its objective and risk management strategy for contracting the hedge. The documentation includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged and how the Company will assess the effectiveness of the changes in the hedging instrument’s fair value in offsetting the exposure to changes in the fair value of the hedged item or cash flow attributable to the hedged risk. These hedges are expected to be highly effective in offsetting changes in the fair value or cash flow and are assessed on an ongoing basis to determine if they have been highly effective throughout the periods for which they were designated. The following are recognized as fair value hedges: · The change in the fair value of a derivative financial instrument classified as fair value hedging is recognized as financial result. The change in the fair value of the hedged item is recorded as a part of the carrying amount of the hedged item and is recognized in the statement of operations; · In order to calculate the fair value, debts and swaps are measured through rates available in the financial market and projected up to their maturity date. The discount rate used in the calculation by the interpolation method for borrowings denominated in foreign currency is developed through CDI curves, free coupon and DI, indexes disclosed by the B3 (the Brazilian Securities, Commodities and Futures Exchange), whereas for borrowings denominated in Reais, the Company uses the DI curve, an index published by the CETIP (Securities Custodial and Clearing Center) and calculated through the exponential interpolation method. The Company uses financial instruments only to hedge identified, risks limited to 100% of the value of these risks. Derivative instruments transactions are exclusively used to reducing the exposure to the risk of changes in interest rates and foreign currency fluctuation and maintaining a balanced capital structure. (ix) Cash flow hedge Derivative instruments are recorded as cash flow hedge, using the following principles: · The effective portion of the gain or loss on the hedge instrument is recognized directly in stockholders’ equity in other comprehensive income. In case the hedge relationship no longer meets the hedging ratio but the objective of management risk remains unchanged, the Group should “rebalance” the hedge ratio to meet the eligibility criteria. · Any remaining gain or loss on the hedge instrument (including arising from the "rebalancing" of the hedge ratio) is ineffective, and therefore should be recognized in profit or loss. · Amounts recorded in other comprehensive income are immediately transferred to the statement of operations together with the hedged transaction by affecting the statement of operations, for example, when the hedge financial income or expense is recognized or when a forecast sale occurs. When the hedged item is the cost of a non-financial asset or liability, the amounts recorded in equity are transferred to the initial carrying amount of the non-financial asset or liability. · The Company should prospectively discontinue hedge accounting only when the hedge relationship no longer meets the qualification criteria (after taking into account any rebalancing of the hedge relationship). · If the expected transaction or firm commitment is no longer expected, amounts previously recognized in OCI are transferred to the statement of operations. If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its hedge classification is revoked, gains or losses previously recognized in comprehensive income remain deferred in equity in other comprehensive income until the expected transaction or firm commitment affect the profit or loss. (x) Present value adjustment of monetary assets and liabilities The long-term assets and liabilities are adjusted to their present value, calculated considering the contractual cash flows and the respective interest rate, explicit or implicit. Short-term assets and liabilities are not adjusted to present value. 3.2. Foreign currency transactions Foreign currency transactions are initially recognized at the exchange rate of the corresponding currencies at the date the transaction qualifies for recognition. Assets and liabilities denominated in foreign currencies are translated into Brazilian Reais, using the spot exchange rate at the end of each reporting period. Gains or losses on changes in exchange rate variations are recognized as financial income or expense. 3.3. Classification of assets and liabilities as current and noncurrent The Group presents assets and liabilities in the statement of financial position based on current/noncurrent classification. An asset is current when it is: · expected to be realized or intended to be sold or consumed within twelve months from the end of the reporting periods · held primarily for the purpose of trading · expected to be realized within twelve months after the reporting period or · cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period All other assets are classified as noncurrent. A liability is current when it is: · expected to be settled within twelve months from the end of the reporting periods · held primarily for the purpose of trading · due to be settled within twelve months after the reporting period or · there is no unconditional right to defer the settlement of the liability for at least twelve months after · the reporting period are classified as current liabilities. All other liabilities are classified as noncurrent. Deferred tax assets and liabilities are classified as “noncurrent” and presented net when appropriate in accordance with the provisions of IAS 12. 3.4. Foreign operations For each entity, the Group determines the functional currency and items included in the financial statements of each entity are measured using that functional currency. On consolidation, the financial statements of foreign operations are translated into Brazilian Reais, as follows: · Assets and liabilities, including goodwill, are translated into Brazilian Reais at the exchange rate prevailing at the reporting date. · The statements of operation are translated into Brazilian Reais using the average rate for the period except when significant fluctuations in the exchange rate occurs, in which case, the rate at the transaction date is used. · Equity accounts are maintained at the historical balance in Reais. The exchange rate differences arising from the translation are recognized in other comprehensive income (“OCI”). When a foreign operation is disposed of, the component of OCI related to that particular foreign operation is reclassified to profit or loss. 3.5. Hyperinflation Starting from September 2018, Argentina has been considered a hyperinflationary economy. As per IAS 29 – Financial Reporting in Hyperinflationary Economies, the non-monetary assets and liabilities, equity items and the statement of operation of the indirect subsidiary Libertad, headquartered in Argentina, a direct subsidiary of Éxito, whose functional currency is the Argentinean peso, are being adjusted so that amounts are reported in the monetary measurement unit at the end of the reporting period. This unit, considers the effects measured by the Consumer Price Index (“IPC”) in Argentina starting January 1, 2017 and Argentina’s Domestic Retail Price Index (“IPIM”) up to December 31, 2016. Consequently, as required by IAS 29, the operating results of the indirect subsidiary Libertad must be considered as highly inflationary starting from September 1, 2018 (start of the period in which a hyperinflationary scenario was identified). 3.6. Accounting for equity interests at cost deriving from corporate restructuring under common control For certain restructuring transactions occurred in previous years, the Company recorded, at historical cost, the interests deriving from corporate restructuring under common control without economic substance. The difference between the historical cost and the acquiring value was recorded as shareholders’ equity, when the interest acquired is from companies under common control. Such transactions are not in the scope of IFRS 3. |
4. Adoption of new standards, a
4. Adoption of new standards, amendments to and interpretations of existing standards issued by the IASB effective from 2019 | 12 Months Ended |
Dec. 31, 2019 | |
Adoption Of New Standards Amendments To And Interpretations Of Existing Standards Issued By Iasb Effective From 2019 | |
Adoption of new standards, amendments to and interpretations of existing standards issued by the IASB effective from 2019 | 4. Adoption of new standards, amendments to and interpretations of existing standards issued by the IASB effective from 2019 4.1. New and amendments standards and interpretations In 2019, the Group applied amendments and new interpretations to IFRS as issued by IASB, which were effective for accounting periods beginning on or after January 1, 2019. The main new standards adopted are as follows: Statement Description Impact IFRS 16 – Leases IFRS 16 supersedes IAS 17 Leases, IFRIC 4 Determining whether an Arrangement contains a Lease, SIC-15 Operating Leases-Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to recognise most leases on the balance sheet. Lessor accounting under IFRS 16 is substantially unchanged from IAS 17. Lessors will continue to classify leases as either operating or finance leases using similar principles as in IAS 17. Therefore, IFRS 16 does not have an impact for leases where the Group is the lessor. See note 4.2 IFRIC 23 - Uncertainty over Income Tax treatment The Interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application of IAS 12 Income Taxes. It does not apply to taxes or levies outside the scope of IAS 12, nor does it specifically include requirements relating to interest and penalties associated with uncertain tax treatments. There was no significant impact. 4.2. IFRS 16 - Leases The Group adopted IFRS 16 using the full retrospective method of adoption, with the date of application of January 1, 2019. In accordance with the full retrospective method of adoption, the Group applied IFRS 16 at the date of initial application as if it had already been effective at the commencement date of existing lease contracts. The Group also elected to use the recognition exemptions for lease contracts that, at the commencement date, have a lease term of 12 months or less and do not contain a purchase option (short-term leases), and lease contracts for which the underlying asset is of low value (low-value assets). The Company uses the incremental borrowing rate to discount the lease liabilities. In addition, the lease liabilities include taxes on lease payments and the impact of the significant leasehold improvements amortization period over the estimation of the reasonably certain lease terms. The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. The Group has several lease contracts that include extension and termination options. The Group applies judgment in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination, including significant leasehold improvements on the leased property. The adjustments arising from adoption of IFRS 16 for each period presented in the consolidated financial statements are detailed as follows: Balance Sheet As of January 1, 2017 As originally reported IFRS16 effects As restated Other current assets 252 (13) 239 Assets held for sale 20,153 3,462 23,615 Total current assets 31,486 3,449 34,935 Deferred income tax and social contribution 174 163 337 Prepaid expenses 45 (26) 19 Property and equipment 9,182 3,935 13,117 Intangible assets 1,908 (61) 1,847 Total noncurrent assets 13,565 4,011 17,576 Total Assets 45,051 7,460 52,511 Borrowings and financing 2,957 (41) 2,916 Lease liability - 325 325 Other current liabilities 406 (66) 340 Liabilities related to assets held for sale 15,632 3,815 19,447 Total current liabilities 27,582 4,033 31,615 Borrowings and financing 2,912 (174) 2,738 Lease liability - 4,563 4,563 Provision for losses on investments in associates 36 2 38 Deferred income tax and social contribution 317 (34) 283 Total noncurrent liabilities 5,052 4,357 9,409 Total liabilities 32,634 8,390 41,024 Total Shareholders' equity 12,417 (930) 11,487 Total liabilities and shareholders' equity 45,051 7,460 52,511 Balance Sheet As of January 1, 2018 As originally reported IFRS16 effects As restated Other current assets 146 (15) 131 Assets held for sale 22,775 3,888 26,663 Total current assets 33,016 3,873 36,889 Deferred income tax and social contribution 125 127 252 Prepaid expenses 43 (36) 7 Property and equipment 9,138 4,154 13,292 Intangible assets 1,924 (46) 1,878 Total noncurrent assets 14,691 4,199 18,890 Total Assets 47,707 8,072 55,779 Borrowings and financing 1,251 (51) 1,200 Lease liability - 445 445 Other current liabilities 341 (114) 227 Liabilities related to assets held for sale 17,824 4,040 21,864 Total current liabilities 28,992 4,320 33,312 Borrowings and financing 3,337 (144) 3,193 Lease liability - 4,822 4,822 Provision for losses on investments in associates 195 6 201 Deferred income tax and social contribution 394 (47) 347 Total noncurrent liabilities 5,674 4,637 10,311 Total liabilities 34,666 9,517 43,623 Total Shareholders' equity 13,041 (885) 12,156 Total liabilities and shareholders' equity 47,707 8,072 55,779 Balance Sheet As of December 31, 2018 As originally reported IFRS16 effects As restated Other current assets 175 (30) 145 Assets held for sale 24,443 4,244 28,687 Total current assets 36,304 4,214 40,518 Deferred income tax and social contribution 207 91 298 Prepaid expenses 59 (42) 17 Property and equipment 9,650 4,402 14,052 Intangible assets 2,675 143 2,818 Total noncurrent assets 16,545 4,594 21,139 Total Assets 52,849 8,808 61,657 Borrowings and financing 2,016 (35) 1,981 Lease liability - 507 507 Other current liabilities 423 (134) 289 Liabilities related to assets held for sale 19,412 4,133 23,545 Total current liabilities 32,785 4,471 37,256 Borrowings and financing 3,509 (117) 3,392 Lease liability - 5,280 5,280 Provision for losses on investments in associates 267 12 279 Deferred income tax and social contribution 581 (58) 523 Total noncurrent liabilities 6,125 5,117 11,242 Total liabilities 38,910 9,588 48,498 Total Shareholders' equity 13,939 (780) 13,159 Total liabilities and shareholders' equity 52,849 8,808 61,657 Statement of Operations For the year ended December 31, 2017 As originally reported IFRS16 effects As restated Cost of sales (33,646) 61 (33,585) Gross profit 10,988 61 11,049 Operating income (expenses): Selling expenses (7,027) 704 (6,323) General and administrative expenses (1,032) 6 (1,026) Depreciation and amortization (779) (338) (1,117) Other operating expenses, net (579) 3 (576) Profit from operations before net financial expenses and share of profit of associates 1,571 436 2,007 Financial expenses, net (730) (565) (1,295) Share of profit of associates (89) (4) (93) Income before income tax and social contribution 752 (133) 619 Income tax and social contribution (297) 35 (262) Net income from continuing operations 455 (98) 357 Net income (loss) from discontinued operations 356 144 500 Net income for the year 811 46 857 Attributable: Controlling shareholders – continuing operations 455 (98) 357 Controlling shareholders – discontinued operations 125 25 150 Total of controlling shareholders 580 (73) 507 Non-controlling shareholders – discontinued operations 231 119 350 Total of non-controlling shareholders 231 119 350 Statement of Cash Flows For the year ended December 31, 2017 As originally reported IFRS16 effects As restated Net income for the year 811 46 857 Deferred income tax (note 19) (35) 127 92 Losses (gain) of disposals of property and equipment 247 82 329 Depreciation and amortization 833 396 1,229 Financial charges 947 1,051 1,998 Share of profit (loss) of associates (note 13) 69 4 73 Losses (gain) on lease liability write off - (14) (14) Other assets (60) 12 (48) Other liabilities 148 (59) 89 Payments of borrowings and financing (note 16.2) (9,785) 93 (9,692) Payments of lease liability - (1,725) (1,725) Statement of Operations For the year ended December 31, 2018 As originally reported IFRS16 effects As restated Cost of sales (37,834) 55 (37,779) Gross profit 11,554 55 11,609 Operating income (expenses): Selling expenses (7,297) 744 (6,553) General and administrative expenses (1,057) 8 (1,049) Depreciation and amortization (840) (362) (1,202) Other operating expenses, net (216) 13 (203) Profit from operations before net financial expenses and share of profit of associates 2,144 458 2,602 Share of profit of associates 33 (5) 28 Financial expenses, net (474) (587) (1,061) Income before income tax and social contribution 1,703 (134) 1,569 Income tax and social contribution (449) 36 (413) Net income from continuing operations 1,254 (98) 1,156 Net income (loss) from discontinued operations (74) 202 128 Net income for the year 1,180 104 1,284 Attributable: Controlling shareholders – continuing operations 1,254 (98) 1,156 Controlling shareholders – discontinued operations (61) 54 (7) Total of controlling s:hareholders 1,193 (44) 1,149 Non-controlling shareholders – discontinued operations (13) 148 135 Total of non-controlling shareholders (13) 148 135 Statement of Cash Flows For the year ended December 31, 2018 As originally reported IFRS16 effects As restated Net income for the year 1,180 104 1,284 Deferred income tax (note 19) 77 158 235 Losses (gain) of disposals of property and equipment (40) 57 17 Depreciation and amortization 889 433 1,322 Financial charges 761 969 1,730 Share of profit (loss) of associates (note 13) (73) 4 (69) Losses (gain) on lease liability write offs - (80) (80) Other liabilities 209 (16) 193 Payments of borrowings and financing (note 16.2) (8,747) 60 (8,687) Payments of lease liability - (1,743) (1,743) 4.3 New and amended standards and interpretations applied since 2018 i. IFRS 15 supersedes IAS 11, Construction Contracts, IAS 18, Revenue, and related interpretations and it applies, with limited exceptions, to all revenue arising from contract with customers. IFRS 15 establishes a five-step model to account for revenue arising from contacts with customers and requires that revenue to be recognized at an amount that reflects the consideration to which and entity expects to be entitled in exchange for transferring goods or services to a customer. IFRS 15 requires entities to exercise judgement, taking into consideration all of the relevant facts and circumstances when applying each step of the model to contracts with their customers. The standard also specifies the accounting for the incremental costs of obtaining a contract and the costs directly related to fulfilling a contract. In addition, the standard requires extensive disclosures. The Group adopted IFRS 15 using the full retrospective method of adoption. The effect of the adoption of IFRS 15 resulted in the presentation of rebates received from suppliers related to trade marketing as a reduction of cost of sales. These rebates were previously reported as a reduction of marketing expenses and upon adoption of IFRS 15 management determined that the Company does not have any performance obligation associated with the amounts received from the suppliers. ii. Amendments to IFRS 2 Classification and Measurement of Share-based Payment Transactions The Group applied the amendments IFRS 2, Share-based payment, to account for the withholding of income tax associated with the share-based payment to employees. Consequently, the withhold tax was accounted for as a deduction of shareholders’ equity, except to the extent that the payment exceeds the fair value on the date of settlement by the net value of the own equity instruments withheld. As such, the liability related to the withheld liabilities in the amount of R$13 in continuing operations, and R$8 in discontinued operations was reclassified to shareholders equity on the initial date of adoption, i.e. January 1, 2018. iii. IFRS 9 - Financial Instruments IFRS 9 - Financial Instruments, replaces IAS 39, Financial Instruments: Recognition and Measurement, for annual periods beginning on or after January 1, 2018, bringing together all the three aspects of accounting for financial instruments: classification and measurement; impairment; and hedge accounting. Transition – The Group applied IFRS 9 using full retrospective method, except as described below. The Group concluded on the following matters based on facts and circumstances that existed on the date of initial adoption: · Determination of the business model in which a financial asset is held. · Designation and cancellation of prior designations of certain financial assets and liabilities measured at FVPL. · Determinations of variables related to estimates of impairment. · Designation of certain investments in equity instruments not held for trading at FVOCI. All hedge relationships designated in IAS 39 on December 31, 2017 met the criteria for hedge accounting pursuant to IFRS 9 on January 1, 2018 and are, therefore, considered as continuing hedge relationships. The adoption of IFRS 9 did not have a significant impact on the Group’s accounting policies related to financial liabilities and derivative financial instruments. 4.4. New and revised standards and interpretations issued and not yet adopted The Company has not early adopted the following new and revised IFRSs, which have already been issued but not yet in effect, up to the date of the issuance of the Group’s consolidated financial statements: Accounting pronouncement Description Applicable to annual periods beginning on or after Amendments to IFRS 3: Definition of a Business In October 2018, the IASB issued amendments to the definition of a business in IFRS 3, Business Combinations, to help entities determine whether an acquired set of activities and assets is a business or not. They clarify the minimum requirements for a business, remove the assessment of whether market participants are capable of replacing any missing elements, add guidance to help entities assess whether an acquired process is substantive, narrow the definitions of a business and of outputs, and introduce an optional fair value concentration test. New illustrative examples were provided along with the amendments. 01/01/2020 Amendments to IAS 1 and IAS 8 - Definition of materiality In October 2018, the IASB issued amendments to IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to align the definition of ‘material’ across the standards and to clarify certain aspects of the definition. The new definition states that, ’Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity. 01/01/2020 These amendments do not have a significant impact on the Group's consolidated financial statements. |
5. Significant accounting judgm
5. Significant accounting judgments, estimates and assumptions | 12 Months Ended |
Dec. 31, 2019 | |
Significant Accounting Judgments Estimates And Assumptions | |
Significant accounting judgments, estimates and assumptions | 5. Significant accounting judgments, estimates and assumptions The preparation of the consolidated financial statements requires Management to make judgments, estimates and assumptions that impact the reported amounts of revenue, expenses, assets and liabilities, and the disclosure of contingent liabilities at the end of the year; however, uncertainty about these assumptions and estimates could result in outcomes that would require material adjustments to the carrying amount of the asset or liability impacted in future periods. In the process of applying the Company’s accounting policies, Management has made the following judgments, which have the most significant impact on the amounts recognized in the consolidated financial statements, as disclosed in the following notes: · Impairment: Notes 4.4, 7.2, 8.1, 15.1, 16.1 and 16.2 · Inventories: Allowance for losses on inventory obsolescence and damages: Note 9 · Recoverable taxes: Expected realization of tax credits: Note 10 · Fair value of derivatives and other financial instruments: Measurement of the fair value of derivatives: Note 19 · Provision for contingencies: Record of provision for claims with likelihood assessed as probable loss, estimated with a certain degree of reasonability: Note 22 · Income tax: Record of provisions based on reasonable estimates: Note 21 · Share-based payments: Estimated fair value of transactions based on a valuation model - Note 25 · Business combination: estimates of fair value of assets acquired and liabilities assumed in the business combination and determination of resulting goodwill - Note 13 · Lease: determination of the lease term and the incremental borrowing rate - Note 23. |
6. Cash and cash equivalents
6. Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2019 | |
Cash and cash equivalents [abstract] | |
Cash and cash equivalents | 6. Cash and cash equivalents Cash and cash equivalents consist of cash, bank accounts and highly liquid short-term investments that are readily convertible into a known amount of cash, with a maturity of three months or less and subject to an insignificant risk of change in value. Rate 2019 2018 Cash and banks – Brazil 249 406 Cash and banks – Abroad (*) 3,109 80 Short-term investments - Brazil (**) 4,471 3,883 Short-term investments - Abroad (***) 125 - 7,954 4,369 (*) As of December 31, 2019, refers to (i) funds from the Éxito Group acquired on November 27, 2019 according to note nº13, of which R$73 are denominated in Argentina pesos, R$254 are denominated in Uruguayan pesos and R$2,698 in Colombian pesos; (ii) In 2019 and 2018 it includes R$80 deposited in the United States of America in US Dollars (**) Refers substantially to highly liquid investments bearing interest at a weighted average rate of 89.94% (85.78% on December 31, 2018) of the Brazilian Interbank Deposit Certificate (“CDI”), maturing in 90 days or less and which are subject to an insignificant change in value. (***) Refers to funds invested abroad, of which R$20 are denominated in in Argentinian pesos, R$4 are denominated in Uruguayan pesos and R$101 are denominated in Colombia pesos, as a result of the acquisition of Éxito, to according note 13, maturing in 90 days or less and which are subject to an insignificant change in value |
7. Trade receivables
7. Trade receivables | 12 Months Ended |
Dec. 31, 2019 | |
Trade Receivables | |
Trade receivables | 7. Trade receivables Trade receivables are initially recorded at the transaction amount, which corresponds to the sale value, and are subsequently measured according to the portfolio: (i) fair value through other comprehensive income (FVOCI), in the case of receivables from credit card companies and (ii) amortized cost, for other customer portfolio. Credit losses on financial assets that are measured at amortized cost are deducted from carrying amount of the asset. For financial instruments measured at FVOCI, credit losses are recorded in OCI instead of reducing the carrying amount of the asset. At each reporting date, the Company evaluates if the financial assets recorded at amortized cost or FVOCI show any indication of impairment. A financial asset shows indication of impairment loss when there is one or more events with adverse impact on the estimated future cash flows of the financial asset. Receivables are considered unrecoverable and therefore written off from the accounts receivable portfolio, when they are not collected after 360 days from due date. At each balance sheet date, the Company and its subsidiaries assess whether the receivables have any indications of impairment. 2019 2018 Credit card companies (note 7.1) 42 38 Credit card companies - related parties (note 11.2) 24 58 Sales vouchers and trade receivables 446 128 Private label credit card 70 53 Receivables from related parties (note 11.2) 12 15 Receivables from suppliers 166 101 Allowance for doubtful accounts (note 7.2) (32) (5) 728 388 Current 727 384 Noncurrent 1 4 7.1. Credit card companies As part of its cash management strategy, the Group periodically enters into factoring transactions and discounts a portion of its credit card receivables with financial institutions or credit card companies, without recourse or related obligation. 7.2. Allowance for doubtful accounts on trade receivables 2019 2018 2017 At the beginning of the year (5) (6) (4) Allowance booked for the year (263) (630) (740) Write-offs of receivables 282 771 621 Deconsolidation Via Varejo (19) - - Assets held for sale and discontinued operations 1 (140) 117 Business combination (28) - - At the end of the year (32) (5) (6) The aging list of gross trade receivables is as follows: Overdue receivables Total Not yet due <30 days 30-60 days 61-90 days >90 days 12.31.2019 760 609 79 21 5 46 12.31.2018 393 362 10 5 5 11 |
8. Other receivables
8. Other receivables | 12 Months Ended |
Dec. 31, 2019 | |
Other Receivables | |
Other receivables | 8. Other receivables 2019 2018 Accounts receivable from insurers (*) 72 213 Receivable from sale of subsidiaries (note 8.2) 83 82 Lease receivables 113 44 Accounts receivable - Via Varejo (**) 49 - Receivables from sale of real estate properties 128 40 Other 142 67 Allowance for doubtful accounts on other receivables (note 8.1) (15) (16) 573 430 Current 381 302 Noncurrent 192 128 (*) In October 2019, the Company received R$203 from the insurance company regarding the claim related to the fire occurred at the Distribution Center in Osasco on December 27, 2017, after negotiations and agreement on the final amount of the indemnity. (**) As the Company sold the equity interest in Via Varejo, the amount that had been reported as related parties was reclassified to other receivables. 8.1. Allowance for doubtful accounts on other receivables 2019 2018 2017 At the beginning of the year (16) (12) (7) Allowance booked for the year - (4) (9) Write-off of other receivables 5 13 - Deconsolidation Via Varejo (4) - - Assets held for sale and discontinued operations - (13) 4 At the end of the year (15) (16) (12) 8.2. Receivables from the sale of subsidiaries Receivables related to the exercise of an option to buy gas stations by a third party. The original amount of this receivable was R$50, which was adjusted since the execution of the agreement on May 28, 2012, at a rate of 110% of the CDI, with payment in 240 monthly installments. In January, 2016, 5 news gas stations were sold for the amount of R$8, in 120 installments at a rate of 110% of CDI. |
9. Inventories
9. Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventories Abstract | |
Inventories | 9. Inventories Inventories are accounted for at cost or net realizable value, whichever is lower. Inventories purchased are recorded at average cost, including warehouse and handling costs, to the extent that these costs are necessary to bring inventories to selling conditions at the stores, less bonuses received from suppliers. Net realizable value is the selling price in the ordinary course of business, less the estimated costs to sell. Inventories are reduced by an allowance for losses and damages, which is periodically reviewed and evaluated as appropriate. 2019 2018 Stores 4,698 4,162 Distribution centers 1,583 1,807 Inventories – Éxito Group 2,254 - Real Estate Inventory – Éxito Group 190 - Real Estate inventory – Brazil 1 5 Allowance for losses on inventory obsolescence and damages (95) (65) 8,631 5,909 9.1. Unrealized bonuses On December 31, 2019, unrealized bonuses, which are presented as reducing the inventory balance, amounted to R$310 (R$315 on December 31, 2018). 9.2. Allowance for losses on inventory obsolescence and damages 2019 2018 2017 At the beginning of the year (65) (73) (75) Additions (51) (79) (110) Business combination (22) - - Write-offs / reversal 35 85 111 Deconsolidation Via Varejo 8 - - Assets held for sale and discontinued operations - 2 1 At the end of the year (95) (65) (73) |
10. Recoverable taxes
10. Recoverable taxes | 12 Months Ended |
Dec. 31, 2019 | |
Recoverable Taxes | |
Recoverable taxes | 10. Recoverable taxes The Company records tax credit, when obtains internal and external factors as legal and market interpretations to conclude that it is entitled to these credits, including realization of the tax credit ICMS is recognized in cost of sale in the statement of operation. PIS/COFINS is recognized as a credit in the same account on which the credits are calculated. The future realization of ICMS tax credits is based on a feasibility study, on the expectation of future growth and the expected offset against tax debts from its operations. 2019 2018 State VAT tax credits - ICMS (note 10.1) 2,621 2,335 Provision for non-realization of ICMS (VAT) tax credits - (28) Social Integration Program/ Contribution for Social Security Financing - PIS/COFINS (note 10.2) 854 717 Social Security Contribution - INSS 321 328 Income tax and social contribution prepayments (*) 472 52 Other 49 20 Other recoverable taxes – Éxito Group 77 - Total 4,394 3,424 Current 1,692 679 Noncurrent 2,702 2,745 (*) Includes Éxito’s prepayments. 10.1. ICMS (State VAT) tax credits Since 2008, the Brazilian States have been substantially changing their laws aiming at implementing and broadening the ICMS (State VAT) tax substitution system (“ICMS-ST”). Referred system implies the prepayment of ICMS throughout the supply chain, upon receiving goods from manufacturer or importer, or upon transfers to other States. The expansion of such system to a wider range of products traded at the retail stores is based on the assumption that the trading cycle of these products will end in the State, so that ICMS is fully owed thereto. In order to supply its stores, the Group maintains distribution centers strategically located in certain States and in the Federal District, which receive goods with ICMS included in the purchase price on behalf of the entire supply chain and then the goods are shipped to locations in other States. Such interstate shipment entitles the Group to a refund of prepaid ICMS, i.e., the ICMS of the supply chain paid at the acquisition of goods will represent a tax credit to be refunded, pursuant to the State laws. The refund process requires the evidence through tax documents and digital files of the operations that entitled the Company to the refund, which is approved only after homologation from State Tax Authorities and/or compliance with specific ancillary obligations aiming to support these credits. Since the number of items traded at the retail stores, subject to tax substitution, has been continuously increasing, the tax credits to be refunded to the Company and subsidiaries have also grown. The Group has been using such authorized tax credits to offset against state tax liabilities owed after having obtained Special Regime and also through other procedures determined by State rules. The Group understands that future realization of ICMS tax credits is probable based on a feasibility study, on the expectation of future growth and the expected offset against tax debts from its operations. The projections on the realization of ICMS balances are revised at least annually by the occasion of the annual strategic planning approved by the Company’s Board of Directors. Management has implemented monitoring controls over the progress of the plan annually established, assessing and including new elements that contribute to the recoverability of ICMS tax credits. The expected recoverability of ICMS tax credits is demonstrated as follows: Up to one year 438 From 1 to 2 years 370 From 2 to 3 years 361 From 3 to 4 years 366 From 4 to 5 years 350 More than 5 years 736 2,621 10.2. PIS and COFINS credit The Company records PIS and COFINS credits, when it obtains enough evidence to conclude that it is entitled to these credits. Evidence include i) Interpretation of tax legislation, ii) internal and external factors as legal and market interpretations and iii) accounting evaluation about the matter. |
11. Related parties
11. Related parties | 12 Months Ended |
Dec. 31, 2019 | |
Related party transactions [abstract] | |
Related parties | 11. Related parties 11.1. Management compensation The expenses related to management compensation (officers appointed pursuant to the Bylaws, including members of the Board of Directors and advisory committees) for the years ended December 31, 2019, 2018 and 2017, were as follows: (In thousands of Brazilian Reais) Base salary Variable compensation Stock option plan Total compensation 2019 2018 2017 2019 2018 2017 2019 2018 2017 2019 2018 2017 Board of directors (*) 38,207 12,256 5,797 - - - 2,366 - - 40,573 12,256 5,797 Executive officers 33,373 42,695 31,408 12,943 15,083 26,813 15,596 29,267 24,405 61,912 87,045 82,626 Fiscal Council - 228 456 - - - - - - - 228 456 71,580 55,179 37,661 12,943 15,083 26,813 17,962 29,267 24,405 102,485 99,529 88,879 % share-based payment over the total compensation 17,5% 29.4% 27.5% (*) Includes the compensation of the Board of Directors’ advisory committees (Human Resources and Compensation, Audit, Finance, Sustainable Development and Corporate Governance). 11.2. Balances and transactions with related parties Transactions with related parties refer mainly to transactions between the Company and its subsidiaries and other related entities and were substantially accounted for in accordance with the prices, terms and conditions agreed upon between the parties. Balances Transactions Trade receivables Other assets Trade payables Other liabilities Revenues (expenses) 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2017 Controlling shareholders Casino (i) - 15 5 - - 2 24 1 (57) (64) (48) Euris (i) - - - - - - 1 - (1) (2) (3) Helicco Participações (i) - - - - - - - 3 (3) (7) - Geant international - - - - - - - - (3) - - Associates FIC (iii) 24 58 36 33 39 31 - - 152 152 84 Puntos Colombia - - 28 - - - 43 - (13) - - Tuya - - 26 - - - - - 21 - - Other related parties Greenyellow (iv) - - - - - - 134 141 (35) (39) (58) Casino Group (vii) 12 - 8 - 1 - 13 - (4) - - Others - - 1 1 - - - - - - (1) Total 36 73 104 34 40 33 215 145 57 40 (26) The Company's main transactions with related parties are: (i) Casino: Insurance: “Agency Agreement”: Signed between the Company, Sendas Distribuidora S.A and Groupe Casino Limited on July 25, 2016 to set the rules for the “global sourcing” (prospecting global suppliers and intermediating the purchases) provided by Casino and reimbursement to be made by Groupe Casino Limited to the Company to recoup lower profit margins by giving discount to certain products. “Cost Reimbursement Agreement”: Signed between the Company and Casino, Guichard-Perrachon S.A. on July 25, 2016 to set the reimbursement rules of French employees expenses related to the French social contributions paid by Casino in France. “Agency Agreement”: Entered into between the Company, Sendas Distribuidora S.A. (“Sendas”) and Casino International S.A. on December 20, 2004, as amended, to represent the Company in the commercial negotiation of products to be acquired from international suppliers. “Purchase Agreement”: signed between the Company, Sendas and E.M.C. Distribution Limited on June 6, 2019 for the import of non-food and food products (except perishables and wines) for resale in its stores, upon request for purchase orders, on a non-exclusive basis. (ii) Éxito and subsidiaries: License agreements for the use of trademarks and copyrights involved in the production, advertising, promotion, marketing and distribution of textile products and accessories for the female public (Bronzini and Arkitect brands) by Distribuidora de Textiles y Confecciones SA (Didetexto), controlled by Éxito. “Cost Reimbursement Agreement”: signed between the Company, Sendas and Éxito on October 22, 2019 for the reimbursement by one party to another of the costs incurred for the transfer of employees. (iii) FIC: (iv) Greenyellow (v) Puntos Colombia: Éxito's customer loyalty program. Amount related to point redemption and other services. (vi) Tuya: Financial institution that is an associate of Éxito. Amount related to participation in business collaboration agreements and expense reimbursement, discount vouchers and others. (vii) Casino Group: Receivable for expatriate expenses with Casino International, Distribution Casino and Casino Services. Provision of services in the importation of goods by other companies of the Casino Group. |
12. Investments
12. Investments | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of associates [abstract] | |
Investments | 12. Investments 12.1. Consolidation basis 12.1.1. Interest in subsidiaries and associates: The details of the Company's subsidiaries at the end of each year are shown below: Direct and indirect equity interest - % 2019 2018 Companies Subsidiaries CBD Novasoc Comercial Ltda. (“Novasoc”) Brazil 100.00 100.00 Sendas Distribuidora S.A. (“Sendas”) Brazil 100.00 100.00 Bellamar Empreend. e Participações Ltda. (“Bellamar”) Brazil 100.00 100.00 CBD Holland B.V. (“CBD Holland”) Brazil 100.00 100.00 GPA 2 Empreend. e Participações Ltda. (“GPA 2”) Brazil 100.00 100.00 GPA Logística e Transporte Ltda. (“GPA Logística”) Brazil 100.00 100.00 SCB Distribuição e Comércio Varejista de Alimentos Ltda. ("Compre Bem'') Brazil 100.00 100.00 Stix Fidelidade e Inteligência S.A. ("Stix") Brazil 100.00 100.00 Leji Intermediação S.A. ("James Delivery") Brazil 100.00 100.00 Cheftime Comércio de Refeições S/A ("Cheftime") See note13.2 Brazil 79.57 - GPA Malls & Properties Gestão de Ativos e Serviços Imobiliários Ltda. (“GPA M&P”) Brazil 100.00 100.00 BCafeterias e Lanchonetes Ltda. ("BCafeterias")(*) Brazil 100.00 - Fronteira Serviços Imobiliários Ltda.("Fronteira")(*) Brazil 100.00 - Place2B Serviços Imobiliários Ltda.("Place2B")(*) Brazil 100.00 - Companhia Brasileira de Distribuição Luxembourg Holding S.à.r.l. ("CBDLuxco”) Luxembourg 100.00 100.00 Companhia Brasileira de Distribuição Netherlands Holding B.V. (“CBDDutchco”) Netherlands 100.00 100.00 Éxito Almacenes Éxito S.A. ("Éxito") Colombia 96.57 - (Acquired on 11/27/2019) Éxito Industrias S.A.S. ("Éxito Industrias") Colombia 94.59 - Fideicomiso Lote Girardot Colombia 96.57 - Éxito Viajes y Turismo S.A.S. Colombia 49.25 - Almacenes Éxito Inversiones S.A.S. (Móvil Éxito) Colombia 96.57 - Gemex O & W S.A.S. Colombia 96.57 - Marketplace Internacional Éxito y Servicios S.A.S. (MPI) Colombia 96.57 - Logística, Transporte y Servicios Asociados S.A.S. (LTSA) Colombia 96.57 - Depósitos y Soluciones Logísticas S.A.S. Colombia 96.57 - Patrimonio Autónomo Iwana Colombia 49.25 - Patrimonio Autónomo Viva Malls Colombia 49.25 - Patrimonio Autónomo Viva Sincelejo Colombia 25.12 - Patrimonio Autónomo Viva Villavicencio Colombia 25.12 - Patrimonio Autónomo San Pedro Etapa I Colombia 25.12 - Patrimonio Autónomo Centro Comercial Colombia 25.12 - Patrimonio Autónomo Viva Laureles Colombia 39.40 - Patrimonio Autónomo Viva Palmas Colombia 25.12 - Patrimonio Autónomo Centro Comercial Viva Colombia 44.33 - Spice investment Mercosur Uruguay 96.57 - Larenco S.A. Uruguay 96.57 - Geant Inversiones S.A. Uruguay 96.57 - Lanin S.A. Uruguay 96.57 - 5 Hermanos Ltda. Uruguay 96.57 - Sumelar S.A. Uruguay 96.57 - Raxwy Company S.A. Uruguay 96.57 - Supermercados Disco del Uruguay S.A. Uruguay 60.35 - Maostar S.A. Uruguay 30.18 - Ameluz S.A. Uruguay 60.35 - Fandale S.A. Uruguay 60.35 - Odaler S.A. Uruguay 60.35 - La Cabaña S.R.L. Uruguay 60.35 - Ludi S.A. Uruguay 60.35 - Semin S.A. Uruguay 60.35 - Randicor S.A. Uruguay 60.35 - Setara S.A. Uruguay 60.35 - Hiper Ahorro S.R.L. Uruguay 60.35 - Ciudad del Ferrol S.C. Uruguay 59.14 - Mablicor S.A. Uruguay 30.78 - Tipsel S.A. Uruguay 96.57 - Tedocan S.A. Uruguay 96.57 - Vía Artika S. A. Uruguay 96.57 - Group Disco del Uruguay S.A. Uruguay 60.35 - Devoto Hermanos S.A. Uruguay 96.57 - Mercados Devoto S.A. Uruguay 96.57 - Geant Argentina S.A. Argentina 96.57 - Libertad S.A. Argentina 96.57 - Onper Investment 2015 S.L Spain 96.57 - Spice España de Valores Americanos S.L. Spain 96.57 - Marketplace Internacional Éxito S.L Spain 96.57 - Carulla Vivero Holding Inc. British Virgin Islands 96.57 - Gelase S. A. Belgium 96.57 - Via Varejo (see note 12.3) Via Varejo S.A. (“Via Varejo”) Brazil - 43.23 Indústria de Móveis Bartira Ltda. (“Bartira”) Brazil - 43.23 VVLOG Logística Ltda. (PontoCred Negócio de Varejo Ltda.) (“VVLOG Logística”) Brazil - 43.23 Globex Adm. e Serviços Ltda. (“Globex Adm”) Brazil - 43.23 Lake Niassa Empreend. e Participações Ltda. (“Lake Niassa”) Brazil - 43.23 Globex Adm. Consórcio Ltda. (“Globex Adm. Consórcio”) Brazil - 43.23 Cnova Comércio Eletrônico S.A. (”Cnova Brazil”) Brazil - 43.23 (*) The Group created new operating companies The details of the Company's associates at the end of each year are shown below: Direct and indirect equity interest - % 2019 2018 Companies Subsidiaries Cnova N.V. Cnova N.V. (“Cnova Holanda”) Netherlands 33.98 33.98 Cdiscount Afrique SAS (“Cdiscount Afrique”) France 33.98 33.98 Cdiscount International BV (“Cdiscount Internacional”) Netherlands 33.98 33.98 Cnova France SAS (“Cnova France”) France 33.98 33.98 Cdiscount S.A. (“Cdiscount”) France 33.87 33.87 Cdiscount Côte d'Ivoire SAS Ivory Coast (“Cdiscount Côte”) Ivory Coast 33.98 33.98 Cdiscount Sénégal SAS (“Cdiscount Sénégal”) Senegal 33.98 33.98 Cdiscount Cameroun SAS (“Cdiscount Cameroun”) Cameroon 33.98 33.98 CLatam AS Uruguay (“CLatam”) Uruguay 23.79 23.79 Cdiscount Panama S.A. (“Cdiscount Panama”) Panama 23.79 23.79 Cdiscount Uruguay S.A. (“Cdiscount Uruguay”) Uruguay 23.79 23.79 Ecdiscoc Comercializadora S.A. (Cdiscount Ecuador) (“Ecdiscoc Comercializadora”) Ecuador 23.78 23.78 Cnova Pay France 33.98 33.98 BeezUP SAS ("BezzUp") France 33.98 33.98 CARYA France 33.87 33.87 HALTAE France 33.87 33.87 C-Logistics (**) France 28.56 33.87 NEOSYS France 17.33 17.33 Neotech Solutions Morocco 17.33 17.33 NEOSYS Tunisie (*) Tunisia 17.33 - C Chez Vous (**) France 28.56 - Phoenix (*) France 16.99 - FIC Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento (“FIC”) Brazil 35,76 41,92 Banco Investcred Unibanco S.A. (“BINV”) Brazil - 21,62 FIC Promotora de Vendas Ltda. (“FIC Promotora”) Brazil 35,76 41,92 Éxito Puntos Colombia S.A.S ("Puntos") Colombia 48,29 - Compañia de Financiamento Tuya S.A. ("Tuya") Colombia 48,29 - Cnova N.V (“Cnova Holanda”) Netherlands 0,18 - (*) Companies created in 2019 by Cnova N.V (**) Companies changed interest held in C_logistics by C Chez Vous 12.1.2. Associates Investments in associates are accounted for under the equity method when Group exercises significant influence, but not control, and (a) it is part of the shareholders’ agreement, appointing certain officers and having voting rights in certain relevant decisions; and (b) it has power to participate in the operational and financial decisions. The Group’s relevant associates are: i) FIC managed by Itaú Unibanco S.A. (“Itaú Unibanco”), ii) Cnova N.V. which holds mainly on e-commerce in France and (iii) Tuya, financial institution invested of Éxito. Associates have no restriction on transfer resources to the Company, for example, in the form of dividends. The summarized financial statements are as follows: FIC Cnova N.V. Tuya 2019 2018 2019 2018 2019 Restated Current assets 7,085 5,952 3,271 3,121 3,943 Noncurrent assets 51 59 2,587 1,947 100 Total assets 7,136 6,011 5,858 5,068 4,043 Current liabilities 6,185 5,279 5,819 5,127 1,426 Noncurrent liabilities 20 10 867 757 2,146 Shareholders’ equity 931 722 (828) (816) 471 Total liabilities and shareholders’ equity 7,136 6,011 5,858 5,068 4,043 FIC Cnova N.V. Tuya Statement of operations: 2019 2018 2017 2019 2018 2017 2019 Restated Restated Revenues 1,207 969 988 9,689 9,370 7,337 698 Operating income 441 398 240 (24) (73) (111) 87 Net income for the year 263 218 139 (288) (147) (406) (14) In applying the equity method in FIC, the special goodwill reserve of R$122 recorded by FIC is deducted from its shareholders’ equity, since it represents Itaú Unibanco’s exclusive right. The investments in Tuya and Cnova N.V. includes the goodwill acquired in the business combination totaling R$71 and R$11, respectively. 12.2. Breakdown of investments and rollfoward: FIC BINV Tuya Puntos Colombia Other (*) Total Balances at 12.31.2017 – restated (**) 155 - - - (200) (45) Share of profit (loss) of associates – continuing operation 79 - - - (51) 28 Share of profit of associates – discontinued operation 32 8 - - - 40 Dividends and interest on own capital - continuing operation (25) - - - - (25) Dividends and interest on own capital - discontinued operation (12) - - - - (12) Share of other comprehensive income (7) - - - (28) (35) Assets held for sale and discontinued operations (19) (8) - - - (27) Balances at 12.31.2018 – restated (**) 203 - - - (279) (76) Share of profit (loss) of associates – continuing operation 106 - (7) 2 (99) 2 Share of profit of associates – discontinued operation 12 4 - - - 16 Dividends and interest on own capital - continuing operation (20) - - - - (20) Dividends and interest on own capital - discontinued operation (3) - - - - (3) Share of other comprehensive income - - 9 - (8) 1 Investment acquisition - - 305 - 11 316 Assets held for sale and discontinued operations (9) (4) - - - (13) Balances at 12.31.2019 289 - 307 2 (375) 223 (*) Includes losses on the investment in associate Cnova N.V. of R$385 on December 31, 2019 (R$279 on December 31, 2018). (**) Adoption of IFRS 16. Note 4.2 12.3. Sale of investment in Via Varejo: In June 2019, the Company concluded the sale of its subsidiary Via Varejo, through an auction held at B3 SA - Brasil, Bolsa, Balcão, at a price of R$4.90 Reais per share, totaling R$2,300. The sale of Via Varejo resulted in the recognition of a gain on sale of R$398, net of the effect of income taxes of R$199 (see note 21) and related costs. Such gain was presented in the results of discontinued operations (see note 33). There are certain agreements between the Company and Via Varejo that were signed when it was part of the Group, and a related party, being the more significant: i) Corporate collaterals granted by the Company to guarantee obligations in operational agreements under responsibility of Via Varejo, with maturities and performance terms to be met by that company over time, in the amount up to R$ 2 billion. The collaterals are not past due, neither being executed against the Company. Management has already taken the necessary legal steps, according to the previous agreements, to extinguish the guarantees as expected in the change of control; ii) Operational agreement regulating the use of GPA brands by Via Varejo, being in force until 2026, iii) Equity interest held, respectively, by GPA, Via Varejo and Itaú Unibanco in Financeira Itaú CBD S.A.(“FIC”), and iv) Hold harmless clauses in the Shareholders´ Agreements signed in 2010, in the occasion of the merger between Globex and Casas Bahia, in relation to previously existing contingencies. Management has been accruing for the probable losses as disclosed in Note 22.6, as well as recording rights related to periods before the signature of the Shareholders´ Agreement. Referred reciprocal guarantees´ obligations will continue as long as the processes covered by such agreement have not ended. |
13. Business Combinations and g
13. Business Combinations and goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations And Goodwill | |
Business Combinations and goodwill | 13. Business Combinations and goodwill Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, measured at fair value on the acquisition date, and the amount of any non-controlling interests in the acquiree. For each business combination, the Group elects whether to measure the non-controlling interest in the acquiree at fair value or at the proportional interest in the acquiree's identifiable net assets. The acquisition-related costs are expensed as incurred in statement of operation. When the Group acquires a business, it assesses the assets acquired and liabilities assumed for the appropriate classification and designation in accordance with contractual terms, economic circumstances and relevant conditions at the acquisition date. This includes the segregation of any embedded derivates identified in the agreements or contracts of the acquiree. Any contingent consideration is recognized at fair value on the acquisition date as part of the business combination. Subsequent changes in the fair value of any contingent consideration classified as an asset or a liability that is a financial instrument is recognized in profit or loss. Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interests and any previously held interest in the acquiree. If the fair value of the net assets acquired is in excess of the aggregated consideration transferred, the Group re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognized at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognized in profit or loss. After initial recognition, goodwill is measured at cost, less any impairment losses. For impairment testing purposes, the goodwill acquired in a business combination is, as of the acquisition date, allocated to the cash generating unit that are expected to benefit from the business combination, regardless of whether other assets or liabilities of the acquiree are assigned those units. When goodwill is part of a cash-generating unit and part of the operation of this unit is sold, the goodwill related to the part is included in the carrying amount of the operation when calculating profit or loss from the sale of the operation. This goodwill is then measured based on the relative amounts of the sold operation to the total of the cash-generating unit which was retained. 13.1. Acquisition of Almacenes Éxito - Colombia On June 26, 2019, following a recommendation from the Company's controlling shareholder, it was presented to the GPA Board of Directors a transaction through which GPA launched a tender offer over the shares of Grupo Éxito aiming at the simplification of the structure of the Casino Group in Latin America, a significant improvement in governance of the Company and an increase in the basis of potential investors. As Grupo Éxito was previously controlled by the Company´s controlling shareholders and transactions under common control are not provided for in IFRS, Company evaluated the purpose of the transaction, which did not have a purpose of merely corporate reorganization, which have been treated at cost historically by the Company, but the acquisition of Éxito Group differed from a reorganization because it had a commercial substance, being carried out at market value validated by evaluation committees, involved a public offering launched by GPA, through its subsidiary Sendas Distribuidora SA (“Sendas”), to acquire, in cash, up to the totality of Éxito’s shares, a listed company located in Colombia. Due to the economic substance, the Company has elected an accounting policy election and recorded this transaction as a business combination pursuant to IFRS 3. The transaction also involved the acquisition by Casino of the Éxito’s indirect equity interest in GPA at the price of R$113 Reais per share. On July 23, 2019, a material fact informed that the Board of Directors of GPA, based on the favorable recommendation from the Special Independent Committee and within range of price originally endorsed by GPA's executive board, proposing that its operational subsidiary Sendas Distribuidora to launch a tender offer, in cash, to acquire up to all of the shares of Éxito, for the price of 18,000 Colombian pesos per share (equivalent to R$21.68 Reais on the date of purchase). Continuing the transaction, on September 12, 2019, the Board of Directors and the Éxito’s general shareholders' meeting approved the sale of its indirect equity interest in GPA to Casino in the terms disclosed. Since in this transaction the Company was exposed to Colombian pesos (“COP”) during the tender offer period, on July 24, 2019, the financial committee approved the realization of a cash flow hedge, via NDFs (Non Deliverable Forward), to mitigate this exposure. On November 27, 2019, the tender offer was settled, and shareholders representing 96.57% of Éxito's capital stock accepted the terms proposed. This adhesion represented a disbursement by Sendas of 7,780 billion Colombian pesos, amount equivalent to R$9.5 billion (taking into account the exchange rate of December 31, 2019). On the same date, previously to the settlement of the tender offer, subsidiaries of Casino acquired all of the shares of GPA held directly and indirectly by Éxito for the price, net of debt, of US$1,161 million (equivalent to R$4.9 billion based on the exchange rate on the date of the transaction). Context of the acquisition Almacenes Éxito S.A. operates more than 650 stores in Colombia, Uruguay and Argentina, in addition to shopping centers, having also a significant investment in a loyalty and financial company, in addition to its own brands with successful participation. The Company started to consolidate Éxito's as of December 1, 2019, consolidating one month of profit or losses in the Statement of operations. Net sales were R$2,151 in this period, and net income was R$71. If Éxito had been consolidated as of January 1, 2019, the contribution to the statement of operations would have been R$18,388 on net sales and R$178 on net income from continuing operations. Determination of the consideration transferred by the acquisition The cash consideration has been adjusted for the dividends received related to the year of 2018 and the effect of the cash flow hedge entered into to hedge the exposure on changes in foreign exchange rates, as shown below: 12.31.2019 Cash consideration 9,268 Cash flow hedge effect 145 9,413 Dividends related to 2018 (42) Total cash consideration transferred 9,371 Fair values of identifiable assets acquired and liabilities assumed The fair values of identifiable assets acquired and liabilities assumed from Éxito, on the date of the business combination, are as follows: Balance after purchase price allocation Assets: Cash and cash equivalents 6,062 Trade receivables, net 416 Inventories, net 2,765 Recoverable taxes 477 Other current assets 349 Deferred income tax and social contribution 1,353 Related parties 137 Other noncurrent assets 111 Investments in associates 316 Investment properties 2,972 Property and equipment, net 8,496 Intangible assets, net 3,009 26,463 Liabilities: Payroll and related taxes 283 Trade payables, net 4,545 Taxes and contributions payables 219 Borrowings and financing 2,546 Lease liabilities 277 Other current liabilities 998 Noncurrent borrowings and financing 2,060 Deferred income tax and social contribution 2,100 Provisions for contingencies 103 Noncurrent lease liabilities 1,540 Other noncurrent liabilities 28 14,699 Net assets 11,764 (-) Attributed to non-controlling shareholders (2,558) Net assets 9,206 a) Tradename - These includes the brands Surtimax, Super Inter, Surti Mayorista, Viva, Frescampo, Éxito and Carulla in Colombia, Libertad brand in Argentina and Disco in Uruguay. In addition, it also includes the brands Éxito, Bronzini, Frescampo, Ekono, Arkitect and Carulla. Tradenames have an indefinite useful life. b) Investment properties and real estate properties - Éxito Group has real estate assets in galleries and shopping malls for the purpose of being leased. Such assets have high commercial relevance as they are located in prime areas. c) Investment in Banco Tuya – fair value was estimated using the incoming approach method. d) Leases liabilities- Lease liabilities were re-measured using the incremental borrowing rate at the date of acquisition. The non-controlling interests was measured at fair value on the date of acquisition, as shown below: Total consideration transferred - 96.57% 9,371 Fair value of the Company - 100% 9,706 Non-controlling interest at fair value 335 Goodwill identified The Company recorded a residual goodwill of R$165; which has been determined as follows: Fair value of net assets acquired 11,764 (-) Attributed to non-controlling shareholders (2,223) 9,541 Remaining non-controlling interest (335) Net assets 9,206 Total consideration transferred for the acquisition of control of Éxito 9,371 Goodwill 165 Goodwill is disclosed in the balance sheet as intangible assets and it is not deductible for tax purposes, except on the sale of the investment. The acquisition-related costs totaled R$198 and were recognized as other operating expenses (note 28). 13.2. Cheftime and James Delivery The Company acquired, respectively, the control of James Delivery in 2018, which is a delivery company and Cheftime in 2019, which provides gastronomic kits. The net assets of such companies (representing approximately R$1) and the considerations for the acquisition were measured and concluded during 2019 resulting in Goodwill of approximately R$41. |
14. Investment properties
14. Investment properties | 12 Months Ended |
Dec. 31, 2019 | |
Investment property [abstract] | |
Investment properties | 14. Investment properties Investment properties are measured at historical cost, including transaction costs, net of accumulated depreciation and impairment loss, if any. The cost of investment properties acquired in a business combination is determined at fair value, in accordance with IFRS 3 - Business combination. Investment properties are written off when they are sold or no longer used and no future economic benefit is expected from its use. An investment property is also classified as held for sale when there is an intention and plan to sell. The difference between the net amount obtained from the sale and the carrying amount of the asset is recognized in the statement of operations in the period in which the asset is disposed of. The investment properties of the Group correspond to commercial areas and lots that are maintained for income generation or future price appreciation. The fair value of investment properties is measured based on assessments performed by third parties. Balance at 2018 Additions Depreciation Business combination Exchange rate changes Transfers Balance at 2019 Land 6 2 - 643 11 (6) 656 Buildings 10 10 (4) 2,319 45 5 2,385 Improvements 4 - - - - (4) - Construction in progress - - - 10 - - 10 Total 20 12 (4) 2,972 56 (5) 3,051 2019 2018 Cost Accumulated depreciation Net Cost Accumulated depreciation Net Land 656 - 656 6 - 6 Buildings 2,400 (15) 2,385 20 (10) 10 Improvements - - - 4 - 4 Construction in progress 10 - 10 - - - Total 3,066 (15) 3,051 30 (10) 20 During December 2019, the net result generated by investment properties owned by Éxito and its subsidiaries are as follows: Lease revenue 31 Operating expenses from investment properties that generate revenue (4) Operating expenses from investment properties that do not generate revenue (12) Net result generated by investment properties 15 As of December 31, 2019, the fair value of investment properties was substantially reported by Éxito and totaled R$3,047. |
15. Property and equipment
15. Property and equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment [abstract] | |
Property and equipment | 15. Property and equipment Property and equipment is stated at cost, net of accumulated depreciation and/or impairment losses, if any. When significant components of property and equipment are replaced, they are recognized as individual assets with specific useful lives and depreciation. Likewise, when a major replacement is performed, its cost is recognized as the carrying amount of the equipment as a replacement, if the recognition criteria are met. All other repair and maintenance costs are recognized in the statement of operations for the year as incurred. Asset category Useful life (in years) Buildings 40 Leasehold improvements 24 Machinery and equipment 8 Facilities 12 Furniture and fixtures 9 Others 5 Property and equipment items and eventual significant parts are written off when sold or no future economic benefits are expected from its use. Any gains or losses arising from the disposals of the assets are included in the statement of operations for the year. The residual value, the useful life of assets and the depreciation methods are reviewed at the end of each reporting period and adjusted prospectively, if applicable. The Company reviewed the useful lives of property and equipment items for fiscal year 2019 and no significant changes were deemed necessary. Interest on borrowings and financing directly attributable to the acquisition, construction of an asset that requires a substantial period of time to be completed for its intended use or sale (qualifying asset), are capitalized as part of the cost of the respective assets during its construction phase. From the date that the asset is placed in operation, capitalized costs are depreciated over the estimated useful life of the asset. 15.1. Impairment of non-financial assets Impairment testing is designed so that the Group can present the net realizable value of an asset. This amount may be realized directly or indirectly, respectively, through the sale of the asset or the cash generated by the use of the asset in the Group’s activities. The Group tests its non-financial assets for impairment annually or whenever there is internal or external evidence that they may be impaired. An asset’s recoverable amount is defined as the asset’s fair value less cost to sell or its value in use, whichever is higher, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. If the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and an impairment loss is recorded to adjust its carrying amount to its recoverable amount. In assessing the recoverable amount, the estimated future cash flows are discounted to present value using a pre tax discount rate that represents the Company’s weighted average cost of capital (“WACC”), reflecting current market assessments of the time value of money and the risks specific to the asset . Impairment test of stores operating assets An impairment assessment is performed on operating assets (property and equipment) and intangible assets (such as Commercial rights) directly attributable to stores, as follows: • Step 1: the book value of properties in rented stores was compared to a sales multiple (30% to 35%) representing transactions between retail companies. Stores for which the multiple of sales was lower than their book value and owned stores, a more detailed test is made, as described in Step 2 below. • Step 2: the Group considers the highest value between: a) the discounted cash flows of stores using sales growth average 4.8% (5.5% in 2018) for periods exceeding the next five years and a discount rate of 8.4 % (10.1% in 2018) and b) a valuation prepared by independent experts for owned stores. The Group assessed if any of its long-lived assets were impaired at December 31, 2019 and concluded that the recognition of an impairment loss was not needed. Impairment losses are recognized in profit or loss for the year consistent with the function of the respective impaired asset. Previously recognized impairment losses are reversed only if there is a change in the assumptions used to determine the asset’s recoverable amount at its initial or most recent recognition, except for goodwill, which cannot be reversed in future periods. Balance at 2018 Additions Business combination Remeasure-ment Depreciation Write-offs Transfers(*) Exchange rate changes Deconsolidation Via Varejo Balance at 2019 Restated Land 1,366 75 2,277 - - (30) (36) 40 - 3,692 Buildings 1,773 237 2,934 - (67) (29) (29) 51 (1) 4,869 Leasehold improvements 3,843 634 334 - (332) (382) 407 - (63) 4,441 Machinery and equipment 1,308 445 672 - (264) (36) 180 10 (34) 2,281 Facilities 501 86 64 - (59) (16) 30 (2) (24) 580 Furniture and fixtures 595 163 300 - (100) (21) 80 6 (16) 1,007 Construction in progress 176 789 154 - - (6) (903) 3 62 275 Other 59 32 6 - (24) (2) 7 - (4) 74 Total 9,621 2,461 6,741 - (846) (522) (264) 108 (80) 17,219 Lease – right of use: Buildings 4,422 792 1,727 832 (525) (152) 52 32 (157) 7,023 Equipment 9 15 25 - (5) - - 1 - 45 Land - - 3 - - - - - - 3 4,431 807 1,755 832 (530) (152) 52 33 (157) 7,071 Total 14,052 3,268 8,496 832 (1,376) (674) (212) 141 (237) 24,290 (*) Balance at 2017 Additions Remeasurement Depreciation Write-offs Transfers Assets held for sale and discontinued operations Balance at 2018 Restated Restated Land 1,362 46 - - (56) 13 1 1,366 Buildings 1,770 175 - (57) (71) (46) 2 1,773 Leasehold improvements 3,492 479 - (292) (124) 361 (73) 3,843 Machinery and equipment 1,262 182 - (235) (79) 292 (114) 1,308 Facilities 487 76 - (54) (20) 27 (15) 501 Furniture and fixtures 540 92 - (84) (26) 116 (43) 595 Construction in progress 126 809 - - (13) (755) 9 176 Other 64 39 - (24) (31) (8) 19 59 Total 9,103 1,898 - (746) (420) - (214) 9,621 Lease – right of use: Buildings 4,174 338 821 (441) (57) (2) (411) 4,422 Equipment 15 - - (5) (1) - - 9 4,189 338 821 (446) (58) (2) (411) 4,431 Total 13,292 2,236 821 (1,192) (478) (2) (625) 14,052 2019 2018 Cost Accumulated depreciation Net Cost Accumulated depreciation Net Restated Land 3,692 - 3,692 1,366 - 1,366 Buildings 5,712 (843) 4,869 2,585 (812) 1,773 Leasehold improvements 7,065 (2,624) 4,441 5,868 (2,025) 3,843 Machinery and equipment 4,864 (2,583) 2,281 2,957 (1,649) 1,308 Facilities 1,065 (485) 580 865 (364) 501 Furniture and fixtures 2,196 (1,189) 1,007 1,287 (692) 595 Construction in progress 275 - 275 176 - 176 Other 256 (182) 74 206 (147) 59 25,125 (7,906) 17,219 15,310 (5,689) 9,621 Lease – right of use: Buildings 10,655 (3,632) 7,023 7,449 (3,027) 4,422 Equipment 128 (83) 45 82 (73) 9 Land 6 (3) 3 - - - 10,789 (3,718) 7,071 7,531 (3,100) 4,431 Total 35,914 (11,624) 24,290 22,841 (8,789) 14,052 15.2. Guarantees At December 31, 2019 and 2018, the Group had collateralized property and equipment items in relation to certain legal claims, as disclosed in note 22.8. 15.3. Capitalized borrowing costs Capitalized borrowing costs for the year ended December 31, 2019 were R$26 (R$22 for the year ended December 31, 2018). The rate used for the capitalization of borrowing costs was 136.11% of Brazilian CDI (101.78% in 2018), corresponding to the effective interest rate of the Group’s borrowings. The effective interest rate was 6.06% in 2019 (6.54% in 2018) 15.4. Additions to property and equipment for cash flow presentation purposes are as follows: 2019 2018 Restated Additions (i) 3,268 2,236 Lease (806) (519) Capitalized borrowing costs (26) (22) Property and equipment financing - Additions (ii) (2,116) (1,482) Property and equipment financing - Payments (ii) 2,142 1,436 Total 2,462 1,649 (i) The additions are related to the purchase of operating assets, acquisition of land and buildings to expand activities, building of new stores, improvements of existing distribution centers and stores and investments in equipment and information technology. (ii) The additions to property and equipment above are presented to reconcile the acquisitions during the year with the amounts presented in the statement of cash flows net of items that did not impact cash flow. 15.5. Other information At December 31, 2019, the Group recorded in cost of sales an amount of R$147 (R$126 at December 31, 2018) related to the depreciation of its machinery, buildings and facilities related to the distribution centers. |
16. Intangible assets
16. Intangible assets | 12 Months Ended |
Dec. 31, 2019 | |
Intangible assets and goodwill [abstract] | |
Intangible assets | 16. Intangible assets Intangible assets acquired separately are measured at cost, less amortization and impairment losses, if any. Internally generated intangible assets, excluding capitalized software development costs, are recognized as expenses when incurred. Intangible assets consist mainly of software acquired from third parties, software developed for internal use, commercial rights (stores’ rights of use), customer lists and brands. Intangible assets with definite useful lives are amortized by the straight-line method. The amortization period and method are reviewed, at least, at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimate. Software development costs recognized as assets are amortized over their useful lives (5 to 10 years). The weighted average amortization rate is 10.82%, beginning the amortization when the assets become operational. Intangible assets with indefinite useful lives are not amortized, but tested for impairment at the end of each reporting period or whenever there are indications that their carrying amount may be impaired either individually or at the level of the cash-generating unit. The assessment is reviewed annually to determine whether the indefinite life assumption remains appropriate. Otherwise, the useful life is changed prospectively from indefinite to definite. When applicable, gains or losses arising from the derecognition of an intangible asset are measured as the difference between the net proceeds from the sale of the asset and its carrying amount, any gain or loss is recognized in the statement of operations in the year the asset is derecognized. Balance at 2018 Additions Business combination (*) Amortization Write-off Remeasurement Exchange rate changes Transfer (***) Deconsolidation Via Varejo Balance at 2019 Goodwill 1,148 - 165 - - - 3 (1) - 1,315 Tradename 39 - 2,949 - - - 66 8 - 3,062 Commercial rights (note 16.2) 111 24 - - - - - - - 135 Software 621 274 60 (110) (7) - 1 124 (75) 888 1,919 298 3,174 (110) (7) - 70 131 (75) 5,400 Right of use: Right of use Paes Mendonça (**) 819 - - (45) - 6 - - - 780 Software 80 - - (24) (1) - - - 1 56 899 - - (69) (1) 6 - - 1 836 Total 2,818 298 3,174 (179) (8) 6 70 131 (74) 6,236 (*) See note 13.1 (**) Correspond to the premium paid for the renewal of the agreement with Paes Mendonça to operate certain stores for a 30-years term (***) Refers substantially to transfers from property and equipment (see note 15). Balance at 2017 Additions Company acquisition (*) Amortization Write-off Transfer Assets held for sale and discontinued operations Balance at 2018 Restated Restated Goodwill 1,107 - 41 - - - - 1,148 Tradename 39 - - - - 251 (251) 39 Commercial rights (note 16.2) 86 24 - (5) - 6 - 111 Software 551 534 - (91) (29) (256) (88) 621 1,783 558 41 (96) (29) 1 (339) 1,919 Right of use: Right of use Paes Mendonça (**) - 179 - (7) - 647 - 819 Software 95 - - (27) - 12 - 80 95 179 - (34) - 659 - 899 Total 1,878 737 41 (130) (29) 660 (339) 2,818 (*) See note 13.2. (**) Correspond to the premium paid for the renewal of the agreement with Paes Mendonça to operate certain stores for a 30-years term 2019 2018 Cost Accumulated Net Cost Accumulated Net R Goodwill 2,425 (1,110) 1,315 2,259 (1,111) 1,148 Tradename 3,062 - 3,062 39 - 39 Commercial rights (note 16.2) 135 - 135 111 - 111 Software 1,715 (827) 888 1,200 (579) 621 7,337 (1,937) 5,400 3,609 (1,690) 1,919 Lease-right of use: Right of use Paes Mendonça (**) 836 (56) 780 832 (13) 819 Software 321 (265) 56 225 (145) 80 1,157 (321) 836 1,057 (158) 899 Total intangibles 8,494 (2,258) 6,236 4,666 (1,848) 2,818 16.1. Impairment assessment on intangible assets with indefinite useful life, including goodwill The impairment test of intangibles uses the same practices described in Note 15 Property and equipment. For impairment testing purposes, goodwill acquired through business combinations and licenses (brands) with indefinite life were allocated to a group of cash generating units, which correspond to our operating segments. They are retail and Cash and Carry, referring to the “ASSAÍ” brand. CGU’s recoverable value is calculated using the value in use based on estimated cash flow based on financial budgets approved by Board of Directors for the next three years. The discount rate used on cash flow projections was 8.4% (10.1% in 2018), and the cash flows exceeding the three-year period are extrapolated using a 4.8% growth rate (5.5% on December 31, 2018). Based on this analysis no impairment charges were recorded. Sensitivity analysis Based on the probable scenario, a sensitivity analysis was made for a 0.5 percentage points increase / decrease in the discount rate and growth rate. In any combination, the value of the segment's cash flow is higher than its book value. As a result of this analysis, there was no need to record a provision for impairment of these assets. 16.2. Commercial right Commercial rights are the right to operate the stores under acquired rights, or through business combinations. Commercial rights are considered recoverable, either through the expected cash flows of the related store or the sale to third parties. Commercial rights with a defined useful life are tested using the same assumptions for the Company's impairment test, following the term of use of these assets. 16.3. Additions to intangible assets for cash flow presentation purposes: 2019 2018 Restated Additions 298 737 Lease (1) - Intangible assets financing - Addition (23) (59) Intangible assets financing - Payments 46 37 Total 320 715 |
17. Trade payables, net
17. Trade payables, net | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other payables [abstract] | |
Trade payables, net | 17. Trade payables, net 2019 2018 Product suppliers 14,371 9,662 Service suppliers 977 491 Bonuses from suppliers (note 17.2) (461) (907) 14,887 9,246 17.1. Agreement between suppliers, the Group and banks The Group entered into certain agreements with financial institutions in order to allow suppliers to use the Group's lines of credit, and to anticipate receivables arising from the sale of goods and services, the Group. These transactions were assessed by management that determined that they have commercial characteristics, since there are no changes to the original terms of the receivables in relation to price and / or terms, including financial charges. The anticipation is also solely at the suppliers’ discretion. The Group also has commercial transactions increasing payment terms, as part of its commercial activities, without financial charges. 17.2. Bonuses from suppliers It includes considerations and discounts obtained from suppliers. These amounts are established in agreements and include amounts for discounts on purchase volumes, joint marketing campaigns, freight reimbursements, and other similar programs. The settlement of these receivables is through offsetting the amounts payable to suppliers, according to the terms of supply agreements. |
18. Borrowings and financing
18. Borrowings and financing | 12 Months Ended |
Dec. 31, 2019 | |
Borrowings [abstract] | |
Borrowings and financing | 18. Borrowings and financing 18.1. Debt breakdown Weighted average rate 2019 2018 Restated Debentures, certificate of agribusiness receivables and promissory notes (note 18.4) 129.34% of CDI (i) 11,863 4,146 11,863 4,146 Borrowings and financing Local currency BNDES 4.01% per year 27 37 Working capital 124.4% of CDI (i) 1,008 238 Working capital TR (ii) + 9.80 % per year 99 112 Swap contracts (note 18.7) 101.44% (12) (11) Unamortized borrowing costs (22) (3) 1,100 373 Foreign currency (note 18.5) Working capital 3.14% per year 846 843 Working capital IBR 3M (iii) + 2% 323 - Credit letter 12 - Swap contracts (note 18.7) 118.27% of CDI (i) (15) (76) Swap contracts (note 18.7) IBR 3M (iii) + 2% (19) - NDF Contracts – Derivatives (1) - Unamortized borrowing costs (1) - 1,145 767 Total 14,108 5,286 Current assets 73 43 Noncurrent assets 13 44 Current liabilities 3,488 1,981 Noncurrent liabilities 10,706 3,392 (i) CDI: Certificate of Interbank Deposit (ii) TR: Referential rate (iii) Reference Bank Index in Colombia for 3 months 18.2. Changes in borrowings At December 31, 2018 5,438 Adjustment related to IFRS 16 (152) Restated opening balance 5,286 Additions 13,604 Accrued interest 678 Accrued swap (11) Mark-to-market (47) Monetary and exchange rate changes (13) Borrowing cost 31 Interest paid (504) Payments (9,551) Swap paid 103 Business combination 4,527 Exchange rate changes 80 Deconsolidation Via Varejo (75) At December 31, 2019 14,108 At December 31, 2017 4,560 Adjustment related to IFRS 16 (195) Restated opening balance 4,365 Additions 9,139 Accrued interest 619 Accrued swap (126) Mark-to-market 12 Monetary and exchange rate changes 167 Borrowing cost 13 Interest paid (758) Payments (7,920) Swap paid (9) Liabilities related to assets held for sale and discontinued operations (note 33) (216) At December 31, 2018 - restated 5,286 18.3. Maturity schedule of noncurrent borrowings and financing Year From 1 to 2 years 3,596 From 2 to 3 years 3,444 From 3 to 4 years 2,773 From 4 to 5 years 386 After 5 years 559 Subtotal 10,758 Unamortized borrowing costs (65) Total 10,693 18.4. Debentures, Promissory Note and Certificate of Agribusiness Receivables Date Type Issue Amount Outstanding debentures (units) Issue Maturity Financial charges Unit price (in Reais) 2019 2018 13th Issue of Debentures – CBD and CRA No preference 1,012 1,012,500 12/20/16 12/20/19 97.50% of CDI - - 1,014 14th Issue of Debentures – CBD No preference 1,080 1,080,000 04/17/17 04/13/20 96.00% of CDI 1,010 1,091 1,094 15th Issue of Debentures – CBD No preference 800 800,000 01/17/18 01/15/21 104.75% of CDI 1,027 821 824 16th Issue of Debentures – CBD (1st serie) No preference 700 700,000 09/11/18 09/10/21 106% of CDI 1,016 712 714 16th Issue of Debentures – CBD (2nd serie) No preference 500 500,000 09/11/18 09/12/22 107.4% of CDI 1,017 508 510 4th Issue of Promissory Notes – CBD No preference 800 800 01/10/19 01/09/22 105.75% of CDI 1,061,280 849 - 1st Issue of Promissory Notes – Sendas (1nd serie) No preference 50 1 07/04/19 07/03/20 CDI + 0.72% per year 51,537,614 52 - 1st Issue of Promissory Notes – Sendas (2nd serie) No preference 50 1 07/04/19 07/05/21 CDI + 0.72% per year 51,537,614 52 - 1st Issue of Promissory Notes – Sendas (3nd serie) No preference 50 1 07/04/19 07/04/22 CDI + 0.72% per year 51,537,614 52 - 1st Issue of Promissory Notes – Sendas (4nd serie) No preference 250 5 07/04/19 07/04/23 CDI + 0.72% per year 51,537,614 258 - 1st Issue of Promissory Notes – Sendas (5nd serie) No preference 200 4 07/04/19 07/04/24 CDI + 0.72% per year 51,537,614 206 - 1st Issue of Promissory Notes – Sendas (6nd serie) No preference 200 4 07/04/19 07/04/25 CDI + 0.72% per year 51,537,614 206 - 1st Issue of Debentures – Sendas (1nd serie) No preference 2,000 2,000,000 09/04/19 08/20/20 CDI + 1.60% per year 500 1,001 - 1st Issue of Debentures – Sendas (2nd serie) No preference 2,000 2,000,000 09/04/19 08/20/21 CDI + 1.74% per year 1,022 2,044 - 1st Issue of Debentures – Sendas (3nd serie) No preference 2,000 2,000,000 09/04/19 08/20/22 CDI + 1.95% per year 1,023 2,046 - 1st Issue of Debentures – Sendas (4nd serie) No preference 2,000 2,000,000 09/04/19 08/20/23 CDI + 2.20% per year 1,024 2,047 - Borrowing costs (82) (10) Total 11,863 4,146 Current liabilities 2,287 1,068 Noncurrent liabilities 9,576 3,078 GPA issues debentures to strengthen its working capital, maintain its cash strategy, lengthening its debt profile and make investments. The debentures issued are unsecured, without renegotiation clauses and not convertible into shares. Principal is paid in full on maturity date with semi-annually interest payments (13 th th th th The 14 th th th On April 17, 2017, CBD launched the 14 th th st On January 17, 2018, CBD performed the 15th issuance of simple debentures, non-convertible into shares, unsecured, in a single serie. The resources are used to increase working capital and to extend the indebtedness profile. The amount of R$ 800 has maturity on January 15, 2021, with interest of 104.75% of CDI that will be paid semiannually. On September 11, 2018, CBD launched the 16 th In the third quarter of 2019, occurred the first issue of commercial promissory notes of Sendas in 6 series, with a nominal value of R$50 to R$250 and a total of R$800. On December 17, 2018, CBD approved the 4th issue of promissory notes in a single serie. The resources are used to increase working capital and extend the indebtedness profile. The total amount was R$800, has maturity on January 9, 2022 and interest of 105.75% of CDI. In the period, there was also the first issue of Sendas of simple, not convertible debentures into shares, in four series with a nominal value of R$2,000 Reais each, with a maturity between 1 and 4 years, totaling of R$8,000. These funds were used to finance the acquisition of Éxito shares in connection with the proposed reorganization operations in Latin America, as disclosed in note 13.1. 18.5. Borrowings in foreign currencies On December 31, 2019 the Group has loans in foreign currencies (US dollar) to strengthen its working capital, maintain its cash strategy, lengthening its debt profile and make investments. 18.6. Guarantees The Group has signed promissory notes for some loan contracts. 18.7. Swap contracts The Group uses swap transactions for 100% of its borrowings denominated in US dollars and fixed interest rates, exchanging these obligations for Real linked to CDI (floating) interest rates. These contracts include a total amount of the debt with the objective to protect the interest and principal and are signed, generally, with the same due dates and in the same economic group. The weighted average annual rate in December 2019 was 5.96% (6.42% as of December 31, 2018). 18.8. Financial covenants In connection with the debentures and promissory notes and for a portion of borrowings denominated in foreign currencies, the Company is required to maintain certain debt financial covenants. These ratios are quarterly calculated based on consolidated financial statements of the Company prepared in accordance with accounting practices adopted in Brazil, as follows: (i) net debt (debt minus cash and cash equivalents and trade accounts receivable) should not exceed the amount of equity and (ii) consolidated net debt/EBITDA ratio should be lower than or equal to 3.25. At December 31, 2019, GPA complied with these ratios. 18.9. Total Return Swap (“TRS”) The Group sold 50.000.000 shares, representing a 3.8% stake in Via Varejo through an auction at B3 on December 27, 2018 for the amount of R$ 218. On December 21, 2018 a Total Return Swap ("TRS") agreement was signed with a bank for the same number of shares. The contract was fully settled during the month of February 2019. On February 20, 2019, the Board of Directors approved a new TRS agreement, authorizing the sale of 40,000,000 common shares of Via Varejo held by the Company, corresponding to 3.09% of Via Varejo share capital, for the amount of R$200. This sale was carried out on the B3 on February 25, 2019. Although the ownership of the shares was transferred to the Bank, the Group bears the risk of changes to market value of the shares in the future sales made by the bank that, based on IFRS 9, determines that the shares should not be derecognized. In April 2019 the balance was settled. |
19. Financial instruments
19. Financial instruments | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments | |
Financial instruments | 19. Financial instruments The main financial instruments and their carrying amounts, by category, are as follows: Carrying amount 2019 2018 Restated Financial assets: Amortized cost Related parties - assets 104 34 Trade receivables and other receivables 924 695 Others assets 51 - Fair value through profit or loss Cash and cash equivalents 7,954 4,369 Financial instruments – Fair value hedge 86 87 Others assets 2 - Fair value through other comprehensive income Trade receivables - credit card companies and sales vouchers 377 123 Others assets 19 - Financial liabilities: Other financial liabilities - amortized cost Related parties - liabilities (215) (145) Trade payables (14,887) (9,246) Financing for purchase of assets (231) (149) Debentures and promissory notes (11,863) (4,146) Borrowings and financing (1,348) (271) Lease (8,667) (5,787) Fair value through profit or loss Borrowings and financing ( Hedge accounting underlying) (944) (956) Financial instruments – Fair Value Hedge – liabilities side (39) - Suppliers financial instruments - Fair value hedge - liabilities side (8) - Disco Group put option (*) (466) - (*) See note 19.3. The financial instruments measured at amortized cost, the related fair values of which differ from the carrying amounts, are disclosed in note 19.3. The fair value of other financial instruments detailed in table above approximates the carrying amount based on the existing terms and conditions. 19.1. Considerations on risk factors that may affect the business of the Group (i) Credit risk · Cash and cash equivalents: in order to minimize credit risk, the Group adopts investment policies at financial institutions approved by the Group’s Financial Committee, also taking into consideration monetary limits and financial institution evaluations, which are regularly updated. · Credit risk related to trade receivables is minimized by the fact that a large portion of sales are paid with credit cards, and the Group sells these receivables to banks and credit card companies, aiming to strengthen working capital. The sales of receivables result in derecognition of the accounts receivable due to the transfer of the credit risk, benefits and control of such assets. Additionally, regarding the trade receivables collected in installments, the Group monitor the risk through the credit concession and by periodic analysis of the provision for losses. · The Group also has counterparty risk related to the derivative instruments; which is mitigated by the Group’s carrying out transactions, according to policies approved by governance boards. · There are no amounts receivable that are individually, higher than 5% of accounts receivable or sales, respectively. (ii) Interest rate risk The Group obtains borrowings and financing with major financial institutions for cash needs for investments. As a result, the Group is, mainly, exposed to relevant interest rates fluctuation risk, especially in view of derivatives liabilities (foreign currency exposure hedge) and CDI indexed debt. The balance of cash and cash equivalents, indexed to CDI, partially offsets the interest rate risk. (iii) Foreign currency exchange rate risk The Group is exposed to exchange rate fluctuations, which may increase outstanding balances of foreign currency-denominated borrowings. The Group uses derivatives, such as swaps, aiming to mitigate the foreign currency exchange rate risk, converting the cost of debt into domestic currency and interest rates. Éxito Group uses derivatives to hedge foreign currency exchange rate on goods imports. (iv) Capital risk management The main objective of the Group’s capital management is to ensure that the Group maintain its credit rating and a well-balanced equity ratio, in order to support businesses and maximize shareholder value. The Group manages the capital structure and makes adjustments taking into account changes in the economic conditions. The Group capital structure is as follows: 2019 2018 Restated Cash and cash equivalents 7,954 4,369 Financial instruments – Fair value hedge 39 87 Borrowings and financing (14,155) (5,373) Other liabilities with related parties (*) (124) (138) Net financial debt (6,286) (1,055) Shareholders’ equity (13,548) (13,159) Net debt to equity ratio 46% 8% (*) Represents amount payable to Greenyellow related to the purchase of equipment. a. Liquidity risk management The Group manages liquidity risk through the daily analysis of cash flows and maturities of financial assets and liabilities. The table below summarizes the aging profile of the Group’s financial liabilities as at December 31, 2019. Up to 1 Year 1 – 5 years More than 5 years Total Borrowings 1,249 1,054 407 2,710 Debentures and promissory notes 2,675 10,694 312 13,681 Derivative financial instruments 3 (13) (3) (13) Lease liabilities 1,747 5,483 9,444 16,674 Trade payables 14,887 - - 14,887 Total 20,561 17,218 10,160 47,939 b. Derivative financial instruments Swap transactions are designated as fair value hedges At December 31, 2019 the notional amount of these contracts was R$955 (R$883 at December 31, 2018. These transactions are usually contracted under the same terms of amounts, maturities, and carried out with the financial institution of the same economic group, observing the limits set by Management. According to the Group’s treasury policies, swaps cannot be contracted with restrictions (“caps”), margins, as well as return clauses, double index, flexible options or any other types of transactions different from traditional “swap” and “forwards” transactions to hedge against debts. The Group calculates the effectiveness of hedge transactions at the inception date and on a continuing basis. Hedge transactions contracted in the year ended December 31, 2019 were effective in relation to the covered risk. For derivative transactions that qualify as hedge accounting, the debt, which is the hedged item, is also adjusted to fair value. Notional value Fair value 2019 2018 2019 2018 Fair value hedge Hedge object (debt) 955 883 944 955 Long position (buy) Prefixed rate TR + 9.80% per year 127 127 99 112 US$ + fixed USD + 3.14 % per year 828 756 846 843 955 883 945 955 Short position (sell) 118.7% of CDI (955) (883) (917) (868) Hedge position - asset - - 57 87 Hedge position - liability - - (29) - Net hedge position - - 28 87 Realized and unrealized gains and losses on these contracts during the year ended December 31, 2019 are recorded as financial income or expenses and the balance receivable at fair value is R$28 (receivable from R$87 as of December 31, 2018). Assets are recorded as “Financial instruments” and liabilities as “Borrowings and financing” The effects of the fair value hedge recorded in the statement of operations for the year ended December 31, 2019 resulted in a gain of R$24 (gain of R$6 as of December 31, 2018). v) Fair value of derivative financial instruments Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. Fair value is calculated using projected the future cash flows, using the CDI curves and discounting to present value, using CDI market rates for swaps both disclosed by B3. The fair value of exchange coupon swaps versus the CDI rate was determined based on market exchange rates effective at the date of the financial statements and projected based on currency coupon curves. In order to calculate the coupon of foreign currency indexed-positions, the straight-line convention - 360 consecutive days was adopted and to calculate the coupon of CDI indexed-positions, the exponential convention - 252 business days was adopted. 19.2. Sensitivity analysis of financial instruments According to Management’s assessment, the most probable scenario is what the market has been estimating through market curves (currency and interest rates) of B3, on the maturity dates of each transaction. Therefore, in the probable scenario (I), there is no impact on the fair value of financial instruments. For scenarios (II) and (III), for the sensitivity analysis effect, a deterioration of 25% and 50% was taken into account, respectively, on risk variables, up to one year of the financial instruments. For the probable scenario, weighted exchange rate was R$4.47 on the due date, and the interest rate weighted was 4.89% per year. In case of derivative financial instruments (aiming at hedging the financial debt), changes in scenarios are accompanied by respective hedges, indicating that the effects are not significant. The Group disclosed the net exposure of the derivative financial instruments, each of the scenarios mentioned above in the sensitivity analysis as follows: (i) Other financial instruments Transactions Risk (CDI variation) Balance at 2019 Scenario I Scenario II Scenario III Fair value hedge (fixed rate) 101.44% of CDI (86) (211) (214) (218) Fair value hedge (exchange rate) 118.27% of CDI (831) (860) (904) (916) Debentures and promissory notes 132.69% of CDI (10,853) (11,380) (11,512) (11,644) Debentures (2nd issue CRA) 96.00% of CDI (1,091) (1,142) (1,154) (1,167) Bank loans 124.49% of CDI (1,008) (1,058) (1,071) (1,083) Total borrowings and financing exposure (13,869) (14,651) (14,855) (15,028) Cash and cash equivalents (*) 89.94% of CDI 4,471 4,468 4,717 4,766 Net exposure (9,398) (10,183) (10,138) (10,262) Net effect - loss (785) (740) (864) (*) Weighted average The Éxito Group's sensitivity analysis considers the economic environment in which this company operates. In scenario I, the observable rates are used. In scenario II it is considered an increase of 10% and in scenario III it is a decrease of 10%. Scenario I: Reference Bank Index in Colombia (IBR) available 4.134%. Scenario II: 0.4134% increase in IBR and for Libor at 90 days an increase of 0.1763% Scenario III: 0.4134% decrease in IBR and for Libor at 90 days a decrease of 0.1763% Market projection Transactions Balance 2019 Scenario I Scenario II Scenario III Bank loans and swap (320) (320) (321) (320) 19.3. Fair value measurements The Group discloses the fair value of financial instruments measured at fair value and of financial instruments measured at amortized cost, the fair value of which differ from the carrying amount, in accordance with IFRS13, which refer to the requirements of measurement and disclosure. The fair value hierarchy levels are defined below: Level 1: Quoted (unadjusted) market prices in active markets for assets or liabilities. Level 2: Valuation techniques for which the lowest level inputs that is significant to the fair value measurement is directly or indirectly observable, Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. The data used in fair value models are obtained, whenever possible, from observable markets or from information in comparable transactions in the market, the benchmarking of the fair value of similar financial instruments, the analysis of discounted cash flows or other valuation models. Judgment is used in the determination of assumptions in relation to liquidity risk, credit risk and volatility. Changes in assumptions may affect the reported fair value of financial instruments. The fair values of cash and cash equivalents, trade receivables and trade payables approximate their carrying amounts. The table below presents the fair value hierarchy of financial assets and liabilities measured at fair value and of financial instruments measured at amortized cost, for which the fair value is disclosed in the consolidated financial statements: Carrying amount Fair value 12.31.2019 12.31.2019 Level Financial assets and liabilities Trade receivables with credit card companies and sales vouchers 377 377 2 Cross-currency interest rate swap 15 15 2 Interest rate swaps 25 25 2 Forward between Currencies (1) (2) 2 Borrowings and financing (FVPL) (944) (944) 2 Borrowings and financing and debentures (amortized cost) (13,211) (12,528) 2 Disco Group put option (*) (466) (466) 3 Total (14,205) (13,523) (*) Non-controlling shareholders of Group Disco del Uruguay S.A., Éxito Group’s subsidiary has a exercisable put option based on a formula that uses data such as net income, EBITDA - earnings before interest, taxes, depreciation and amortization - and net debt, in addition to fixed amounts determined in the contract and the exchange variation applicable for conversion to the functional currency. This put option is presented in “Acquisition of non-controlling interest”. There were no changes between the fair value measurements hierarchy levels during the year ended December 31, 2019. Cross-currency and interest rate swaps and borrowings and financing are classified in level 2 since the fair value of such financial instruments was determined based on readily observable inputs, such as expected interest rate and current and future foreign exchange rate. 19.4. Consolidated position of derivative transactions The Group has derivative contracts with the following financial institutions: Itaú BBA, Bradesco, Tokyo Bank, Scotiabank, Credit Agricole Corporate, Bogotá Bank, BBVA, BNP, Davivenda, Bancolombia, HSBC and Corficolombia. The outstanding derivative financial instruments are presented in the table below: Risk Notional (millions) Due date 2019 2018 Debt USD - BRL 2019 - 43 USD - BRL US$ 210 2020 16 33 Interest rate - BRL R$ 21 2026 2 2 Interest rate - BRL R$ 106 2027 10 9 Derivatives - Fair value hedge - Brazil 28 87 Debt USD - COP US$ 211 2020 20 - USD - COP US$ 3 2022 1 - Interest rate - COP COP 673.109 2020 (1) - Interest rate - COP COP 138.440 2021 (1) - 19 - Trade payables EUR - COP EUR 2 2020 - - USD - COP USD 56 2020 (8) - (8) - Derivatives – Éxito Group 11 - |
20. Taxes and contributions pay
20. Taxes and contributions payable and taxes payable in installments | 12 Months Ended |
Dec. 31, 2019 | |
Taxes And Contributions Payable And Taxes Payable In Installments | |
Taxes and contributions payable and taxes payable in installments | 20. Taxes and contributions payable and taxes payable in installments In Brazil, revenue from sales of goods or services are subject to taxation by State Value-Added Tax (“ICMS”) and Services Tax (“ISS”), calculated based on the rates applicable to each state and city, as well as contributions for the Social Integration Program (“PIS”) and Social Security Financing (“COFINS”), and are presented as a reduction of sales revenue. Revenue and expenses are recognized net of taxes, except when the sales tax paid on the purchase of assets or services is not recoverable from the tax authority, in which case the sales tax is recognized as part of the cost of acquisition of the asset or as cost or expense item, as applicable. 20.1. Taxes and contributions payable and taxes payable in installments are as follows 2019 2018 Taxes payable in installments - Law 11,941/09 (ii) 355 432 Taxes payable in installments – PERT 162 169 ICMS 96 88 PIS and COFINS 7 8 Provision for income tax and social contribution - 115 Withholding Income Tax 1 2 INSS 6 4 Other 60 23 Taxes payable – Éxito Group (*) 220 - 907 841 Current 531 370 Noncurrent 376 471 (*) (i) In 2017, the Group decided to include certain federal tax debts in the Special Program on Tax Settlements – PERT (“PERT Program. The program allows the payment of certain taxes in monthly installments, and granted discounts on interest and penalties. The Group included tax debts related to (i) tax assessments over purchase transactions, manufacturing and exports sales of soil beans (PIS/COFINS), (ii) non-validation of tax offsets (IRPJ, PIS/COFINS); and other tax debts previously classified as possible risks related mainly to CPMF( Contribuição provisória sobre movimentação financeira (See note 22.2). The PERT liability is being settled in monthly installments up to 12 years. The Group is in compliance with the obligations assumed under the PERT Program. The decision to apply to the PERT Program and the Federal taxes installment payment program resulted in the recognition of a loss of R$183 in 2017. (ii) Federal tax installment payment program, Law 11,941/09 – The Law 11,941, was enacted on May 27, 2009, a special federal tax and social security debt installment program, for debts overdue until November 2008, which granted several benefits to its participants, such as reduction of fines, interest rates and penalties, the possibility of utilization of accumulated tax losses to settle penalties and interest and payment in 180 months, use of restricted deposits linked to the claim to reduce the balance. The program also allows the gains arising from reduction of fines and penalties not to be taxable for income taxes purposes. The Group is in compliance with the terms and conditions of these tax payment program. 20.2. Maturity schedule of taxes payable in installments in noncurrent liabilities: From 1 to 2 years 105 From 2 to 3 years 104 From 3 to 4 years 92 From 4 to 5 years 13 After 5 years 62 376 |
21. Income tax and social contr
21. Income tax and social contribution | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax And Social Contribution | |
Income tax and social contribution | 21. Income tax and social contribution Current income tax and social contribution Current income tax and social contribution assets and liabilities for the current and prior years are measured at the amount expected to be recovered from or paid to the tax authorities. The tax rates and tax laws used to calculate taxes are those enacted or substantially enacted at the balance sheet date. Income taxes comprise Corporate Income Tax (“IRPJ”) and Social Contribution on Net Income (“CSLL”), calculated based on taxable income, at the statutory rates set forth in the legislation in force: 15% on taxable income plus an additional 10% on annual taxable income exceeding R$240,000 for IRPJ, and 9% for CSLL, and it is paid by each legal entity. According to tax legislation in Brazil there is not a Group´s Corporate Tax Return, and each legal entity have its own tax obligations. Deferred income tax and social contribution Deferred income tax and social contribution assets are recognized for all future deductible temporary differences and unused tax loss carryforwards to the extent that it is probable that taxable income will be available to be compensated against these temporary differences and unused tax loss carryforwards, except where the deferred income tax and social contribution assets relating to the deductible temporary difference arise from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither accounting profit nor tax income or losses. Deferred income tax and social contribution liabilities are recognized for all future taxable temporary differences, except when the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction other than a business combination and which, at the time of the transaction, affects neither accounting profit nor tax losses. With respect to deductible temporary differences associated with investments in subsidiaries and associates, deferred income tax and social contribution are recognized only to the extent that it is probable that these temporary differences will reverse in the foreseeable future and taxable income will be available against which the temporary differences can be utilized. The carrying amount of deferred income tax and social contribution assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of these assets to be utilized. Unrecognized deferred income tax and social contribution assets are reassessed at the end of each reporting period and are recognized to the extent that it has become probable that future taxable income will allow these assets to be recovered. Deferred income tax and social contribution assets and liabilities are measured at the tax rates that are expected to apply when the asset is realized or the liability is settled, based on the tax rates (and tax laws) that have been enacted or substantively enacted at the reporting period. Deferred taxes related to items directly recognized in equity are also recognized in equity and not in the statement of operations. Deferred income tax and social contribution assets and liabilities are offset if there is a legal or contractual right to offset tax assets against income tax liabilities, and relates to the same taxpayer entity and to the same tax authority. In virtue of nature and complexity of the Group's businesses, the differences between the actual results and the assumptions adopted, or the future changes to these assumptions, may result in future adjustments to tax revenues and expenses already recorded. The Company and its subsidiaries set up provisions, based on reasonable estimates, for taxes due. The value of these provisions is based on several factors, such as the experience of previous inspections and the different interpretations of tax regulations by the taxpayer and the responsible tax authority. These differences in interpretation can refer to a wide variety of issues, depending on the conditions in force at the home of the respective entity. 21.1. Income tax and social contribution effective rate reconciliation 2019 2018 2017 Restated Restated Income before income tax and social contribution 760 1,569 619 Income tax and social contribution expense at the nominal rate (*). (323) (532) (231) Tax penalties (18) (22) (25) Share of profit of associates (2) 15 (10) Interest on own capital 80 93 16 Tax benefits 19 15 - Other permanent differences (28) 18 (12) Effective income tax and social contribution expense (272) (413) (262) Income tax and social contribution expense for the year: Current (96) (347) (171) Deferred (176) (66) (91) Income tax and social contribution expense (272) (413) (262) Effective rate 35.79% 26.32% 42.33% (*)The nominal rate is 34% for subsidiaries located in Brazil, 33% for subsidiaries based in Colombia, 25% for subsidiaries based in Uruguay and 30% for subsidiaries based in Argentina. The Company does not pay social contribution based on a final favorable court decision in the past; therefore, its nominal rate is 25%. Income tax expense calculated on the sale of Via Varejo totaled R$199 (see note 12.3), presented in the result of discontinued operations. 21.2. Breakdown of deferred income tax and social contribution 2019 2018 Asset Liability Net Asset Liability Net Restated Tax losses and negative basis of social contribution 453 - 453 198 - 198 Provision for contingencies 321 - 321 292 - 292 Goodwill tax amortization - (604) (604) - (601) (601) Mark-to-market adjustment - (7) (7) - (1) (1) Technological innovation – future realization - (7) (7) - (10) (10) Fixed assets, tradename and investment property - (1,359) (1,359) - (128) (128) Unrealized gains with tax credits 82 (322) (240) - (222) (222) Net adjustments of IFRS 16 356 - 356 274 - 274 Cash flow hedge - (80) (80) - - - Other 117 - 117 112 (139) (27) Presumed profit on equity of Éxito 192 - 192 - - - Deferred income tax and social contribution assets (liabilities) 1,521 (2,379) (858) 876 (1,101) (225) Off-set assets and liabilities (1,184) 1,184 - (578) 578 - Deferred income tax and social contribution assets (liabilities), net 337 (1,195) (858) 298 (523) (225) Management has assessed the future realization of deferred tax assets, considering the projections of future taxable income. This assessment was based on information from the strategic planning report previously approved by the Group’s Board of Directors. The Company estimates the recovery of the deferred tax assets as follows: Up to one year 312 From 1 to 2 years 357 From 2 to 3 years 246 From 3 to 4 years 158 From 4 to 5 years 58 Above 5 years 390 1,521 21.3. Movement in deferred income tax and social contribution 2019 2018 2017 Restated Restated At the beginning of the period (374) (269) (144) Adjustment related to IFRS 16 149 174 197 Restated opening balance (225) (95) 53 Expense for the year – Continuing operations (176) (66) (91) Expense for the year - Discontinued operations (122) (87) (1) Tax on discontinued operations 314 61 - Income tax related to OCI - Continuing operations 1 (1) 1 Income tax related to OCI - Discontinued operations - 3 1 Special program on tax settlements - PERT - Discontinued operations - use of tax loss (2) (2) (89) Business combination (747) - - Exchange rate changes (18) - - Assets held for sale and discontinued operations 122 84 31 Other (5) - - At the end of the period (858) (225) (95) |
22. Provision for contingencies
22. Provision for contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Provision For Contingencies | |
Provision for contingencies | 22. Provision for contingencies Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation, and the obligation can be reliably estimated. The expense related to the provision is recognized in statement of operations for the year, net of any reimbursement. In case of attorney’s fees in favorable court decisions, the Group’s policy is to record a provision when fees are incurred, i.e., upon final judgment on lawsuits, as well as disclose in notes the estimated amounts involved in lawsuits in progress. In order to assess the outcome´s probability the Group considers available evidence, the hierarchy of laws, prior court decisions in similar cases and their legal significance, as well as the legal counsel’s opinion. The provision for contingencies is estimated by the Group’s management, supported by its legal counsel, for an amount considered sufficient to cover probable losses. Tax Social security and labor Civil and Regulatory Total Balance at December 31, 2018 828 291 116 1,235 Additions 149 449 162 760 Payments (41) (328) (84) (453) Reversals (274) (200) (92) (566) Monetary restatement (10) 66 23 79 Business combination 76 13 14 103 Exchange rate changes 2 - - 2 Deconsolidation Via Varejo 111 28 6 145 Balance at December 31, 2019 841 319 145 1,305 Tax Social security and labor Civil and Regulatory Total Balance at December 31, 2017 637 331 139 1,107 Additions 387 997 362 1,746 Payments (2) (812) (207) (1,021) Reversals (158) (597) (262) (1,017) Monetary restatement 4 119 37 160 Liabilities related to assets held for sale and discontinued operations (see Note 33) (40) 253 47 260 Balance at December 31, 2018 828 291 116 1,235 22.1. Tax As per prevailing legislation, tax claims are subject to monetary restatement, which refers to an adjustment to the provision for tax claims according to the indexation rates used by each tax jurisdiction. In all cases, both the interest charges and penalties, when applicable, were computed and fully provisioned. The main provisioned tax claims are as follows: PIS, COFINS and others Correspond to matters related to non-approval of compensation, including amounts of lesser expression, which on December 31, 2019 total R$4 (R$86 on December 31, 2018). Other tax claims, which, according to the assessment of its external legal counsel, were provisioned by the Group refer to: (i) challenge on the non-application of the Accident Prevention Factor - FAP; (ii) challenge on the State Finance Department on the ICMS tax rate calculated on energy bills; (iii) undue credit (iv) no social charges on benefits granted to its employees, due to an unfavorable decision in the Court (v) other minor claims. The amount accrued for these claims as of December 31, 2019 was R$345 (R$340 as of December 31, 2018). ICMS The Federal Supreme Court ("STF") on October 16, 2014 decided that ICMS taxpayers that trade products included in the “basic food basket” had no right to fully take the ICMS credits on the purchase. The Group, with the assistance of its legal counsel, decided to record a provision in relation to this matter amounting to R$50 as of December 31, 2019 (R$92 as of December 31, 2018). The amounts accrued represent Management’s best estimate of the future probable cash disbursement to settle this claim. On May 9, 2019, the STF upheld the previous understanding and did not comply with the request for modulation of the effects of the decision. However, this decision did not have a major impact on the Group's financial information, since the amount was fully provisioned. Additionally, there are cases assessed by São Paulo State tax authorities related to the refund of ICMS over tax substitution without proper compliance with accessory tax obligations introduced by CAT Administrative Rule 17. Considering recent court decisions the Group accrued R$268 (R$221 in December 2018) representing the estimation of probable loss evaluated by management based on documentation evidence aspect of the claims. Supplementary Law 110/2001 The Group claims in court the eligibility to not pay to the Government Severance Indemnity Fund for Employees (FGTS) costs. The accrued amount as of December 31, 2019 is R$96 (R$88 in December 31, 2018). Éxito Group Éxito and its subsidiaries discuss tax claims related to value added tax, property tax and industry and commerce taxes in the amount of R$78 on December 31, 2019. 22.2. Labor and social security taxes The Group is part in various labor lawsuits mainly due to termination of employees in the ordinary course of business. At December 31, 2019, the Group recorded a provision of R$319 (R$291 as of December 31, 2018). Management, with the assistance of its legal counsel, assessed these claims and recorded a provision for losses when the related amounts can be reasonably estimated, based on past experiences in relation to the amounts claimed. 22.3. Civil and others The Group is part in civil lawsuits at several court levels (indemnities and collections, among others) and at different courts. Management records a provision for amounts it considers sufficient to cover unfavorable court decisions, when its internal and external legal counsels assess that a negative outcome is probable. Among these lawsuits, we highlight the following: · The Group is part in various lawsuits requesting the renewal of rental agreements and the review of the current rent paid. The Group recognizes a provision for the difference between the amount originally paid by the stores and the amounts claimed by the owner of the property, when its internal and external legal counsels assessed that it is probable that such difference will be actually paid by the Group. As of December 31, 2019, the amount accrued for these lawsuits is R$68 (R$49 as of December 31, 2018), for which there are no corresponding lease deposits. · The Group is part of claims related to penalties applied by regulatory agencies, from the Federal, State and Municipal Administrations, among which includes Consumer Protection Agencies (Procon), National Institute of Metrology, Standardization and Industrial Quality (INMETRO) and Municipalities and some lawsuits involving contract terminations with suppliers. Management, with the assistance of its legal counsels, assessed these claims, and recorded a provision. On December 31, 2019 the amount of this provision is R$24 (R$27 on December 31, 2018). · The subsidiary Éxito and its subsidiaries respond to certain lawsuits related to civil liability claims, lawsuits for rental conditions and other matters in the amount of R$17 on December 31, 2019. · In relation to the provisioned amounts remaining for other civil jurisdiction claims on December 31, 2019, it is R$36 (R$40 on December 31, 2018). Total civil lawsuits and other claims as of December 31, 2019 amount to R$145 (R$116 as of December 31, 2018). 22.4. Possible contingent liabilities The Group is part of other litigations for which an outcome has been assessed by Management with the support of legal advisors as possible, therefore, the Group has not recorded a provision. Possible losses amounted to R$10,829 as of December 31, 2019 (R$10,671 on December 31, 2018), and are mainly related to: · INSS (Social Security Contribution) –The Group was assessed for non-levy of payroll charges on benefits granted to its employees, among other matters, totaling R$453, as December 31, 2019 (R$420 as of December 31, 2018). The claims are under administrative and court discussions. · IRPJ, withholding income tax - IRRF, CSLL, tax on financial transactions - IOF, withholding income tax on net income – Group has several assessment notices regarding offsetting proceedings, rules on the deductibility of provisions, payment divergences and overpayments; fine for failure to comply with accessory obligations, among other less significant taxes. The amount involved is R$1,055 as of December 31, 2019 (R$1,021 as of December 31, 2018). · COFINS, PIS and IPI – the Group has been challenged about offsets of IPI credits acquired from third parties with a final and an-appeal over the decision, fine for failure to comply with accessory obligations, disallowance of COFINS and PIS credits, among other minor claims. These lawsuits await decision at the administrative and court levels. The amount involved in these assessments is R$2,022 as December 31, 2019 (R$1,985 as of December 31, 2018). · ICMS – The Group received tax assessment notices by the State tax authorities in relation to: (i) utilization of energy bills credits; (ii) purchases from suppliers considered not qualified in the State Finance Department registry; (iii) purchases of merchandise for resale (own ICMS); (iv) sale of extended warranty, (v) resulting from financed sales; and (vi) among other matters. The total amount of these assessments is R$6,773, as of December 31, 2019 (R$6,582 as of December 31, 2018), which await a decision at the administrative and court levels. · Municipal service tax - ISS, Municipal Real Estate Tax (“IPTU”), rates and others – these refer to assessments on withholdings of third parties, IPTU payment divergences, penalties for failure to comply with accessory obligations, ISS and sundry taxes, in the amount of R$123 as December 31, 2019 (R$150 as of December 31, 2018), which await decision at the administrative and court levels. · Other litigations – these refer to administrative proceedings and lawsuits in which the Group claims the renewal of rental agreements and setting of rents according to market values in the civil court, special civil court, Consumer Protection Agency - PROCON (in many States), Institute of Weights and Measure - IPEM, National Institute of Metrology, Standardization and Industrial Quality - INMETRO and National Health Surveillance Agency - ANVISA, among others, totaling R$403 as December 31, 2019 (R$513 as of December 31, 2018). · The subsidiary Éxito and its subsidiaries have an amount of R$72 of lawsuits with probability of possible losses on December 31, 2019, mostly related to tax claims. The Group is part of other tax claims, including the improper tax deduction of goodwill amortization, for which, based on the management’s understanding and assessment of external legal counsel, the Group has the right for an indemnization from its former and current shareholders, related to the years 2007 to 2013. These assessments amounted to R$1,409 on December 31, 2019 (R$1,317 on December 31, 2018). The Group is responsible for the legal processes of GLOBEX prior to the association with Casas Bahia (Via Varejo). As of December 31, 2019, the amount involved in tax proceedings is R$484 (R$399 as of December 31, 2018). The Group engages external legal counsels to represent it in the tax assessments, whose fees are contingent on the final outcome of the lawsuits. This percentage may vary according to qualitative and quantitative factors of each claim, and as of December 31, 2019 the estimated amount, in case of success in all lawsuits, is approximately R$205 (R$186 as of December 31, 2018). 22.5. Restricted deposits for legal proceedings The Group is challenging the payment of certain taxes, contributions and labor-related obligations and has made judicial deposits in the corresponding amounts, as well as escrow deposits related to the provision for legal proceedings. The Group has recorded judicial deposits as follows. 2019 2018 Tax 242 237 Labor 474 463 Civil and other 79 76 Total 795 776 22.6. Guarantees Lawsuits Property and equipment Letter of Guarantee Total 2019 2018 2019 2018 2019 2018 Tax 843 838 9,162 9,033 10,005 9,871 Labor - 3 539 190 539 193 Civil and other 11 12 469 433 480 445 Total 854 853 10,170 9,656 11,024 10,509 The cost of letter of guarantees is approximately 0.59% per year of the amount of the lawsuits and is recorded as financial expense. 22.7. Deduction of ICMS from the calculation basis for PIS and COFINS Since the adoption of the non-cumulative regime to calculate PIS and COFINS, the Group has claimed the right to deduct ICMS taxes from the calculation basis of PIS and COFINS. On March 15, 2017, the Supreme Court ruled that ICMS should be excluded from the calculation basis of PIS and COFINS. Since such decision, the proceedings have been brought forward by our legal advisors without any change in management's judgment, but without the final decision on the appeal filed by the Attorney General . The Group and its external legal counsel believe that the decision on this appeal will not limit the right of the lawsuit filed by the Group, however, the elements of the lawsuit were still pending decision and do not allow the recognition of assets related to the credits to be raised since filing of the lawsuit in 2003. In 2019, certain of the Company’s subsidiaries had final court decision and recorded PIS and COFINS credits of R$382, of which R$198 was recognized as financial income. On October 29, 2020, a final decision was issued in favor of the Company and granted a tax credit, of approximately R$1,184 (principal + monetary restatement). This tax credit is subjected to certain administrative proceeding within the Brazilian Tax Authorities, and the Company estimates to realize the credits within 5 (five) years. The Company also expects a favorable judgment in relation to tax credits in the estimated amount of R$117 related to the Sendas subsidiary. Similarly, Via Varejo obtained a favorable decision in May, 2020, which includes amount for which GPA entitled to be reimbursed for, according to the terms of the association agreement signed between GPA and the Klein family in the transaction that created Via Varejo. The periods which GPA is entitled to be reimbursed relate to the subsidiary Globex (that was merged in the formation of Via Varejo) for the years between 2003 and 2010. CBD has already recognized in fiscal year 2020, based on the documentation analyzed so far, R$231 of a receivable with Via Varejo. The related gain is recognized in the net result of discontinued operations. In addition, the Company believes it is entitled to an outstanding amount of R$277, which is subject to certain adjustments and confirmation by Via Varejo. 22.8. Arbitration Península On September 12, 2017, the Company received a notice from the Brazil-Canada Chamber of Commerce regarding a request for arbitration (“Proceeding”) filed by Banco Ourinvest S.A., a financial institution, in its capacity as fund manager and acting in the exclusively interest of the quotaholders of Fundo de Investimento Imobiliário Península ("Península"). The Proceeding aims to discuss the calculation of the rental fees and other operational matters related to the stores owned by Peninsula, which are under several lease agreements and contracts entered into between the Company and Peninsula during 2005 (the "Agreements"). The Agreements assure to CBD the rent of the stores for a period of twenty (20) years, which may be extended for an additional 20-year term, at CBD’s discretion, and establish the calculation of the rental fees. The Proceeding refers to certain terms and conditions of the Agreements and does not affect the continuity of the leasing of the stores, which are contractually assured. The amounts on which the Company is exposed cannot be determined with reasonable certainty based on the current stage of the arbitral process. Management assessed the arbitration as possible loss, based on the opinion provided by the external legal counsel. |
23. Leases
23. Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases | |
Leases | 23. Leases 23.1. Lease obligations When entering into a contract, the Company assesses whether the contract is, or contains, a lease. The contract is, or contains, a lease if it transfers the right to control the use of the identified asset for a specified period in exchange for consideration. The Company leases equipment and commercial spaces, including stores and distribution centers, under cancellable and non-cancellable lease agreements. The terms of the contracts vary substantially between 5 and 25 years. The Group as lessees The Group evaluates its lease agreements in order to identify lease terms for a right to use, using the exemptions provided for contracts with a term of less than twelve months and an individual asset value below US$5,000 (five thousand dollars). The contracts are then recorded, when the lease begins, as a Lease Liability against the Right of Use (notes 15 and 16), both at the present value of the minimum lease payments, using the interest rate implicit in the contract, if this can be used, or an incremental borrowing rate considering loans obtained by the Group. The lease term used in the measurement corresponds to the term that the lessee is reasonably certain to exercise the option to extend the lease or not to exercise the option to terminate the lease. Subsequently, payments made are segregated between financial charges and reduction of the lease liability, in order to obtain a constant interest rate on the liability balance. Financial charges are recognized as financial expenses for the period. Right of use assets are amortized over the lease term. Capitalizations for improvements, improvements and renovations carried out in stores are amortized over their estimated useful life or the expected term of use of the asset, limited if there is evidence that the lease will not be extended. Variable rents are recognized as expenses in the years in which they are incurred. The Group as lessors Leases where the Group does not substantially transfer all the risks and rewards of ownership of the asset are classified as operating leases. The initial direct costs of negotiating operating leases are added to the book value of the leased asset and recognized over the term of the contract, on the same basis as rental income. Variable rents are recognized as income in the years in which they are earned. Leasing contracts totaled R$8,667 as of December 31, 2019 (R$5,787 as of December 31, 2018), as presented in the following table: 2019 2018 Restated Financial lease liability – minimum lease payments: Up to 1 year 937 507 1 - 5 years 2,936 1,956 Over 5 years 4,794 3,324 Present value of finance lease agreements 8,667 5,787 Future financing charges 8,007 6,780 Gross amount of finance lease agreements 16,674 12,567 The interest expense on lease liabilities is presented in note 29. The incremental borrowing rate of the Group at the date of signing the agreements was 10.73% in the year ended December 31, 2019 (12.61% in 2018 and 12.87% in 2017). 23.2. Movement of leasing obligation At December 31, 2018 5,787 Additions 807 Remeasurement 838 Accrued interest 862 Payments (1,498) Anticipated lease contract termination (116) Business combination 1,817 Exchange rate changes 33 Deconsolidation Via Varejo 137 At December 31, 2019 8,667 Current 937 Noncurrent 7,730 At December 31, 2017 5,267 Additions 519 Remeasurement 853 Accrued interest 985 Exchange and monetary variation 1 Payments (1,743) Anticipated lease contract termination (80) Liabilities related to assets held for sale and discontinued operations (15) At December 31, 2018 5,787 Current 507 Noncurrent 5,280 23.3. Lease expense on variable rents, low value assets and short-term agreements 2019 2018 2017 Expenses (income) for the year: Restated Restated Variable (0.1% to 4.5% of sales) 34 31 19 Sublease rentals (*) (230) (191) (174) (*) Refers to revenues from lease agreements from commercial shopping malls and spaces rented in the stores. |
24. Deferred revenue
24. Deferred revenue | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Revenue | |
Deferred revenue | 24. Deferred revenue The Group received amounts from business partners on exclusivity in the intermediation of additional or extended warranty services, and the subsidiary Sendas received amounts for the rental of back lights for exhibition of products from certain suppliers at its stores. 2019 2018 Deferred revenue in relation to sale of real estate property 10 16 Additional or extended warranties 16 19 Services rendering agreement - Allpark 9 11 Revenue from credit card operators and banks 84 44 Back lights 142 134 Gift Card 99 8 Others 31 31 391 263 Current 365 250 Noncurrent 26 13 |
25. Shareholders' equity
25. Shareholders' equity | 12 Months Ended |
Dec. 31, 2019 | |
Changes in equity [abstract] | |
Shareholders' equity | 25. Shareholders’ equity a. Capital stock Common shares and preferred shares are classified as equity. The subscribed and paid-up capital as of December 31, 2019 is represented by 267,997 (266,845 as of December 31, 2018) in thousands of registered shares with no par value, of which 99,680 in thousands of common shares (99,680 as of December 31, 2018) and 168,317 in thousands of preferred shares (167,165 as of December 31, 2018). The Company is authorized to increase its capital stock up to the limit of 400,000 shares, regardless of any amendment to the Company’s Bylaws, upon resolution of the Board of Directors. At the Board of Directors’ Meetings held on February 20, 2019, May 7, 2019, June 24, 2019 and July 24, 2019, it was approved a capital increase of R$32 (R$3 at December 31, 2018) through the issuance of 1,152 thousands preferred shares (265 thousands of preferred shares at December 31,2018). At December 31, 2019, the capital stock is R$6,857 (R$6,825 at December 31, 2018). b. Share rights Preferred shares do not have voting rights, assuring to its owners the following rights and advantages: (i) preference in the redemption of capital in the case of liquidation, (ii) preference in the annual minimum dividend payment in the amount of R$0.08 per share, non-cumulative; (iii) entitled to an additional 10% dividend payment over dividends on common shares, including for the purposes of the calculation the amount paid in (ii) above. As per note 1.2, Company converted the totality of the preferred shares to common shares as part of the migration to Novo Mercado, which gives equal right of dividends and voting, and additional requests of governance for the Company, including, composition of the Board of Directors, tag along rights, minimum percentage of floating, requests to definition of policies, among others. When any related party purchases shares of the Company’s equity share capital (treasury shares), the remuneration paid, including any directly attributable incremental costs, is deducted from equity, and are recorded as treasury shares until the shares are cancelled or reissued. When these shares are subsequently reissued, any remuneration received, net of any directly attributable incremental transaction costs is included in equity. No gain or loss is recognized on the purchase, sale, issue or cancellation of the Company’s own equity instruments. c. Earnings reserve (i) Legal reserve (ii) Expansion reserve d. Stock options It recognizes the expenses associated to the group of executives’ share-based payments in accordance with IFRS 2 – Share-based payment. Employees and senior executives of the Company and its subsidiaries may receive compensation in the form of share-based payment, whereby employees render services in exchange for equity instruments (“equity-settled transactions”). The Group calculates compensation expense in relation to share based payments based on the fair value of the awards at the grant date. Estimating of the volatility and dividend return awards requires determination of the most appropriate valuation model, which depends on the terms and conditions of the grant. This estimate also requires a definition of the most appropriate information for the valuation model, including the expected useful life of the stock options, volatility and dividend yield, as well as making assumptions about them. The cost of equity-settled transactions is recognized as an expense for the year, together with a corresponding increase in shareholders' equity, over the period in which the performance and / or service provision conditions are met. Accumulated expenses recognized in relation to equity instruments at each reporting date until the vesting date reflect the extent to which the vesting period has expired and the Company’s best estimate of the number of equity instruments that will ultimately vest. The expense or reversal of expenses for each year represents the change in the accumulated expenses recognized at the beginning and end of the year. No expenses is recognized for services that have not completed the vesting period, except for equity-settled transactions where vesting is conditional upon a market or non-vesting condition, which are treated as vested irrespective of whether or not the market or non-vesting condition is met, provided that all other performance and / or service provision conditions are met. When an equity instrument is modified, the minimum expense recognized is the expense that would have been incurred if the terms had not been modified. An additional expense is recognized for any modification that increases the total fair value of the share-based payment transaction or is otherwise beneficial to the employee, as measured on the date of modification. When an equity instrument is cancelled, it is treated as fully vested on the date of cancellation, and any unrecognized expenses related to the premium are immediately recognized in profit or loss for the year. This includes any premium whose non-vesting conditions within the control of either the Company or the employee are not met. However, if the canceled plan is replaced by another plan and designated as a replacement grants on the grant date, the cancelled grant and the new plan are treated as if they were a modification of the original grant, as described in the previous paragraph. All cancellations of equity-settled transactions are treated equally. The dilutive effect of outstanding options is reflected as an additional share dilution in the calculation of diluted earnings per share. The following describes the Stock Option Plans on December 31, 2019. Compensation Plan The Compensation Plan is managed by the Board of Directors, who has assigned to the Human Resources and the Compensation Committee the responsibility to grant the options and act as an advisory in managing the Compensation Plan (the "Committee"). Committee members meet to decide on the grant of options and Compensation Plan series or whenever necessary. Each series of the options granted are assigned the letter "B" followed by number. For the year ended December 31, 2019, the B4, B5 and B6 Series of the Compensation Plan were granted. Options granted to a participant vest on a period of 36 (thirty six) months from the date of grant ("Grace Period"), except with formal authorization by the Company, and may only be exercised in the period beginning on the first day of the 37 (thirty-seventh) month from the date of grant, through the 42 (forty-second) month from the date of grant ("Exercise Period"). The participants may exercise their total purchase options or in part, in one or more times, if for each year, the option exercise term is submitted during the Exercise Period. The exercise price of each stock option granted under the Compensation Plan should correspond to R$0.01 (one cent) ("Exercise Price"). The exercise price of the options shall be paid in full in local currency by check or wire transfer available to the bank account held by the Company, in the tenth (10th) day preceding the date of acquisition of the shares. The participants are precluded for a period of 180 (one hundred and eighty) days from the date of acquisition of the shares, directly or indirectly, sell, assign, exchange, dispose of, transfer, grant to the capital of another company, grant option, or even celebrate any act or agreement which results or may result in the sale, directly or indirectly, costly or free, all or any of the shares acquired by the exercise of the purchase option under the option Plan. The Group withholds any applicable tax under Brazilian tax law, less the number of shares delivered to the participant amount equivalent to taxes withheld. Option Plan The Stock Option Plan is managed by the Board of Directors, who assigns to Human Resources and the Compensation Committee the responsibility to grant options and to provide advice in managing the Stock Option Plan (the "Committee"). Committee members meet when options under the Option Plan are granted, and, when necessary, to make decisions in relation to the Stock Option Plan. Each series of options granted receive the letter "C" followed by a number. For the year ended December 31, 2019, the series C4, C5 and C6 of the Option Plan were granted. For each series of stock options granted under the Option Plan, the exercise price of the option is equivalent to 80% of the closing average price of the Company's preferred shares traded during twenty (20) days in B3 - Securities, Commodities and Futures prior to the date of the Committee meeting that decides upon the granting of the options ("Exercise Price"). Options granted to a Participant vest in a period of 36 (thirty six) months from the Grant Date ("Grace Period"), and may only be exercised in the period beginning on the first day of the 37 (thirty-seventh) months as from the Grant Date, and ends on the last day of the 42 (forty-second) month as of the Grant Date ("Exercise Period"), provided the exceptions included in the Compensation Plan. Participants may exercise the options in full or in part, in one or more times, by the formalization of the exercise. The options exercise price shall be paid in full in local currency by check or wire transfer available to the bank account held by the Company, provided that the payment deadline will always be the tenth (10th) day preceding the date to acquire the shares. Information on the plans are summarized below: 2019 Number of options (in thousands) Series granted Grant date 1st date of exercise Exercise price at the grant date Granted Exercised Cancelled Expired Outstanding B3 05/30/2016 05/30/2019 0.01 823 (658) (77) (88) - C3 05/30/2016 05/30/2019 37.21 823 (640) (110) (73) - B4 05/31/2017 05/31/2020 0.01 537 (211) (54) - 272 C4 05/31/2017 05/31/2020 56.78 537 (209) (55) - 273 B3 -Tranche2 04/27/2018 05/30/2019 0.01 95 (95) - - - C3 -Tranche2 04/27/2018 05/30/2019 56.83 95 (95) - - - B5 05/31/2018 05/31/2021 0.01 594 (116) (37) - 441 C5 05/31/2018 05/31/2021 62.61 594 (115) (38) - 441 B6 05/31/2019 05/31/2022 0.01 434 (3) (17) - 414 C6 05/31/2019 05/31/2022 70.62 331 (2) (17) - 312 4,863 (2,144) (405) (161) 2,153 Consolidated information of share-based payment plans – GPA The Company implement two new share-based series in 2019, B6 and C6. According to the terms of the plans, including B6 and C6 series, each option offers the participant the right to acquire a preferred share, with the same conditions of the preceding series. The plans will be exercisable in until 6 months after the end of the vesting period. The series are different, exclusive, in the exercise price of the options and in the existence or not of a restriction of selling after vesting. According to the plans, the options granted in each of the series may represent maximum 0.7% of the total shares issued by the Company. For these new series 765 thousands options of shares were granted. At December 31, 2019 there were 233 thousands treasury preferred shares which may be used upon exercised of the options granted in the plan. The preferred share market price was R$87.65 per share. The table below shows the dilutive effect if all options granted were exercised: 2019 2018 Number of shares 267,997 266,845 Balance of effective stock options granted 2,153 2,755 Maximum percentage of dilution 0.80% 1.03% The fair value of each option granted is estimated on the grant date, by using the options pricing model “Black & Scholes” taking into account the following assumptions for the series B4 and C4: (a) expectation of dividends of 0.57%, (b) expectation of volatility nearly 35.19% and (c) the weighted average interest rate without risk of 9.28% and 10.07%; (d) vesting period of 18 to 36 months. The fair value of each option granted is estimated at the grant date using the option pricing model Black & Scholes, taking into account the following assumptions for the B5 and C5 series: (a) dividend expectation of 0.41%, (b) volatility expectation of nearly 36.52% and (c) the weighted average interest rate of 9.29%. The fair value of each option granted is estimated at the grant date using the option pricing model Black & Scholes, taking into account the following assumptions for the B6 and C6 series: (a) dividend expectation of 0.67%, (b) volatility expectation of nearly 32.74% and (c) the weighted average interest rate of 7.32%. The expectation of remaining average life of the series outstanding at December 31, 2019 is 1.50 year (1.25 year at December 31, 2018). The weighted average fair value of options granted at December 31, 2019 was R$56.41 (R$45.24 at December 31, 2018). Shares in thousands Weighted average of exercise price Weighted average of remaining contractual term At December 31, 2018 Granted during the period 1,378 30.91 Cancelled during the period (229) 38.64 Exercised during the period (697) 31.96 Expired during the period (236) 68.62 Outstanding at the end of the period 2,755 26.03 1.37 Total to be exercised at December 31, 2018 2,755 26.03 1.37 At December 31, 2019 Granted during the period 765 30.55 Cancelled during the period (126) 31.75 Exercised during the period (1,080) 21.55 Expired during the period (161) 16.74 Outstanding at the end of the period 2,153 30.25 1.50 Total to be exercised at December 31, 2019 2,153 30.25 1.50 The amounts recorded in the statement of operations, for the year ended December 31, 2019 were R$27 (R$20 as of December 31, 2018). 25.1. Other comprehensive income Foreign exchange variation of investment abroad Cumulative effect of exchange gains and losses on the translation of assets, liabilities and profit (loss) denominated in Euros to Brazilian Reais, corresponding to the investment in subsidiary Cnova N.V and Colombian denominated in Pesos to Reais, corresponding to the investment by Sendas in the subsidiary Éxito. The effect was R$151 (R$26 on December 31, 2018). 25.2. Governmental subsidy reserve On June 29, 2018, and in December 2018, an extraordinary shareholders’ meeting approved Management’s proposal to transfer a total R$58 from the expansion reserve to the governmental subsidy reserve. 25.3. Dividends and interests on own capital Dividend distribution to the Group's shareholders is recognized as a liability at the year-end, based on the minimum mandatory dividends established by the Bylaws. Additional dividends are only recorded when approved by the Group’s Board of Directors. The Company's Bylaws establish the minimum payment of 25% of profit for the year, which may be higher upon decision by the Board of Directors. The Group may pay interest on own capital as remuneration calculated over the shareholders' equity accounts, observing the rate and limits determined by law. On March 25, 2019, the interests on own capital related to 2018 profit, in the amount of R$192 was approved, of which R$0.747146155 per preferred share and R$0.67922378 per common share, paid on May 27, 2019. In 2019, the Company's Board of Directors approved advances for the distribution of interests on own capital in the total gross amount of R$37, as detailed below: On June 24, 2019 approved the value of R$37 being R$0.142512451 per preferred share and R$0.129556774 per common share, paid on August 29, 2019. Company’s management has proposed dividends, considering the interest on own capital paid in a net amount of R$32 to its shareholders which was attributable to the minimum dividend and calculated as follows: Proposed dividends 2019 2018 Restated Net income for the year 790 1,149 Legal reserve (39) (60) Governmental subsidy reserve - (10) Calculation basis of dividends 751 1,079 Mandatory minimum dividends – 25% 188 270 Additional dividends - 11 Payment of interim dividends as interest on own capital, net of withholding taxes (32) (225) Dividends payable 156 56 |
26. Revenue from the sale of go
26. Revenue from the sale of goods and / or services | 12 Months Ended |
Dec. 31, 2019 | |
Revenue [abstract] | |
Revenue from the sale of goods and / or services | 26. Revenue from the sale of goods and / or services IFRS 15 establishes a comprehensive framework to determine when and for how much revenue form contracts with customers should be recognized. Sale of goods Revenue from sale of goods is recognized when control of the goods is transferred to the customer, usually when delivered in the store, and at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods. No revenue is recognized if collection is uncertain. Service revenue The Company acts as agent in insurance extended warranty, financial protection insurance, personal accident insurance, technical assistance and mobile phone credits recharge. Revenues from these services are recognized at a point of time and presented net of related costs and recognized when control of the service is transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those services. 2019 2018 2017 Gross sales Goods 61,176 53,643 48,597 Services rendered 641 456 365 Sales returns and cancellations (273) (484) (523) 61,544 53,615 48,439 Taxes on sales (4,909) (4,227) (3,805) Net operating revenue 56,635 49,388 44,634 |
27. Expenses by nature
27. Expenses by nature | 12 Months Ended |
Dec. 31, 2019 | |
Expenses By Nature | |
Expenses by nature | 27. Expenses by nature Cost of goods sold The cost of goods sold comprises the acquisition cost of inventory net of discounts and considerations received from suppliers and logistics costs. Rebates received from suppliers are measured based on contracts and agreements signed with them. The cost of sales includes the cost of logistics operations managed or outsourced by the Group, comprising warehousing, handling and freight costs incurred until the goods are ready for sale. Selling expenses Selling expenses comprise all store expenses, such as salaries, marketing, occupancy, maintenance, fees charged by credit card companies, etc. Marketing expenses refer to advertising campaigns for each segment in which the Group operates. The main media used by the Group are: radio, television, newspapers and magazines. These expenses are recognized in profit or loss through campaign period. General and administrative expenses General and administrative expenses correspond to overhead and the cost of corporate units, including purchasing and procurement, information technology and financial activities. 2019 2018 2017 Restated Restated Cost of inventories (42,688) (36,239) (32,140) Personnel expenses (5,332) (4,846) (4,691) Outsourced services (636) (636) (648) Overhead expenses (1,904) (1,536) (1,568) Commercial expenses (1,481) (1,334) (1,226) Other expenses (758) (790) (661) (52,799) (45,381) (40,934) Cost of sales (44,445) (37,779) (33,585) Selling expenses (7,431) (6,553) (6,323) General and administrative expenses (923) (1,049) (1,026) (52,799) (45,381) (40,934) |
28. Other operating expenses, n
28. Other operating expenses, net | 12 Months Ended |
Dec. 31, 2019 | |
Other Operating Expenses Net | |
Other operating expenses, net | 28. Other operating expenses, net Other operating income and expenses correspond to the effects of major or nonrecurring events occurred during the year that do not meet the definition for the other statement of operations lines. 2019 2018 2017 Restated Restated Tax installments and other tax risks (211) (181) (217) Restructuring expenses (*) (292) (147) (107) Gain (losses) on disposal of property and equipment (**) 44 125 (244) Other - - (8) (459) (203) (576) (*) amounts related to restructuring expenses in the Brazilian operations and those incurred in connection with the acquisition of Éxito Group. (**) includes the result of sale lease back of R$45 in 2019 (R$ 201 in 2018 and there was no such transaction in 2017). |
29. Financial income (expenses)
29. Financial income (expenses), net | 12 Months Ended |
Dec. 31, 2019 | |
Financial Income Expenses Net | |
Financial income (expenses), net | 29. Financial income (expenses), net Financial income includes income generated by highly liquid short-term investments and gains arising from measurement of derivative financial instruments at fair value. Interest income is recorded for all financial assets measured at amortized cost, using the effective interest rate, which is the rate that discounts for the estimated future cash payments or receipts through the expected term of the financial instrument or shorter period, where appropriate, from the carrying amount of the financial asset or liability. Financial expenses include substantially interest and financial charges on borrowings and financing and discounting receivables during the year, losses arising from measurement of derivative financial instruments at fair value, losses on disposals of financial assets, financial charges on provisions on lawsuits and taxes and interest charges on financial leases, as well as discount charges. 2019 2018 2017 Restated Restated Finance expenses: Cost of debt (584) (368) (474) Cost of the discounting of receivables (136) (155) (144) Monetary restatement loss (157) (78) (131) Interest on lease liabilities (666) (609) (589) Other finance expenses (112) (82) (138) Total financial expenses (1,655) (1,292) (1,476) Financial income: Income from short term instruments 168 26 38 Monetary restatement gain 270 194 137 Other financial income 11 11 6 Total financial income 449 231 181 Total (1,206) (1,061) (1,295) The gains or losses on derivative financial instruments are recorded as cost of debt and disclosed in Note 19. |
30. Earnings per share
30. Earnings per share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings per share [abstract] | |
Earnings per share | 30. Earnings per share Basic earnings per share are calculated based on the weighted average number of outstanding shares of each category during the year. Diluted earnings per share are calculated as follows: · Numerator: profit for the year adjusted by dilutive effects from stock options. · Denominator: the number of shares of each category adjusted to include potential shares corresponding to dilutive instruments (stock options), less the number of shares that could be bought back at market, if applicable. Equity instruments that will or may be settled with the Company’s shares are only included in the calculation when its settlement has a dilutive impact on earnings per share. As mentioned in note 1.2, the migration process to “ Novo Mercado The table below presents the determination of net income available to holders of common shares and the weighted average number of common shares outstanding used to calculate basic and diluted earnings per share in each reporting exercise: 2019 2018 2017 Restated Restated Basic numerator Net income (loss) allocated to ordinary shareholders – continuing operations 478 1,156 357 Net income (loss) allocated to ordinary shareholders - discontinued operations 312 (7) 150 Net income (loss) allocated to ordinary shareholders 790 1,149 507 Basic denominator (millions of shares) Weighted average of shares 267 267 266 Basic earnings per millions of shares (R$) – continuing operations 1.78980 4.33836 1.34175 Basic earnings per millions of shares (R$) - discontinued operations 1.16824 (0.02627) 0.56376 Basic earnings per millions of shares (R$) – total 2.95804 4.31209 1.90551 Diluted numerator Net income (loss) allocated to ordinary shareholders – continuing operations 478 1,156 357 Net income (loss) allocated to ordinary shareholders - discontinued operations 312 (7) 150 Net income (loss) allocated to ordinary shareholders 790 1,149 507 Diluted denominator Weighted average of shares (in millions) 267 267 266 Stock option 1 1 1 Diluted weighted average of shares (millions) 268 268 267 Diluted earnings per millions of shares (R$) – continuing operations 1.78696 4.31977 1.33637 Diluted earnings per millions of shares (R$) – discontinued operations 1.16657 - 0.56100 Diluted earnings per millions of shares (R$) – total 2.95353 4.29350 1.89737 |
31. Segment information
31. Segment information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Information | |
Segment information | 31. Segment information Management considers the following business segments: · Food retail – includes the banners “Pão de Açúcar”, “Extra Hiper”, “Extra Supermercado” / “Mercado Extra”, “Minimercado Extra”, “Minuto Pão de Açúcar”, “Posto Extra, “Drogaria Extra” and “GPA Malls & Properties”. · Cash & Carry – includes the brand “ASSAÍ”. · Éxito Group - includes the company Éxito (Colômbia) and its subsidiaries Libertad (Argentina) and Disco (Uruguay). Éxito also operates the brands Surtimax, Super Inter, and CarullaHome appliances and e-commerce segments were sold and are presented as Discontinued Operations on December 31, 2019, 2018 and 2017. The other businesses are composed of the results of James Delivery, Cheftime, Stix and Cnova N.V. Both segments are maintained in this note for reconciliation purposes. The eliminations of the result and balance sheet are presented within the segment itself. The debentures obtained for funding the acquisition of Éxito and related interest expenses were allocated to Éxito Group, as well as other acquisition related expenses incurred in 2019. Management monitors the operating results of its business units separately making decisions about resource allocation and performance assessment. The segment performance is evaluated based on operating income and is measured consistently with operating income in the financial statements. The Group is engaged in operations of retail stores located in 20 States and the Federal District of Brazil. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker who has been identified as the Chief Executive Officer. The chief operating decision-maker (CODM) allocates resources and assesses performance by reviewing results and other information related to segments. The Group deems irrelevant the disclosure of information on sales per product category, given that similar products are sold based on each business’ strategies and each segment has its own management controls. The Group measures the results of segments, regularly reviewed by the chief operating decision-maker (CODM), using the accounting practices under IFRS, using each segment’s operating profit, which includes certain corporate overhead allocations. Information on the Group’s segments as of December 31, 2019 is included in the table below: Description Retail Cash & Carry Éxito Group Assets held for sale and discontinued operations Other businesses Total 2019 2018 2017 2019 2018 2017 2019 2019 2018 2017 2019 2018 2017 2019 2018 2017 Restated Restated Restated Restated Restated Net operating revenue 26,654 26,490 26,194 27,797 22,898 18,440 2,151 - - - 33 - - 56,635 49,388 44,634 Gross profit 7,005 7,444 8,091 4,578 4,165 2,958 608 - - - (1) - - 12,190 11,609 11,049 Depreciation and amortization (967) (892) (878) (386) (310) (239) (59) - - - (1) - - (1,413) (1,202) (1,117) Operating income 467 956 1,121 1,526 1,646 886 27 - - - (56) - - 1,964 2,602 2,007 Net financial expenses (815) (903) (1,158) (184) (158) (137) (208) - - - 1 - - (1,206) (1,061) (1,295) Profit(loss) before income tax and social contribution (241) 132 11 1,342 1,488 749 (187) - - - (154) (51) (141) 760 1,569 619 Share of profit of associates 107 79 48 - - - (6) - - - (99) (51) (141) 2 28 (93) Income tax and social contribution 121 42 (36) (439) (455) (226) 44 - - - 2 - - (272) (413) (262) Net income (loss) for continuing operations (120) 174 (25) 903 1,033 523 (143) - - - (152) (51) (141) 488 1,156 357 Net income (loss)for discontinued operations 312 (73) (91) - - - - 36 201 591 - - - 348 128 500 Net income (loss) of year end 192 101 (116) 903 1,033 523 (143) 36 201 591 (152) (51) (141) 836 1,284 857 Current assets 8,002 7,529 5,292 4,176 6,664 - 28,813 10 - 19,968 40,518 Noncurrent assets 15,568 15,138 7,475 6,001 15,438 - - 26 - 38,507 21,139 Current liabilities 11,557 8,358 4,317 5,296 7,252 - 23,602 9 - 23,135 37,256 Noncurrent liabilities 9,810 9,834 2,295 1,408 9,686 - - 1 - 21,792 11,242 Shareholders' equity 2,203 4,475 6,155 3,473 5,164 - 5,211 26 - 13,548 13,159 The Group operates primarily as a retailer of food, clothing, home appliances and other products. Total revenues by brand is provided in the table below: 2019 2018 2017 Brazil 54,484 49,388 44,634 Assai 27,797 22,899 18,440 Extra / Compre Bem 15,624 15,792 16,110 Pão de Açúcar 6 , 6,860 6,659 Proximidade 1,273 1,182 1,085 Gas Stations / Drugstores / Delivery 2,971 2,655 2.340 Other business 34 - - Éxito Group (*) 2,151 - - Total net operating revenue 56,635 49.388 44,634 (*) Includes sales in Colombia of R$ 1,694, Uruguay R$ 350 and Argentina of R$ 107. |
32. Non cash transactions
32. Non cash transactions | 12 Months Ended |
Dec. 31, 2019 | |
Non Cash Transactions | |
Non cash transactions | 32. Non cash transactions During 2019, 2018 and 2017 the Group had the following non-cash transactions: · Purchase of property plant and equipment items not yet paid as per note 15.3; · Purchase of intangible assets not yet paid as per note 16.3; · Deferred income tax as per note 21; · Additions of provisions for contingencies as per note 22. |
33. Noncurrent assets held for
33. Noncurrent assets held for sale and discontinued operations | 12 Months Ended |
Dec. 31, 2019 | |
Noncurrent Assets Held For Sale And Discontinued Operations | |
Noncurrent assets held for sale and discontinued operations | 33. Noncurrent assets held for sale and discontinued operations 33.1. Assets held for sale Noncurrent assets and group of assets are reclassified as held for sale if the carrying amount will be recovered through a sale transaction, instead of continuous use. This condition is met only when the asset is available for sale in the present condition, exposed only to the terms that are usual to sales of these assets and the sale is highly probable. Management has to be committed to complete within one year. When the Company is committed to a sale plan involving the loose of control over a subsidiary, all the assets and liabilities of this subsidiary are classified as held for sale when the criteria above is met, even if the Company keeps a non-controlling interest in its former subsidiary after the sale. Additionally, the net income of the entity classified as held for sale is presented as discontinued operations in a single caption in the statements of operations. Noncurrent assets classified as held for sale are measured based on the lower amount between their carrying amount and their fair value less cost to sell. Breakdown 2019 2018 Restated Assets of discontinued operations - 28,657 Properties / lands held for sale 171 30 Real estate developments held for sale - Éxito 52 - Total 223 28,687 Liabilities from discontinued operations - 23,545 Total - 23,545 On September 29, 2018, the Group entered into a contract for the sale of a land for R$115, which was not recognized under IFRS15 due to the contractual characteristics of long – term payment and transfer of legal title at a future date. As disclosed in notes 2 and 12.3, on June 14, 2019, the sale of Via Varejo S.A. (“VV”) was concluded, date on which the Company lost the control over this subsidiary. Following are shown the summarized balance sheets, statements of operations and cash flows of Via Varejo through May 31, 2019. The cash flow of Via Varejo is presented before eliminations, the accounting figures presented include the effects of the Purchase Price Allocation of Globex and Casa Bahia recorded in the level of GPA. Summarized Balance sheet (*) 05.31.2019 2018 Assets Restated Current Total current assets 9,871 13,412 Noncurrent Total noncurrent assets 16,266 15,401 Total assets 26,137 28,813 Liabilities Current Total current liabilities 13,484 15,733 Noncurrent Total noncurrent liabilities 7,375 7,869 Shareholders’ equity 5,278 5,211 Total liabilities and shareholders’ equity 26,137 28,813 (*) Before elimination of transactions carried out with the Company. Summarized Cash flow statements: 05.31.2019 2018 2017 Restated Restated Cash flow provided by (used in) operating activities (2,640) 1,609 807 Net cash used in investing activities (234) (590) (260) Net cash used in financing activities (651) (867) (1,018) Increase (decrease) of cash and cash equivalents (3,525) 152 (471) Summarized Statement of Operations: The breakdown of profit from discontinued operations presented in a single line of the statement of operations is as follows: 05.31.2019 2018 2017 Restated Restated Net operating revenue 10,527 26,928 25,690 Profit before income tax and social contribution 169 341 876 Income tax and social contribution (119) (101) (268) Net profit for the year 50 240 680 Other results from discontinued operations (100) (112) (108) Gain on the sale of discontinued operations (note 12.3) 398 - - Profit from discontinued operations 348 128 500 Attributable to: Controlling shareholders of the Company 312 (7) 150 Non-controlling shareholders 36 135 350 Additionally, a reclassification was made of incurred costs mainly related to indemnity costs of contingences arising from various periods prior to the acquisition by the Company, which were paid to Via Varejo. Under IFRS 5, such costs were reclassified to discontinued operations in the amount of R$87 on December 31, 2019 (R$91 on December 31, 2018 and R$ 32 on December 31, 2017). |
34. Insurance coverage
34. Insurance coverage | 12 Months Ended |
Dec. 31, 2019 | |
Insurance Coverage | |
Insurance coverage | 34. Insurance coverage The insurance coverage as of December 31, 2019 is summarized as follows: Insured assets Covered risks Amount insured Property and equipment and inventories Operating risks 26,120 Business interruption Loss of profits 12,306 Cars and Others Damages 378 The Company also has specific insurance policies for general civil liability of R$100 and civil responsibility of R$134, coverage against fraud and risk (Criminal) in the amount of R$44 and damage protection and Cybersecurity responsibility (Cyber) of R$37, which totaled a coverage of R$315. |
35. Subsequent events
35. Subsequent events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events | |
Subsequent events | 35. Subsequent events 35.1. Effects of COVID-19 on the consolidated financial statements The Company has been monitoring the progress of the pandemic of COVID-19 (Coronavirus) and its impacts on its operations. Several actions were taken by management, among which we highlight the creation of a crisis committee formed by the senior management, which takes decisions in line with the recommendations of Health and local authorities and professional associations. The Company has adopted all possible measures to mitigate the transmission of the virus in stores, distribution centers and offices, such as: frequent cleaning, safety / protection items for employees, flexible working hours, adoption of home office, among other decisions. Since the beginning of the COVID-19 outbreak, our stores have remained open, in addition to the significant increase of our e-commerce formats. The Company has an important commitment to society to continue taking products to our consumers. We had no problems in our supply chain, and our suppliers continued to deliver its products in our distribution centers and stores. The Company carried out a complete analysis of the consolidated financial statements, in addition to concluding about its operational continuity. The main aspects evaluated were: · The Company updated its budgets that were initially used to estimate the recoverability of store assets and intangible assets on December 31, 2019, and did not identify significant decrease in revenues, and other lines of income statement, that could result in the non-recoverability of assets. Due to the uncertainty regarding the end of the pandemic, and its macroeconomic consequences, management assessed the existence of indicators of impairment for some of its assets and, consequently, performed an impairment test on June 30, 2020. The recoverable amount is determined by means of a calculation based on the value in use and on cash projections from financial budgets, which were reviewed and approved by Senior Management for the next three years, considering the updated projections for June 30, 2020.The discount rate applied to cash flow projections was 8.1% on June 30, 2020 (8.4% on December 31, 2019), and cash flows that exceed the three-year period were extrapolated using a growth rate of 3.9% on June 30, 2020 (4.8% on December 31, 2019). As a result of this analysis, there was no need to record a provision for impairment of these assets. Likewise, impairment tests made for Grupo Éxito was performed on June 30, 2020, and no need of a provision for impairment was identified. · We assessed the recoverability of receivables from credit card companies, customers, galleries in our stores, real estate rentals and no need to record additional provisions to those already registered; · In relation to inventories, we do not expect any adjustment impacting their realizable amount; · Financial instruments already reflect the market assumptions in their valuation, and there are no additional exposures. The Company is not exposed to significant financing denominated in US dollars; · The Company does not expect obtaining new financing as a consequence of the pandemic; · The expenses incurred as a result of the pandemic refer to the purchase of individual protection , and store adaptation items, overtime, expenses with internal and external communication, incremental expenses with transportation, cleaning and sanitation services. The amount recorded is R$ 200 at September 30, 2020. In summary, according to management's estimates and monitoring of the impacts of the pandemic, there are no effects that should be recorded in the consolidated financial statements, nor are there any effects on the Company’s operational continuity and estimates that would justify changes or additional provisions to be recorded, in addition to those already recognized and disclosed. 35.2. Issue of debentures On January 6, 2020, the Company issued the 17th debentures, not convertible into shares, in a single serie, with a total value of R$2 billion and maturing up to 3 years. The funds will be used to strengthen working capital and extend the debt profile. Interest will be paid semiannually. The debentures will have remuneration corresponding to 100% of the accumulated variation of the daily average rates of the DI - Interbank Deposits for one day, plus annual interest of 1.45%. 35.3. Foreign currency loan agreement On January 9, 2020 Sendas entered into a US dollar denominated loan agreement of U$50. The loan matures on January 11, 2021 and bears interest at each 7 months. 35.4. National currency loan agreement On April 24, 2020 Sendas and CBD entered into a loan agreement denominated in Reais of R$250 each, totaling R$500. The loans mature on April 25, 2022 and bear annual interest. On May 29, 2020 CBD entered into a loan agreement denominated in Reais of R$500. The loan matures on May 30, 2022 and bears quarterly interest. On June 29, 2020 Sendas entered into a loan agreement denominated in Reais of R$150. The loan matures on June 20, 2022 and bears half-year interest. On July 1, 2020 CBD entered into a loan agreement denominated in Reais of R$400. The loan matures on June 21, 2022 and bears half-year interest. 35.5. Payment of dividends The Company, in the Ordinary and Extraordinary General at an Annual and Extraordinary Shareholders' Meeting held on April 23, 2020 approved the distribution of dividends for the period from April 1, 2019 to December 31, 2019, in the amount of R$156. This amount corresponds to R$0.582024107 per common share and was imputed to the minimum mandatory dividend for the year and paid on June 15, 2020. 35.6. Receipt of dividends from Éxito In April 2020, the subsidiary Sendas received R$1.2 billion of dividend and fully used to amortize the debt for the acquisition of Éxito. 35.7. Sale and On December 23, 2019, the Company signed a commitment to sell 6 properties (Pão de Açúcar stores) in the Sale and Leaseback modality to Rio Bravo Investimentos Distribuidora de Titulos e Valores Imobiliários Ltda. of a total amount of R$92, of which R$91 was paid upon signing the commitment. On September 30, 2020, the Company concluded the sale of 5 of the 6 stores. The parties entered into lease agreements for the 5 properties, with a term of 10 years, renewable for the same period, ensuring the continuity of GPA operations in properties with sustainable financial conditions. On March 5, 2020, the Company entered into a Sale and Leaseback transaction with investment funds administered by BRL Trust Distribuidora de Títulos e Valores Mobiliários S.A. and managed by TRX Gestora de Recursos Ltda. (“TRX”), pursuant to the signing of a “Private Instrument of Commitment of Purchase and Sale of Real Estate Properties and Real Surface Law Institution” (“Instrument”). The Instrument initially foresees the sale of 43 properties of the Company in various tranches, for the total amount of R$1,246. · On May 29, 2020, the Company concluded the sale of 5 properties · On June 29, 2020, the Company concluded the sale of 7 properties · On July 22, 2020, the Company concluded the sale of another 16 properties · On July 30, 2020, the Company concluded the sale of the remaining 11 properties, whose transfer was completed on August 28, 2020. The Company completed the sale of 39 properties for a total amount of R$1,183, of which R$ 1,179 has been already received. Four properties of non-relevant value from the total volume were not sold. The parties entered into lease agreements for each property, with a term of 15 years, renewable for the same period. 35.8. Spin-off of the Cash and Carry Business On September 9, 2020, our board of directors approved the analysis of a potential transaction to separate our cash-and-carry business through a spin-off of its wholly-owned subsidiary Sendas, which operates under the banner Assaí. The Company refers to this potential transaction as the “spin-off.” The spin-off will be preceded by the transfer of the equity interest currently held by Sendas in Almacenes Éxito S.A. to the Company. The goal of the spin-off is to unlock the full potential of the Company’s cash-and-carry and traditional retail businesses, allowing them to operate on a standalone basis, with separate management teams, and focusing on their respective business models and market opportunities. Additionally, the spin-off is expected to provide each of the businesses with direct access to the capital markets and other sources of funding, hence allowing them to prioritize investments according to each company’s profile, thus creating more value for their respective shareholders. In connection with the spin-off, 100% of the common shares issued by Sendas are expected to be distributed to the Company’s shareholders, on a pro rata basis for no consideration. The distribution will occur after the listing of Sendas’ common shares on the Novo Mercado segment of B3, together with listing of ADRs representing Sendas’ shares on NYSE are approved. We expect Sendas to follow substantially similar corporate governance standards as those currently adopted by the Company. The implementation of the spin-off and the listings depend on the completion of the analysis of the spin-off as well as on obtaining necessary approvals, including from shareholders and applicable regulators. 35.9. STF - INSS and IPI Judgments On August 21, 2020, the STF ruled that the payment of IPI is constitutional when the products to be sold in the local market are imported. Additionally, on August 28, 2020, the STF also ruled that of the payment of Christmas bonus ( décimo terceiro salário The Company has been following the development of these rulings, and based on the opinion of its legal advisors, it was concluded that no provision was needed to be record. |
3. Significant accounting pol_2
3. Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Significant Accounting Policies | |
Financial Instruments | 3.1. Financial Instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity Financial assets are recognized when the Group becomes party to the contractual provisions of the instrument. Financial assets are derecognized when the contractual rights to the cash flows from the financial asset expire or the Group transfers the contractual rights to receive the cash flows of the financial asset. |
Foreign currency transactions | 3.2. Foreign currency transactions Foreign currency transactions are initially recognized at the exchange rate of the corresponding currencies at the date the transaction qualifies for recognition. Assets and liabilities denominated in foreign currencies are translated into Brazilian Reais, using the spot exchange rate at the end of each reporting period. Gains or losses on changes in exchange rate variations are recognized as financial income or expense. |
Classification of assets and liabilities as current and noncurrent | 3.3. Classification of assets and liabilities as current and noncurrent The Group presents assets and liabilities in the statement of financial position based on current/noncurrent classification. |
Foreign operations | 3.4. Foreign operations For each entity, the Group determines the functional currency and items included in the financial statements of each entity are measured using that functional currency. On consolidation, the financial statements of foreign operations are translated into Brazilian Reais; as follows: · Assets and liabilities, including goodwill, are translated into Brazilian Reais at the exchange rate prevailing at the reporting date. · The statements of operation are translated into Brazilian Reais using the average rate for the period except when significant fluctuations in the exchange rate occurs, in which case, the rate at the transaction date is used. · Equity accounts are maintained at the historical balance in Reais. The exchange rate differences arising from the translation are recognized in other comprehensive income (“OCI”). When a foreign operation is disposed of, the component of OCI related to that particular foreign operation is reclassified to profit or loss. |
Hyperinflation | 3.5. Hyperinflation Starting from September 2018, Argentina has been considered a hyperinflationary economy. As per IAS 29 – Financial Reporting in Hyperinflationary Economies, the non-monetary assets and liabilities, equity items and the statement of operation of the indirect subsidiary Libertad, headquartered in Argentina, a direct subsidiary of Éxito, whose functional currency is the Argentinean peso, are being adjusted so that amounts are reported in the monetary measurement unit at the end of the reporting period. This unit, considers the effects measured by the Consumer Price Index (“IPC”) in Argentina starting January 1, 2017 and Argentina’s Domestic Retail Price Index (“IPIM”) up to December 31, 2016. Consequently, as required by IAS 29, the operating results of the indirect subsidiary Libertad must be considered as highly inflationary starting from September 1, 2018 (start of the period in which a hyperinflationary scenario was identified). |
Accounting for equity interests at cost deriving from corporate restructuring under common control | 3.6. Accounting for equity interests at cost deriving from corporate restructuring under common control For certain restructuring transactions occurred in previous years, the Company recorded, at historical cost, the interests deriving from corporate restructuring under common control without economic substance. The difference between the historical cost and the acquiring value was recorded as shareholders’ equity, when the interest acquired is from companies under common control. Such transactions are not in the scope of IFRS 3. |
4. Adoption of new standards,_2
4. Adoption of new standards, amendments to and interpretations of existing standards issued by the IASB effective from 2019 (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Adoption Of New Standards Amendments To And Interpretations Of Existing Standards Issued By Iasb Effective From 2019 | |
Schedule of new and revised standards starting at the current year | In 2019, the Group applied amendments and new interpretations to IFRS as issued by IASB, which were effective for accounting periods beginning on or after January 1, 2019. The main new standards adopted are as follows: Statement Description Impact IFRS 16 – Leases IFRS 16 supersedes IAS 17 Leases, IFRIC 4 Determining whether an Arrangement contains a Lease, SIC-15 Operating Leases-Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to recognise most leases on the balance sheet. Lessor accounting under IFRS 16 is substantially unchanged from IAS 17. Lessors will continue to classify leases as either operating or finance leases using similar principles as in IAS 17. Therefore, IFRS 16 does not have an impact for leases where the Group is the lessor. See note 4.2 IFRIC 23 - Uncertainty over Income Tax treatment The Interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application of IAS 12 Income Taxes. It does not apply to taxes or levies outside the scope of IAS 12, nor does it specifically include requirements relating to interest and penalties associated with uncertain tax treatments. There was no significant impact. |
Schedule of retrospective effects of the application of standards | The adjustments arising from adoption of IFRS 16 for each period presented in the consolidated financial statements are detailed as follows: Balance Sheet As of January 1, 2017 As originally reported IFRS16 effects As restated Other current assets 252 (13) 239 Assets held for sale 20,153 3,462 23,615 Total current assets 31,486 3,449 34,935 Deferred income tax and social contribution 174 163 337 Prepaid expenses 45 (26) 19 Property and equipment 9,182 3,935 13,117 Intangible assets 1,908 (61) 1,847 Total noncurrent assets 13,565 4,011 17,576 Total Assets 45,051 7,460 52,511 Borrowings and financing 2,957 (41) 2,916 Lease liability - 325 325 Other current liabilities 406 (66) 340 Liabilities related to assets held for sale 15,632 3,815 19,447 Total current liabilities 27,582 4,033 31,615 Borrowings and financing 2,912 (174) 2,738 Lease liability - 4,563 4,563 Provision for losses on investments in associates 36 2 38 Deferred income tax and social contribution 317 (34) 283 Total noncurrent liabilities 5,052 4,357 9,409 Total liabilities 32,634 8,390 41,024 Total Shareholders' equity 12,417 (930) 11,487 Total liabilities and shareholders' equity 45,051 7,460 52,511 Balance Sheet As of January 1, 2018 As originally reported IFRS16 effects As restated Other current assets 146 (15) 131 Assets held for sale 22,775 3,888 26,663 Total current assets 33,016 3,873 36,889 Deferred income tax and social contribution 125 127 252 Prepaid expenses 43 (36) 7 Property and equipment 9,138 4,154 13,292 Intangible assets 1,924 (46) 1,878 Total noncurrent assets 14,691 4,199 18,890 Total Assets 47,707 8,072 55,779 Borrowings and financing 1,251 (51) 1,200 Lease liability - 445 445 Other current liabilities 341 (114) 227 Liabilities related to assets held for sale 17,824 4,040 21,864 Total current liabilities 28,992 4,320 33,312 Borrowings and financing 3,337 (144) 3,193 Lease liability - 4,822 4,822 Provision for losses on investments in associates 195 6 201 Deferred income tax and social contribution 394 (47) 347 Total noncurrent liabilities 5,674 4,637 10,311 Total liabilities 34,666 9,517 43,623 Total Shareholders' equity 13,041 (885) 12,156 Total liabilities and shareholders' equity 47,707 8,072 55,779 Balance Sheet As of December 31, 2018 As originally reported IFRS16 effects As restated Other current assets 175 (30) 145 Assets held for sale 24,443 4,244 28,687 Total current assets 36,304 4,214 40,518 Deferred income tax and social contribution 207 91 298 Prepaid expenses 59 (42) 17 Property and equipment 9,650 4,402 14,052 Intangible assets 2,675 143 2,818 Total noncurrent assets 16,545 4,594 21,139 Total Assets 52,849 8,808 61,657 Borrowings and financing 2,016 (35) 1,981 Lease liability - 507 507 Other current liabilities 423 (134) 289 Liabilities related to assets held for sale 19,412 4,133 23,545 Total current liabilities 32,785 4,471 37,256 Borrowings and financing 3,509 (117) 3,392 Lease liability - 5,280 5,280 Provision for losses on investments in associates 267 12 279 Deferred income tax and social contribution 581 (58) 523 Total noncurrent liabilities 6,125 5,117 11,242 Total liabilities 38,910 9,588 48,498 Total Shareholders' equity 13,939 (780) 13,159 Total liabilities and shareholders' equity 52,849 8,808 61,657 Statement of Operations For the year ended December 31, 2017 As originally reported IFRS16 effects As restated Cost of sales (33,646) 61 (33,585) Gross profit 10,988 61 11,049 Operating income (expenses): Selling expenses (7,027) 704 (6,323) General and administrative expenses (1,032) 6 (1,026) Depreciation and amortization (779) (338) (1,117) Other operating expenses, net (579) 3 (576) Profit from operations before net financial expenses and share of profit of associates 1,571 436 2,007 Financial expenses, net (730) (565) (1,295) Share of profit of associates (89) (4) (93) Income before income tax and social contribution 752 (133) 619 Income tax and social contribution (297) 35 (262) Net income from continuing operations 455 (98) 357 Net income (loss) from discontinued operations 356 144 500 Net income for the year 811 46 857 Attributable: Controlling shareholders – continuing operations 455 (98) 357 Controlling shareholders – discontinued operations 125 25 150 Total of controlling shareholders 580 (73) 507 Non-controlling shareholders – discontinued operations 231 119 350 Total of non-controlling shareholders 231 119 350 Statement of Cash Flows For the year ended December 31, 2017 As originally reported IFRS16 effects As restated Net income for the year 811 46 857 Deferred income tax (note 19) (35) 127 92 Losses (gain) of disposals of property and equipment 247 82 329 Depreciation and amortization 833 396 1,229 Financial charges 947 1,051 1,998 Share of profit (loss) of associates (note 13) 69 4 73 Losses (gain) on lease liability write off - (14) (14) Other assets (60) 12 (48) Other liabilities 148 (59) 89 Payments of borrowings and financing (note 16.2) (9,785) 93 (9,692) Payments of lease liability - (1,725) (1,725) Statement of Operations For the year ended December 31, 2018 As originally reported IFRS16 effects As restated Cost of sales (37,834) 55 (37,779) Gross profit 11,554 55 11,609 Operating income (expenses): Selling expenses (7,297) 744 (6,553) General and administrative expenses (1,057) 8 (1,049) Depreciation and amortization (840) (362) (1,202) Other operating expenses, net (216) 13 (203) Profit from operations before net financial expenses and share of profit of associates 2,144 458 2,602 Share of profit of associates 33 (5) 28 Financial expenses, net (474) (587) (1,061) Income before income tax and social contribution 1,703 (134) 1,569 Income tax and social contribution (449) 36 (413) Net income from continuing operations 1,254 (98) 1,156 Net income (loss) from discontinued operations (74) 202 128 Net income for the year 1,180 104 1,284 Attributable: Controlling shareholders – continuing operations 1,254 (98) 1,156 Controlling shareholders – discontinued operations (61) 54 (7) Total of controlling s:hareholders 1,193 (44) 1,149 Non-controlling shareholders – discontinued operations (13) 148 135 Total of non-controlling shareholders (13) 148 135 Statement of Cash Flows For the year ended December 31, 2018 As originally reported IFRS16 effects As restated Net income for the year 1,180 104 1,284 Deferred income tax (note 19) 77 158 235 Losses (gain) of disposals of property and equipment (40) 57 17 Depreciation and amortization 889 433 1,322 Financial charges 761 969 1,730 Share of profit (loss) of associates (note 13) (73) 4 (69) Losses (gain) on lease liability write offs - (80) (80) Other liabilities 209 (16) 193 Payments of borrowings and financing (note 16.2) (8,747) 60 (8,687) Payments of lease liability - (1,743) (1,743) |
Schedule of new and revised standards and interpretations issued and not yet adopted | The Company has not early adopted the following new and revised IFRSs, which have already been issued but not yet in effect, up to the date of the issuance of the Group’s consolidated financial statements: Accounting pronouncement Description Applicable to annual periods beginning on or after Amendments to IFRS 3: Definition of a Business In October 2018, the IASB issued amendments to the definition of a business in IFRS 3, Business Combinations, to help entities determine whether an acquired set of activities and assets is a business or not. They clarify the minimum requirements for a business, remove the assessment of whether market participants are capable of replacing any missing elements, add guidance to help entities assess whether an acquired process is substantive, narrow the definitions of a business and of outputs, and introduce an optional fair value concentration test. New illustrative examples were provided along with the amendments. 01/01/2020 Amendments to IAS 1 and IAS 8 - Definition of materiality In October 2018, the IASB issued amendments to IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to align the definition of ‘material’ across the standards and to clarify certain aspects of the definition. The new definition states that, ’Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity. 01/01/2020 |
6. Cash and cash equivalents (T
6. Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash and cash equivalents [abstract] | |
Schedule of cash and cash equivalents | Cash and cash equivalents consist of cash, bank accounts and highly liquid short-term investments that are readily convertible into a known amount of cash, with a maturity of three months or less and subject to an insignificant risk of change in value. Rate 2019 2018 Cash and banks – Brazil 249 406 Cash and banks – Abroad (*) 3,109 80 Short-term investments - Brazil (**) 4,471 3,883 Short-term investments - Abroad (***) 125 - 7,954 4,369 (*) As of December 31, 2019, refers to (i) funds from the Éxito Group acquired on November 27, 2019 according to note nº13, of which R$73 are denominated in Argentina pesos, R$254 are denominated in Uruguayan pesos and R$2,698 in Colombian pesos; (ii) In 2019 and 2018 it includes R$80 deposited in the United States of America in US Dollars (**) Refers substantially to highly liquid investments bearing interest at a weighted average rate of 89.94% (85.78% on December 31, 2018) of the Brazilian Interbank Deposit Certificate (“CDI”), maturing in 90 days or less and which are subject to an insignificant change in value. (***) Refers to funds invested abroad, of which R$20 are denominated in in Argentinian pesos, R$4 are denominated in Uruguayan pesos and R$101 are denominated in Colombia pesos, as a result of the acquisition of Éxito, to according note 13, maturing in 90 days or less and which are subject to an insignificant change in value |
7. Trade receivables (Tables)
7. Trade receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Trade Receivables | |
Schedule of trade receivables | At each balance sheet date, the Company and its subsidiaries assess whether the receivables have any indications of impairment. 2019 2018 Credit card companies (note 7.1) 42 38 Credit card companies - related parties (note 11.2) 24 58 Sales vouchers and trade receivables 446 128 Private label credit card 70 53 Receivables from related parties (note 11.2) 12 15 Receivables from suppliers 166 101 Allowance for doubtful accounts (note 7.2) (32) (5) 728 388 Current 727 384 Noncurrent 1 4 |
Schedule of estimated losses on doubtful accounts | 7.2. Allowance for doubtful accounts on trade receivables 2019 2018 2017 At the beginning of the year (5) (6) (4) Allowance booked for the year (263) (630) (740) Write-offs of receivables 282 771 621 Deconsolidation Via Varejo (19) - - Assets held for sale and discontinued operations 1 (140) 117 Business combination (28) - - At the end of the year (32) (5) (6) |
Schedule of aging list of gross receivables | The aging list of gross trade receivables is as follows: Overdue receivables Total Not yet due <30 days 30-60 days 61-90 days >90 days 12.31.2019 760 609 79 21 5 46 12.31.2018 393 362 10 5 5 11 |
8. Other receivables (Tables)
8. Other receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Receivables | |
Schedule of other receivables | 2019 2018 Accounts receivable from insurers (*) 72 213 Receivable from sale of subsidiaries (note 8.2) 83 82 Lease receivables 113 44 Accounts receivable - Via Varejo (**) 49 - Receivables from sale of real estate properties 128 40 Other 142 67 Allowance for doubtful accounts on other receivables (note 8.1) (15) (16) 573 430 Current 381 302 Noncurrent 192 128 (*) In October 2019, the Company received R$203 from the insurance company regarding the claim related to the fire occurred at the Distribution Center in Osasco on December 27, 2017, after negotiations and agreement on the final amount of the indemnity. (**) As the Company sold the equity interest in Via Varejo, the amount that had been reported as related parties was reclassified to other receivables. |
Schedule of other receivables allowance for doubtful accounts | 8.1. Allowance for doubtful accounts on other receivables 2019 2018 2017 At the beginning of the year (16) (12) (7) Allowance booked for the year - (4) (9) Write-off of other receivables 5 13 - Deconsolidation Via Varejo (4) - - Assets held for sale and discontinued operations - (13) 4 At the end of the year (15) (16) (12) |
9. Inventories (Tables)
9. Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventories Abstract | |
Schedule of inventories | Inventories are reduced by an allowance for losses and damages, which is periodically reviewed and evaluated as appropriate. 2019 2018 Stores 4,698 4,162 Distribution centers 1,583 1,807 Inventories – Éxito Group 2,254 - Real Estate Inventory – Éxito Group 190 - Real Estate inventory – Brazil 1 5 Allowance for losses on inventory obsolescence and damages (95) (65) 8,631 5,909 |
Schedule of estimated losses on obsolescence and breakage | 9.2. Allowance for losses on inventory obsolescence and damages 2019 2018 2017 At the beginning of the year (65) (73) (75) Additions (51) (79) (110) Business combination (22) - - Write-offs / reversal 35 85 111 Deconsolidation Via Varejo 8 - - Assets held for sale and discontinued operations - 2 1 At the end of the year (95) (65) (73) |
10. Recoverable taxes (Tables)
10. Recoverable taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Recoverable Taxes | |
Schedule of recoverable taxes | 2019 2018 State VAT tax credits - ICMS (note 10.1) 2,621 2,335 Provision for non-realization of ICMS (VAT) tax credits - (28) Social Integration Program/ Contribution for Social Security Financing - PIS/COFINS (note 10.2) 854 717 Social Security Contribution - INSS 321 328 Income tax and social contribution prepayments (*) 472 52 Other 49 20 Other recoverable taxes – Éxito Group 77 - Total 4,394 3,424 Current 1,692 679 Noncurrent 2,702 2,745 (*) Includes Éxito’s prepayments. |
Schedule of future realization of revoverable taxes | Management has implemented monitoring controls over the progress of the plan annually established, assessing and including new elements that contribute to the recoverability of ICMS tax credits. The expected recoverability of ICMS tax credits is demonstrated as follows: Up to one year 438 From 1 to 2 years 370 From 2 to 3 years 361 From 3 to 4 years 366 From 4 to 5 years 350 More than 5 years 736 2,621 |
11. Related parties (Tables)
11. Related parties (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related party transactions [abstract] | |
Schedule of compensation | The expenses related to management compensation (officers appointed pursuant to the Bylaws, including members of the Board of Directors and advisory committees) for the years ended December 31, 2019, 2018 and 2017, were as follows: (In thousands of Brazilian Reais) Base salary Variable compensation Stock option plan Total compensation 2019 2018 2017 2019 2018 2017 2019 2018 2017 2019 2018 2017 Board of directors (*) 38,207 12,256 5,797 - - - 2,366 - - 40,573 12,256 5,797 Executive officers 33,373 42,695 31,408 12,943 15,083 26,813 15,596 29,267 24,405 61,912 87,045 82,626 Fiscal Council - 228 456 - - - - - - - 228 456 71,580 55,179 37,661 12,943 15,083 26,813 17,962 29,267 24,405 102,485 99,529 88,879 % share-based payment over the total compensation 17,5% 29.4% 27.5% (*) Includes the compensation of the Board of Directors’ advisory committees (Human Resources and Compensation, Audit, Finance, Sustainable Development and Corporate Governance). |
Schedule of related party balances and transactions | Transactions with related parties refer mainly to transactions between the Company and its subsidiaries and other related entities and were substantially accounted for in accordance with the prices, terms and conditions agreed upon between the parties. Balances Transactions Trade receivables Other assets Trade payables Other liabilities Revenues (expenses) 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2017 Controlling shareholders Casino (i) - 15 5 - - 2 24 1 (57) (64) (48) Euris (i) - - - - - - 1 - (1) (2) (3) Helicco Participações (i) - - - - - - - 3 (3) (7) - Geant international - - - - - - - - (3) - - Associates FIC (iii) 24 58 36 33 39 31 - - 152 152 84 Puntos Colombia - - 28 - - - 43 - (13) - - Tuya - - 26 - - - - - 21 - - Other related parties Greenyellow (iv) - - - - - - 134 141 (35) (39) (58) Casino Group (vii) 12 - 8 - 1 - 13 - (4) - - Others - - 1 1 - - - - - - (1) Total 36 73 104 34 40 33 215 145 57 40 (26) |
12. Investments (Tables)
12. Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of associates [abstract] | |
Schedule of investments in subsidiaries | The details of the Company's subsidiaries at the end of each year are shown below: Direct and indirect equity interest - % 2019 2018 Companies Subsidiaries CBD Novasoc Comercial Ltda. (“Novasoc”) Brazil 100.00 100.00 Sendas Distribuidora S.A. (“Sendas”) Brazil 100.00 100.00 Bellamar Empreend. e Participações Ltda. (“Bellamar”) Brazil 100.00 100.00 CBD Holland B.V. (“CBD Holland”) Brazil 100.00 100.00 GPA 2 Empreend. e Participações Ltda. (“GPA 2”) Brazil 100.00 100.00 GPA Logística e Transporte Ltda. (“GPA Logística”) Brazil 100.00 100.00 SCB Distribuição e Comércio Varejista de Alimentos Ltda. ("Compre Bem'') Brazil 100.00 100.00 Stix Fidelidade e Inteligência S.A. ("Stix") Brazil 100.00 100.00 Leji Intermediação S.A. ("James Delivery") Brazil 100.00 100.00 Cheftime Comércio de Refeições S/A ("Cheftime") See note13.2 Brazil 79.57 - GPA Malls & Properties Gestão de Ativos e Serviços Imobiliários Ltda. (“GPA M&P”) Brazil 100.00 100.00 BCafeterias e Lanchonetes Ltda. ("BCafeterias")(*) Brazil 100.00 - Fronteira Serviços Imobiliários Ltda.("Fronteira")(*) Brazil 100.00 - Place2B Serviços Imobiliários Ltda.("Place2B")(*) Brazil 100.00 - Companhia Brasileira de Distribuição Luxembourg Holding S.à.r.l. ("CBDLuxco”) Luxembourg 100.00 100.00 Companhia Brasileira de Distribuição Netherlands Holding B.V. (“CBDDutchco”) Netherlands 100.00 100.00 Éxito Almacenes Éxito S.A. ("Éxito") Colombia 96.57 - (Acquired on 11/27/2019) Éxito Industrias S.A.S. ("Éxito Industrias") Colombia 94.59 - Fideicomiso Lote Girardot Colombia 96.57 - Éxito Viajes y Turismo S.A.S. Colombia 49.25 - Almacenes Éxito Inversiones S.A.S. (Móvil Éxito) Colombia 96.57 - Gemex O & W S.A.S. Colombia 96.57 - Marketplace Internacional Éxito y Servicios S.A.S. (MPI) Colombia 96.57 - Logística, Transporte y Servicios Asociados S.A.S. (LTSA) Colombia 96.57 - Depósitos y Soluciones Logísticas S.A.S. Colombia 96.57 - Patrimonio Autónomo Iwana Colombia 49.25 - Patrimonio Autónomo Viva Malls Colombia 49.25 - Patrimonio Autónomo Viva Sincelejo Colombia 25.12 - Patrimonio Autónomo Viva Villavicencio Colombia 25.12 - Patrimonio Autónomo San Pedro Etapa I Colombia 25.12 - Patrimonio Autónomo Centro Comercial Colombia 25.12 - Patrimonio Autónomo Viva Laureles Colombia 39.40 - Patrimonio Autónomo Viva Palmas Colombia 25.12 - Patrimonio Autónomo Centro Comercial Viva Colombia 44.33 - Spice investment Mercosur Uruguay 96.57 - Larenco S.A. Uruguay 96.57 - Geant Inversiones S.A. Uruguay 96.57 - Lanin S.A. Uruguay 96.57 - 5 Hermanos Ltda. Uruguay 96.57 - Sumelar S.A. Uruguay 96.57 - Raxwy Company S.A. Uruguay 96.57 - Supermercados Disco del Uruguay S.A. Uruguay 60.35 - Maostar S.A. Uruguay 30.18 - Ameluz S.A. Uruguay 60.35 - Fandale S.A. Uruguay 60.35 - Odaler S.A. Uruguay 60.35 - La Cabaña S.R.L. Uruguay 60.35 - Ludi S.A. Uruguay 60.35 - Semin S.A. Uruguay 60.35 - Randicor S.A. Uruguay 60.35 - Setara S.A. Uruguay 60.35 - Hiper Ahorro S.R.L. Uruguay 60.35 - Ciudad del Ferrol S.C. Uruguay 59.14 - Mablicor S.A. Uruguay 30.78 - Tipsel S.A. Uruguay 96.57 - Tedocan S.A. Uruguay 96.57 - Vía Artika S. A. Uruguay 96.57 - Group Disco del Uruguay S.A. Uruguay 60.35 - Devoto Hermanos S.A. Uruguay 96.57 - Mercados Devoto S.A. Uruguay 96.57 - Geant Argentina S.A. Argentina 96.57 - Libertad S.A. Argentina 96.57 - Onper Investment 2015 S.L Spain 96.57 - Spice España de Valores Americanos S.L. Spain 96.57 - Marketplace Internacional Éxito S.L Spain 96.57 - Carulla Vivero Holding Inc. British Virgin Islands 96.57 - Gelase S. A. Belgium 96.57 - Via Varejo (see note 12.3) Via Varejo S.A. (“Via Varejo”) Brazil - 43.23 Indústria de Móveis Bartira Ltda. (“Bartira”) Brazil - 43.23 VVLOG Logística Ltda. (PontoCred Negócio de Varejo Ltda.) (“VVLOG Logística”) Brazil - 43.23 Globex Adm. e Serviços Ltda. (“Globex Adm”) Brazil - 43.23 Lake Niassa Empreend. e Participações Ltda. (“Lake Niassa”) Brazil - 43.23 Globex Adm. Consórcio Ltda. (“Globex Adm. Consórcio”) Brazil - 43.23 Cnova Comércio Eletrônico S.A. (”Cnova Brazil”) Brazil - 43.23 (*) The Group created new operating companies |
Schedule of investments in associates | The details of the Company's associates at the end of each year are shown below: Direct and indirect equity interest - % 2019 2018 Companies Subsidiaries Cnova N.V. Cnova N.V. (“Cnova Holanda”) Netherlands 33.98 33.98 Cdiscount Afrique SAS (“Cdiscount Afrique”) France 33.98 33.98 Cdiscount International BV (“Cdiscount Internacional”) Netherlands 33.98 33.98 Cnova France SAS (“Cnova France”) France 33.98 33.98 Cdiscount S.A. (“Cdiscount”) France 33.87 33.87 Cdiscount Côte d'Ivoire SAS Ivory Coast (“Cdiscount Côte”) Ivory Coast 33.98 33.98 Cdiscount Sénégal SAS (“Cdiscount Sénégal”) Senegal 33.98 33.98 Cdiscount Cameroun SAS (“Cdiscount Cameroun”) Cameroon 33.98 33.98 CLatam AS Uruguay (“CLatam”) Uruguay 23.79 23.79 Cdiscount Panama S.A. (“Cdiscount Panama”) Panama 23.79 23.79 Cdiscount Uruguay S.A. (“Cdiscount Uruguay”) Uruguay 23.79 23.79 Ecdiscoc Comercializadora S.A. (Cdiscount Ecuador) (“Ecdiscoc Comercializadora”) Ecuador 23.78 23.78 Cnova Pay France 33.98 33.98 BeezUP SAS ("BezzUp") France 33.98 33.98 CARYA France 33.87 33.87 HALTAE France 33.87 33.87 C-Logistics (**) France 28.56 33.87 NEOSYS France 17.33 17.33 Neotech Solutions Morocco 17.33 17.33 NEOSYS Tunisie (*) Tunisia 17.33 - C Chez Vous (**) France 28.56 - Phoenix (*) France 16.99 - FIC Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento (“FIC”) Brazil 35,76 41,92 Banco Investcred Unibanco S.A. (“BINV”) Brazil - 21,62 FIC Promotora de Vendas Ltda. (“FIC Promotora”) Brazil 35,76 41,92 Éxito Puntos Colombia S.A.S ("Puntos") Colombia 48,29 - Compañia de Financiamento Tuya S.A. ("Tuya") Colombia 48,29 - Cnova N.V (“Cnova Holanda”) Netherlands 0,18 - (*) Companies created in 2019 by Cnova N.V (**) Companies changed interest held in C_logistics by C Chez Vous |
Schedule of financial statements | The summarized financial statements are as follows: FIC Cnova N.V. Tuya 2019 2018 2019 2018 2019 Restated Current assets 7,085 5,952 3,271 3,121 3,943 Noncurrent assets 51 59 2,587 1,947 100 Total assets 7,136 6,011 5,858 5,068 4,043 Current liabilities 6,185 5,279 5,819 5,127 1,426 Noncurrent liabilities 20 10 867 757 2,146 Shareholders’ equity 931 722 (828) (816) 471 Total liabilities and shareholders’ equity 7,136 6,011 5,858 5,068 4,043 FIC Cnova N.V. Tuya Statement of operations: 2019 2018 2017 2019 2018 2017 2019 Restated Restated Revenues 1,207 969 988 9,689 9,370 7,337 698 Operating income 441 398 240 (24) (73) (111) 87 Net income for the year 263 218 139 (288) (147) (406) (14) In applying the equity method in FIC, the special goodwill reserve of R$122 recorded by FIC is deducted from its shareholders’ equity, since it represents Itaú Unibanco’s exclusive right. The investments in Tuya and Cnova N.V. includes the goodwill acquired in the business combination totaling R$71 and R$11, respectively. 12.2. Breakdown of investments and rollfoward: FIC BINV Tuya Puntos Colombia Other (*) Total Balances at 12.31.2017 – restated (**) 155 - - - (200) (45) Share of profit (loss) of associates – continuing operation 79 - - - (51) 28 Share of profit of associates – discontinued operation 32 8 - - - 40 Dividends and interest on own capital - continuing operation (25) - - - - (25) Dividends and interest on own capital - discontinued operation (12) - - - - (12) Share of other comprehensive income (7) - - - (28) (35) Assets held for sale and discontinued operations (19) (8) - - - (27) Balances at 12.31.2018 – restated (**) 203 - - - (279) (76) Share of profit (loss) of associates – continuing operation 106 - (7) 2 (99) 2 Share of profit of associates – discontinued operation 12 4 - - - 16 Dividends and interest on own capital - continuing operation (20) - - - - (20) Dividends and interest on own capital - discontinued operation (3) - - - - (3) Share of other comprehensive income - - 9 - (8) 1 Investment acquisition - - 305 - 11 316 Assets held for sale and discontinued operations (9) (4) - - - (13) Balances at 12.31.2019 289 - 307 2 (375) 223 (*) Includes losses on the investment in associate Cnova N.V. of R$385 on December 31, 2019 (R$279 on December 31, 2018). (**) Adoption of IFRS 16. Note 4.2 |
13. Business Combinations and_2
13. Business Combinations and goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations And Goodwill | |
Schedule of total consideration transferred | The cash consideration has been adjusted for the dividends received related to the year of 2018 and the effect of the cash flow hedge entered into to hedge the exposure on changes in foreign exchange rates, as shown below: 12.31.2019 Cash consideration 9,268 Cash flow hedge effect 145 9,413 Dividends related to 2018 (42) Total cash consideration transferred 9,371 |
Schedule of fair values of identifiable acquired assets and liabilities acquired | The fair values of identifiable assets acquired and liabilities assumed from Éxito, on the date of the business combination, are as follows: Balance after purchase price allocation Assets: Cash and cash equivalents 6,062 Trade receivables, net 416 Inventories, net 2,765 Recoverable taxes 477 Other current assets 349 Deferred income tax and social contribution 1,353 Related parties 137 Other noncurrent assets 111 Investments in associates 316 Investment properties 2,972 Property and equipment, net 8,496 Intangible assets, net 3,009 26,463 Liabilities: Payroll and related taxes 283 Trade payables, net 4,545 Taxes and contributions payables 219 Borrowings and financing 2,546 Lease liabilities 277 Other current liabilities 998 Noncurrent borrowings and financing 2,060 Deferred income tax and social contribution 2,100 Provisions for contingencies 103 Noncurrent lease liabilities 1,540 Other noncurrent liabilities 28 14,699 Net assets 11,764 (-) Attributed to non-controlling shareholders (2,558) Net assets 9,206 a) Tradename - These includes the brands Surtimax, Super Inter, Surti Mayorista, Viva, Frescampo, Éxito and Carulla in Colombia, Libertad brand in Argentina and Disco in Uruguay. In addition, it also includes the brands Éxito, Bronzini, Frescampo, Ekono, Arkitect and Carulla. Tradenames have an indefinite useful life. b) Investment properties and real estate properties - Éxito Group has real estate assets in galleries and shopping malls for the purpose of being leased. Such assets have high commercial relevance as they are located in prime areas. c) Investment in Banco Tuya – fair value was estimated using the incoming approach method of interest acquired. d) Leases liabilities- Lease liabilities were re-measured using the incremental borrowing rate at the date of acquisition. |
Schedule of the fair value of the interest of non-controlling | The non-controlling interests was measured at fair value on the date of acquisition, as shown below: Total consideration transferred - 96.57% 9,371 Fair value of the Company - 100% 9,706 Non-controlling interest at fair value 335 |
Schedule of other operating expenses | The Company recorded a residual goodwill of R$165; which has been determined as follows: Fair value of net assets acquired 11,764 (-) Attributed to non-controlling shareholders (2,223) 9,541 Remaining non-controlling interest (335) Net assets 9,206 Total consideration transferred for the acquisition of control of Éxito 9,371 Goodwill 165 |
14. Investment properties (Tabl
14. Investment properties (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investment property [abstract] | |
Schedule of fair value of investment properties | The fair value of investment properties is measured based on assessments performed by third parties. Balance at 2018 Additions Depreciation Business combination Exchange rate changes Transfers Balance at 2019 Land 6 2 - 643 11 (6) 656 Buildings 10 10 (4) 2,319 45 5 2,385 Improvements 4 - - - - (4) - Construction in progress - - - 10 - - 10 Total 20 12 (4) 2,972 56 (5) 3,051 2019 2018 Cost Accumulated depreciation Net Cost Accumulated depreciation Net Land 656 - 656 6 - 6 Buildings 2,400 (15) 2,385 20 (10) 10 Improvements - - - 4 - 4 Construction in progress 10 - 10 - - - Total 3,066 (15) 3,051 30 (10) 20 |
Schedule of fair value of investment properties by Exito and its subsidiaries | During December 2019, the net result generated by investment properties owned by Éxito and its subsidiaries are as follows: Lease revenue 31 Operating expenses from investment properties that generate revenue (4) Operating expenses from investment properties that do not generate revenue (12) Net result generated by investment properties 15 |
15. Property and equipment (Tab
15. Property and equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment [abstract] | |
Schedule of changes in property and equipment | All other repair and maintenance costs are recognized in the statement of operations for the year as incurred. Asset category Useful life (in years) Buildings 40 Leasehold improvements 24 Machinery and equipment 8 Facilities 12 Furniture and fixtures 9 Others 5 |
Schedule of property and equipment | Previously recognized impairment losses are reversed only if there is a change in the assumptions used to determine the asset’s recoverable amount at its initial or most recent recognition, except for goodwill, which cannot be reversed in future periods. Balance at 2018 Additions Business combination Remeasure-ment Depreciation Write-offs Transfers(*) Exchange rate changes Deconsolidation Via Varejo Balance at 2019 Restated Land 1,366 75 2,277 - - (30) (36) 40 - 3,692 Buildings 1,773 237 2,934 - (67) (29) (29) 51 (1) 4,869 Leasehold improvements 3,843 634 334 - (332) (382) 407 - (63) 4,441 Machinery and equipment 1,308 445 672 - (264) (36) 180 10 (34) 2,281 Facilities 501 86 64 - (59) (16) 30 (2) (24) 580 Furniture and fixtures 595 163 300 - (100) (21) 80 6 (16) 1,007 Construction in progress 176 789 154 - - (6) (903) 3 62 275 Other 59 32 6 - (24) (2) 7 - (4) 74 Total 9,621 2,461 6,741 - (846) (522) (264) 108 (80) 17,219 Lease – right of use: Buildings 4,422 792 1,727 832 (525) (152) 52 32 (157) 7,023 Equipment 9 15 25 - (5) - - 1 - 45 Land - - 3 - - - - - - 3 4,431 807 1,755 832 (530) (152) 52 33 (157) 7,071 Total 14,052 3,268 8,496 832 (1,376) (674) (212) 141 (237) 24,290 (*) Balance at 2017 Additions Remeasurement Depreciation Write-offs Transfers Assets held for sale and discontinued operations Balance at 2018 Restated Restated Land 1,362 46 - - (56) 13 1 1,366 Buildings 1,770 175 - (57) (71) (46) 2 1,773 Leasehold improvements 3,492 479 - (292) (124) 361 (73) 3,843 Machinery and equipment 1,262 182 - (235) (79) 292 (114) 1,308 Facilities 487 76 - (54) (20) 27 (15) 501 Furniture and fixtures 540 92 - (84) (26) 116 (43) 595 Construction in progress 126 809 - - (13) (755) 9 176 Other 64 39 - (24) (31) (8) 19 59 Total 9,103 1,898 - (746) (420) - (214) 9,621 Lease – right of use: Buildings 4,174 338 821 (441) (57) (2) (411) 4,422 Equipment 15 - - (5) (1) - - 9 4,189 338 821 (446) (58) (2) (411) 4,431 Total 13,292 2,236 821 (1,192) (478) (2) (625) 14,052 2019 2018 Cost Accumulated depreciation Net Cost Accumulated depreciation Net Restated Land 3,692 - 3,692 1,366 - 1,366 Buildings 5,712 (843) 4,869 2,585 (812) 1,773 Leasehold improvements 7,065 (2,624) 4,441 5,868 (2,025) 3,843 Machinery and equipment 4,864 (2,583) 2,281 2,957 (1,649) 1,308 Facilities 1,065 (485) 580 865 (364) 501 Furniture and fixtures 2,196 (1,189) 1,007 1,287 (692) 595 Construction in progress 275 - 275 176 - 176 Other 256 (182) 74 206 (147) 59 25,125 (7,906) 17,219 15,310 (5,689) 9,621 Lease – right of use: Buildings 10,655 (3,632) 7,023 7,449 (3,027) 4,422 Equipment 128 (83) 45 82 (73) 9 Land 6 (3) 3 - - - 10,789 (3,718) 7,071 7,531 (3,100) 4,431 Total 35,914 (11,624) 24,290 22,841 (8,789) 14,052 |
Schedule of reconciliation of additions to property and equipment | 15.4. Additions to property and equipment for cash flow presentation purposes are as follows: 2019 2018 Restated Additions (i) 3,268 2,236 Lease (806) (519) Capitalized borrowing costs (26) (22) Property and equipment financing - Additions (ii) (2,116) (1,482) Property and equipment financing - Payments (ii) 2,142 1,436 Total 2,462 1,649 (i) The additions are related to the purchase of operating assets, acquisition of land and buildings to expand activities, building of new stores, improvements of existing distribution centers and stores and investments in equipment and information technology. (ii) The additions to property and equipment above are presented to reconcile the acquisitions during the year with the amounts presented in the statement of cash flows net of items that did not impact cash flow. |
16. Intangible assets (Tables)
16. Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible assets and goodwill [abstract] | |
Schedule of changes in intangible assets | When applicable, gains or losses arising from the derecognition of an intangible asset are measured as the difference between the net proceeds from the sale of the asset and its carrying amount, any gain or loss is recognized in the statement of operations in the year the asset is derecognized. Balance at 2018 Additions Business combination (*) Amortization Write-off Remeasurement Exchange rate changes Transfer (***) Deconsolidation Via Varejo Balance at 2019 Goodwill 1,148 - 165 - - - 3 (1) - 1,315 Tradename 39 - 2,949 - - - 66 8 - 3,062 Commercial rights (note 16.2) 111 24 - - - - - - - 135 Software 621 274 60 (110) (7) - 1 124 (75) 888 1,919 298 3,174 (110) (7) - 70 131 (75) 5,400 Right of use: Right of use Paes Mendonça (**) 819 - - (45) - 6 - - - 780 Software 80 - - (24) (1) - - - 1 56 899 - - (69) (1) 6 - - 1 836 Total 2,818 298 3,174 (179) (8) 6 70 131 (74) 6,236 (*) See note 13.1 (**) Correspond to the premium paid for the renewal of the agreement with Paes Mendonça to operate certain stores for a 30-years term (***) Refers substantially to transfers from property and equipment (see note 15). Balance at 2017 Additions Company acquisition (*) Amortization Write-off Transfer Assets held for sale and discontinued operations Balance at 2018 Restated Restated Goodwill 1,107 - 41 - - - - 1,148 Tradename 39 - - - - 251 (251) 39 Commercial rights (note 16.2) 86 24 - (5) - 6 - 111 Software 551 534 - (91) (29) (256) (88) 621 1,783 558 41 (96) (29) 1 (339) 1,919 Right of use: Right of use Paes Mendonça (**) - 179 - (7) - 647 - 819 Software 95 - - (27) - 12 - 80 95 179 - (34) - 659 - 899 Total 1,878 737 41 (130) (29) 660 (339) 2,818 (*) See note 13.2. (**) Correspond to the premium paid for the renewal of the agreement with Paes Mendonça to operate certain stores for a 30-years term |
Schedule of intangible assets | 2019 2018 Cost Accumulated Net Cost Accumulated Net R Goodwill 2,425 (1,110) 1,315 2,259 (1,111) 1,148 Tradename 3,062 - 3,062 39 - 39 Commercial rights (note 16.2) 135 - 135 111 - 111 Software 1,715 (827) 888 1,200 (579) 621 7,337 (1,937) 5,400 3,609 (1,690) 1,919 Lease-right of use: Right of use Paes Mendonça (**) 836 (56) 780 832 (13) 819 Software 321 (265) 56 225 (145) 80 1,157 (321) 836 1,057 (158) 899 Total intangibles 8,494 (2,258) 6,236 4,666 (1,848) 2,818 |
Schedule of reconciliation of additions to intangible assets | 16.3. Additions to intangible assets for cash flow presentation purposes: 2019 2018 Restated Additions 298 737 Lease (1) - Intangible assets financing - Addition (23) (59) Intangible assets financing - Payments 46 37 Total 320 715 |
17. Trade payables, net (Tables
17. Trade payables, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other payables [abstract] | |
Schedule of trade payables, net | 2019 2018 Product suppliers 14,371 9,662 Service suppliers 977 491 Bonuses from suppliers (note 17.2) (461) (907) 14,887 9,246 |
18. Borrowings and financing (T
18. Borrowings and financing (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Borrowings [abstract] | |
Schedule of debt breakdown | Weighted average rate 2019 2018 Restated Debentures, certificate of agribusiness receivables and promissory notes (note 18.4) 129.34% of CDI (i) 11,863 4,146 11,863 4,146 Borrowings and financing Local currency BNDES 4.01% per year 27 37 Working capital 124.4% of CDI (i) 1,008 238 Working capital TR (ii) + 9.80 % per year 99 112 Swap contracts (note 18.7) 101.44% (12) (11) Unamortized borrowing costs (22) (3) 1,100 373 Foreign currency (note 18.5) Working capital 3.14% per year 846 843 Working capital IBR 3M (iii) + 2% 323 - Credit letter 12 - Swap contracts (note 18.7) 118.27% of CDI (i) (15) (76) Swap contracts (note 18.7) IBR 3M (iii) + 2% (19) - NDF Contracts – Derivatives (1) - Unamortized borrowing costs (1) - 1,145 767 Total 14,108 5,286 Current assets 73 43 Noncurrent assets 13 44 Current liabilities 3,488 1,981 Noncurrent liabilities 10,706 3,392 (i) CDI: Certificate of Interbank Deposit (ii) TR: Referential rate (iii) Reference Bank Index in Colombia for 3 months |
Schedule of changes in borrowings | 18.2. Changes in borrowings At December 31, 2018 5,438 Adjustment related to IFRS 16 (152) Restated opening balance 5,286 Additions 13,604 Accrued interest 678 Accrued swap (11) Mark-to-market (47) Monetary and exchange rate changes (13) Borrowing cost 31 Interest paid (504) Payments (9,551) Swap paid 103 Business combination 4,527 Exchange rate changes 80 Deconsolidation Via Varejo (75) At December 31, 2019 14,108 At December 31, 2017 4,560 Adjustment related to IFRS 16 (195) Restated opening balance 4,365 Additions 9,139 Accrued interest 619 Accrued swap (126) Mark-to-market 12 Monetary and exchange rate changes 167 Borrowing cost 13 Interest paid (758) Payments (7,920) Swap paid (9) Liabilities related to assets held for sale and discontinued operations (note 33) (216) At December 31, 2018 - restated 5,286 |
Schedule of maturity of borrowings and financing | 18.3. Maturity schedule of noncurrent borrowings and financing Year From 1 to 2 years 3,596 From 2 to 3 years 3,444 From 3 to 4 years 2,773 From 4 to 5 years 386 After 5 years 559 Subtotal 10,758 Unamortized borrowing costs (65) Total 10,693 |
Schedule of debentures, promissory note and certificate of agribusiness receivables | 18.4. Debentures, Promissory Note and Certificate of Agribusiness Receivables Date Type Issue Amount Outstanding debentures (units) Issue Maturity Financial charges Unit price (in Reais) 2019 2018 13th Issue of Debentures – CBD and CRA No preference 1,012 1,012,500 12/20/16 12/20/19 97.50% of CDI - - 1,014 14th Issue of Debentures – CBD No preference 1,080 1,080,000 04/17/17 04/13/20 96.00% of CDI 1,010 1,091 1,094 15th Issue of Debentures – CBD No preference 800 800,000 01/17/18 01/15/21 104.75% of CDI 1,027 821 824 16th Issue of Debentures – CBD (1st serie) No preference 700 700,000 09/11/18 09/10/21 106% of CDI 1,016 712 714 16th Issue of Debentures – CBD (2nd serie) No preference 500 500,000 09/11/18 09/12/22 107.4% of CDI 1,017 508 510 4th Issue of Promissory Notes – CBD No preference 800 800 01/10/19 01/09/22 105.75% of CDI 1,061,280 849 - 1st Issue of Promissory Notes – Sendas (1nd serie) No preference 50 1 07/04/19 07/03/20 CDI + 0.72% per year 51,537,614 52 - 1st Issue of Promissory Notes – Sendas (2nd serie) No preference 50 1 07/04/19 07/05/21 CDI + 0.72% per year 51,537,614 52 - 1st Issue of Promissory Notes – Sendas (3nd serie) No preference 50 1 07/04/19 07/04/22 CDI + 0.72% per year 51,537,614 52 - 1st Issue of Promissory Notes – Sendas (4nd serie) No preference 250 5 07/04/19 07/04/23 CDI + 0.72% per year 51,537,614 258 - 1st Issue of Promissory Notes – Sendas (5nd serie) No preference 200 4 07/04/19 07/04/24 CDI + 0.72% per year 51,537,614 206 - 1st Issue of Promissory Notes – Sendas (6nd serie) No preference 200 4 07/04/19 07/04/25 CDI + 0.72% per year 51,537,614 206 - 1st Issue of Debentures – Sendas (1nd serie) No preference 2,000 2,000,000 09/04/19 08/20/20 CDI + 1.60% per year 500 1,001 - 1st Issue of Debentures – Sendas (2nd serie) No preference 2,000 2,000,000 09/04/19 08/20/21 CDI + 1.74% per year 1,022 2,044 - 1st Issue of Debentures – Sendas (3nd serie) No preference 2,000 2,000,000 09/04/19 08/20/22 CDI + 1.95% per year 1,023 2,046 - 1st Issue of Debentures – Sendas (4nd serie) No preference 2,000 2,000,000 09/04/19 08/20/23 CDI + 2.20% per year 1,024 2,047 - Borrowing costs (82) (10) Total 11,863 4,146 Current liabilities 2,287 1,068 Noncurrent liabilities 9,576 3,078 |
19. Financial instruments (Tabl
19. Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments | |
Schedule of financial instruments | The main financial instruments and their carrying amounts, by category, are as follows: Carrying amount 2019 2018 Restated Financial assets: Amortized cost Related parties - assets 104 34 Trade receivables and other receivables 924 695 Others assets 51 - Fair value through profit or loss Cash and cash equivalents 7,954 4,369 Financial instruments – Fair value hedge 86 87 Others assets 2 - Fair value through other comprehensive income Trade receivables - credit card companies and sales vouchers 377 123 Others assets 19 - Financial liabilities: Other financial liabilities - amortized cost Related parties - liabilities (215) (145) Trade payables (14,887) (9,246) Financing for purchase of assets (231) (149) Debentures and promissory notes (11,863) (4,146) Borrowings and financing (1,348) (271) Lease (8,667) (5,787) Fair value through profit or loss Borrowings and financing ( Hedge accounting underlying) (944) (956) Financial instruments – Fair Value Hedge – liabilities side (39) - Suppliers financial instruments - Fair value hedge - liabilities side (8) - Disco Group put option (*) (466) - (*) See note 19.3. |
Schedule of changes as to objectives, policies or processes | The Group capital structure is as follows: 2019 2018 Restated Cash and cash equivalents 7,954 4,369 Financial instruments – Fair value hedge 39 87 Borrowings and financing (14,155) (5,373) Other liabilities with related parties (*) (124) (138) Net financial debt (6,286) (1,055) Shareholders’ equity (13,548) (13,159) Net debt to equity ratio 46% 8% (*) Represents amount payable to Greenyellow related to the purchase of equipment. |
Schedule of aging profile of financial liabilities | The table below summarizes the aging profile of the Group’s financial liabilities as at December 31, 2019. Up to 1 Year 1 – 5 years More than 5 years Total Borrowings 1,249 1,054 407 2,710 Debentures and promissory notes 2,675 10,694 312 13,681 Derivative financial instruments 3 (13) (3) (13) Lease liabilities 1,747 5,483 9,444 16,674 Trade payables 14,887 - - 14,887 Total 20,561 17,218 10,160 47,939 |
Schedule of hedge position | The Group calculates the effectiveness of hedge transactions at the inception date and on a continuing basis. Hedge transactions contracted in the year ended December 31, 2019 were effective in relation to the covered risk. For derivative transactions that qualify as hedge accounting, the debt, which is the hedged item, is also adjusted to fair value. Notional value Fair value 2019 2018 2019 2018 Fair value hedge Hedge object (debt) 955 883 944 955 Long position (buy) Prefixed rate TR + 9.80% per year 127 127 99 112 US$ + fixed USD + 3.14 % per year 828 756 846 843 955 883 945 955 Short position (sell) 118.7% of CDI (955) (883) (917) (868) Hedge position - asset - - 57 87 Hedge position - liability - - (29) - Net hedge position - - 28 87 |
Schedule of other financial instruments | (i) Other financial instruments Transactions Risk (CDI variation) Balance at 2019 Scenario I Scenario II Scenario III Fair value hedge (fixed rate) 101.44% of CDI (86) (211) (214) (218) Fair value hedge (exchange rate) 118.27% of CDI (831) (860) (904) (916) Debentures and promissory notes 132.69% of CDI (10,853) (11,380) (11,512) (11,644) Debentures (2nd issue CRA) 96.00% of CDI (1,091) (1,142) (1,154) (1,167) Bank loans 124.49% of CDI (1,008) (1,058) (1,071) (1,083) Total borrowings and financing exposure (13,869) (14,651) (14,855) (15,028) Cash and cash equivalents (*) 89.94% of CDI 4,471 4,468 4,717 4,766 Net exposure (9,398) (10,183) (10,138) (10,262) Net effect - loss (785) (740) (864) (*) Weighted average |
Schedule of sensitivity analysis | Market projection Transactions Balance 2019 Scenario I Scenario II Scenario III Bank loans and swap (320) (320) (321) (320) |
Schedule of fair value hierarchy of financial assets and liabilities | The table below presents the fair value hierarchy of financial assets and liabilities measured at fair value and of financial instruments measured at amortized cost, for which the fair value is disclosed in the consolidated financial statements: Carrying amount Fair value 12.31.2019 12.31.2019 Level Financial assets and liabilities Trade receivables with credit card companies and sales vouchers 377 377 2 Cross-currency interest rate swap 15 15 2 Interest rate swaps 25 25 2 Forward between Currencies (1) (2) 2 Borrowings and financing (FVPL) (944) (944) 2 Borrowings and financing and debentures (amortized cost) (13,211) (12,528) 2 Disco Group put option (*) (466) (466) 3 Total (14,205) (13,523) (*) Non-controlling shareholders of Group Disco del Uruguay S.A., Éxito Group’s subsidiary has a exercisable put option based on a formula that uses data such as net income, EBITDA - earnings before interest, taxes, depreciation and amortization - and net debt, in addition to fixed amounts determined in the contract and the exchange variation applicable for conversion to the functional currency. This put option is presented in “Acquisition of non-controlling interest”. |
Schedule of consolidated position of outstanding derivative transactions | The outstanding derivative financial instruments are presented in the table below: Risk Notional (millions) Due date 2019 2018 Debt USD - BRL 2019 - 43 USD - BRL US$ 210 2020 16 33 Interest rate - BRL R$ 21 2026 2 2 Interest rate - BRL R$ 106 2027 10 9 Derivatives - Fair value hedge - Brazil 28 87 Debt USD - COP US$ 211 2020 20 - USD - COP US$ 3 2022 1 - Interest rate - COP COP 673.109 2020 (1) - Interest rate - COP COP 138.440 2021 (1) - 19 - Trade payables EUR - COP EUR 2 2020 - - USD - COP USD 56 2020 (8) - (8) - Derivatives – Éxito Group 11 - |
20. Taxes and contributions p_2
20. Taxes and contributions payable and taxes payable in installments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Taxes And Contributions Payable And Taxes Payable In Installments | |
Schedule of taxes and contributions payable and taxes payable | 20.1. Taxes and contributions payable and taxes payable in installments are as follows 2019 2018 Taxes payable in installments - Law 11,941/09 (ii) 355 432 Taxes payable in installments – PERT 162 169 ICMS 96 88 PIS and COFINS 7 8 Provision for income tax and social contribution - 115 Withholding Income Tax 1 2 INSS 6 4 Other 60 23 Taxes payable – Éxito Group (*) 220 - 907 841 Current 531 370 Noncurrent 376 471 (*) (i) In 2017, the Group decided to include certain federal tax debts in the Special Program on Tax Settlements – PERT (“PERT Program. The program allows the payment of certain taxes in monthly installments, and granted discounts on interest and penalties. The Group included tax debts related to (i) tax assessments over purchase transactions, manufacturing and exports sales of soil beans (PIS/COFINS), (ii) non-validation of tax offsets (IRPJ, PIS/COFINS); and other tax debts previously classified as possible risks related mainly to CPMF( Contribuição provisória sobre movimentação financeira (See note 22.2). The PERT liability is being settled in monthly installments up to 12 years. The Group is in compliance with the obligations assumed under the PERT Program. The decision to apply to the PERT Program and the Federal taxes installment payment program resulted in the recognition of a loss of R$183 in 2017. (ii) Federal tax installment payment program, Law 11,941/09 – The Law 11,941, was enacted on May 27, 2009, a special federal tax and social security debt installment program, for debts overdue until November 2008, which granted several benefits to its participants, such as reduction of fines, interest rates and penalties, the possibility of utilization of accumulated tax losses to settle penalties and interest and payment in 180 months, use of restricted deposits linked to the claim to reduce the balance. The program also allows the gains arising from reduction of fines and penalties not to be taxable for income taxes purposes. The Group is in compliance with the terms and conditions of these tax payment program. |
Schedule of maturity of taxes payable | 20.2. Maturity schedule of taxes payable in installments in noncurrent liabilities: From 1 to 2 years 105 From 2 to 3 years 104 From 3 to 4 years 92 From 4 to 5 years 13 After 5 years 62 376 |
21. Income tax and social con_2
21. Income tax and social contribution (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax And Social Contribution | |
Schedule of reconciliation of income and social contribution tax expense | 21.1. Income tax and social contribution effective rate reconciliation 2019 2018 2017 Restated Restated Income before income tax and social contribution 760 1,569 619 Income tax and social contribution expense at the nominal rate (*). (323) (532) (231) Tax penalties (18) (22) (25) Share of profit of associates (2) 15 (10) Interest on own capital 80 93 16 Tax benefits 19 15 - Other permanent differences (28) 18 (12) Effective income tax and social contribution expense (272) (413) (262) Income tax and social contribution expense for the year: Current (96) (347) (171) Deferred (176) (66) (91) Income tax and social contribution expense (272) (413) (262) Effective rate 35.79% 26.32% 42.33% (*)The nominal rate is 34% for subsidiaries located in Brazil, 33% for subsidiaries based in Colombia, 25% for subsidiaries based in Uruguay and 30% for subsidiaries based in Argentina. The Company does not pay social contribution based on a final favorable court decision in the past; therefore, its nominal rate is 25%. |
Schedule of breakdown of deferred income tax and social contribution | 21.2. Breakdown of deferred income tax and social contribution 2019 2018 Asset Liability Net Asset Liability Net Restated Tax losses and negative basis of social contribution 453 - 453 198 - 198 Provision for contingencies 321 - 321 292 - 292 Goodwill tax amortization - (604) (604) - (601) (601) Mark-to-market adjustment - (7) (7) - (1) (1) Technological innovation – future realization - (7) (7) - (10) (10) Fixed assets, tradename and investment property - (1,359) (1,359) - (128) (128) Unrealized gains with tax credits 82 (322) (240) - (222) (222) Net adjustments of IFRS 16 356 - 356 274 - 274 Cash flow hedge - (80) (80) - - - Other 117 - 117 112 (139) (27) Presumed profit on equity of Éxito 192 - 192 - - - Deferred income tax and social contribution assets (liabilities) 1,521 (2,379) (858) 876 (1,101) (225) Off-set assets and liabilities (1,184) 1,184 - (578) 578 - Deferred income tax and social contribution assets (liabilities), net 337 (1,195) (858) 298 (523) (225) |
Schedule of recovery of deferred tax assets | The Company estimates the recovery of the deferred tax assets as follows: Up to one year 312 From 1 to 2 years 357 From 2 to 3 years 246 From 3 to 4 years 158 From 4 to 5 years 58 Above 5 years 390 1,521 |
Schedule of changes in deferred income tax and social contribution | 21.3. Movement in deferred income tax and social contribution 2019 2018 2017 Restated Restated At the beginning of the period (374) (269) (144) Adjustment related to IFRS 16 149 174 197 Restated opening balance (225) (95) 53 Expense for the year – Continuing operations (176) (66) (91) Expense for the year - Discontinued operations (122) (87) (1) Tax on discontinued operations 314 61 - Income tax related to OCI - Continuing operations 1 (1) 1 Income tax related to OCI - Discontinued operations - 3 1 Special program on tax settlements - PERT - Discontinued operations - use of tax loss (2) (2) (89) Business combination (747) - - Exchange rate changes (18) - - Assets held for sale and discontinued operations 122 84 31 Other (5) - - At the end of the period (858) (225) (95) |
22. Provision for contingenci_2
22. Provision for contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Provision For Contingencies | |
Schedule of provision for contingencies | The provision for contingencies is estimated by the Group’s management, supported by its legal counsel, for an amount considered sufficient to cover probable losses. Tax Social security and labor Civil and Regulatory Total Balance at December 31, 2018 828 291 116 1,235 Additions 149 449 162 760 Payments (41) (328) (84) (453) Reversals (274) (200) (92) (566) Monetary restatement (10) 66 23 79 Business combination 76 13 14 103 Exchange rate changes 2 - - 2 Deconsolidation Via Varejo 111 28 6 145 Balance at December 31, 2019 841 319 145 1,305 Tax Social security and labor Civil and Regulatory Total Balance at December 31, 2017 637 331 139 1,107 Additions 387 997 362 1,746 Payments (2) (812) (207) (1,021) Reversals (158) (597) (262) (1,017) Monetary restatement 4 119 37 160 Liabilities related to assets held for sale and discontinued operations (see Note 33) (40) 253 47 260 Balance at December 31, 2018 828 291 116 1,235 |
Schedule of judicial deposits | The Group has recorded judicial deposits as follows. 2019 2018 Tax 242 237 Labor 474 463 Civil and other 79 76 Total 795 776 |
Schedule of guarantees | Lawsuits Property and equipment Letter of Guarantee Total 2019 2018 2019 2018 2019 2018 Tax 843 838 9,162 9,033 10,005 9,871 Labor - 3 539 190 539 193 Civil and other 11 12 469 433 480 445 Total 854 853 10,170 9,656 11,024 10,509 |
23. Leases (Tables)
23. Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases | |
Schedule of minimum rental payment on termination | Leasing contracts totaled R$8,667 as of December 31, 2019 (R$5,787 as of December 31, 2018), as presented in the following table: 2019 2018 Restated Financial lease liability – minimum lease payments: Up to 1 year 937 507 1 - 5 years 2,936 1,956 Over 5 years 4,794 3,324 Present value of finance lease agreements 8,667 5,787 Future financing charges 8,007 6,780 Gross amount of finance lease agreements 16,674 12,567 |
Schedule of contingent lease payments | At December 31, 2018 5,787 Additions 807 Remeasurement 838 Accrued interest 862 Payments (1,498) Anticipated lease contract termination (116) Business combination 1,817 Exchange rate changes 33 Deconsolidation Via Varejo 137 At December 31, 2019 8,667 Current 937 Noncurrent 7,730 At December 31, 2017 5,267 Additions 519 Remeasurement 853 Accrued interest 985 Exchange and monetary variation 1 Payments (1,743) Anticipated lease contract termination (80) Liabilities related to assets held for sale and discontinued operations (15) At December 31, 2018 5,787 Current 507 Noncurrent 5,280 |
Schedule of finance lease | 2019 2018 2017 Expenses (income) for the year: Restated Restated Variable (0.1% to 4.5% of sales) 34 31 19 Sublease rentals (*) (230) (191) (174) (*) Refers to revenues from lease agreements from commercial shopping malls and spaces rented in the stores. |
24. Deferred revenue (Tables)
24. Deferred revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Revenue | |
Schedule of liabilities related to assets held to sale | The Group received amounts from business partners on exclusivity in the intermediation of additional or extended warranty services, and the subsidiary Sendas received amounts for the rental of back lights for exhibition of products from certain suppliers at its stores. 2019 2018 Deferred revenue in relation to sale of real estate property 10 16 Additional or extended warranties 16 19 Services rendering agreement - Allpark 9 11 Revenue from credit card operators and banks 84 44 Back lights 142 134 Gift Card 99 8 Others 31 31 391 263 Current 365 250 Noncurrent 26 13 |
25. Shareholders' equity (Table
25. Shareholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Changes in equity [abstract] | |
Schedule of former stock option plan, stock option plan and compensation plan | Information on the plans are summarized below: 2019 Number of options (in thousands) Series granted Grant date 1st date of exercise Exercise price at the grant date Granted Exercised Cancelled Expired Outstanding B3 05/30/2016 05/30/2019 0.01 823 (658) (77) (88) - C3 05/30/2016 05/30/2019 37.21 823 (640) (110) (73) - B4 05/31/2017 05/31/2020 0.01 537 (211) (54) - 272 C4 05/31/2017 05/31/2020 56.78 537 (209) (55) - 273 B3 -Tranche2 04/27/2018 05/30/2019 0.01 95 (95) - - - C3 -Tranche2 04/27/2018 05/30/2019 56.83 95 (95) - - - B5 05/31/2018 05/31/2021 0.01 594 (116) (37) - 441 C5 05/31/2018 05/31/2021 62.61 594 (115) (38) - 441 B6 05/31/2019 05/31/2022 0.01 434 (3) (17) - 414 C6 05/31/2019 05/31/2022 70.62 331 (2) (17) - 312 4,863 (2,144) (405) (161) 2,153 |
Schedule of maximum percentage of interest dilution | The table below shows the dilutive effect if all options granted were exercised: 2019 2018 Number of shares 267,997 266,845 Balance of effective stock options granted 2,153 2,755 Maximum percentage of dilution 0.80% 1.03% |
Schedule of stock option activity | The expectation of remaining average life of the series outstanding at December 31, 2019 is 1.50 year (1.25 year at December 31, 2018). The weighted average fair value of options granted at December 31, 2019 was R$56.41 (R$45.24 at December 31, 2018). Shares in thousands Weighted average of exercise price Weighted average of remaining contractual term At December 31, 2018 Granted during the period 1,378 30.91 Cancelled during the period (229) 38.64 Exercised during the period (697) 31.96 Expired during the period (236) 68.62 Outstanding at the end of the period 2,755 26.03 1.37 Total to be exercised at December 31, 2018 2,755 26.03 1.37 At December 31, 2019 Granted during the period 765 30.55 Cancelled during the period (126) 31.75 Exercised during the period (1,080) 21.55 Expired during the period (161) 16.74 Outstanding at the end of the period 2,153 30.25 1.50 Total to be exercised at December 31, 2019 2,153 30.25 1.50 |
Schedule of dividends proposed | Company’s management has proposed dividends, considering the interest on own capital paid in a net amount of R$32 to its shareholders which was attributable to the minimum dividend and calculated as follows: Proposed dividends 2019 2018 Restated Net income for the year 790 1,149 Legal reserve (39) (60) Governmental subsidy reserve - (10) Calculation basis of dividends 751 1,079 Mandatory minimum dividends – 25% 188 270 Additional dividends - 11 Payment of interim dividends as interest on own capital, net of withholding taxes (32) (225) Dividends payable 156 56 |
26. Revenue from the sale of _2
26. Revenue from the sale of goods and / or services (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue [abstract] | |
Schedule of net operating revenue | Revenues from these services are recognized at a point of time and presented net of related costs and recognized when control of the service is transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those services. 2019 2018 2017 Gross sales Goods 61,176 53,643 48,597 Services rendered 641 456 365 Sales returns and cancellations (273) (484) (523) 61,544 53,615 48,439 Taxes on sales (4,909) (4,227) (3,805) Net operating revenue 56,635 49,388 44,634 |
27. Expenses by nature (Tables)
27. Expenses by nature (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Expenses By Nature | |
Schedule of expenses by nature | General and administrative expenses correspond to overhead and the cost of corporate units, including purchasing and procurement, information technology and financial activities. 2019 2018 2017 Restated Restated Cost of inventories (42,688) (36,239) (32,140) Personnel expenses (5,332) (4,846) (4,691) Outsourced services (636) (636) (648) Overhead expenses (1,904) (1,536) (1,568) Commercial expenses (1,481) (1,334) (1,226) Other expenses (758) (790) (661) (52,799) (45,381) (40,934) Cost of sales (44,445) (37,779) (33,585) Selling expenses (7,431) (6,553) (6,323) General and administrative expenses (923) (1,049) (1,026) (52,799) (45,381) (40,934) |
28. Other operating expenses,_2
28. Other operating expenses, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Operating Expenses Net | |
Schedule of other operating expenses, net | Other operating income and expenses correspond to the effects of major or nonrecurring events occurred during the year that do not meet the definition for the other statement of operations lines. 2019 2018 2017 Restated Restated Tax installments and other tax risks (211) (181) (217) Restructuring expenses (*) (292) (147) (107) Gain (losses) on disposal of property and equipment (**) 44 125 (244) Other - - (8) (459) (203) (576) (*) amounts related to restructuring expenses in the Brazilian operations and those incurred in connection with the acquisition of Éxito Group. (**) includes the result of sale lease back of R$45 in 2019 (R$ 201 in 2018 and there was no such transaction in 2017). |
29. Financial income (expense_2
29. Financial income (expenses), net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Income Expenses Net | |
Schedule of financial income (expenses), net | Financial expenses include substantially interest and financial charges on borrowings and financing and discounting receivables during the year, losses arising from measurement of derivative financial instruments at fair value, losses on disposals of financial assets, financial charges on provisions on lawsuits and taxes and interest charges on financial leases, as well as discount charges. 2019 2018 2017 Restated Restated Finance expenses: Cost of debt (584) (368) (474) Cost of the discounting of receivables (136) (155) (144) Monetary restatement loss (157) (78) (131) Interest on lease liabilities (666) (609) (589) Other finance expenses (112) (82) (138) Total financial expenses (1,655) (1,292) (1,476) Financial income: Income from short term instruments 168 26 38 Monetary restatement gain 270 194 137 Other financial income 11 11 6 Total financial income 449 231 181 Total (1,206) (1,061) (1,295) |
30. Earnings per share (Tables)
30. Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings per share [abstract] | |
Schedule of earnings per share | The table below presents the determination of net income available to holders of common shares and the weighted average number of common shares outstanding used to calculate basic and diluted earnings per share in each reporting exercise: 2019 2018 2017 Restated Restated Basic numerator Net income (loss) allocated to ordinary shareholders – continuing operations 478 1,156 357 Net income (loss) allocated to ordinary shareholders - discontinued operations 312 (7) 150 Net income (loss) allocated to ordinary shareholders 790 1,149 507 Basic denominator (millions of shares) Weighted average of shares 267 267 266 Basic earnings per millions of shares (R$) – continuing operations 1.78980 4.33836 1.34175 Basic earnings per millions of shares (R$) - discontinued operations 1.16824 (0.02627) 0.56376 Basic earnings per millions of shares (R$) – total 2.95804 4.31209 1.90551 Diluted numerator Net income (loss) allocated to ordinary shareholders – continuing operations 478 1,156 357 Net income (loss) allocated to ordinary shareholders - discontinued operations 312 (7) 150 Net income (loss) allocated to ordinary shareholders 790 1,149 507 Diluted denominator Weighted average of shares (in millions) 267 267 266 Stock option 1 1 1 Diluted weighted average of shares (millions) 268 268 267 Diluted earnings per millions of shares (R$) – continuing operations 1.78696 4.31977 1.33637 Diluted earnings per millions of shares (R$) – discontinued operations 1.16657 - 0.56100 Diluted earnings per millions of shares (R$) – total 2.95353 4.29350 1.89737 |
31. Segment information (Tables
31. Segment information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Information | |
Schedule of segment information | Information on the Group’s segments as of December 31, 2019 is included in the table below: Description Retail Cash & Carry Éxito Group Assets held for sale and discontinued operations Other businesses Total 2019 2018 2017 2019 2018 2017 2019 2019 2018 2017 2019 2018 2017 2019 2018 2017 Restated Restated Restated Restated Restated Net operating revenue 26,654 26,490 26,194 27,797 22,898 18,440 2,151 - - - 33 - - 56,635 49,388 44,634 Gross profit 7,005 7,444 8,091 4,578 4,165 2,958 608 - - - (1) - - 12,190 11,609 11,049 Depreciation and amortization (967) (892) (878) (386) (310) (239) (59) - - - (1) - - (1,413) (1,202) (1,117) Operating income 467 956 1,121 1,526 1,646 886 27 - - - (56) - - 1,964 2,602 2,007 Net financial expenses (815) (903) (1,158) (184) (158) (137) (208) - - - 1 - - (1,206) (1,061) (1,295) Profit(loss) before income tax and social contribution (241) 132 11 1,342 1,488 749 (187) - - - (154) (51) (141) 760 1,569 619 Share of profit of associates 107 79 48 - - - (6) - - - (99) (51) (141) 2 28 (93) Income tax and social contribution 121 42 (36) (439) (455) (226) 44 - - - 2 - - (272) (413) (262) Net income (loss) for continuing operations (120) 174 (25) 903 1,033 523 (143) - - - (152) (51) (141) 488 1,156 357 Net income (loss)for discontinued operations 312 (73) (91) - - - - 36 201 591 - - - 348 128 500 Net income (loss) of year end 192 101 (116) 903 1,033 523 (143) 36 201 591 (152) (51) (141) 836 1,284 857 Current assets 8,002 7,529 5,292 4,176 6,664 - 28,813 10 - 19,968 40,518 Noncurrent assets 15,568 15,138 7,475 6,001 15,438 - - 26 - 38,507 21,139 Current liabilities 11,557 8,358 4,317 5,296 7,252 - 23,602 9 - 23,135 37,256 Noncurrent liabilities 9,810 9,834 2,295 1,408 9,686 - - 1 - 21,792 11,242 Shareholders' equity 2,203 4,475 6,155 3,473 5,164 - 5,211 26 - 13,548 13,159 |
Schedule of company general information | The Group operates primarily as a retailer of food, clothing, home appliances and other products. Total revenues by brand is provided in the table below: 2019 2018 2017 Brazil 54,484 49,388 44,634 Assai 27,797 22,899 18,440 Extra / Compre Bem 15,624 15,792 16,110 Pão de Açúcar 6 , 6,860 6,659 Proximidade 1,273 1,182 1,085 Gas Stations / Drugstores / Delivery 2,971 2,655 2.340 Other business 34 - - Éxito Group (*) 2,151 - - Total net operating revenue 56,635 49.388 44,634 (*) Includes sales in Colombia of R$ 1,694, Uruguay R$ 350 and Argentina of R$ 107. |
33. Noncurrent assets held fo_2
33. Noncurrent assets held for sale and discontinued operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Noncurrent Assets Held For Sale And Discontinued Operations | |
Schedule of non current assets held for sale and discontinued operations | Noncurrent assets classified as held for sale are measured based on the lower amount between their carrying amount and their fair value less cost to sell. Breakdown 2019 2018 Restated Assets of discontinued operations - 28,657 Properties / lands held for sale 171 30 Real estate developments held for sale - Éxito 52 - Total 223 28,687 Liabilities from discontinued operations - 23,545 Total - 23,545 |
Schedule of statement of operations, balance sheet and cash flow statement of Cdiscount before the eliminations | Following are shown the summarized balance sheets, statements of operations and cash flows of Via Varejo through May 31, 2019. The cash flow of Via Varejo is presented before eliminations, the accounting figures presented include the effects of the Purchase Price Allocation of Globex and Casa Bahia recorded in the level of GPA. Summarized Balance sheet (*) 05.31.2019 2018 Assets Restated Current Total current assets 9,871 13,412 Noncurrent Total noncurrent assets 16,266 15,401 Total assets 26,137 28,813 Liabilities Current Total current liabilities 13,484 15,733 Noncurrent Total noncurrent liabilities 7,375 7,869 Shareholders’ equity 5,278 5,211 Total liabilities and shareholders’ equity 26,137 28,813 (*) Before elimination of transactions carried out with the Company. Summarized Cash flow statements: 05.31.2019 2018 2017 Restated Restated Cash flow provided by (used in) operating activities (2,640) 1,609 807 Net cash used in investing activities (234) (590) (260) Net cash used in financing activities (651) (867) (1,018) Increase (decrease) of cash and cash equivalents (3,525) 152 (471) Summarized Statement of Operations: The breakdown of profit from discontinued operations presented in a single line of the statement of operations is as follows: 05.31.2019 2018 2017 Restated Restated Net operating revenue 10,527 26,928 25,690 Profit before income tax and social contribution 169 341 876 Income tax and social contribution (119) (101) (268) Net profit for the year 50 240 680 Other results from discontinued operations (100) (112) (108) Gain on the sale of discontinued operations (note 12.3) 398 - - Profit from discontinued operations 348 128 500 Attributable to: Controlling shareholders of the Company 312 (7) 150 Non-controlling shareholders 36 135 350 |
34. Insurance coverage (Tables)
34. Insurance coverage (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Insurance Coverage | |
Schedule of insurance coverage | The insurance coverage as of December 31, 2019 is summarized as follows: Insured assets Covered risks Amount insured Property and equipment and inventories Operating risks 26,120 Business interruption Loss of profits 12,306 Cars and Others Damages 378 |
4. Adoption of new standards,_3
4. Adoption of new standards, amendments to and interpretations (Details 1) | 12 Months Ended |
Dec. 31, 2019 | |
New/Amended Standard 2 | |
Statement Line Items [Line Items] | |
Changes to IFRS and new interpretations of mandatory application starting at the current year | IFRS 16 – Leases. IFRS 16 supersedes IAS 17 Leases, IFRIC 4 Determining whether an Arrangement contains a Lease, SIC-15 Operating Leases-Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to recognise most leases on the balance sheet. Lessor accounting under IFRS 16 is substantially unchanged from IAS 17. Lessors will continue to classify leases as either operating or finance leases using similar principles as in IAS 17. Therefore, IFRS 16 does not have an impact for leases where the Group is the lessor. |
New/Amended Standard 3 | |
Statement Line Items [Line Items] | |
Changes to IFRS and new interpretations of mandatory application starting at the current year | IFRIC 23 - Uncertainty over Income Tax treatment. The Interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application of IAS 12 Income Taxes. It does not apply to taxes or levies outside the scope of IAS 12, nor does it specifically include requirements relating to interest and penalties associated with uncertain tax treatments. |
4. Adoption of new standards,_4
4. Adoption of new standards, amendments to and interpretations (Details 2) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
AdoptionOfNewStandardsAmendmentsToAndInterpretationsLineItems [Line Items] | ||||
Other current assets | R$ 287 | R$ 145 | R$ 131 | |
Total current assets | 19,968 | 40,518 | 36,889 | |
Deferred income tax and social contribution | 337 | 298 | 252 | |
Property and equipment | 24,290 | 14,052 | 13,292 | |
Intangible assets | 6,236 | 2,818 | 1,878 | |
Total noncurrent assets | 38,507 | 21,139 | 18,890 | |
Total Assets | 58,475 | 61,657 | 55,779 | |
Borrowings and financing | 3,488 | 1,981 | 1,200 | |
Liabilities related to assets held for sale | 23,545 | 21,864 | ||
Total current liabilities | 23,135 | 37,256 | 33,312 | |
Borrowings and financing | 10,706 | 3,392 | 3,193 | |
Provision for losses on investments in associates | 386 | 279 | 201 | |
Deferred income tax and social contribution | 1,195 | 523 | 347 | |
Total noncurrent liabilities | 21,792 | 11,242 | 10,311 | |
Total Shareholders' equity | 13,548 | 13,159 | 12,156 | R$ 11487 |
Total liabilities and shareholders' equity | R$ 58475 | 61,657 | 55,779 | |
As originally reported | ||||
AdoptionOfNewStandardsAmendmentsToAndInterpretationsLineItems [Line Items] | ||||
Other current assets | 175 | 146 | 252 | |
Assets held for sale | 24,443 | 22,775 | 20,153 | |
Total current assets | 36,304 | 33,016 | 31,486 | |
Deferred income tax and social contribution | 207 | 125 | 174 | |
Prepaid expenses | 59 | 43 | 45 | |
Property and equipment | 9,650 | 9,138 | 9,182 | |
Intangible assets | 2,675 | 1,924 | 1,908 | |
Total noncurrent assets | 16,545 | 14,691 | 13,565 | |
Total Assets | 52,849 | 47,707 | 45,051 | |
Borrowings and financing | 2,016 | 1,251 | 2,957 | |
Lease liability | ||||
Other current liabilities | 423 | 341 | 406 | |
Liabilities related to assets held for sale | 19,412 | 17,824 | 15,632 | |
Total current liabilities | 32,785 | 28,992 | 27,582 | |
Borrowings and financing | 3,509 | 3,337 | 2,912 | |
Lease liability | ||||
Provision for losses on investments in associates | 267 | 195 | 36 | |
Deferred income tax and social contribution | 581 | 394 | 317 | |
Total noncurrent liabilities | 6,125 | 5,674 | 5,052 | |
Total liabilities | 38,910 | 34,666 | 32,634 | |
Total Shareholders' equity | 13,939 | 13,041 | 12,417 | |
Total liabilities and shareholders' equity | 52,849 | 47,707 | 45,051 | |
IFRS16 effects | ||||
AdoptionOfNewStandardsAmendmentsToAndInterpretationsLineItems [Line Items] | ||||
Other current assets | (30) | (15) | (13) | |
Assets held for sale | 4,244 | 3,888 | 3,462 | |
Total current assets | 4,214 | 3,873 | 3,449 | |
Deferred income tax and social contribution | 91 | 127 | 163 | |
Prepaid expenses | (42) | (36) | (26) | |
Property and equipment | 4,402 | 4,154 | 3,935 | |
Intangible assets | 143 | (46) | (61) | |
Total noncurrent assets | 4,594 | 4,199 | 4,011 | |
Total Assets | 8,808 | 8,072 | 7,460 | |
Borrowings and financing | (35) | (51) | (41) | |
Lease liability | 507 | 445 | 325 | |
Other current liabilities | (134) | (114) | (66) | |
Liabilities related to assets held for sale | 4,133 | 4,040 | 3,815 | |
Total current liabilities | 4,471 | 4,320 | 4,033 | |
Borrowings and financing | (117) | (144) | (174) | |
Lease liability | 5,280 | 4,822 | 4,563 | |
Provision for losses on investments in associates | 12 | 6 | 2 | |
Deferred income tax and social contribution | (58) | (47) | (34) | |
Total noncurrent liabilities | 5,117 | 4,637 | 4,357 | |
Total liabilities | 9,588 | 9,517 | 8,390 | |
Total Shareholders' equity | (780) | (885) | (930) | |
Total liabilities and shareholders' equity | 8,808 | 8,072 | 7,460 | |
As restated | ||||
AdoptionOfNewStandardsAmendmentsToAndInterpretationsLineItems [Line Items] | ||||
Other current assets | 145 | 131 | 239 | |
Assets held for sale | 28,687 | 26,663 | 23,615 | |
Total current assets | 40,518 | 36,889 | 34,935 | |
Deferred income tax and social contribution | 298 | 252 | 337 | |
Prepaid expenses | 17 | 7 | 19 | |
Property and equipment | 14,052 | 13,292 | 13,117 | |
Intangible assets | 2,818 | 1,878 | 1,847 | |
Total noncurrent assets | 21,139 | 18,890 | 17,576 | |
Total Assets | 61,657 | 55,779 | 52,511 | |
Borrowings and financing | 1,981 | 1,200 | 2,916 | |
Lease liability | 507 | 445 | 325 | |
Other current liabilities | 289 | 227 | 340 | |
Liabilities related to assets held for sale | 23,545 | 21,864 | 19,447 | |
Total current liabilities | 37,256 | 33,312 | 31,615 | |
Borrowings and financing | 3,392 | 3,193 | 2,738 | |
Lease liability | 5,280 | 4,822 | 4,563 | |
Provision for losses on investments in associates | 279 | 201 | 38 | |
Deferred income tax and social contribution | 523 | 347 | 283 | |
Total noncurrent liabilities | 11,242 | 10,311 | 9,409 | |
Total liabilities | 48,498 | 43,623 | 41,024 | |
Total Shareholders' equity | 13,159 | 12,156 | 11,487 | |
Total liabilities and shareholders' equity | R$ 61657 | R$ 55779 | R$ 52511 |
4. Adoption of new standards,_5
4. Adoption of new standards, amendments to and interpretations (Details 3) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
AdoptionOfNewStandardsAmendmentsToAndInterpretationsLineItems [Line Items] | |||
Cost of sales | R$ 44445 | R$ 37779 | R$ 33585 |
Gross profit | 12,190 | 11,609 | 11,049 |
Operating income (expenses): | |||
Depreciation and amortization | 1,413 | 1,202 | 1,117 |
Other operating expenses, net | (459) | (203) | (576) |
Profit from operations before net financial expenses and share of profit of associates | 1,964 | 2,602 | 2,007 |
Financial expenses, net | (1,206) | (1,061) | (1,295) |
Share of profit of associates | 2 | 28 | (93) |
Income before income tax and social contribution | 760 | 1,569 | 619 |
Income tax and social contribution | 272 | 413 | 262 |
Net income (loss) for continuing operations | 488 | 1,156 | 357 |
Net income (loss) from discontinued operations | 348 | 128 | 500 |
Net income for the year | 836 | 1,284 | 857 |
Attributable: | |||
Non-controlling shareholders - discontinued operations | 36 | 135 | 350 |
Total of non-controlling shareholders | R$ 46 | 135 | 350 |
As originally reported | |||
AdoptionOfNewStandardsAmendmentsToAndInterpretationsLineItems [Line Items] | |||
Cost of sales | (37,834) | (33,646) | |
Gross profit | 11,554 | 10,988 | |
Operating income (expenses): | |||
Selling expenses | (7,297) | (7,027) | |
General and administrative expenses | (1,057) | (1,032) | |
Depreciation and amortization | (840) | (779) | |
Other operating expenses, net | (216) | (579) | |
Profit from operations before net financial expenses and share of profit of associates | 2,144 | 1,571 | |
Financial expenses, net | (474) | (730) | |
Share of profit of associates | 33 | (89) | |
Income before income tax and social contribution | 1,703 | 752 | |
Income tax and social contribution | (449) | (297) | |
Net income (loss) for continuing operations | 1,254 | 455 | |
Net income (loss) from discontinued operations | (74) | 356 | |
Net income for the year | 1,180 | 811 | |
Attributable: | |||
Controlling shareholders - continuing operations | 1,254 | 455 | |
Controlling shareholders - discontinued operations | (61) | 125 | |
Total of controlling shareholders | 1,193 | 580 | |
Non-controlling shareholders - discontinued operations | (13) | 231 | |
Total of non-controlling shareholders | (13) | 231 | |
IFRS16 effects | |||
AdoptionOfNewStandardsAmendmentsToAndInterpretationsLineItems [Line Items] | |||
Cost of sales | 55 | 61 | |
Gross profit | 55 | 61 | |
Operating income (expenses): | |||
Selling expenses | 744 | 704 | |
General and administrative expenses | 8 | 6 | |
Depreciation and amortization | (362) | (338) | |
Other operating expenses, net | 13 | 3 | |
Profit from operations before net financial expenses and share of profit of associates | 458 | 436 | |
Financial expenses, net | (587) | (565) | |
Share of profit of associates | (5) | (4) | |
Income before income tax and social contribution | (134) | (133) | |
Income tax and social contribution | 36 | 35 | |
Net income (loss) for continuing operations | (98) | (98) | |
Net income (loss) from discontinued operations | 202 | 144 | |
Net income for the year | 104 | 46 | |
Attributable: | |||
Controlling shareholders - continuing operations | (98) | (98) | |
Controlling shareholders - discontinued operations | 54 | 25 | |
Total of controlling shareholders | (44) | (73) | |
Non-controlling shareholders - discontinued operations | 148 | 119 | |
Total of non-controlling shareholders | 148 | 119 | |
As restated | |||
AdoptionOfNewStandardsAmendmentsToAndInterpretationsLineItems [Line Items] | |||
Cost of sales | (37,779) | (33,585) | |
Gross profit | 11,609 | 11,049 | |
Operating income (expenses): | |||
Selling expenses | (6,553) | (6,323) | |
General and administrative expenses | (1,049) | (1,026) | |
Depreciation and amortization | (1,202) | (1,117) | |
Other operating expenses, net | (203) | (576) | |
Profit from operations before net financial expenses and share of profit of associates | 2,602 | 2,007 | |
Financial expenses, net | (1,061) | (1,295) | |
Share of profit of associates | 28 | (93) | |
Income before income tax and social contribution | 1,569 | 619 | |
Income tax and social contribution | (413) | (262) | |
Net income (loss) for continuing operations | 1,156 | 357 | |
Net income (loss) from discontinued operations | 128 | 500 | |
Net income for the year | 1,284 | 857 | |
Attributable: | |||
Controlling shareholders - continuing operations | 1,156 | 357 | |
Controlling shareholders - discontinued operations | (7) | 150 | |
Total of controlling shareholders | 1,149 | 507 | |
Non-controlling shareholders - discontinued operations | 135 | 350 | |
Total of non-controlling shareholders | R$ 135 | R$ 350 |
4. Adoption of new standards,_6
4. Adoption of new standards, amendments to and interpretations (Details 4) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
AdoptionOfNewStandardsAmendmentsToAndInterpretationsLineItems [Line Items] | |||
Net income for the year | R$ 836 | R$ 1284 | R$ 857 |
Deferred income tax | 240 | 235 | 92 |
Losses (gain) of disposals of property and equipment | 88 | 17 | 329 |
Depreciation and amortization | 1,559 | 1,322 | 1,229 |
Financial charges | 1,668 | 1,730 | 1,998 |
Other assets | (173) | (34) | (48) |
Other liabilities | (52) | 193 | 89 |
Payments of borrowings and financing | R$ 9952 | 8,687 | 9,692 |
As originally reported | |||
AdoptionOfNewStandardsAmendmentsToAndInterpretationsLineItems [Line Items] | |||
Net income for the year | 1,180 | 811 | |
Deferred income tax | 77 | (35) | |
Losses (gain) of disposals of property and equipment | (40) | 247 | |
Depreciation and amortization | 889 | 833 | |
Financial charges | 761 | 947 | |
Share of profit (loss) of associates | (73) | 69 | |
Losses (gain) on lease liability write off | |||
Other assets | (60) | ||
Other liabilities | 209 | 148 | |
Payments of borrowings and financing | (8,747) | (9,785) | |
Payments of lease liability | |||
IFRS16 effects | |||
AdoptionOfNewStandardsAmendmentsToAndInterpretationsLineItems [Line Items] | |||
Net income for the year | 104 | 46 | |
Deferred income tax | 158 | 127 | |
Losses (gain) of disposals of property and equipment | 57 | 82 | |
Depreciation and amortization | 433 | 396 | |
Financial charges | 969 | 1,051 | |
Share of profit (loss) of associates | 4 | 4 | |
Losses (gain) on lease liability write off | (80) | (14) | |
Other assets | 12 | ||
Other liabilities | (16) | (59) | |
Payments of borrowings and financing | 60 | 93 | |
Payments of lease liability | (1,743) | (1,725) | |
As restated | |||
AdoptionOfNewStandardsAmendmentsToAndInterpretationsLineItems [Line Items] | |||
Net income for the year | 1,284 | 857 | |
Deferred income tax | 235 | 92 | |
Losses (gain) of disposals of property and equipment | 17 | 329 | |
Depreciation and amortization | 1,322 | 1,229 | |
Financial charges | 1,730 | 1,998 | |
Share of profit (loss) of associates | (69) | 73 | |
Losses (gain) on lease liability write off | (80) | (14) | |
Other assets | (48) | ||
Other liabilities | 193 | 89 | |
Payments of borrowings and financing | (8,687) | (9,692) | |
Payments of lease liability | R$ 1743 | R$ 1725 |
4. Adoption of new standards,_7
4. Adoption of new standards, amendments to and interpretations (Details 5) | 12 Months Ended |
Dec. 31, 2019 | |
New/Amended Standard 2 | |
AdoptionOfNewStandardsAmendmentsToAndInterpretationsLineItems [Line Items] | |
Changes to IFRS and new interpretations issued and not yet adopted | Amendments to IFRS 3: Definition of a Business. In October 2018, the IASB issued amendments to the definition of a business in IFRS 3, Business Combinations, to help entities determine whether an acquired set of activities and assets is a business or not. They clarify the minimum requirements for a business, remove the assessment of whether market participants are capable of replacing any missing elements, add guidance to help entities assess whether an acquired process is substantive, narrow the definitions of a business and of outputs, and introduce an optional fair value concentration test. New illustrative examples were provided along with the amendments. |
New/Amended Standard 3 | |
AdoptionOfNewStandardsAmendmentsToAndInterpretationsLineItems [Line Items] | |
Changes to IFRS and new interpretations issued and not yet adopted | Amendments to IAS 1 and IAS 8 - Definition of materiality. In October 2018, the IASB issued amendments to IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to align the definition of ‘material’ across the standards and to clarify certain aspects of the definition. The new definition states that, ’Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity. |
4. Adoption of new standards,_8
4. Adoption of new standards, amendments to and interpretations (Details Narrative) R$ in Millions | 12 Months Ended |
Dec. 31, 2017BRL (R$) | |
Adoption Of New Standards Amendments To And Interpretations Of Existing Standards Issued By Iasb Effective From 2019 | |
Withheld liabilities in continuing operations | R$ 13 |
Withheld liabilities in discontinued operations | R$ 8 |
6. Cash and cash equivalents (D
6. Cash and cash equivalents (Details 1) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Line Items [Line Items] | ||||
Cash and cash equivalents | R$ 7954 | R$ 4369 | R$ 3792 | |
Cash and banks - Brazil | ||||
Statement Line Items [Line Items] | ||||
Cash and cash equivalents | 249 | 406 | ||
Cash And Banks - Abroad [Member] | ||||
Statement Line Items [Line Items] | ||||
Cash and cash equivalents | [1] | 3,109 | 80 | |
Short-Term Investments - Brazil [Member] | ||||
Statement Line Items [Line Items] | ||||
Cash and cash equivalents | [2] | 4,471 | R$ 3883 | |
Short-term investments - Abroad | ||||
Statement Line Items [Line Items] | ||||
Cash and cash equivalents | [3] | R$ 125 | ||
[1] | As of December 31, 2019, refers to (i) funds from the Exito Group acquired on November 27, 2019 according to note n13, of which R$73 are denominated in Argentina pesos, R$254 are denominated in Uruguayan pesos and R$2,698 in Colombian pesos; (ii) In 2019 and 2018 it includes R$80 deposited in the United States of America in US Dollars | |||
[2] | Refers substantially to highly liquid investments bearing interest at a weighted average rate of 89.94% (85.78% on December 31, 2018) of the Brazilian Interbank Deposit Certificate ("CDI"), maturing in 90 days or less and which are subject to an insignificant change in value. | |||
[3] | Refers to funds invested abroad, of which R$20 are denominated in in Argentinian pesos, R$4 are denominated in Uruguayan pesos and R$101 are denominated in Colombia pesos, as a result of the acquisition of Exito, to according note 13, maturing in 90 days or less and which are subject to an insignificant change in value |
6. Cash and cash equivalents _2
6. Cash and cash equivalents (Details Narrative) - Exito [Member] - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Short-Term Investments [Member] | Brazilian Interbank Deposit Certificate ("CDI") [Member] | ||
CashAndCashEquivalentLineItems [Line Items] | ||
Weighted average interest rate | 89.94% | 85.78% |
ARGENTINA | ||
CashAndCashEquivalentLineItems [Line Items] | ||
Acquisition consideration | R$ 73 | |
Funds invested abroad | 20 | |
URUGUAY | ||
CashAndCashEquivalentLineItems [Line Items] | ||
Acquisition consideration | 254 | |
Funds invested abroad | 4 | |
COLOMBIA | ||
CashAndCashEquivalentLineItems [Line Items] | ||
Acquisition consideration | 2,698 | |
Funds invested abroad | 101 | |
UNITED STATES | ||
CashAndCashEquivalentLineItems [Line Items] | ||
Deposited | R$ 80 |
7. Trade receivables (Details 1
7. Trade receivables (Details 1) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
TradeReceivablesLineItems [Line Items] | |||
Trade receivables, net | R$ 728 | R$ 388 | |
Trade receivables, current | 727 | 384 | R$ 618 |
Trade receivables, noncurrent | 1 | 4 | R$ 80 |
Credit Card Companies [Member] | |||
TradeReceivablesLineItems [Line Items] | |||
Trade receivables, net | 42 | 38 | |
Credit Card Companies - Related Parties [Member] | |||
TradeReceivablesLineItems [Line Items] | |||
Trade receivables, net | 24 | 58 | |
Sales Vouchers And Trade Receivables [Member] | |||
TradeReceivablesLineItems [Line Items] | |||
Trade receivables, net | 446 | 128 | |
Private Label Credit Card [Member] | |||
TradeReceivablesLineItems [Line Items] | |||
Trade receivables, net | 70 | 53 | |
Receivables From Related Parties [Member] | |||
TradeReceivablesLineItems [Line Items] | |||
Trade receivables, net | 12 | 15 | |
Receivables From Suppliers [Member] | |||
TradeReceivablesLineItems [Line Items] | |||
Trade receivables, net | 166 | 101 | |
Allowance For Doubtful Accounts [Member] | |||
TradeReceivablesLineItems [Line Items] | |||
Trade receivables, net | R$ 32 | R$ 5 |
7. Trade receivables (Details 2
7. Trade receivables (Details 2) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Trade Receivables | |||
At the beginning of the year | R$ 5 | R$ 6 | R$ 4 |
Allowance booked for the year | (263) | (630) | (740) |
Write-offs of receivables | 282 | 771 | 621 |
Deconsolidation Via Varejo | (74) | ||
Assets held for sale and discontinued operations | 1 | (140) | 117 |
Business combination | (28) | ||
At the end of the year | R$ 32 | R$ 5 | R$ 6 |
7. Trade receivables (Details 3
7. Trade receivables (Details 3) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
TradeReceivablesLineItems [Line Items] | ||
Trade account receivables gross | R$ 760 | R$ 393 |
Overdue Receivables Not Yet Due [Member] | ||
TradeReceivablesLineItems [Line Items] | ||
Trade account receivables gross | 609 | 362 |
Up to 1 Year [Member] | ||
TradeReceivablesLineItems [Line Items] | ||
Trade account receivables gross | 79 | 10 |
Overdue Receivables 30 To 60 days [Member] | ||
TradeReceivablesLineItems [Line Items] | ||
Trade account receivables gross | 21 | 5 |
Overdue Receivables 61 To 90 Days [Member] | ||
TradeReceivablesLineItems [Line Items] | ||
Trade account receivables gross | 5 | 5 |
Overdue Receivables More Than 90 Days [Member] | ||
TradeReceivablesLineItems [Line Items] | ||
Trade account receivables gross | R$ 46 | R$ 11 |
8. Other receivables (Details 1
8. Other receivables (Details 1) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
OtherReceivablesLineItems [Line Items] | ||||
Other receivables | R$ 573 | R$ 430 | ||
Other receivables, current | 381 | 302 | R$ 267 | |
Other receivables, noncurrent | 192 | 128 | R$ 642 | |
Accounts Receivable From Insurers [Member] | ||||
OtherReceivablesLineItems [Line Items] | ||||
Other receivables | [1] | 72 | 213 | |
Receivable From Sale Of Subsidiaries [Member] | ||||
OtherReceivablesLineItems [Line Items] | ||||
Other receivables | 83 | 82 | ||
Lease Receivables [Member] | ||||
OtherReceivablesLineItems [Line Items] | ||||
Other receivables | 113 | 44 | ||
Accounts Receivable - Via Varejo [Member] | ||||
OtherReceivablesLineItems [Line Items] | ||||
Other receivables | [2] | 49 | ||
Receivables From Sale Of Real Estate Properties [Member] | ||||
OtherReceivablesLineItems [Line Items] | ||||
Other receivables | 128 | 40 | ||
Other [Member] | ||||
OtherReceivablesLineItems [Line Items] | ||||
Other receivables | 142 | 67 | ||
Allowance For Doubtful Other Receivables [Member] | ||||
OtherReceivablesLineItems [Line Items] | ||||
Other receivables | R$ 15 | R$ 16 | ||
[1] | In October 2019, the Company received R$203 from the insurance company regarding the claim related to the fire occurred at the Distribution Center in Osasco on December 27, 2017, after negotiations and agreement on the final amount of the indemnity. | |||
[2] | As the Company sold the equity interest in Via Varejo, the amount that had been reported as related parties was reclassified to other receivables. |
8. Other receivables (Details 2
8. Other receivables (Details 2) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Receivables | |||
At the beginning of the year | R$ 16 | R$ 12 | R$ 7 |
Allowance booked for the year | (4) | (9) | |
Write-off of other receivables | 5 | 13 | |
Deconsolidation Via Varejo | (4) | ||
Assets held for sale and discontinued operations | (13) | 4 | |
At the end of the year | R$ 15 | R$ 16 | R$ 12 |
8. Other receivables (Details N
8. Other receivables (Details Narrative) R$ in Millions | Oct. 30, 2019BRL (R$) | Jan. 31, 2016BRL (R$)Installment | May 28, 2012Installment | May 12, 2012BRL (R$) |
OtherReceivablesLineItems [Line Items] | ||||
Receivables from the sale of subsidiaries | R$ 8 | R$ 50 | ||
Percentage of receivable | 110.00% | 110.00% | ||
Number of installments | Installment | 120 | 240 | ||
Insurance Company [Member] | ||||
OtherReceivablesLineItems [Line Items] | ||||
Claim recivable | R$ 203 |
9. Inventories (Details 1)
9. Inventories (Details 1) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
InventoriesLineItems [Line Items] | |||
Inventories, net | R$ 8631 | R$ 5909 | R$ 4822 |
Exito Group [Member] | |||
InventoriesLineItems [Line Items] | |||
Inventories, net | 2,254 | ||
Stores [Member] | |||
InventoriesLineItems [Line Items] | |||
Inventories, net | 4,698 | 4,162 | |
Distribution Centers [Member] | |||
InventoriesLineItems [Line Items] | |||
Inventories, net | 1,583 | 1,807 | |
Real Estate Inventories [Member] | |||
InventoriesLineItems [Line Items] | |||
Inventories, net | 1 | 5 | |
Real Estate Inventories [Member] | Exito Group [Member] | |||
InventoriesLineItems [Line Items] | |||
Inventories, net | 190 | ||
Allowance For Losses On Inventory Obsolescence And Damages [Member] | |||
InventoriesLineItems [Line Items] | |||
Inventories, net | R$ 95 | R$ 65 |
9. Inventories (Details 2)
9. Inventories (Details 2) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Inventories Abstract | |||
At the beginning of the year | R$ 65 | R$ 73 | R$ 75 |
Additions | (51) | (79) | (110) |
Business combination | (22) | ||
Write-offs / reversal | 35 | 85 | 111 |
Deconsolidation Via Varejo | 8 | ||
Assets held for sale and discontinued operations | 2 | 1 | |
At the end of the year | R$ 95 | R$ 65 | R$ 73 |
9. Inventories (Details Narrati
9. Inventories (Details Narrative) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
InventoriesLineItems [Line Items] | |||
Inventories, net | R$ 8631 | R$ 5909 | R$ 4822 |
Unrealized Commercial Agreements [Member] | |||
InventoriesLineItems [Line Items] | |||
Inventories, net | R$ 310 | R$ 315 |
10. Recoverable taxes (Details
10. Recoverable taxes (Details 1) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
RecoverableTaxesLineItems [Line Items] | ||||
Recoverable taxes | R$ 4394 | R$ 3424 | ||
Recoverable taxes, current | 1,692 | 679 | R$ 596 | |
Recoverable taxes, noncurrent | 2,702 | 2,745 | R$ 1747 | |
State Value-Added Tax On Sales and Services - ICMS [Member] | ||||
RecoverableTaxesLineItems [Line Items] | ||||
Recoverable taxes | 2,621 | 2,335 | ||
Provision For Non-Realization to ICMS [Member] | ||||
RecoverableTaxesLineItems [Line Items] | ||||
Recoverable taxes | (28) | |||
Social Integration Program (PIS) and Contribution for Social Security Financing (COFINS) [Member] | ||||
RecoverableTaxesLineItems [Line Items] | ||||
Recoverable taxes | 854 | 717 | ||
Social Security Contribution (INSS) [Member] | ||||
RecoverableTaxesLineItems [Line Items] | ||||
Recoverable taxes | 321 | 328 | ||
Income Tax and Social Contribution [Member] | ||||
RecoverableTaxesLineItems [Line Items] | ||||
Recoverable taxes | [1] | 472 | 52 | |
Other [Member] | ||||
RecoverableTaxesLineItems [Line Items] | ||||
Recoverable taxes | 49 | 20 | ||
Other Recoverable Taxes - Exito Group [Member] | ||||
RecoverableTaxesLineItems [Line Items] | ||||
Recoverable taxes | R$ 77 | |||
[1] | Includes Exito's prepayments. |
10. Recoverable taxes (Detail_2
10. Recoverable taxes (Details 2) R$ in Millions | Dec. 31, 2019BRL (R$) |
RecoverableTaxesLineItems [Line Items] | |
Future realization of recoverable taxes | R$ 2621 |
Up to One Year [Member] | |
RecoverableTaxesLineItems [Line Items] | |
Future realization of recoverable taxes | 438 |
From 1 to 2 Years [Member] | |
RecoverableTaxesLineItems [Line Items] | |
Future realization of recoverable taxes | 370 |
From 2 to 3 Years [Member] | |
RecoverableTaxesLineItems [Line Items] | |
Future realization of recoverable taxes | 361 |
From 3 to 4 Years [Member] | |
RecoverableTaxesLineItems [Line Items] | |
Future realization of recoverable taxes | 366 |
From 4 to 5 Years [Member] | |
RecoverableTaxesLineItems [Line Items] | |
Future realization of recoverable taxes | 350 |
More than 5 Years [Member] | |
RecoverableTaxesLineItems [Line Items] | |
Future realization of recoverable taxes | R$ 736 |
11. Related parties (Details 1)
11. Related parties (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of transactions between related parties [line items] | ||||
Base salary | R$ 71580 | R$ 55179 | R$ 37661 | |
Variable compensation | 12,943 | 15,083 | 26,813 | |
Stock option plan | 17,962 | 29,267 | 24,405 | |
Total compensation | R$ 102485 | R$ 99529 | R$ 88879 | |
Percent share-based payment over the total compensation | 17.50% | 29.40% | 27.50% | |
Board Of Directors [Member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Base salary | [1] | R$ 38207 | R$ 12256 | R$ 5797 |
Variable compensation | [1] | |||
Stock option plan | [1] | 2,366 | ||
Total compensation | [1] | 40,573 | 12,256 | 5,797 |
Executive Officers [Member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Base salary | 33,373 | 42,695 | 31,408 | |
Variable compensation | 12,943 | 15,083 | 26,813 | |
Stock option plan | 15,596 | 29,267 | 24,405 | |
Total compensation | 61,912 | 87,045 | 82,626 | |
Fiscal Council [Member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Base salary | 228 | 456 | ||
Variable compensation | ||||
Stock option plan | ||||
Total compensation | R$ 228 | R$ 456 | ||
[1] | Includes the compensation of the Board of Directors' advisory committees (Human Resources and Compensation, Audit, Finance, Sustainable Development and Corporate Governance). |
11. Related parties (Details 2)
11. Related parties (Details 2) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of transactions between related parties [line items] | |||
Trade receivables | R$ 36 | R$ 73 | |
Other assets | 104 | 34 | |
Trade payables | 40 | 33 | |
Other liabilities | 215 | 145 | |
Revenues (expenses) | 57 | 40 | R$ 26 |
Controlling Shareholders [Member] | Casino [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Trade receivables | 15 | ||
Other assets | 5 | ||
Trade payables | 2 | ||
Other liabilities | 24 | 1 | |
Revenues (expenses) | (57) | (64) | (48) |
Controlling Shareholders [Member] | Euris [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Trade receivables | |||
Other assets | |||
Trade payables | |||
Other liabilities | 1 | ||
Revenues (expenses) | (1) | (2) | (3) |
Controlling Shareholders [Member] | Helicco Participacoes [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Trade receivables | |||
Other assets | |||
Trade payables | |||
Other liabilities | 3 | ||
Revenues (expenses) | (3) | (7) | |
Controlling Shareholders [Member] | Geant International [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Trade receivables | |||
Other assets | |||
Trade payables | |||
Other liabilities | |||
Revenues (expenses) | (3) | ||
Associates [Member] | FIC [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Trade receivables | 24 | 58 | |
Other assets | 36 | 33 | |
Trade payables | 39 | 31 | |
Other liabilities | |||
Revenues (expenses) | 152 | 152 | 84 |
Associates [Member] | Puntos Colombia [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Trade receivables | |||
Other assets | 28 | ||
Trade payables | |||
Other liabilities | 43 | ||
Revenues (expenses) | (13) | ||
Associates [Member] | Tuya [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Trade receivables | |||
Other assets | 26 | ||
Trade payables | |||
Other liabilities | |||
Revenues (expenses) | 21 | ||
Other Related Parties [Member] | Greenyellow [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Trade receivables | |||
Other assets | |||
Trade payables | |||
Other liabilities | 134 | 141 | |
Revenues (expenses) | (35) | (39) | (58) |
Other Related Parties [Member] | Casino Group [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Trade receivables | 12 | ||
Other assets | 8 | ||
Trade payables | 1 | ||
Other liabilities | 13 | ||
Revenues (expenses) | (4) | ||
Other Related Parties [Member] | Others [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Trade receivables | |||
Other assets | 1 | 1 | |
Trade payables | |||
Other liabilities | |||
Revenues (expenses) | R$ 1 |
12. Investments (Details 1)
12. Investments (Details 1) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
CBD [Member] | Novasoc Comercial Ltda. ("Novasoc") [Member] | |||
Disclosure of associates [line items] | |||
Company type | Novasoc Comercial Ltda. (“Novasoc”) | ||
Location (state) | Brazil | ||
Direct and indirect equity interest - % | 100.00% | 100.00% | |
CBD [Member] | Sendas Distribuidora S.A. ("Sendas") [Member] | |||
Disclosure of associates [line items] | |||
Company type | Sendas Distribuidora S.A. (“Sendas”) | ||
Location (state) | Brazil | ||
Direct and indirect equity interest - % | 100.00% | 100.00% | |
CBD [Member] | Bellamar Empreend. e Participacoes Ltda. ("Bellamar") [Member] | |||
Disclosure of associates [line items] | |||
Company type | Bellamar Empreend. e Participações Ltda. (“Bellamar”) | ||
Location (state) | Brazil | ||
Direct and indirect equity interest - % | 100.00% | 100.00% | |
CBD [Member] | CBD Holland B.V. ("CBD Holland") [Member] | |||
Disclosure of associates [line items] | |||
Company type | CBD Holland B.V. (“CBD Holland”) | ||
Location (state) | Brazil | ||
Direct and indirect equity interest - % | 100.00% | 100.00% | |
CBD [Member] | GPA 2 Empreend. e Participacoes Ltda. ("GPA 2") [Member] | |||
Disclosure of associates [line items] | |||
Company type | GPA 2 Empreend. e Participações Ltda. (“GPA 2”) | ||
Location (state) | Brazil | ||
Direct and indirect equity interest - % | 100.00% | 100.00% | |
CBD [Member] | GPA Logistica e Transporte Ltda. ("GPA Logistica") [Member] | |||
Disclosure of associates [line items] | |||
Company type | GPA Logística e Transporte Ltda. (“GPA Logística”) | ||
Location (state) | Brazil | ||
Direct and indirect equity interest - % | 100.00% | 100.00% | |
CBD [Member] | SCB Distribuicao e Comercio Varejista De Alimentos Ltda. ("Compre Bem") [Member] | |||
Disclosure of associates [line items] | |||
Company type | SCB Distribuição e Comércio Varejista de Alimentos Ltda. ("Compre Bem'') | ||
Location (state) | Brazil | ||
Direct and indirect equity interest - % | 100.00% | 100.00% | |
CBD [Member] | Stix Fidelidade e Inteligencia S.A. ("Stix") [Member] | |||
Disclosure of associates [line items] | |||
Company type | Stix Fidelidade e Inteligência S.A. ("Stix") | ||
Location (state) | Brazil | ||
Direct and indirect equity interest - % | 100.00% | 100.00% | |
CBD [Member] | Leji Intermediacao S.A. ("James Delivery") [Member] | |||
Disclosure of associates [line items] | |||
Company type | Leji Intermediação S.A. ("James Delivery") | ||
Location (state) | Brazil | ||
Direct and indirect equity interest - % | 100.00% | 100.00% | |
CBD [Member] | Cheftime Comercio De Refeicoes S/A ("Cheftime") [Member] | |||
Disclosure of associates [line items] | |||
Company type | Cheftime Comércio de Refeições S/A ("Cheftime") | ||
Location (state) | Brazil | ||
Direct and indirect equity interest - % | 79.57% | ||
CBD [Member] | GPA Malls And Properties Gestao De Ativos e Servicos Imobiliarios Ltda. ("GPA M&P") [Member] | |||
Disclosure of associates [line items] | |||
Company type | GPA Malls & Properties Gestão de Ativos e Serviços Imobiliários Ltda. (“GPA M&P”) | ||
Location (state) | Brazil | ||
Direct and indirect equity interest - % | 100.00% | 100.00% | |
CBD [Member] | BCafeterias e Lanchonetes Ltda. ("BCafeterias") [Member] | |||
Disclosure of associates [line items] | |||
Company type | [1] | BCafeterias e Lanchonetes Ltda. ("BCafeterias") | |
Location (state) | Brazil | ||
Direct and indirect equity interest - % | 100.00% | ||
CBD [Member] | Fronteira Servicos Lmobiliarios Ltda.("Fronteira") [Member] | |||
Disclosure of associates [line items] | |||
Company type | [1] | Fronteira Serviços Imobiliários Ltda.("Fronteira") | |
Location (state) | Brazil | ||
Direct and indirect equity interest - % | 100.00% | ||
CBD [Member] | Place2B Servicos Lmobiliarios Ltda.("Place2B") [Member] | |||
Disclosure of associates [line items] | |||
Company type | [1] | Place2B Serviços Imobiliários Ltda.("Place2B") | |
Location (state) | Brazil | ||
Direct and indirect equity interest - % | 100.00% | ||
CBD [Member] | Companhia Brasileira De Distribuicao Luxembourg Holding S.a.r.l. ("CBDLuxco") [Member] | |||
Disclosure of associates [line items] | |||
Company type | Companhia Brasileira de Distribuição Luxembourg Holding S.à.r.l. ("CBDLuxco”) | ||
Location (state) | Luxembourg | ||
Direct and indirect equity interest - % | 100.00% | 100.00% | |
CBD [Member] | Companhia Brasileira de Distribuicao Netherlands Holding B.V. ("CBDDutchco") [Member] | |||
Disclosure of associates [line items] | |||
Company type | Companhia Brasileira de Distribuição Netherlands Holding B.V. (“CBDDutchco”) | ||
Location (state) | Netherlands | ||
Direct and indirect equity interest - % | 100.00% | 100.00% | |
Exito [Member] | Almacenes Exito S.A. ("Exito") [Member] | |||
Disclosure of associates [line items] | |||
Company type | Almacenes Éxito S.A. ("Éxito") | ||
Location (state) | Colombia | ||
Direct and indirect equity interest - % | 96.57% | ||
Exito [Member] | Exito Industrias S.A.S. ("Exito Industrias") [Member] | |||
Disclosure of associates [line items] | |||
Company type | Éxito Industrias S.A.S. ("Éxito Industrias") | ||
Location (state) | Colombia | ||
Direct and indirect equity interest - % | 94.59% | ||
Exito [Member] | Fideicomiso Lote Girardot [Member] | |||
Disclosure of associates [line items] | |||
Company type | Fideicomiso Lote Girardot | ||
Location (state) | Colombia | ||
Direct and indirect equity interest - % | 96.57% | ||
Exito [Member] | Exito Viajes y Turismo S.A.S. [Member] | |||
Disclosure of associates [line items] | |||
Company type | Éxito Viajes y Turismo S.A.S. | ||
Location (state) | Colombia | ||
Direct and indirect equity interest - % | 49.25% | ||
Exito [Member] | Almacenes Exito Inversiones S.A.S. (Movil Exito) [Member] | |||
Disclosure of associates [line items] | |||
Company type | Almacenes Éxito Inversiones S.A.S. (Móvil Éxito) | ||
Location (state) | Colombia | ||
Direct and indirect equity interest - % | 96.57% | ||
Exito [Member] | Gemex O And W S.A.S. [Member] | |||
Disclosure of associates [line items] | |||
Company type | Gemex O & W S.A.S. | ||
Location (state) | Colombia | ||
Direct and indirect equity interest - % | 96.57% | ||
Exito [Member] | Marketplace Internacional Exito y Servicios S.A.S. (MPI) [Member] | |||
Disclosure of associates [line items] | |||
Company type | Marketplace Internacional Éxito y Servicios S.A.S. (MPI) | ||
Location (state) | Colombia | ||
Direct and indirect equity interest - % | 96.57% | ||
Exito [Member] | Logistica, Transporte y Servicios Asociados S.A.S. (LTSA) [Member] | |||
Disclosure of associates [line items] | |||
Company type | Logística, Transporte y Servicios Asociados S.A.S. (LTSA) | ||
Location (state) | Colombia | ||
Direct and indirect equity interest - % | 96.57% | ||
Exito [Member] | Depositos y Soluciones Logisticas S.A.S. [Member] | |||
Disclosure of associates [line items] | |||
Company type | Depósitos y Soluciones Logísticas S.A.S. | ||
Location (state) | Colombia | ||
Direct and indirect equity interest - % | 96.57% | ||
Exito [Member] | Patrimonio Autonomo Iwana [Member] | |||
Disclosure of associates [line items] | |||
Company type | Patrimonio Autónomo Iwana | ||
Location (state) | Colombia | ||
Direct and indirect equity interest - % | 49.25% | ||
Exito [Member] | Patrimonio Autonomo Viva Malls [Member] | |||
Disclosure of associates [line items] | |||
Company type | Patrimonio Autónomo Viva Malls | ||
Location (state) | Colombia | ||
Direct and indirect equity interest - % | 49.25% | ||
Exito [Member] | Patrimonio Autonomo Viva Sincelejo [Member] | |||
Disclosure of associates [line items] | |||
Company type | Patrimonio Autónomo Viva Sincelejo | ||
Location (state) | Colombia | ||
Direct and indirect equity interest - % | 25.12% | ||
Exito [Member] | Patrimonio Autonomo Viva Villavicencio [Member] | |||
Disclosure of associates [line items] | |||
Company type | Patrimonio Autónomo Viva Villavicencio | ||
Location (state) | Colombia | ||
Direct and indirect equity interest - % | 25.12% | ||
Exito [Member] | Patrimonio Autonomo San Pedro Etapa I [Member] | |||
Disclosure of associates [line items] | |||
Company type | Patrimonio Autónomo San Pedro Etapa I | ||
Location (state) | Colombia | ||
Direct and indirect equity interest - % | 25.12% | ||
Exito [Member] | Patrimonio Autonomo Centro Comercial [Member] | |||
Disclosure of associates [line items] | |||
Company type | Patrimonio Autónomo Centro Comercial | ||
Location (state) | Colombia | ||
Direct and indirect equity interest - % | 25.12% | ||
Exito [Member] | Patrimonio Autonomo Viva Laureles [Member] | |||
Disclosure of associates [line items] | |||
Company type | Patrimonio Autónomo Viva Laureles | ||
Location (state) | Colombia | ||
Direct and indirect equity interest - % | 39.40% | ||
Exito [Member] | Patrimonio Autonomo Viva Palmas [Member] | |||
Disclosure of associates [line items] | |||
Company type | Patrimonio Autónomo Viva Palmas | ||
Location (state) | Colombia | ||
Direct and indirect equity interest - % | 25.12% | ||
Exito [Member] | Patrimonio Autonomo Centro Comercial Viva [Member] | |||
Disclosure of associates [line items] | |||
Company type | Patrimonio Autónomo Centro Comercial Viva | ||
Location (state) | Colombia | ||
Direct and indirect equity interest - % | 44.33% | ||
Exito [Member] | Spice Investment Mercosur [Member] | |||
Disclosure of associates [line items] | |||
Company type | Spice investment Mercosur | ||
Location (state) | Uruguay | ||
Direct and indirect equity interest - % | 96.57% | ||
Exito [Member] | Larenco S.A. [Member] | |||
Disclosure of associates [line items] | |||
Company type | Larenco S.A. | ||
Location (state) | Uruguay | ||
Direct and indirect equity interest - % | 96.57% | ||
Exito [Member] | Geant Inversiones S.A. [Member] | |||
Disclosure of associates [line items] | |||
Company type | Geant Inversiones S.A. | ||
Location (state) | Uruguay | ||
Direct and indirect equity interest - % | 96.57% | ||
Exito [Member] | Lanin S.A.. [Member] | |||
Disclosure of associates [line items] | |||
Company type | Lanin S.A. | ||
Location (state) | Uruguay | ||
Direct and indirect equity interest - % | 96.57% | ||
Exito [Member] | 5 Hermanos Ltda. [Member] | |||
Disclosure of associates [line items] | |||
Company type | 5 Hermanos Ltda. | ||
Location (state) | Uruguay | ||
Direct and indirect equity interest - % | 96.57% | ||
Exito [Member] | Sumelar S.A. [Member] | |||
Disclosure of associates [line items] | |||
Company type | Sumelar S.A. | ||
Location (state) | Uruguay | ||
Direct and indirect equity interest - % | 96.57% | ||
Exito [Member] | Raxwy Company S.A. [Member] | |||
Disclosure of associates [line items] | |||
Company type | Raxwy Company S.A. | ||
Location (state) | Uruguay | ||
Direct and indirect equity interest - % | 96.57% | ||
Exito [Member] | Supermercados Disco del Uruguay S.A. [Member] | |||
Disclosure of associates [line items] | |||
Company type | Supermercados Disco del Uruguay S.A. | ||
Location (state) | Uruguay | ||
Direct and indirect equity interest - % | 60.35% | ||
Exito [Member] | Maostar S.A. [Member] | |||
Disclosure of associates [line items] | |||
Company type | Maostar S.A. | ||
Location (state) | Uruguay | ||
Direct and indirect equity interest - % | 30.18% | ||
Exito [Member] | Ameluz S.A. [Member] | |||
Disclosure of associates [line items] | |||
Company type | Ameluz S.A. | ||
Location (state) | Uruguay | ||
Direct and indirect equity interest - % | 60.35% | ||
Exito [Member] | Fandale S.A. [Member] | |||
Disclosure of associates [line items] | |||
Company type | Fandale S.A. | ||
Location (state) | Uruguay | ||
Direct and indirect equity interest - % | 60.35% | ||
Exito [Member] | Odaler S.A. [Member] | |||
Disclosure of associates [line items] | |||
Company type | Odaler S.A. | ||
Location (state) | Uruguay | ||
Direct and indirect equity interest - % | 60.35% | ||
Exito [Member] | La Cabana S.R.L. [Member] | |||
Disclosure of associates [line items] | |||
Company type | La Cabaña S.R.L. | ||
Location (state) | Uruguay | ||
Direct and indirect equity interest - % | 60.35% | ||
Exito [Member] | Ludi S.A. [Member] | |||
Disclosure of associates [line items] | |||
Company type | Ludi S.A. | ||
Location (state) | Uruguay | ||
Direct and indirect equity interest - % | 60.35% | ||
Exito [Member] | Semin S.A. [Member] | |||
Disclosure of associates [line items] | |||
Company type | Semin S.A. | ||
Location (state) | Uruguay | ||
Direct and indirect equity interest - % | 60.35% | ||
Exito [Member] | Randicor S.A [Member] | |||
Disclosure of associates [line items] | |||
Company type | Randicor S.A. | ||
Location (state) | Uruguay | ||
Direct and indirect equity interest - % | 60.35% | ||
Exito [Member] | Setara S.A. [Member] | |||
Disclosure of associates [line items] | |||
Company type | Setara S.A. | ||
Location (state) | Uruguay | ||
Direct and indirect equity interest - % | 60.35% | ||
Exito [Member] | Hiper Ahorro S.R.L [Member] | |||
Disclosure of associates [line items] | |||
Company type | Hiper Ahorro S.R.L. | ||
Location (state) | Uruguay | ||
Direct and indirect equity interest - % | 60.35% | ||
Exito [Member] | Ciudad Del Ferrol S.C. [Member] | |||
Disclosure of associates [line items] | |||
Company type | Ciudad del Ferrol S.C. | ||
Location (state) | Uruguay | ||
Direct and indirect equity interest - % | 59.14% | ||
Exito [Member] | Mablicor S.A. [Member] | |||
Disclosure of associates [line items] | |||
Company type | Mablicor S.A. | ||
Location (state) | Uruguay | ||
Direct and indirect equity interest - % | 30.78% | ||
Exito [Member] | Tipsel S.A. [Member] | |||
Disclosure of associates [line items] | |||
Company type | Tipsel S.A. | ||
Location (state) | Uruguay | ||
Direct and indirect equity interest - % | 96.57% | ||
Exito [Member] | Tedocan S.A. [Member] | |||
Disclosure of associates [line items] | |||
Company type | Tedocan S.A. | ||
Location (state) | Uruguay | ||
Direct and indirect equity interest - % | 96.57% | ||
Exito [Member] | Via Artika S. A.[Member] | |||
Disclosure of associates [line items] | |||
Company type | Vía Artika S. A. | ||
Location (state) | Uruguay | ||
Direct and indirect equity interest - % | 96.57% | ||
Exito [Member] | Group Disco Del Uruguay S.A..[Member] | |||
Disclosure of associates [line items] | |||
Company type | Group Disco del Uruguay S.A. | ||
Location (state) | Uruguay | ||
Direct and indirect equity interest - % | 60.35% | ||
Exito [Member] | Devoto Hermanos S.A. [Member] | |||
Disclosure of associates [line items] | |||
Company type | Devoto Hermanos S.A. | ||
Location (state) | Uruguay | ||
Direct and indirect equity interest - % | 96.57% | ||
Exito [Member] | Mercados Devoto S.A. [Member] | |||
Disclosure of associates [line items] | |||
Company type | Mercados Devoto S.A. | ||
Location (state) | Uruguay | ||
Direct and indirect equity interest - % | 96.57% | ||
Exito [Member] | Geant Argentina S.A. [Member] | |||
Disclosure of associates [line items] | |||
Company type | Geant Argentina S.A. | ||
Location (state) | Argentina | ||
Direct and indirect equity interest - % | 96.57% | ||
Exito [Member] | Libertad S.A. [Member] | |||
Disclosure of associates [line items] | |||
Company type | Libertad S.A. | ||
Location (state) | Argentina | ||
Direct and indirect equity interest - % | 96.57% | ||
Exito [Member] | Onper Investment 2015 S.L [Member] | |||
Disclosure of associates [line items] | |||
Company type | Onper Investment 2015 S.L | ||
Location (state) | Spain | ||
Direct and indirect equity interest - % | 96.57% | ||
Exito [Member] | Spice Espana de Valores Americanos S.L. [Member] | |||
Disclosure of associates [line items] | |||
Company type | Spice España de Valores Americanos S.L. | ||
Location (state) | Spain | ||
Direct and indirect equity interest - % | 96.57% | ||
Exito [Member] | Marketplace Internacional Exito S.L [Member] | |||
Disclosure of associates [line items] | |||
Company type | Marketplace Internacional Éxito S.L | ||
Location (state) | Spain | ||
Direct and indirect equity interest - % | 96.57% | ||
Exito [Member] | Carulla Vivero Holding Inc. [Member] | |||
Disclosure of associates [line items] | |||
Company type | Carulla Vivero Holding Inc. | ||
Location (state) | British Virgin Islands | ||
Direct and indirect equity interest - % | 96.57% | ||
Exito [Member] | Gelase S. A. [Member] | |||
Disclosure of associates [line items] | |||
Company type | Gelase S. A. | ||
Location (state) | Belgium | ||
Direct and indirect equity interest - % | 96.57% | ||
Via Varejo [Member] | Via Varejo S.A. ("Via Varejo") [Member] | |||
Disclosure of associates [line items] | |||
Company type | Via Varejo S.A. (“Via Varejo”) | ||
Location (state) | Brazil | ||
Direct and indirect equity interest - % | 43.23% | ||
Via Varejo [Member] | Industria de Moveis Bartira Ltda. ("Bartira") [Member] | |||
Disclosure of associates [line items] | |||
Company type | Indústria de Móveis Bartira Ltda. (“Bartira”) | ||
Location (state) | Brazil | ||
Direct and indirect equity interest - % | 43.23% | ||
Via Varejo [Member] | VVLOG Logistica Ltda. (PontoCred Negocio de Varejo Ltda.) ("VVLOG Logistica") [Member] | |||
Disclosure of associates [line items] | |||
Company type | VVLOG Logística Ltda. (PontoCred Negócio de Varejo Ltda.) (“VVLOG Logística”) | ||
Location (state) | Brazil | ||
Direct and indirect equity interest - % | 43.23% | ||
Via Varejo [Member] | Globex Adm. e Servicos Ltda. ("Globex Adm") [Member] | |||
Disclosure of associates [line items] | |||
Company type | Globex Adm. e Serviços Ltda. (“Globex Adm”) | ||
Location (state) | Brazil | ||
Direct and indirect equity interest - % | 43.23% | ||
Via Varejo [Member] | Lake Niassa Empreend. e Participacoes Ltda. ("Lake Niassa") [Member] | |||
Disclosure of associates [line items] | |||
Company type | Lake Niassa Empreend. e Participações Ltda. (“Lake Niassa”) | ||
Location (state) | Brazil | ||
Direct and indirect equity interest - % | 43.23% | ||
Via Varejo [Member] | Globex Adm. Consorcio Ltda. ("Globex Adm. Consorcio") [Member] | |||
Disclosure of associates [line items] | |||
Company type | Globex Adm. Consórcio Ltda. (“Globex Adm. Consórcio”) | ||
Location (state) | Brazil | ||
Direct and indirect equity interest - % | 43.23% | ||
Via Varejo [Member] | Cnova Comercio Eletronico S.A. ("Cnova Brazil") [Member] | |||
Disclosure of associates [line items] | |||
Company type | Cnova Comércio Eletrônico S.A. (”Cnova Brazil”) | ||
Location (state) | Brazil | ||
Direct and indirect equity interest - % | 43.23% | ||
[1] | The Group created new operating companies |
12. Investments (Details 2)
12. Investments (Details 2) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Cnova N.V. [Member] | Cnova N.V. ("Cnova Holanda") [Member] | |||
Disclosure of associates [line items] | |||
Company type | Cnova N.V. (“Cnova Holanda”) | ||
Location (state) | Netherlands | ||
Direct and indirect equity interest - % | 33.98% | 33.98% | |
Cnova N.V. [Member] | Cdiscount Afrique SAS ("Cdiscount Afrique") [Member] | |||
Disclosure of associates [line items] | |||
Company type | Cdiscount Afrique SAS (“Cdiscount Afrique”) | ||
Location (state) | France | ||
Direct and indirect equity interest - % | 33.98% | 33.98% | |
Cnova N.V. [Member] | Cdiscount International BV ("Cdiscount Internacional") [Member] | |||
Disclosure of associates [line items] | |||
Company type | Cdiscount International BV (“Cdiscount Internacional”) | ||
Location (state) | Netherlands | ||
Direct and indirect equity interest - % | 33.98% | 33.98% | |
Cnova N.V. [Member] | Cnova France SAS ("Cnova France") [Member] | |||
Disclosure of associates [line items] | |||
Company type | Cnova France SAS (“Cnova France”) | ||
Location (state) | France | ||
Direct and indirect equity interest - % | 33.98% | 33.98% | |
Cnova N.V. [Member] | Cdiscount S.A. ("Cdiscount") [Member] | |||
Disclosure of associates [line items] | |||
Company type | Cdiscount S.A. (“Cdiscount”) | ||
Location (state) | France | ||
Direct and indirect equity interest - % | 33.87% | 33.87% | |
Cnova N.V. [Member] | Cdiscount Cote d'Ivoire SAS Ivory Coast ("Cdiscount Cote") [Member] | |||
Disclosure of associates [line items] | |||
Company type | Cdiscount Côte d'Ivoire SAS Ivory Coast (“Cdiscount Côte”) | ||
Location (state) | Ivory Coast | ||
Direct and indirect equity interest - % | 33.98% | 33.98% | |
Cnova N.V. [Member] | Cdiscount Senegal SAS ("Cdiscount Senegal") [Member] | |||
Disclosure of associates [line items] | |||
Company type | Cdiscount Sénégal SAS (“Cdiscount Sénégal”) | ||
Location (state) | Senegal | ||
Direct and indirect equity interest - % | 33.98% | 33.98% | |
Cnova N.V. [Member] | Cdiscount Cameroun SAS ("Cdiscount Cameroun") [Member] | |||
Disclosure of associates [line items] | |||
Company type | Cdiscount Cameroun SAS (“Cdiscount Cameroun”) | ||
Location (state) | Cameroon | ||
Direct and indirect equity interest - % | 33.98% | 33.98% | |
Cnova N.V. [Member] | CLatam AS Uruguay ("CLatam") [Member] | |||
Disclosure of associates [line items] | |||
Company type | CLatam AS Uruguay (“CLatam”) | ||
Location (state) | Uruguay | ||
Direct and indirect equity interest - % | 23.79% | 23.79% | |
Cnova N.V. [Member] | Cdiscount Panama S.A. ("Cdiscount Panama") [Member] | |||
Disclosure of associates [line items] | |||
Company type | Cdiscount Panama S.A. (“Cdiscount Panama”) | ||
Location (state) | Panama | ||
Direct and indirect equity interest - % | 23.79% | 23.79% | |
Cnova N.V. [Member] | Cdiscount Uruguay S.A. ("Cdiscount Uruguay") [Member] | |||
Disclosure of associates [line items] | |||
Company type | Cdiscount Uruguay S.A. (“Cdiscount Uruguay”) | ||
Location (state) | Uruguay | ||
Direct and indirect equity interest - % | 23.79% | 23.79% | |
Cnova N.V. [Member] | Ecdiscoc Comercializadora S.A.(Cdiscount Ecuador) ("Ecdiscoc Comercializadora") [Member] | |||
Disclosure of associates [line items] | |||
Company type | Ecdiscoc Comercializadora S.A.(Cdiscount Ecuador) (“Ecdiscoc Comercializadora”) | ||
Location (state) | Ecuador | ||
Direct and indirect equity interest - % | 23.78% | 23.78% | |
Cnova N.V. [Member] | Cnova Pay [Member] | |||
Disclosure of associates [line items] | |||
Company type | Cnova Pay | ||
Location (state) | France | ||
Direct and indirect equity interest - % | 33.98% | 33.98% | |
Cnova N.V. [Member] | BeezUP SAS ("BezzUp") [Member] | |||
Disclosure of associates [line items] | |||
Company type | BeezUP SAS ("BezzUp") | ||
Location (state) | France | ||
Direct and indirect equity interest - % | 33.98% | 33.98% | |
Cnova N.V. [Member] | CARYA [Member] | |||
Disclosure of associates [line items] | |||
Company type | CARYA | ||
Location (state) | France | ||
Direct and indirect equity interest - % | 33.87% | 33.87% | |
Cnova N.V. [Member] | HALTAE [Member] | |||
Disclosure of associates [line items] | |||
Company type | HALTAE | ||
Location (state) | France | ||
Direct and indirect equity interest - % | 33.87% | 33.87% | |
Cnova N.V. [Member] | C-Logistics [Member] | |||
Disclosure of associates [line items] | |||
Company type | [1] | C-Logistics | |
Location (state) | France | ||
Direct and indirect equity interest - % | 28.56% | 33.87% | |
Cnova N.V. [Member] | NEOSYS [Member] | |||
Disclosure of associates [line items] | |||
Company type | NEOSYS | ||
Location (state) | France | ||
Direct and indirect equity interest - % | 17.33% | 17.33% | |
Cnova N.V. [Member] | Neotech Solutions [Member] | |||
Disclosure of associates [line items] | |||
Company type | Neotech Solutions | ||
Location (state) | Morocco | ||
Direct and indirect equity interest - % | 17.33% | 17.33% | |
Cnova N.V. [Member] | NEOSYS Tunisie [Member] | |||
Disclosure of associates [line items] | |||
Company type | [2] | NEOSYS Tunisie | |
Location (state) | Tunisia | ||
Direct and indirect equity interest - % | 17.33% | ||
Cnova N.V. [Member] | C Chez Vous [Member] | |||
Disclosure of associates [line items] | |||
Company type | [1] | C Chez Vous | |
Location (state) | France | ||
Direct and indirect equity interest - % | 28.56% | ||
Cnova N.V. [Member] | Phoenix [Member] | |||
Disclosure of associates [line items] | |||
Company type | [2] | Phoenix | |
Location (state) | France | ||
Direct and indirect equity interest - % | 16.99% | ||
FIC [Member] | Financeira Itau CBD S.A. Credito, Financiamento e Investimento ("FIC") [Member] | |||
Disclosure of associates [line items] | |||
Company type | Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento (“FIC”) | ||
Location (state) | Brazil | ||
Direct and indirect equity interest - % | 35.76% | 41.92% | |
FIC [Member] | Banco Investcred Unibanco S.A. ("BINV") [Member] | |||
Disclosure of associates [line items] | |||
Company type | Banco Investcred Unibanco S.A. (“BINV”) | ||
Location (state) | Brazil | ||
Direct and indirect equity interest - % | 21.62% | ||
FIC [Member] | FIC Promotora de Vendas Ltda. ("FIC Promotora") [Member] | |||
Disclosure of associates [line items] | |||
Company type | FIC Promotora de Vendas Ltda. (“FIC Promotora”) | ||
Location (state) | Brazil | ||
Direct and indirect equity interest - % | 35.76% | 41.92% | |
Exito [Member] | Cnova N.V. ("Cnova Holanda") [Member] | |||
Disclosure of associates [line items] | |||
Company type | Cnova N.V (“Cnova Holanda”) | ||
Location (state) | Netherlands | ||
Direct and indirect equity interest - % | 0.18% | ||
Exito [Member] | Puntos Colombia S.A.S ("Puntos") [Member] | |||
Disclosure of associates [line items] | |||
Company type | Puntos Colombia S.A.S ("Puntos") | ||
Location (state) | Colombia | ||
Direct and indirect equity interest - % | 48.29% | ||
Exito [Member] | Compania de Financiamento Tuya S.A. ("Tuya") [Member] | |||
Disclosure of associates [line items] | |||
Company type | Compañia de Financiamento Tuya S.A. ("Tuya") | ||
Location (state) | Colombia | ||
Direct and indirect equity interest - % | 48.29% | ||
[1] | Companies changed interest held in C_logistics by C Chez Vous | ||
[2] | Companies created in 2019 by Cnova N.V |
12. Investments (Details 3)
12. Investments (Details 3) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of associates [line items] | ||||
Current assets | R$ 19968 | R$ 40518 | R$ 36889 | |
Noncurrent assets | 38,507 | 21,139 | 18,890 | |
Total assets | 58,475 | 61,657 | 55,779 | |
Current liabilities | 23,135 | 37,256 | 33,312 | |
Noncurrent liabilities | 21,792 | 11,242 | 10,311 | |
Shareholders' equity | 13,548 | 13,159 | 12,156 | R$ 11487 |
Total liabilities and shareholders' equity | 58,475 | 61,657 | R$ 55779 | |
FIC [Member] | ||||
Disclosure of associates [line items] | ||||
Current assets | 7,085 | 5,952 | ||
Noncurrent assets | 51 | 59 | ||
Total assets | 7,136 | 6,011 | ||
Current liabilities | 6,185 | 5,279 | ||
Noncurrent liabilities | 20 | 10 | ||
Shareholders' equity | 931 | 722 | ||
Total liabilities and shareholders' equity | 7,136 | 6,011 | ||
Cnova N.V. [Member] | ||||
Disclosure of associates [line items] | ||||
Current assets | 3,271 | 3,121 | ||
Noncurrent assets | 2,587 | 1,947 | ||
Total assets | 5,858 | 5,068 | ||
Current liabilities | 5,819 | 5,127 | ||
Noncurrent liabilities | 867 | 757 | ||
Shareholders' equity | (828) | (816) | ||
Total liabilities and shareholders' equity | 5,858 | R$ 5068 | ||
Tuya [Member] | ||||
Disclosure of associates [line items] | ||||
Current assets | 3,943 | |||
Noncurrent assets | 100 | |||
Total assets | 4,043 | |||
Current liabilities | 1,426 | |||
Noncurrent liabilities | 2,146 | |||
Shareholders' equity | 471 | |||
Total liabilities and shareholders' equity | R$ 4043 |
12. Investments (Details 4)
12. Investments (Details 4) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of associates [line items] | |||
Revenues | R$ 56635 | R$ 49388 | R$ 44634 |
Operating income | (459) | (203) | (576) |
Net income for the year | 836 | 1,284 | 857 |
FIC [Member] | |||
Disclosure of associates [line items] | |||
Revenues | 1,207 | 969 | 988 |
Operating income | 441 | 398 | 240 |
Net income for the year | 263 | 218 | 139 |
Cnova N.V. [Member] | |||
Disclosure of associates [line items] | |||
Revenues | 9,689 | 9,370 | 7,337 |
Operating income | (24) | (73) | (111) |
Net income for the year | (288) | R$ 147 | R$ 406 |
Tuya [Member] | |||
Disclosure of associates [line items] | |||
Revenues | 698 | ||
Operating income | 87 | ||
Net income for the year | R$ 14 |
12. Investments (Details 5)
12. Investments (Details 5) - BRL (R$) R$ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Disclosure of associates [line items] | ||||||
Investments, beginning | [1] | R$ 76 | R$ 45 | |||
Share of profit (loss) of associates - continuing operation | 2 | 28 | R$ 93 | |||
Share of profit of associates - discontinued operation | 16 | 40 | ||||
Dividends and interest on own capital - continuing operation | (20) | (25) | ||||
Dividends and interest on own capital - discontinued operation | (3) | (12) | ||||
Share of other comprehensive income | 1 | (35) | ||||
Investment acquisition | 316 | |||||
Assets held for sale and discontinued operations | (13) | (27) | ||||
Investments, ending | 223 | (76) | [1] | (45) | [1] | |
FIC [Member] | ||||||
Disclosure of associates [line items] | ||||||
Investments, beginning | [1] | 203 | 155 | |||
Share of profit (loss) of associates - continuing operation | 106 | 79 | ||||
Share of profit of associates - discontinued operation | 12 | 32 | ||||
Dividends and interest on own capital - continuing operation | (20) | (25) | ||||
Dividends and interest on own capital - discontinued operation | (3) | (12) | ||||
Share of other comprehensive income | (7) | |||||
Investment acquisition | ||||||
Assets held for sale and discontinued operations | (9) | (19) | ||||
Investments, ending | 289 | 203 | [1] | 155 | [1] | |
BINV [Member] | ||||||
Disclosure of associates [line items] | ||||||
Investments, beginning | [1] | |||||
Share of profit (loss) of associates - continuing operation | ||||||
Share of profit of associates - discontinued operation | 4 | 8 | ||||
Dividends and interest on own capital - continuing operation | ||||||
Dividends and interest on own capital - discontinued operation | ||||||
Share of other comprehensive income | ||||||
Investment acquisition | ||||||
Assets held for sale and discontinued operations | (4) | (8) | ||||
Investments, ending | [1] | [1] | ||||
Tuya [Member] | ||||||
Disclosure of associates [line items] | ||||||
Investments, beginning | [1] | |||||
Share of profit (loss) of associates - continuing operation | (7) | |||||
Share of profit of associates - discontinued operation | ||||||
Dividends and interest on own capital - continuing operation | ||||||
Dividends and interest on own capital - discontinued operation | ||||||
Share of other comprehensive income | 9 | |||||
Investment acquisition | 305 | |||||
Assets held for sale and discontinued operations | ||||||
Investments, ending | 307 | [1] | [1] | |||
Puntos Colombia [Member] | ||||||
Disclosure of associates [line items] | ||||||
Investments, beginning | [1] | |||||
Share of profit (loss) of associates - continuing operation | 2 | |||||
Share of profit of associates - discontinued operation | ||||||
Dividends and interest on own capital - continuing operation | ||||||
Dividends and interest on own capital - discontinued operation | ||||||
Share of other comprehensive income | ||||||
Investment acquisition | ||||||
Assets held for sale and discontinued operations | ||||||
Investments, ending | 2 | [1] | [1] | |||
Other [Member] | ||||||
Disclosure of associates [line items] | ||||||
Investments, beginning | [1],[2] | (279) | (200) | |||
Share of profit (loss) of associates - continuing operation | [2] | (99) | (51) | |||
Share of profit of associates - discontinued operation | [2] | |||||
Dividends and interest on own capital - continuing operation | [2] | |||||
Dividends and interest on own capital - discontinued operation | [2] | |||||
Share of other comprehensive income | [2] | (8) | (28) | |||
Investment acquisition | [2] | 11 | ||||
Assets held for sale and discontinued operations | [2] | |||||
Investments, ending | [2] | R$ 375 | R$ 279 | [1] | R$ 200 | [1] |
[1] | Adoption of IFRS 16. Note 4.2 | |||||
[2] | Includes losses on the investment in associate Cnova N.V. of R$385 on December 31, 2019 (R$279 on December 31, 2018). |
12. Investments (Details Narrat
12. Investments (Details Narrative) - BRL (R$) R$ / shares in Units, R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of associates [line items] | |||
Business combination | The investments in Tuya and Cnova N.V. includes the goodwill acquired in the business combination totaling R$71 and R$11, respectively. | ||
Gain from the sale | R$ 598 | ||
Net of income tax | 96 | 347 | R$ 171 |
Cnova N.V. [Member] | |||
Disclosure of associates [line items] | |||
Losses on investment | 385 | R$ 279 | |
Via Varejo [Member] | |||
Disclosure of associates [line items] | |||
Gain from the sale | 398 | ||
Net of income tax | R$ 199 | ||
Share price | R$ 4.9 | ||
Proceeds from issuance | R$ 2300 | ||
FIC [Member] | |||
Disclosure of associates [line items] | |||
Goodwill reserve | R$ 122 |
13. Business Combinations and_3
13. Business Combinations and goodwill (Details 1) R$ in Millions | Dec. 31, 2019BRL (R$) |
Business Combinations And Goodwill | |
Cash consideration | R$ 9268 |
Cash flow hedge effect | 145 |
Consideration transferred, gross | 9,413 |
Dividends related to 2018 | (42) |
Total cash consideration transferred | R$ 9371 |
13. Business Combinations and_4
13. Business Combinations and goodwill (Details 2) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||||
Cash and cash equivalents | R$ 7954 | R$ 4369 | R$ 3792 | |
Trade receivables, net | 727 | 384 | 618 | |
Inventories, net | 8,631 | 5,909 | 4,822 | |
Recoverable taxes | 1,692 | 679 | 596 | |
Other current assets | 287 | 145 | 131 | |
Deferred income tax and social contribution | 337 | 298 | 252 | |
Related parties | 104 | 34 | 25 | |
Other noncurrent assets | 177 | 17 | 7 | |
Investments in associates | 609 | 203 | 156 | |
Investment properties | 3,051 | 20 | 21 | |
Property and equipment, net | 24,290 | 14,052 | 13,292 | |
Intangible assets, net | 6,236 | 2,818 | 1,878 | |
Total assets | 58,475 | 61,657 | 55,779 | |
Liabilities | ||||
Payroll and related taxes | 980 | 686 | 640 | |
Trade payable, net | 14,887 | 9,246 | 8,128 | |
Taxes and contributions payables | 531 | 370 | 301 | |
Borrowings and financing | 3,488 | 1,981 | 1,200 | |
Other current liabilities | 703 | 289 | 227 | |
Noncurrent borrowings and financing | 10,706 | 3,392 | 3,193 | |
Deferred income tax and social contribution | 1,195 | 523 | 347 | |
Provision for contingencies | 1,305 | 1,235 | 1,107 | |
Noncurrent lease liabilities | 7,730 | 5,280 | 4,822 | |
Other noncurrent liabilities | 68 | 49 | 53 | |
(-) Attributed to non-controlling shareholders | 2,608 | 2,925 | 2,772 | |
Net assets | 13,548 | R$ 13159 | R$ 12156 | R$ 11487 |
Exito [Member] | ||||
Assets | ||||
Cash and cash equivalents | 6,062 | |||
Trade receivables, net | 416 | |||
Inventories, net | 2,765 | |||
Recoverable taxes | 477 | |||
Other current assets | 349 | |||
Deferred income tax and social contribution | 1,353 | |||
Related parties | 137 | |||
Other noncurrent assets | 111 | |||
Investments in associates | 316 | |||
Investment properties | 2,972 | |||
Property and equipment, net | 8,496 | |||
Intangible assets, net | 3,009 | |||
Total assets | 26,463 | |||
Liabilities | ||||
Payroll and related taxes | 283 | |||
Trade payable, net | 4,545 | |||
Taxes and contributions payables | 219 | |||
Borrowings and financing | 2,546 | |||
Lease liabilities | 277 | |||
Other current liabilities | 998 | |||
Noncurrent borrowings and financing | 2,060 | |||
Deferred income tax and social contribution | 2,100 | |||
Provision for contingencies | 103 | |||
Noncurrent lease liabilities | 1,540 | |||
Other noncurrent liabilities | 28 | |||
Total liabilites | 14,699 | |||
Net assets | 11,764 | |||
(-) Attributed to non-controlling shareholders | (2,558) | |||
Net assets | R$ 9206 |
13. Business Combinations and_5
13. Business Combinations and goodwill (Details 3) R$ in Millions | Dec. 31, 2019BRL (R$) |
Business Combinations And Goodwill | |
Total cash consideration transferred | R$ 9371 |
Fair value of the Company | 9,706 |
Non-controlling interest at fair value | R$ 335 |
13. Business Combinations and_6
13. Business Combinations and goodwill (Details 4) R$ in Millions | Dec. 31, 2019BRL (R$) |
Business Combinations And Goodwill | |
Fair value of net assets acquired | R$ 11764 |
(-) Attributed to non-controlling shareholders | (2,223) |
Total | 9,541 |
Remaining non-controlling interest | (335) |
Net assets | 9,206 |
Total consideration transferred for the acquisition of control of Exito | 9,371 |
Goodwill | R$ 165 |
13. Business Combinations and_7
13. Business Combinations and goodwill (Details Narrative) R$ / shares in Units, R$ in Millions | Nov. 27, 2019BRL (R$) | Jul. 23, 2019R$ / shares | Nov. 27, 2019BRL (R$) | Jul. 23, 2019R$ / shares | Dec. 31, 2019BRL (R$)Store | Dec. 31, 2018BRL (R$) | Dec. 31, 2017BRL (R$) |
Disclosure of detailed information about business combination [line items] | |||||||
Net Debt | R$ 6286 | R$ 1055 | |||||
Net sales | 56,635 | 49,388 | R$ 44634 | ||||
Goodwill recognised as of acquisition date | 165 | ||||||
Acquisition consideration | 9,371 | ||||||
Cheftime And James Delivery [Member] | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Goodwill recognised as of acquisition date | 41 | ||||||
Acquisition consideration | 1 | R$ 1 | |||||
Exito [Member] | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Equity interest | R$ 113 | ||||||
Percentage of equity interest | 96.57% | 96.57% | |||||
Disbursement amount | R$ 9500 | ||||||
Net Debt | R$ 4900 | 4,900 | |||||
Number of stores | Store | 650 | ||||||
Net sales | R$ 2151 | ||||||
Net income | 71 | ||||||
Acquisition-related cost | 198 | ||||||
Acquire share price (in dollar per share) | R$ / shares | R$ 21.68 | ||||||
Exito [Member] | United States of America, Dollars | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Net Debt | 1,161 | R$ 1161 | |||||
Exito [Member] | Colombia, Pesos | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Disbursement amount | R$ 7780000 | ||||||
Acquire share price (in dollar per share) | R$ / shares | R$ 18000 | ||||||
Exito [Member] | Continuing Operations [Member] | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Net sales | 18,388 | ||||||
Net income | R$ 178 |
14. Investment properties (Deta
14. Investment properties (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about investment property [line items] | ||
Balance at beginning | R$ 20 | R$ 21 |
Changes in investment property | ||
Additions | 12 | |
Depreciation | (15) | (10) |
Business combination | 2,972 | |
Exchange rate changes | 56 | |
Transfers | (5) | |
Balance at ending | 3,051 | 20 |
Land [Member] | ||
Disclosure of detailed information about investment property [line items] | ||
Balance at beginning | 6 | |
Changes in investment property | ||
Additions | 2 | |
Depreciation | ||
Business combination | 643 | |
Exchange rate changes | 11 | |
Transfers | (6) | |
Balance at ending | 656 | 6 |
Buildings [Member] | ||
Disclosure of detailed information about investment property [line items] | ||
Balance at beginning | 10 | |
Changes in investment property | ||
Additions | 10 | |
Depreciation | (15) | (10) |
Business combination | 2,319 | |
Exchange rate changes | 45 | |
Transfers | 5 | |
Balance at ending | 2,385 | 10 |
Improvements [Member] | ||
Disclosure of detailed information about investment property [line items] | ||
Balance at beginning | 4 | |
Changes in investment property | ||
Additions | ||
Depreciation | ||
Business combination | ||
Exchange rate changes | ||
Transfers | (4) | |
Balance at ending | 4 | |
Construction In Progress [Member] | ||
Disclosure of detailed information about investment property [line items] | ||
Balance at beginning | ||
Changes in investment property | ||
Additions | ||
Depreciation | ||
Business combination | 10 | |
Exchange rate changes | ||
Balance at ending | R$ 10 |
14. Investment properties (De_2
14. Investment properties (Details 2) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about investment property [line items] | |||
Cost | R$ 3066 | R$ 30 | |
Accumulated depreciation | (15) | (10) | |
Net | 3,051 | 20 | R$ 21 |
Land [Member] | |||
Disclosure of detailed information about investment property [line items] | |||
Cost | 656 | 6 | |
Accumulated depreciation | |||
Net | 656 | 6 | |
Buildings [Member] | |||
Disclosure of detailed information about investment property [line items] | |||
Cost | 2,400 | 20 | |
Accumulated depreciation | (15) | (10) | |
Net | 2,385 | 10 | |
Improvements [Member] | |||
Disclosure of detailed information about investment property [line items] | |||
Cost | 4 | ||
Accumulated depreciation | |||
Net | 4 | ||
Construction In Progress [Member] | |||
Disclosure of detailed information about investment property [line items] | |||
Cost | 10 | ||
Accumulated depreciation | |||
Net | R$ 10 |
14. Investment properties (De_3
14. Investment properties (Details 3) R$ in Millions | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Investment property [abstract] | |
Lease revenue | R$ 31 |
Operating expenses from investment properties that generate revenue | (4) |
Operating expenses from investment properties that do not generate revenue | (12) |
Net result generated by investment properties | R$ 15 |
14. Investment properties (De_4
14. Investment properties (Details Narrative) R$ in Millions | Dec. 31, 2019BRL (R$) |
Investment property [abstract] | |
Fair value of investment properties | R$ 3047 |
15. Property and equipment (Det
15. Property and equipment (Details 1) | 12 Months Ended |
Dec. 31, 2019 | |
Buildings [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life (in years) | 40 years |
Leasehold Improvements [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life (in years) | 24 years |
Machinery and Equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life (in years) | 8 years |
Facilites [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life (in years) | 12 years |
Furniture and Fixtures [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life (in years) | 9 years |
Other [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life (in years) | 5 years |
15. Property and equipment (D_2
15. Property and equipment (Details 2) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, beginning | R$ 14052 | R$ 13292 | |
Additions | [1] | 3,268 | 2,236 |
Acquisition of companies | 8,496 | ||
Remeasurement | 832 | 821 | |
Depreciation | (1,376) | (1,192) | |
Write-offs | (674) | (478) | |
Transfers | [2] | (212) | (2) |
Exchange rate changes | 141 | ||
Deconsolidation Via Varejo | (237) | ||
Assets held for sale and discontinued operations | (625) | ||
Property and equipment, ending | 24,290 | 14,052 | |
Lease [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, beginning | 4,431 | 4,189 | |
Additions | 807 | 338 | |
Acquisition of companies | 1,755 | ||
Remeasurement | 832 | 821 | |
Depreciation | (530) | (446) | |
Write-offs | (152) | (58) | |
Transfers | [2] | 52 | (2) |
Exchange rate changes | 33 | ||
Deconsolidation Via Varejo | (157) | ||
Assets held for sale and discontinued operations | (411) | ||
Property and equipment, ending | 7,071 | 4,431 | |
Land [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, beginning | 1,366 | 1,362 | |
Additions | 75 | 46 | |
Acquisition of companies | 2,277 | ||
Remeasurement | |||
Depreciation | |||
Write-offs | (30) | (56) | |
Transfers | [2] | (36) | 13 |
Exchange rate changes | 40 | ||
Deconsolidation Via Varejo | |||
Assets held for sale and discontinued operations | 1 | ||
Property and equipment, ending | 3,692 | 1,366 | |
Land [Member] | Lease [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, beginning | |||
Additions | |||
Acquisition of companies | 3 | ||
Remeasurement | |||
Depreciation | |||
Write-offs | |||
Transfers | [2] | ||
Exchange rate changes | |||
Deconsolidation Via Varejo | |||
Property and equipment, ending | 3 | ||
Buildings [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, beginning | 1,773 | 1,770 | |
Additions | 237 | 175 | |
Acquisition of companies | 2,934 | ||
Remeasurement | |||
Depreciation | (67) | (57) | |
Write-offs | (29) | (71) | |
Transfers | [2] | (29) | (46) |
Exchange rate changes | 51 | ||
Deconsolidation Via Varejo | (1) | ||
Assets held for sale and discontinued operations | 2 | ||
Property and equipment, ending | 4,869 | 1,773 | |
Buildings [Member] | Lease [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, beginning | 4,422 | 4,174 | |
Additions | 792 | 338 | |
Acquisition of companies | 1,727 | ||
Remeasurement | 832 | 821 | |
Depreciation | (525) | (441) | |
Write-offs | (152) | (57) | |
Transfers | [2] | 52 | (2) |
Exchange rate changes | 32 | ||
Deconsolidation Via Varejo | (157) | ||
Assets held for sale and discontinued operations | (411) | ||
Property and equipment, ending | 7,023 | 4,422 | |
Leasehold Improvements [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, beginning | 3,843 | 3,492 | |
Additions | 634 | 479 | |
Acquisition of companies | 334 | ||
Remeasurement | |||
Depreciation | (332) | (292) | |
Write-offs | (382) | (124) | |
Transfers | [2] | 407 | 361 |
Deconsolidation Via Varejo | (63) | ||
Assets held for sale and discontinued operations | (73) | ||
Property and equipment, ending | 4,441 | 3,843 | |
Machinery and Equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, beginning | 1,308 | 1,262 | |
Additions | 445 | 182 | |
Acquisition of companies | 672 | ||
Remeasurement | |||
Depreciation | (264) | (235) | |
Write-offs | (36) | (79) | |
Transfers | [2] | 180 | 292 |
Exchange rate changes | 10 | ||
Deconsolidation Via Varejo | (34) | ||
Assets held for sale and discontinued operations | (114) | ||
Property and equipment, ending | 2,281 | 1,308 | |
Facilities [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, beginning | 501 | 487 | |
Additions | 86 | 76 | |
Acquisition of companies | 64 | ||
Remeasurement | |||
Depreciation | (59) | (54) | |
Write-offs | (16) | (20) | |
Transfers | [2] | 30 | 27 |
Exchange rate changes | (2) | ||
Deconsolidation Via Varejo | (24) | ||
Assets held for sale and discontinued operations | (15) | ||
Property and equipment, ending | 580 | 501 | |
Furniture and Fixtures [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, beginning | 595 | 540 | |
Additions | 163 | 92 | |
Acquisition of companies | 300 | ||
Remeasurement | |||
Depreciation | (100) | (84) | |
Write-offs | (21) | (26) | |
Transfers | [2] | 80 | 116 |
Exchange rate changes | 6 | ||
Deconsolidation Via Varejo | (16) | ||
Assets held for sale and discontinued operations | (43) | ||
Property and equipment, ending | 1,007 | 595 | |
Construction In Progress [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, beginning | 176 | 126 | |
Additions | 789 | 809 | |
Acquisition of companies | 154 | ||
Remeasurement | |||
Depreciation | |||
Write-offs | (6) | (13) | |
Transfers | [2] | (903) | (755) |
Exchange rate changes | 3 | ||
Deconsolidation Via Varejo | 62 | ||
Assets held for sale and discontinued operations | 9 | ||
Property and equipment, ending | 275 | 176 | |
Other | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, beginning | 59 | 64 | |
Additions | 32 | 39 | |
Acquisition of companies | 6 | ||
Remeasurement | |||
Depreciation | (24) | (24) | |
Write-offs | (2) | (31) | |
Transfers | [2] | 7 | (8) |
Deconsolidation Via Varejo | (4) | ||
Assets held for sale and discontinued operations | 19 | ||
Property and equipment, ending | 74 | 59 | |
Total Property and Equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, beginning | 9,621 | 9,103 | |
Additions | 2,461 | 1,898 | |
Acquisition of companies | 6,741 | ||
Remeasurement | |||
Depreciation | (846) | (746) | |
Write-offs | (522) | (420) | |
Transfers | [2] | (264) | |
Exchange rate changes | 108 | ||
Deconsolidation Via Varejo | (80) | ||
Assets held for sale and discontinued operations | (214) | ||
Property and equipment, ending | 17,219 | 9,621 | |
Equipment [Member] | Lease [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, beginning | 9 | 15 | |
Additions | 15 | ||
Acquisition of companies | 25 | ||
Remeasurement | |||
Depreciation | (5) | (5) | |
Write-offs | (1) | ||
Transfers | [2] | ||
Exchange rate changes | 1 | ||
Deconsolidation Via Varejo | |||
Assets held for sale and discontinued operations | |||
Property and equipment, ending | R$ 45 | R$ 9 | |
[1] | The additions are related to the purchase of operating assets, acquisition of land and buildings to expand activities, building of new stores, improvements of existing distribution centers and stores and investments in equipment and information technology. | ||
[2] | R$131 corresponds to transfers to intangible assets (see note 16) and R$142 refers to transfers to assets held for sale |
15. Property and equipment (D_3
15. Property and equipment (Details 3) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, cost | R$ 35914 | R$ 22841 | |
Property and equipment, accumulated depreciation | (11,624) | (8,789) | |
Property and equipment, net | 24,290 | 14,052 | R$ 13292 |
Land [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, cost | 3,692 | 1,366 | |
Property and equipment, accumulated depreciation | |||
Property and equipment, net | 3,692 | 1,366 | 1,362 |
Buildings [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, cost | 5,712 | 2,585 | |
Property and equipment, accumulated depreciation | (843) | (812) | |
Property and equipment, net | 4,869 | 1,773 | 1,770 |
Leasehold Improvements [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, cost | 7,065 | 5,868 | |
Property and equipment, accumulated depreciation | (2,624) | (2,025) | |
Property and equipment, net | 4,441 | 3,843 | 3,492 |
Total Property and Equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, cost | 25,125 | 15,310 | |
Property and equipment, accumulated depreciation | (7,906) | (5,689) | |
Property and equipment, net | 17,219 | 9,621 | 9,103 |
Machinery and Equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, cost | 4,864 | 2,957 | |
Property and equipment, accumulated depreciation | (2,583) | (1,649) | |
Property and equipment, net | 2,281 | 1,308 | 1,262 |
Other | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, cost | 256 | 206 | |
Property and equipment, accumulated depreciation | (182) | (147) | |
Property and equipment, net | 74 | 59 | 64 |
Facilities [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, cost | 1,065 | 865 | |
Property and equipment, accumulated depreciation | (485) | (364) | |
Property and equipment, net | 580 | 501 | 487 |
Construction In Progress [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, cost | 275 | 176 | |
Property and equipment, accumulated depreciation | |||
Property and equipment, net | 275 | 176 | 126 |
Furniture and Fixtures [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, cost | 2,196 | 1,287 | |
Property and equipment, accumulated depreciation | (1,189) | (692) | |
Property and equipment, net | 1,007 | 595 | 540 |
Lease [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, cost | 10,789 | 7,531 | |
Property and equipment, accumulated depreciation | (3,718) | (3,100) | |
Property and equipment, net | 7,071 | 4,431 | 4,189 |
Lease [Member] | Land [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, cost | 6 | ||
Property and equipment, accumulated depreciation | (3) | ||
Property and equipment, net | 3 | ||
Lease [Member] | Buildings [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, cost | 10,655 | 7,449 | |
Property and equipment, accumulated depreciation | (3,632) | (3,027) | |
Property and equipment, net | 7,023 | 4,422 | 4,174 |
Lease [Member] | Equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, cost | 128 | 82 | |
Property and equipment, accumulated depreciation | (83) | (73) | |
Property and equipment, net | R$ 45 | R$ 9 | R$ 15 |
15. Property and equipment (D_4
15. Property and equipment (Details 4) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Reconciliation of changes in property, plant and equipment | ||||
Additions | [1] | R$ 3268 | R$ 2236 | |
Lease | (806) | (519) | ||
Capitalized borrowing costs | (26) | (22) | ||
Property and equipment financing - Additions | [2] | (2,116) | (1,482) | |
Property and equipment financing - Payments | [2] | 2,142 | 1,436 | |
Total | R$ 2462 | R$ 1649 | R$ 1415 | |
[1] | The additions are related to the purchase of operating assets, acquisition of land and buildings to expand activities, building of new stores, improvements of existing distribution centers and stores and investments in equipment and information technology. | |||
[2] | The additions to property and equipment above are presented to reconcile the acquisitions during the year with the amounts presented in the statement of cash flows net of items that did not impact cash flow. |
15. Property and equipment (D_5
15. Property and equipment (Details Narrative) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, plant and equipment [abstract] | ||
Capitalized borrowing costs | R$ 26 | R$ 22 |
Borrowing costs eligible for capitalization rate | 136.11% | 101.78% |
Effective interest rate | 6.06% | 6.54% |
Cost of goods and services sold | R$ 147 | R$ 126 |
16. Intangible assets (Details
16. Intangible assets (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of detailed information about intangible assets [line items] | |||||
Intangible assets, beginning | R$ 2818 | R$ 1878 | |||
Additions | 298 | 737 | |||
Business combination | [1] | 3,174 | 41 | ||
Amortization | (179) | (130) | |||
Write-off | (8) | (29) | |||
Remeasurement | 6 | ||||
Exchange rate changes | 70 | ||||
Transfers | [2] | 131 | 660 | ||
Assets held for sale and discontinued operations | (339) | ||||
Deconsolidation Via Varejo | (74) | ||||
Intangible assets, ending | 6,236 | 2,818 | 1,878 | ||
Lease [Member] | Right Of Use Paes Mendonca [Member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Intangible assets, beginning | [3] | 819 | |||
Additions | 179 | [3] | |||
Business combination | [1] | ||||
Amortization | [3] | (45) | (7) | ||
Write-off | |||||
Remeasurement | [3] | 6 | |||
Exchange rate changes | |||||
Transfers | [2] | 647 | [3] | ||
Intangible assets, ending | [3] | 780 | 819 | ||
Lease [Member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Intangible assets, beginning | 899 | 95 | |||
Additions | 179 | ||||
Business combination | [1] | ||||
Amortization | (69) | (34) | |||
Write-off | (1) | ||||
Remeasurement | 6 | ||||
Exchange rate changes | |||||
Transfers | [2] | 659 | |||
Deconsolidation Via Varejo | 1 | ||||
Intangible assets, ending | 836 | 899 | 95 | ||
Goodwill [Member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Intangible assets, beginning | 1,148 | 1,107 | |||
Additions | |||||
Business combination | [1] | 165 | 41 | ||
Amortization | |||||
Write-off | |||||
Exchange rate changes | 3 | ||||
Transfers | [2] | (1) | |||
Assets held for sale and discontinued operations | |||||
Intangible assets, ending | 1,315 | 1,148 | 1,107 | ||
Tradename [Member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Intangible assets, beginning | 39 | 39 | |||
Additions | |||||
Business combination | [1] | 2,949 | |||
Amortization | |||||
Write-off | |||||
Exchange rate changes | 66 | ||||
Transfers | [2] | 8 | 251 | ||
Assets held for sale and discontinued operations | (251) | ||||
Intangible assets, ending | 3,062 | 39 | 39 | ||
Commercial Rights [Member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Intangible assets, beginning | 111 | 86 | |||
Additions | 24 | 24 | |||
Business combination | [1] | ||||
Amortization | (5) | ||||
Write-off | |||||
Exchange rate changes | |||||
Transfers | [2] | 6 | |||
Assets held for sale and discontinued operations | |||||
Intangible assets, ending | 135 | 111 | 86 | ||
Software [Member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Intangible assets, beginning | 621 | 551 | |||
Additions | 274 | 534 | |||
Business combination | [1] | 60 | |||
Amortization | (110) | (91) | |||
Write-off | (7) | (29) | |||
Exchange rate changes | 1 | ||||
Transfers | [2] | 124 | (256) | ||
Assets held for sale and discontinued operations | (88) | ||||
Deconsolidation Via Varejo | (75) | ||||
Intangible assets, ending | 888 | 621 | 551 | ||
Software [Member] | Lease [Member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Intangible assets, beginning | 80 | 95 | |||
Additions | |||||
Business combination | [1] | ||||
Amortization | (24) | (27) | |||
Write-off | (1) | ||||
Remeasurement | |||||
Exchange rate changes | |||||
Transfers | [2] | 12 | |||
Deconsolidation Via Varejo | 1 | ||||
Intangible assets, ending | 56 | 80 | 95 | ||
Total Intangible Assets [Member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Intangible assets, beginning | 1,919 | 1,783 | |||
Additions | 298 | 558 | |||
Business combination | [1] | 3,174 | 41 | ||
Amortization | (110) | (96) | |||
Write-off | (7) | (29) | |||
Exchange rate changes | 70 | ||||
Transfers | [2] | 131 | 1 | ||
Assets held for sale and discontinued operations | (339) | ||||
Deconsolidation Via Varejo | (75) | ||||
Intangible assets, ending | R$ 5400 | R$ 1919 | R$ 1783 | ||
[1] | See note 13.1 | ||||
[2] | Refers substantially to transfers from property and equipment (see note 15). | ||||
[3] | Correspond to the premium paid for the renewal of the agreement with Paes Mendonca to operate certain stores for a 30-years term |
16. Intangible assets (Detail_2
16. Intangible assets (Details 2) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about intangible assets [line items] | ||||
Intangible assets, cost | R$ 8494 | R$ 4666 | ||
Intangible assets, accumulated depreciation | (2,258) | (1,848) | ||
Intangible assets, net | 6,236 | 2,818 | R$ 1878 | |
Lease [Member] | Right Of Use Paes Mendonca [Member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Intangible assets, cost | [1] | 836 | 832 | |
Intangible assets, accumulated depreciation | [1] | (56) | (13) | |
Intangible assets, net | [1] | 780 | 819 | |
Lease [Member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Intangible assets, cost | 1,157 | 1,057 | ||
Intangible assets, accumulated depreciation | (321) | (158) | ||
Intangible assets, net | 836 | 899 | 95 | |
Goodwill [Member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Intangible assets, cost | 2,425 | 2,259 | ||
Intangible assets, accumulated depreciation | (1,110) | (1,111) | ||
Intangible assets, net | 1,315 | 1,148 | 1,107 | |
Tradename [Member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Intangible assets, cost | 3,062 | 39 | ||
Intangible assets, accumulated depreciation | ||||
Intangible assets, net | 3,062 | 39 | 39 | |
Commercial Rights [Member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Intangible assets, cost | 135 | 111 | ||
Intangible assets, accumulated depreciation | ||||
Intangible assets, net | 135 | 111 | 86 | |
Software [Member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Intangible assets, cost | 1,715 | 1,200 | ||
Intangible assets, accumulated depreciation | (827) | (579) | ||
Intangible assets, net | 888 | 621 | 551 | |
Software [Member] | Lease [Member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Intangible assets, cost | 321 | 225 | ||
Intangible assets, accumulated depreciation | (265) | (145) | ||
Intangible assets, net | 56 | 80 | 95 | |
Total Intangible Assets [Member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Intangible assets, cost | 7,337 | 3,609 | ||
Intangible assets, accumulated depreciation | (1,937) | (1,690) | ||
Intangible assets, net | R$ 5400 | R$ 1919 | R$ 1783 | |
[1] | Correspond to the premium paid for the renewal of the agreement with Paes Mendonca to operate certain stores for a 30-years term |
16. Intangible assets (Detail_3
16. Intangible assets (Details 3) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of changes in intangible assets and goodwill | |||
Additions | R$ 298 | R$ 737 | |
Lease | (1) | ||
Intangible assets financing - Addition | (23) | (59) | |
Intangible assets financing - Payments | 46 | 37 | |
Total | R$ 320 | R$ 715 | R$ 311 |
16. Intangible assets (Detail_4
16. Intangible assets (Details Narrative) - Software [Member] | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization rate | 10.82% |
Description of discount and growth rate | The discount rate used to cash flow projections was 8.4% (10.1% in 2018), and the cash flows exceeding the three-year period are extrapolated using a 4.8% growth rate (5.5% on December 31, 2018). |
Description of sensitivity analysis | Sensitivity analysis was made for a 0.5 percentage points increase / decrease in the discount rate and growth rate. |
Bottom Of Range [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life (in years) | 5 years |
Top Of Range [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life (in years) | 10 years |
17. Trade payables, net (Detail
17. Trade payables, net (Details 1) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
TradePayablesNetLineItems [Line Items] | ||
Trade payables | R$ 14887 | R$ 9246 |
Bonuses from Suppliers [Member] | ||
TradePayablesNetLineItems [Line Items] | ||
Trade payables | (461) | (907) |
Product Suppliers [Member] | ||
TradePayablesNetLineItems [Line Items] | ||
Trade payables | 14,371 | 9,662 |
Service Suppliers [Member] | ||
TradePayablesNetLineItems [Line Items] | ||
Trade payables | R$ 977 | R$ 491 |
18. Borrowings and financing (D
18. Borrowings and financing (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of detailed information about borrowings [line items] | ||||
Current assets | R$ 73 | R$ 43 | ||
Noncurrent assets | 13 | 44 | 28 | |
Borrowings and financing, current liabilities | 3,488 | 1,981 | 1,200 | |
Borrowings and financing, noncurrent liabilities | 10,706 | 3,392 | 3,193 | |
Borrowings and financing | 14,108 | 5,286 | R$ 4365 | |
Debentures Certificate Of Agribusiness Receivables And Promissory Notes [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings and financing, current liabilities | 2,287 | 1,068 | ||
Borrowings and financing, noncurrent liabilities | 9,576 | 3,078 | ||
Borrowings and financing | R$ 11863 | 4,146 | ||
Weighted average rate | [1] | 129.34% of CDI (i) | ||
Borrowings [Member] | Local Currency [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings and financing | R$ 1100 | 373 | ||
Borrowings [Member] | Foreign Currency [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings and financing | 1,145 | 767 | ||
BNDES [Member] | Borrowings [Member] | Local Currency [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings and financing | R$ 27 | 37 | ||
Weighted average rate | 4.01% per year | |||
Working Capital [Member] | Borrowings [Member] | Local Currency [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings and financing | R$ 1008 | 238 | ||
Weighted average rate | [1] | 124.4% of CDI | ||
Working Capital [Member] | Borrowings [Member] | Foreign Currency [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings and financing | R$ 846 | 843 | ||
Weighted average rate | 3.14% per year | |||
Working Capital [Member] | Borrowings [Member] | Local Currency [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings and financing | R$ 99 | 112 | ||
Weighted average rate | [2] | TR (ii) + 9.80 % per year | ||
Working Capital [Member] | Borrowings [Member] | Foreign Currency [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings and financing | R$ 323 | |||
Weighted average rate | [3] | IBR 3M (iii) + 2% | ||
Swap Contracts [Member] | Borrowings [Member] | Local Currency [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings and financing | R$ 12 | (11) | ||
Weighted average rate | 101.44% | |||
Swap Contracts [Member] | Borrowings [Member] | Foreign Currency [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings and financing | R$ 15 | (76) | ||
Weighted average rate | [1] | 118.27% of CDI | ||
Unamortized borrowing costs [Member] | Borrowings [Member] | Local Currency [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings and financing | R$ 22 | R$ 3 | ||
Unamortized borrowing costs [Member] | Borrowings [Member] | Foreign Currency [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings and financing | (1) | |||
Credit Letter [Member] | Borrowings [Member] | Foreign Currency [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings and financing | 12 | |||
Swap contracts | Borrowings [Member] | Foreign Currency [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings and financing | R$ 19 | |||
Weighted average rate | [3] | IBR 3M (iii) + 2% | ||
NDF Contracts - Derivatives [Member] | Borrowings [Member] | Foreign Currency [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings and financing | R$ 1 | |||
[1] | CDI: Certificate of Interbank Deposit | |||
[2] | TR: Referential rate | |||
[3] | Reference Bank Index in Colombia for 3 months |
18. Borrowings and financing _2
18. Borrowings and financing (Details 2) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Borrowings [abstract] | ||
Borrowings and financing, beginning | R$ 5438 | R$ 4560 |
Adjustment related to IFRS 16 | (152) | (195) |
Restated opening balance | 5,286 | 4,365 |
Additions | 13,604 | 9,139 |
Accrued interest | 678 | 619 |
Accrued swap | (11) | (126) |
Mark-to-market | (47) | 12 |
Monetary and exchange rate changes | (13) | 167 |
Borrowing cost | 31 | 13 |
Interest paid | (504) | (758) |
Payments | (9,551) | (7,920) |
Swap paid | 103 | (9) |
Business combination | 4,527 | |
Exchange rate changes | 80 | |
Deconsolidation Via Varejo | (75) | |
Liabilities related to assets held for sale and discontinued operations | (216) | |
Borrowings and financing, ending | R$ 14108 | R$ 5286 |
18. Borrowings and financing _3
18. Borrowings and financing (Details 3) R$ in Millions | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Disclosure of detailed information about borrowings [line items] | |
Subtotal | R$ 10758 |
Unamortized borrowing costs | (65) |
Total | 10,693 |
From 1 To 2 Years [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Subtotal | 3,596 |
From 2 To 3 Years [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Subtotal | 3,444 |
From 3 To 4 Years [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Subtotal | 2,773 |
From 4 To 5 Years [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Subtotal | 386 |
After 5 Years [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Subtotal | R$ 559 |
18. Borrowings and financing _4
18. Borrowings and financing (Details 4) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about borrowings [line items] | |||
Borrowings and financing, total | R$ 14108 | R$ 5286 | R$ 4365 |
Borrowings and financing, current liabilities | 3,488 | 1,981 | 1,200 |
Borrowings and financing, noncurrent liabilities | 10,706 | 3,392 | R$ 3193 |
Debentures Certificate Of Agribusiness Receivables And Promissory Notes [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowing costs | (82) | (10) | |
Borrowings and financing, total | 11,863 | 4,146 | |
Borrowings and financing, current liabilities | 2,287 | 1,068 | |
Borrowings and financing, noncurrent liabilities | 9,576 | 3,078 | |
13th Issue Of Debentures - CBD - CRA [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue amount | 1,012 | ||
Outstanding debentures | R$ 1012500 | ||
Issue date | Dec. 20, 2016 | ||
Maturity date | Dec. 20, 2019 | ||
Financial charges | 97.50% of CDI | ||
Borrowings and financing, total | 1,014 | ||
16th Issue Of Debentures - CBD (2nd Serie) [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue amount | R$ 500 | ||
Outstanding debentures | R$ 500000 | ||
Issue date | Sep. 11, 2018 | ||
Maturity date | Sep. 12, 2022 | ||
Financial charges | 107.4% of CDI | ||
Unit price | R$ 1017 | ||
Borrowings and financing, total | 508 | 510 | |
16th Issue Of Debentures - CBD (1st serie) [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue amount | 700 | ||
Outstanding debentures | R$ 700000 | ||
Issue date | Sep. 11, 2018 | ||
Maturity date | Sep. 10, 2021 | ||
Financial charges | 106% of CDI | ||
Unit price | R$ 1016 | ||
Borrowings and financing, total | 712 | 714 | |
14th Issue of Debentures - CBD [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue amount | 1,080 | ||
Outstanding debentures | R$ 1080000 | ||
Issue date | Apr. 17, 2017 | ||
Maturity date | Apr. 13, 2020 | ||
Financial charges | 96.00% of CDI | ||
Unit price | R$ 1010 | ||
Borrowings and financing, total | 1,091 | 1,094 | |
15th Issue of Debentures - CBD [Mmeber] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue amount | 800 | ||
Outstanding debentures | R$ 800000 | ||
Issue date | Jan. 17, 2018 | ||
Maturity date | Jan. 15, 2021 | ||
Financial charges | 104.75% of CDI | ||
Unit price | R$ 1027 | ||
Borrowings and financing, total | 821 | R$ 824 | |
4th Issue Of Promissory Notes - CBD [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue amount | 800 | ||
Outstanding debentures | R$ 800 | ||
Issue date | Jan. 10, 2019 | ||
Maturity date | Jan. 9, 2022 | ||
Financial charges | 105.75% of CDI | ||
Unit price | R$ 1061280 | ||
Borrowings and financing, total | 849 | ||
1st Issue of Promissory Notes - Sendas (1nd Serie) [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue amount | 50 | ||
Outstanding debentures | R$ 1 | ||
Issue date | Jul. 4, 2019 | ||
Maturity date | Jul. 3, 2020 | ||
Financial charges | CDI + 0.72% per year | ||
Unit price | R$ 51537614 | ||
Borrowings and financing, total | 52 | ||
1st Issue of Promissory Notes - Sendas (2nd Serie) [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue amount | 50 | ||
Outstanding debentures | R$ 1 | ||
Issue date | Jul. 4, 2019 | ||
Maturity date | Jul. 5, 2021 | ||
Financial charges | CDI + 0.72% per year | ||
Unit price | R$ 51537614 | ||
Borrowings and financing, total | 52 | ||
1st Issue of Promissory Notes - Sendas (3rd Serie) [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue amount | 50 | ||
Outstanding debentures | R$ 1 | ||
Issue date | Jul. 4, 2019 | ||
Maturity date | Jul. 4, 2022 | ||
Financial charges | CDI + 0.72% per year | ||
Unit price | R$ 51537614 | ||
Borrowings and financing, total | 52 | ||
1st Issue of Promissory Notes - Sendas (4nd Serie) [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue amount | 250 | ||
Outstanding debentures | R$ 5 | ||
Issue date | Jul. 4, 2019 | ||
Maturity date | Jul. 4, 2023 | ||
Financial charges | CDI + 0.72% per year | ||
Unit price | R$ 51537614 | ||
Borrowings and financing, total | 258 | ||
1st Issue of Promissory Notes - Sendas (5nd Serie) [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue amount | 200 | ||
Outstanding debentures | R$ 4 | ||
Issue date | Jul. 4, 2019 | ||
Maturity date | Jul. 4, 2024 | ||
Financial charges | CDI + 0.72% per year | ||
Unit price | R$ 51537614 | ||
Borrowings and financing, total | 206 | ||
1st Issue of Promissory Notes - Sendas (6nd Serie) [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue amount | 200 | ||
Outstanding debentures | R$ 4 | ||
Issue date | Jul. 4, 2019 | ||
Maturity date | Jul. 4, 2025 | ||
Financial charges | CDI + 0.72% per year | ||
Unit price | R$ 51537614 | ||
Borrowings and financing, total | 206 | ||
1st Issue Of Debentures - Sendas (1nd serie) [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue amount | 2,000 | ||
Outstanding debentures | R$ 2000000 | ||
Issue date | Sep. 4, 2019 | ||
Maturity date | Aug. 20, 2020 | ||
Financial charges | CDI + 1.60% per year | ||
Unit price | R$ 500 | ||
Borrowings and financing, total | 1,001 | ||
1st Issue Of Debentures - Sendas (2nd serie) [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue amount | 2,000 | ||
Outstanding debentures | R$ 2000000 | ||
Issue date | Sep. 4, 2019 | ||
Maturity date | Aug. 20, 2021 | ||
Financial charges | CDI + 1.74% per year | ||
Unit price | R$ 1022 | ||
Borrowings and financing, total | 2,044 | ||
1st Issue Of Debentures - Sendas (3nd serie) [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue amount | 2,000 | ||
Outstanding debentures | R$ 2000000 | ||
Issue date | Sep. 4, 2019 | ||
Maturity date | Aug. 20, 2022 | ||
Financial charges | CDI + 1.95% per year | ||
Unit price | R$ 1023 | ||
Borrowings and financing, total | 2,046 | ||
1st Issue Of Debentures - Sendas (4nd serie) [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue amount | 2,000 | ||
Outstanding debentures | R$ 2000000 | ||
Issue date | Sep. 4, 2019 | ||
Maturity date | Aug. 20, 2023 | ||
Financial charges | CDI + 2.20% per year | ||
Unit price | R$ 1024 | ||
Borrowings and financing, total | R$ 2047 |
18. Borrowings and financing _5
18. Borrowings and financing (Details Narrative) - BRL (R$) R$ in Millions | Sep. 11, 2018 | Apr. 17, 2019 | Feb. 20, 2019 | Dec. 27, 2018 | Dec. 17, 2018 | Jan. 17, 2018 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about borrowings [line items] | ||||||||||
Interest rate | 10.73% | 12.61% | 12.87% | |||||||
Description of debt/LAJIDA ratio | Net debt/LAJIDA ratio should be lower than or equal to 3.25. | |||||||||
Number of shares sold (in shares) | 267,997 | 266,845 | ||||||||
Swap Contracts [Member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Weighted average annual rate of CDI | 5.96% | 6.42% | ||||||||
1th Issue of Debentures - CDI [Member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowing costs | R$ 1080 | |||||||||
Maturity date | Apr. 13, 2020 | |||||||||
Interest rate | 96.00% | |||||||||
15th Issue of Debentures - CDI [Member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowing costs | R$ 800 | |||||||||
Maturity date | Jan. 15, 2021 | |||||||||
Interest rate | 104.75% | |||||||||
16th Issue of Debentures - CDI (1nd serie) [Member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowing costs | R$ 1200 | |||||||||
Maturity date | Sep. 10, 2021 | |||||||||
Interest rate | 106.00% | |||||||||
16th Issue of Debentures - CDI (2nd serie) [Member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Maturity date | Sep. 10, 2022 | |||||||||
Interest rate | 107.40% | |||||||||
1th Issue Of Commercial Promissory Notes Of Sendas - CDI (6th serie) [Member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowing costs | R$ 800 | |||||||||
1th Issue Of Commercial Promissory Notes Of Sendas - CDI (6th serie) [Member] | Bottom Of Range [Member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Nominal value | 50 | |||||||||
1th Issue Of Commercial Promissory Notes Of Sendas - CDI (6th serie) [Member] | Top Of Range [Member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Nominal value | R$ 250 | |||||||||
4th Issue Of Commercial Promissory Notes - CDI (1th serie) [Member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowing costs | R$ 800 | |||||||||
Maturity date | Jan. 9, 2022 | |||||||||
Interest rate | 105.75% | |||||||||
1th Issue of Debentures - CDI (4th serie) [Member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowing costs | R$ 8000 | |||||||||
Nominal value | R$ 2000 | |||||||||
Via Varejo S.A. ("Via Varejo") [Member] | New Total Return Swap ("TRS") Agreement [Member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Number of shares sold (in shares) | 40,000,000 | |||||||||
Percentage of equity interest | 3.09% | |||||||||
Proceeds from issuing shares | R$ 200 | |||||||||
Via Varejo S.A. ("Via Varejo") [Member] | Total Return Swap ("TRS") Agreement [Member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Number of shares sold (in shares) | 50,000,000 | |||||||||
Percentage of equity interest | 3.80% | |||||||||
Proceeds from issuing shares | R$ 218 |
19. Financial instruments (Deta
19. Financial instruments (Details 1) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Loans and Receivables [Member] | Related Parties - Assets [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | R$ 104 | R$ 34 | |
Loans and Receivables [Member] | Trade Receivables and Other Receivables [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 924 | 695 | |
Loans and Receivables [Member] | Others Assets [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 51 | ||
Loans and Receivables [Member] | Cash and Cash Equivalents [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 7,954 | 4,369 | |
Loans and Receivables [Member] | Financial Instruments - Fair Value Hedge [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 86 | 87 | |
Loans and Receivables [Member] | Others Assets [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 2 | ||
Loans and Receivables [Member] | Trade Receivables With Credit Card Companies and Sales Vouchers [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 377 | 123 | |
Loans and Receivables [Member] | Others Assets [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 19 | ||
Financial Liabilities - Amortized Cost [Member] | Related Parties - Liabilities [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | (215) | (145) | |
Financial Liabilities - Amortized Cost [Member] | Trade Payables [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | (14,887) | (9,246) | |
Financial Liabilities - Amortized Cost [Member] | Financing for Purchase of Assets [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | (231) | (149) | |
Financial Liabilities - Amortized Cost [Member] | Debentures and Promissory Notes [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | (11,863) | (4,146) | |
Financial Liabilities - Amortized Cost [Member] | Borrowings [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | (1,348) | (271) | |
Financial Liabilities - Amortized Cost [Member] | Lease [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | (8,667) | (5,787) | |
Fair Value Through Profit or Loss [Member] | Borrowings and Financing (Hedge Accounting Underlying) [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | (944) | (956) | |
Fair Value Through Profit or Loss [Member] | Financial Instruments - Fair Value Hedge - Liabilities Side [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | (39) | ||
Fair Value Through Profit or Loss [Member] | Suppliers Financial Instruments - Fair Value Hedge - Liabilities Side [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | (8) | ||
Fair Value Through Profit or Loss [Member] | Disco Group Put Option [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | [1] | R$ 466 | |
[1] | See note 19.3. |
19. Financial instruments (De_2
19. Financial instruments (Details 2) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financial Instruments | |||||
Cash and cash equivalents | R$ 7954 | R$ 4369 | R$ 3792 | ||
Financial instruments - Fair value hedge | 39 | 87 | |||
Borrowings and financing | (14,155) | (5,373) | |||
Other liabilities with related parties | [1] | (124) | (138) | ||
Net financial debt | (6,286) | (1,055) | |||
Shareholders' equity | R$ 13548 | R$ 13159 | R$ 12156 | R$ 11487 | |
Net debt to equity ratio | 46.00% | 8.00% | |||
[1] | Represents amount payable to Greenyellow related to the purchase of equipment. |
19. Financial instruments (De_3
19. Financial instruments (Details 3) - Liquidity Risk [Member] R$ in Millions | Dec. 31, 2019BRL (R$) |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | R$ 47939 |
Borrowings [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 2,710 |
Debentures and Promissory Notes [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 13,681 |
Derivative Financial Instruments [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | (13) |
Lease Liabilities [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 16,674 |
Trade Payables [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 14,887 |
Up to 1 Year [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 20,561 |
Up to 1 Year [Member] | Borrowings [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 1,249 |
Up to 1 Year [Member] | Debentures and Promissory Notes [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 2,675 |
Up to 1 Year [Member] | Derivative Financial Instruments [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 3 |
Up to 1 Year [Member] | Lease Liabilities [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 1,747 |
Up to 1 Year [Member] | Trade Payables [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 14,887 |
1 to 5 Years [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 17,218 |
1 to 5 Years [Member] | Borrowings [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 1,054 |
1 to 5 Years [Member] | Debentures and Promissory Notes [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 10,694 |
1 to 5 Years [Member] | Derivative Financial Instruments [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | (13) |
1 to 5 Years [Member] | Lease Liabilities [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 5,483 |
1 to 5 Years [Member] | Trade Payables [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | |
After 5 Years [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 10,160 |
After 5 Years [Member] | Borrowings [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 407 |
After 5 Years [Member] | Debentures and Promissory Notes [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 312 |
After 5 Years [Member] | Derivative Financial Instruments [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | (3) |
After 5 Years [Member] | Lease Liabilities [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 9,444 |
After 5 Years [Member] | Trade Payables [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow |
19. Financial instruments (De_4
19. Financial instruments (Details 4) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about financial instruments [line items] | ||
Notional value | ||
Fair value | 28 | 87 |
Hedge Position - Asset [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional value | ||
Fair value | 57 | 87 |
Hedge Position - Liability [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional value | ||
Fair value | (29) | |
Short Position (Sell) [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional value | (955) | (883) |
Fair value | (917) | (868) |
Fair Value Hedge [Member] | Hedge Object (Debt) [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional value | 955 | 883 |
Fair value | 944 | 955 |
Long Position (Buy) [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional value | 955 | 883 |
Fair value | 945 | 955 |
Long Position (Buy) [Member] | Prefixed Rate [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional value | 127 | 127 |
Fair value | 99 | 112 |
Long Position (Buy) [Member] | US$ + Fixed [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional value | 828 | 756 |
Fair value | R$ 846 | R$ 843 |
19. Financial instruments (De_5
19. Financial instruments (Details 5) R$ in Millions | 12 Months Ended | |
Dec. 31, 2019BRL (R$) | ||
Fair Value Hedge (Fixed Rate) [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial risk (CDI variation) | 101.44% of CDI | |
Financial Baseline | R$ 86 | |
Financial projected scenario 1 | (211) | |
Financial projected scenario 2 | (214) | |
Financial projected scenario 3 | R$ 218 | |
Fair Value Hedge (Exchange Rate) [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial risk (CDI variation) | 118.27% of CDI | |
Financial Baseline | R$ 831 | |
Financial projected scenario 1 | (860) | |
Financial projected scenario 2 | (904) | |
Financial projected scenario 3 | R$ 916 | |
Debentures and Promissory Notes [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial risk (CDI variation) | 132.69% of CDI | |
Financial Baseline | R$ 10853 | |
Financial projected scenario 1 | (11,380) | |
Financial projected scenario 2 | (11,512) | |
Financial projected scenario 3 | R$ 11644 | |
Debentures (2nd Issue CRA) [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial risk (CDI variation) | 96.00% of CDI | |
Financial Baseline | R$ 1091 | |
Financial projected scenario 1 | (1,142) | |
Financial projected scenario 2 | (1,154) | |
Financial projected scenario 3 | R$ 1167 | |
Bank Loans [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial risk (CDI variation) | 124.49% of CDI | |
Financial Baseline | R$ 1008 | |
Financial projected scenario 1 | (1,058) | |
Financial projected scenario 2 | (1,071) | |
Financial projected scenario 3 | (1,083) | |
Total Borrowings and Financing Exposure [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial Baseline | (13,869) | |
Financial projected scenario 1 | (14,651) | |
Financial projected scenario 2 | (14,855) | |
Financial projected scenario 3 | R$ 15028 | |
Cash and Cash Equivalents [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial risk (CDI variation) | 89.94% of CDI | [1] |
Financial Baseline | R$ 4471 | [1] |
Financial projected scenario 1 | 4,468 | [1] |
Financial projected scenario 2 | 4,717 | [1] |
Financial projected scenario 3 | 4,766 | [1] |
Net Exposure [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial Baseline | (9,398) | |
Financial projected scenario 1 | (10,183) | |
Financial projected scenario 2 | (10,138) | |
Financial projected scenario 3 | (10,262) | |
Net Effect - Loss [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial projected scenario 1 | (785) | |
Financial projected scenario 2 | (740) | |
Financial projected scenario 3 | R$ 864 | |
[1] | Weighted average |
19. Financial instruments (De_6
19. Financial instruments (Details 6) - Bank Loans and Swap [Member] R$ in Millions | Dec. 31, 2019BRL (R$) |
Disclosure of detailed information about financial instruments [line items] | |
Market projection Baseline | R$ 320 |
Market projected scenario 1 | (320) |
Market projected scenario 2 | (321) |
Market projected scenario 3 | R$ 320 |
19. Financial instruments (De_7
19. Financial instruments (Details 7) R$ in Millions | Dec. 31, 2019BRL (R$) | |
Disclosure of detailed information about financial instruments [line items] | ||
Carrying amount | R$ 14205 | |
Fair value | (13,523) | |
Trade Receivables With Credit Card Companies and Sales Vouchers [Member] | Level 2 [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying amount | 377 | |
Fair value | 377 | |
Cross-Currency Interest Rate Swap [Member] | Level 2 [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying amount | 15 | |
Fair value | 15 | |
Interest Rate Swap [Member] | Level 2 [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying amount | 25 | |
Fair value | 25 | |
Forward Between Currencies [Member] | Level 2 [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying amount | (1) | |
Fair value | (2) | |
Borrowings and Financing (FVPL) [Member] | Level 2 [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying amount | (944) | |
Fair value | (944) | |
Borrowings and Financing and Debentures (Amortized Cost) [Member] | Level 2 [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying amount | (13,211) | |
Fair value | (12,528) | |
Disco Group Put Option [Member] | Level 3 [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying amount | (466) | [1] |
Fair value | R$ 466 | [1] |
[1] | Non-controlling shareholders of Group Disco del Uruguay S.A., Exito Group's subsidiary has a exercisable put option based on a formula that uses data such as net income, EBITDA - earnings before interest, taxes, depreciation and amortization - and net debt, in addition to fixed amounts determined in the contract and the exchange variation applicable for conversion to the functional currency. This put option is presented in "Acquisition of non-controlling interest". |
19. Financial instruments (De_8
19. Financial instruments (Details 8) $ in Thousands, € in Millions, R$ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019BRL (R$) | Dec. 31, 2019USD ($) | Dec. 31, 2019COP ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2018BRL (R$) | |
Disclosure of detailed information about financial instruments [line items] | |||||
Notional value | |||||
Exito Group [Member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivatives | 11 | ||||
Derivatives [Member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivatives | 19 | ||||
Derivatives [Member] | Fair Value Hedges [Member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivatives | R$ 28 | 87 | |||
Derivatives [Member] | USD - BRL [Member] | Not Later Than One Year [Member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Due date | 2019 | ||||
Derivatives | 43 | ||||
Derivatives [Member] | USD - BRL [Member] | Later Than One Year [Member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Notional value | $ | $ 210 | ||||
Due date | 2020 | ||||
Derivatives | R$ 16 | 33 | |||
Derivatives [Member] | Interest Rate - BRL [Member] | 2026 [Member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Notional value | R$ 21 | ||||
Due date | 2026 | ||||
Derivatives | R$ 2 | 2 | |||
Derivatives [Member] | Interest Rate - BRL [Member] | 2027 [Member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Notional value | R$ 106 | ||||
Due date | 2027 | ||||
Derivatives | R$ 10 | 9 | |||
Derivatives [Member] | USD - COP [Member] | Later Than One Year [Member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Notional value | $ | 211 | ||||
Due date | 2020 | ||||
Derivatives | R$ 20 | ||||
Derivatives [Member] | USD - COP [Member] | Later Than Two Years and Not Later Than Three Years [Member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Notional value | $ | 3 | ||||
Due date | 2022 | ||||
Derivatives | R$ 1 | ||||
Derivatives [Member] | Interest Rate - COP [Member] | Later Than One Year [Member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Notional value | $ | $ 673,109 | ||||
Due date | 2020 | ||||
Derivatives | R$ 1 | ||||
Derivatives [Member] | Interest Rate - COP [Member] | Later than one year and not later than two years [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Notional value | $ | $ 138,440 | ||||
Due date | 2021 | ||||
Derivatives | R$ 1 | ||||
Trade Payables [Member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivatives | R$ 8 | ||||
Trade Payables [Member] | USD - COP [Member] | Later Than One Year [Member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Notional value | $ | $ 56 | ||||
Due date | 2020 | ||||
Derivatives | R$ 8 | ||||
Trade Payables [Member] | EUR - COP [Member] | Later Than One Year [Member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Notional value | € | € 2 | ||||
Due date | 2020 | ||||
Derivatives |
19. Financial instruments (De_9
19. Financial instruments (Details Narrative) R$ in Millions | 12 Months Ended | |
Dec. 31, 2019BRL (R$)ExchangeRate | Dec. 31, 2018BRL (R$) | |
Disclosure of detailed information about financial instruments [line items] | ||
Notional value | ||
Fair value | 28 | 87 |
Fair value hedge gain | R$ 24 | 6 |
Weighted exchange rate | ExchangeRate | 4.47 | |
weighted interest rate | 4.89% | |
Fair Value Hedge [Member] | Hedge Object (Debt) [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional value | R$ 955 | 883 |
Fair value | R$ 944 | R$ 955 |
20. Taxes and contributions p_3
20. Taxes and contributions payable and taxes payable in installments (Details 1) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | ||
TaxesAndContributionsPayableAndTaxesPayableInInstallmentsLineItems [Line Items] | ||||
Taxes and contributions payable and taxes payable in installments | R$ 907 | R$ 841 | ||
Taxes and contributions payable and taxes payable in installments, current | 531 | 370 | ||
Taxes and contributions payable and taxes payable in installments, noncurrent | 376 | 471 | ||
Taxes Payable In Installments - Law 11,941/09 [Member] | ||||
TaxesAndContributionsPayableAndTaxesPayableInInstallmentsLineItems [Line Items] | ||||
Taxes and contributions payable and taxes payable in installments | [1] | 355 | 432 | |
Taxes Payable In Installments - PERT [Member] | ||||
TaxesAndContributionsPayableAndTaxesPayableInInstallmentsLineItems [Line Items] | ||||
Taxes and contributions payable and taxes payable in installments | [2] | 162 | 169 | |
ICMS | ||||
TaxesAndContributionsPayableAndTaxesPayableInInstallmentsLineItems [Line Items] | ||||
Taxes and contributions payable and taxes payable in installments | 96 | 88 | ||
PIS and COFINS [Member] | ||||
TaxesAndContributionsPayableAndTaxesPayableInInstallmentsLineItems [Line Items] | ||||
Taxes and contributions payable and taxes payable in installments | 7 | 8 | ||
Provision For Income Tax and Social Contribution [Member] | ||||
TaxesAndContributionsPayableAndTaxesPayableInInstallmentsLineItems [Line Items] | ||||
Taxes and contributions payable and taxes payable in installments | 115 | |||
Withholding Income Tax [Member] | ||||
TaxesAndContributionsPayableAndTaxesPayableInInstallmentsLineItems [Line Items] | ||||
Taxes and contributions payable and taxes payable in installments | 1 | 2 | ||
INSS [Member] | ||||
TaxesAndContributionsPayableAndTaxesPayableInInstallmentsLineItems [Line Items] | ||||
Taxes and contributions payable and taxes payable in installments | 6 | 4 | ||
Others [Member] | ||||
TaxesAndContributionsPayableAndTaxesPayableInInstallmentsLineItems [Line Items] | ||||
Taxes and contributions payable and taxes payable in installments | 60 | 23 | ||
Taxes Payable Exito Group [Member] | ||||
TaxesAndContributionsPayableAndTaxesPayableInInstallmentsLineItems [Line Items] | ||||
Taxes and contributions payable and taxes payable in installments | R$ 220 | [3] | ||
[1] | Federal tax installment payment program, Law 11,941/09 - The Law 11,941, was enacted on May 27, 2009, a special federal tax and social security debt installment program, for debts overdue until November 2008, which granted several benefits to its participants, such as reduction of fines, interest rates and penalties, the possibility of utilization of accumulated tax losses to settle penalties and interest and payment in 180 months, use of restricted deposits linked to the claim to reduce the balance. The program also allows the gains arising from reduction of fines and penalties not to be taxable for income taxes purposes. The Group is in compliance with the terms and conditions of these tax payment program. | |||
[2] | In 2017, the Group decided to include certain federal tax debts in the Special Program on Tax Settlements - PERT (PERT Program. The program allows the payment of certain taxes in monthly installments, and granted discounts on interest and penalties. The Group included tax debts related to (i) tax assessments over purchase transactions, manufacturing and exports sales of soil beans (PIS/COFINS), (ii) non-validation of tax offsets (IRPJ, PIS/COFINS); and other tax debts previously classified as possible risks related mainly to CPMF(Contribuicao provisoria sobre movimentacao financeira) and other claims - (See note 22.2). The PERT liability is being settled in monthly installments up to 12 years. The Group is in compliance with the obligations assumed under the PERT Program. The decision to apply to the PERT Program and the Federal taxes installment payment program resulted in the recognition of a loss of R$183 in 2017. | |||
[3] | mainly refers to withholding tax in the amount of R$ 75, municipal tax in the amount of R$ 86 and VAT in the amount of R$ 51. |
20. Taxes and contributions p_4
20. Taxes and contributions payable and taxes payable in installments (Details 2) R$ in Millions | Dec. 31, 2019BRL (R$) |
TaxesAndContributionsPayableAndTaxesPayableInInstallmentsLineItems [Line Items] | |
Taxes payable in installments, noncurrent | R$ 376 |
From 1 To 2 Years [Member] | |
TaxesAndContributionsPayableAndTaxesPayableInInstallmentsLineItems [Line Items] | |
Taxes payable in installments, noncurrent | 105 |
From 2 To 3 Years [Member] | |
TaxesAndContributionsPayableAndTaxesPayableInInstallmentsLineItems [Line Items] | |
Taxes payable in installments, noncurrent | 104 |
From 3 To 4 Years [Member] | |
TaxesAndContributionsPayableAndTaxesPayableInInstallmentsLineItems [Line Items] | |
Taxes payable in installments, noncurrent | 92 |
From 4 To 5 Years [Member] | |
TaxesAndContributionsPayableAndTaxesPayableInInstallmentsLineItems [Line Items] | |
Taxes payable in installments, noncurrent | 13 |
After 5 Years [Member] | |
TaxesAndContributionsPayableAndTaxesPayableInInstallmentsLineItems [Line Items] | |
Taxes payable in installments, noncurrent | R$ 62 |
20. Taxes and contributions p_5
20. Taxes and contributions payable and taxes payable in installments (Details Narrative) R$ in Millions | 12 Months Ended |
Dec. 31, 2017BRL (R$) | |
PERT Program And Federal Taxes Installment Payment Program [Member] | |
TaxesAndContributionsPayableAndTaxesPayableInInstallmentsLineItems [Line Items] | |
Recognition loss | R$ 183 |
21. Income tax and social con_3
21. Income tax and social contribution (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Income Tax And Social Contribution | ||||
Income before income tax and social contribution | R$ 760 | R$ 1569 | R$ 619 | |
Income tax and social contribution expense at the nominal rate | [1] | (323) | (532) | (231) |
Tax penalties | (18) | (22) | (25) | |
Share of profit of associates | (2) | 15 | (10) | |
Interest on own capital | 80 | 93 | 16 | |
Tax benefits | 19 | 15 | ||
Other permanent differences | (28) | 18 | (12) | |
Effective income tax and social contribution expense | (272) | (413) | (262) | |
Income tax and social contribution expense for the year: | ||||
Current | (96) | (347) | (171) | |
Deferred | (176) | (66) | (91) | |
Income tax and social contribution expense | R$ 272 | R$ 413 | R$ 262 | |
Effective rate | 35.79% | 26.32% | 42.33% | |
[1] | The nominal rate is 34% for subsidiaries located in Brazil, 33% for subsidiaries based in Colombia, 25% for subsidiaries based in Uruguay and 30% for subsidiaries based in Argentina. The Company does not pay social contribution based on a final favorable court decision in the past; therefore, its nominal rate is 25%. |
21. Income tax and social con_4
21. Income tax and social contribution (Details 2) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
IncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred income tax and social contribution, assets | R$ 337 | R$ 298 | ||
Deferred income tax and social contribution, liabilities | (1,195) | (523) | ||
Deferred income tax and social contribution, net | (858) | (225) | R$ 95 | R$ 53 |
Tax Losses And Negative Basis Of Social Contribution [Member] | ||||
IncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred income tax and social contribution, assets | 453 | 198 | ||
Deferred income tax and social contribution, liabilities | ||||
Deferred income tax and social contribution, net | 453 | 198 | ||
Provision For Contingencies [Member] | ||||
IncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred income tax and social contribution, assets | 321 | 292 | ||
Deferred income tax and social contribution, liabilities | ||||
Deferred income tax and social contribution, net | 321 | 292 | ||
Goodwill Tax Amortization [Member] | ||||
IncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred income tax and social contribution, assets | ||||
Deferred income tax and social contribution, liabilities | (604) | (601) | ||
Deferred income tax and social contribution, net | (604) | (601) | ||
Mark-To-Market Adjustment [Member] | ||||
IncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred income tax and social contribution, assets | ||||
Deferred income tax and social contribution, liabilities | (7) | (1) | ||
Deferred income tax and social contribution, net | (7) | (1) | ||
Technological Innovation - Future Realization [Member] | ||||
IncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred income tax and social contribution, assets | ||||
Deferred income tax and social contribution, liabilities | (7) | (10) | ||
Deferred income tax and social contribution, net | (7) | (10) | ||
Fixed Assets, Tradename And Investment Property [Member] | ||||
IncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred income tax and social contribution, assets | ||||
Deferred income tax and social contribution, liabilities | (1,359) | (128) | ||
Deferred income tax and social contribution, net | (1,359) | (128) | ||
Unrealized Gains With Tax Credits [Member] | ||||
IncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred income tax and social contribution, assets | 82 | |||
Deferred income tax and social contribution, liabilities | (322) | (222) | ||
Deferred income tax and social contribution, net | (240) | (222) | ||
Net Adjustments Of IFRS 16 [Member] | ||||
IncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred income tax and social contribution, assets | 356 | 274 | ||
Deferred income tax and social contribution, liabilities | ||||
Deferred income tax and social contribution, net | 356 | 274 | ||
Cash Flow Hedge [Member] | ||||
IncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred income tax and social contribution, assets | ||||
Deferred income tax and social contribution, liabilities | (80) | |||
Deferred income tax and social contribution, net | (80) | |||
Other [Member] | ||||
IncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred income tax and social contribution, assets | 117 | 112 | ||
Deferred income tax and social contribution, liabilities | (139) | |||
Deferred income tax and social contribution, net | 117 | (27) | ||
Presumed Profit On Equity Of Exito [Member] | ||||
IncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred income tax and social contribution, assets | 192 | |||
Deferred income tax and social contribution, liabilities | ||||
Deferred income tax and social contribution, net | 192 | |||
Deferred Income Tax And Social Contribution Assets (Liabilities) [Member] | ||||
IncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred income tax and social contribution, assets | 1,521 | 876 | ||
Deferred income tax and social contribution, liabilities | (2,379) | (1,101) | ||
Deferred income tax and social contribution, net | (858) | (225) | ||
Off-Set Assets And Liabilities [Member] | ||||
IncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred income tax and social contribution, assets | (1,184) | (578) | ||
Deferred income tax and social contribution, liabilities | 1,184 | 578 | ||
Deferred income tax and social contribution, net |
21. Income tax and social con_5
21. Income tax and social contribution (Details 3) R$ in Millions | Dec. 31, 2019BRL (R$) |
IncomeTaxAndSocialContributionLineItems [Line Items] | |
Recovery of deferred tax assets | R$ 1521 |
Up To One Year [Member] | |
IncomeTaxAndSocialContributionLineItems [Line Items] | |
Recovery of deferred tax assets | 312 |
From 1 To 2 Years [Member] | |
IncomeTaxAndSocialContributionLineItems [Line Items] | |
Recovery of deferred tax assets | 357 |
From 2 To 3 Years [Member] | |
IncomeTaxAndSocialContributionLineItems [Line Items] | |
Recovery of deferred tax assets | 246 |
From 3 To 4 Years [Member] | |
IncomeTaxAndSocialContributionLineItems [Line Items] | |
Recovery of deferred tax assets | 158 |
From 4 To 5 Years [Member] | |
IncomeTaxAndSocialContributionLineItems [Line Items] | |
Recovery of deferred tax assets | 58 |
After 5 Years [Member] | |
IncomeTaxAndSocialContributionLineItems [Line Items] | |
Recovery of deferred tax assets | R$ 390 |
21. Income tax and social con_6
21. Income tax and social contribution (Details 4) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax And Social Contribution | |||
At the beginning of the period | R$ 374 | R$ 269 | R$ 144 |
Adjustment related to IFRS 16 | 149 | 174 | 197 |
Restated opening balance | 225 | 95 | 53 |
Credit (expense) for the year - Continuing operations | (176) | (66) | (91) |
Expenses in the year - Discontinued operations | (122) | (87) | (1) |
IR on discontinued operations | 314 | 61 | |
Income tax related to OCI - Continuing operations | 1 | (1) | 1 |
Income tax related to OCI - Discontinued operations | 3 | 1 | |
Special program on tax settlements - PERT - Discontinued operations - use of tax loss | (2) | (2) | (89) |
Acquisition of companies | (747) | ||
Exchange rate changes | (18) | ||
Assets held for sale and discontinued operations | 122 | 84 | 31 |
Others | (5) | ||
At the end of the period | R$ 858 | R$ 225 | R$ 95 |
21. Income tax and social con_7
21. Income tax and social contribution (Details Narrative) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
IncomeTaxAndSocialContributionLineItems [Line Items] | |||
Description of income taxes calculated based on taxable income | 15% on taxable income plus an additional 10% on annual taxable income exceeding R$240,000 for IRPJ, and 9% for CSLL, and it is paid by each legal entity. | ||
Income tax expense | R$ 96 | R$ 347 | R$ 171 |
Via Varejo [Member] | |||
IncomeTaxAndSocialContributionLineItems [Line Items] | |||
Income tax expense | R$ 199 |
22. Provision for contingenci_3
22. Provision for contingencies (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
ProvisionForContingenciesLineItems [Line Items] | ||
Provision for contingencies, beginning | R$ 1235 | R$ 1107 |
Additions | 760 | 1,746 |
Payments | (453) | (1,021) |
Reversals | (566) | (1,017) |
Monetary restatement | 79 | 160 |
Business combination | 103 | |
Exchange rate changes | 2 | |
Deconsolidation Via Varejo | 145 | |
Liabilities related to assets available to sell and discontinued operations | 260 | |
Provision for contingencies, ending | 1,305 | 1,235 |
Tax [Member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Provision for contingencies, beginning | 828 | 637 |
Additions | 149 | 387 |
Payments | (41) | (2) |
Reversals | (274) | (158) |
Monetary restatement | (10) | 4 |
Business combination | 76 | |
Exchange rate changes | 2 | |
Deconsolidation Via Varejo | 111 | |
Liabilities related to assets available to sell and discontinued operations | (40) | |
Provision for contingencies, ending | 841 | 828 |
Social Security And Labor [Member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Provision for contingencies, beginning | 291 | 331 |
Additions | 449 | 997 |
Payments | (328) | (812) |
Reversals | (200) | (597) |
Monetary restatement | 66 | 119 |
Business combination | 13 | |
Exchange rate changes | ||
Deconsolidation Via Varejo | 28 | |
Liabilities related to assets available to sell and discontinued operations | 253 | |
Provision for contingencies, ending | 319 | 291 |
Civil And Regulatory [Member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Provision for contingencies, beginning | 116 | 139 |
Additions | 162 | 362 |
Payments | (84) | (207) |
Reversals | (92) | (262) |
Monetary restatement | 23 | 37 |
Business combination | 14 | |
Exchange rate changes | ||
Deconsolidation Via Varejo | 6 | |
Liabilities related to assets available to sell and discontinued operations | 47 | |
Provision for contingencies, ending | R$ 145 | R$ 116 |
22. Provision for contingenci_4
22. Provision for contingencies (Details 2) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
ProvisionForContingenciesLineItems [Line Items] | |||
Judicial deposits | R$ 795 | R$ 776 | R$ 762 |
Tax [Member] | |||
ProvisionForContingenciesLineItems [Line Items] | |||
Judicial deposits | 242 | 237 | |
Labor [Member] | |||
ProvisionForContingenciesLineItems [Line Items] | |||
Judicial deposits | 474 | 463 | |
Civil And Other [Member] | |||
ProvisionForContingenciesLineItems [Line Items] | |||
Judicial deposits | R$ 79 | R$ 76 |
22. Provision for contingenci_5
22. Provision for contingencies (Details 3) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
ProvisionForContingenciesLineItems [Line Items] | ||
Guarantees | R$ 11024 | R$ 10509 |
Tax [Member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Guarantees | 10,005 | 9,871 |
Labor [Member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Guarantees | 539 | 193 |
Civil And Other [Member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Guarantees | 480 | 445 |
Property And Equipment [Member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Guarantees | 854 | 853 |
Property And Equipment [Member] | Tax [Member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Guarantees | 843 | 838 |
Property And Equipment [Member] | Labor [Member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Guarantees | 3 | |
Property And Equipment [Member] | Civil And Other [Member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Guarantees | 11 | 12 |
Letter Of Guarantee [Member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Guarantees | 10,170 | 9,656 |
Letter Of Guarantee [Member] | Tax [Member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Guarantees | 9,162 | 9,033 |
Letter Of Guarantee [Member] | Labor [Member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Guarantees | 539 | 190 |
Letter Of Guarantee [Member] | Civil And Other [Member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Guarantees | R$ 469 | R$ 433 |
22. Provision for contingenci_6
22. Provision for contingencies (Details Narrative) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
ProvisionForContingenciesLineItems [Line Items] | ||
Description of credit recognized in the net result of discontinued operations | CBD has already recognized as of September 30, 2020, based on the documentation analyzed so far, R$231 of credit for the period it is legally entitled. The credit is recognized in the net result of discontinued operations. Pending a complete justification to be provided by Via Varejo on the credits underlying this right, today the Company still has a remaining unrecorded right of R$277. | |
Tax contingent liability [member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Contingent liabilities possible losses amount | R$ 10829 | R$ 10671 |
Contingent liabilities assessments prior amount | 1,409 | 1,317 |
Contingent liabilities tax proceedings | 484 | 399 |
Contingent liabilities estimate possible losses amount | 205 | 186 |
INSS Social Security Contribution [Member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Contingent liabilities possible losses amount | 453 | 420 |
IRPJ With Holding Income Tax [Member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Contingent liabilities possible losses amount | 1,055 | 1,021 |
COFINS, PIS And IPI [Member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Contingent liabilities possible losses amount | 2,022 | 1,985 |
ICMS [Member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Contingent liabilities possible losses amount | 6,773 | 6,582 |
Municipal Service Tax [Member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Contingent liabilities possible losses amount | 123 | 150 |
Other Litigations [Member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Contingent liabilities possible losses amount | R$ 403 | 513 |
Guarantees [Member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Percentage for cost of letter of guarantees | 0.59% | |
Tax Claims [Member] | Tax contingent liability [member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Contingent liabilities possible losses amount | R$ 72 | |
PIS/COFINS [Member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Non-approval of compensation amount | 4 | 86 |
Provision for contingencies accrued amount | 345 | 340 |
Unappeasable process recorded amount | 382 | |
Estimated financial effect of contingent liabilities | 198 | |
Estimated financial effect of potential value | 1,184 | |
PIS/COFINS [Member] | Sendas Distribuidora S.A. ("Sendas") [Member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Estimated financial effect of potential value | 117 | |
ICMS [Member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Provision for contingencies accrued amount | 268 | 221 |
Provision for contingencies | 50 | 92 |
Supplementary Law 110/2001 [Member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Provision for contingencies accrued amount | 96 | 88 |
Tax Claims [Member] | Exito Group [Member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Provision for contingencies | 78 | |
Civil And Other [Member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Provision for contingencies accrued amount | 68 | 49 |
Provision for contingencies | 24 | 27 |
Provision for contingencies remaining amount | 40 | 36 |
Civil And Other [Member] | Exito Group [Member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Provision for contingencies | 17 | |
Civil Other Tax Claims [Member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Provision for contingencies | 145 | 116 |
Labor And Social Security Taxes [Member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Provision for contingencies | R$ 319 | R$ 291 |
Agreements [Member] | ||
ProvisionForContingenciesLineItems [Line Items] | ||
Lease term | 20 years | |
Lease additional renewal term | 20 years |
23. Leases (Details 1)
23. Leases (Details 1) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
DisclosureOfLeasesLineItems [Line Items] | ||
Present value of finance lease agreements | R$ 8667 | R$ 5787 |
Future financing charges | 8,007 | 6,780 |
Gross amount of finance lease agreements | 16,674 | 12,567 |
Up To 1 Year [Member] | ||
DisclosureOfLeasesLineItems [Line Items] | ||
Present value of finance lease agreements | 937 | 507 |
1 - 5 Year [Member] | ||
DisclosureOfLeasesLineItems [Line Items] | ||
Present value of finance lease agreements | 2,936 | 1,956 |
After 5 Years [Member] | ||
DisclosureOfLeasesLineItems [Line Items] | ||
Present value of finance lease agreements | R$ 4794 | R$ 3324 |
23. Leases (Details 2)
23. Leases (Details 2) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases | |||
Movement of leasing obligation, balance at beginnning | R$ 5787 | R$ 5267 | |
Additions | 807 | 519 | |
Remeasurement | 838 | 853 | |
Accrued interest | 862 | 985 | |
Exchange and monetary variation | 1 | ||
Payments | (1,498) | (1,743) | |
Anticipated lease contract termination | (116) | (80) | |
Business combination | 1,817 | ||
Exchange rate changes | 33 | ||
Deconsolidation Via Varejo | 137 | ||
Liabilities related to assets held for sale and discontinued operations | (15) | ||
Movement of leasing obligation, balance at end | 8,667 | 5,787 | |
Current | 937 | 507 | R$ 445 |
Noncurrent | R$ 7730 | R$ 5280 | R$ 4822 |
23. Leases (Details 3)
23. Leases (Details 3) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Sublease Rentals [Member] | ||||
DisclosureOfLeasesLineItems [Line Items] | ||||
Lease expenses (income) | [1] | R$ 230 | R$ 191 | R$ 174 |
Variable [Member] | ||||
DisclosureOfLeasesLineItems [Line Items] | ||||
Lease expenses (income) | R$ 34 | R$ 31 | R$ 19 | |
[1] | Refers to revenues from lease agreements from commercial shopping malls and spaces rented in the stores. |
23. Leases (Details Narrative)
23. Leases (Details Narrative) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
DisclosureOfLeasesLineItems [Line Items] | |||
Asset value | R$ 5000 | ||
Leasing contracts | R$ 8667 | R$ 5787 | |
interest rate | 10.73% | 12.61% | 12.87% |
Bottom Of Range [Member] | |||
DisclosureOfLeasesLineItems [Line Items] | |||
Contractual Term | 1 year | ||
Variable Interest rate on sales | 0.10% | ||
Top Of Range [Member] | |||
DisclosureOfLeasesLineItems [Line Items] | |||
Contractual Term | 25 years | ||
Variable Interest rate on sales | 4.50% |
24. Deferred revenue (Details 1
24. Deferred revenue (Details 1) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
DeferredRevenueLineItems [Line Items] | |||
Deferred revenue | R$ 391 | R$ 263 | |
Deferred revenue, current | 365 | 250 | R$ 146 |
Deferred revenue, noncurrent | 26 | 13 | R$ 22 |
Deferred Revenue in Relation to Sale of Real Estate Property [Member] | |||
DeferredRevenueLineItems [Line Items] | |||
Deferred revenue | 10 | 16 | |
Additional or Extended Warranties [Member] | |||
DeferredRevenueLineItems [Line Items] | |||
Deferred revenue | 16 | 19 | |
Services Rendering Agreement - Allpark [Member] | |||
DeferredRevenueLineItems [Line Items] | |||
Deferred revenue | 9 | 11 | |
Revenue from Credit Card Operators and Banks [Member] | |||
DeferredRevenueLineItems [Line Items] | |||
Deferred revenue | 84 | 44 | |
Back Lights [Member] | |||
DeferredRevenueLineItems [Line Items] | |||
Deferred revenue | 142 | 134 | |
Gift Card [Member] | |||
DeferredRevenueLineItems [Line Items] | |||
Deferred revenue | 99 | 8 | |
Others [Member] | |||
DeferredRevenueLineItems [Line Items] | |||
Deferred revenue | R$ 31 | R$ 31 |
25. Shareholders' equity (Detai
25. Shareholders' equity (Details 1) | 12 Months Ended | |
Dec. 31, 2019sharesR$ / shares | Dec. 31, 2018sharesR$ / shares | |
Exercise price at the grant date | R$ / shares | R$ 30.55 | R$ 30.91 |
Number of shares granted | 4,863 | 1,378 |
Number of shares exercised | (2,144) | (697) |
Number of shares cancelled | (405) | |
Number of shares expired | (161) | |
Total number of shares outstanding | 2,153 | 2,755 |
Series B3 [Member] | ||
Grant date | May 30, 2016 | |
First date of exercise | May 30, 2019 | |
Exercise price at the grant date | R$ / shares | R$ 0.01 | |
Number of shares granted | 823 | |
Number of shares exercised | (658) | |
Number of shares cancelled | (77) | |
Number of shares expired | (88) | |
Series C3 [Member] | ||
Grant date | May 30, 2016 | |
First date of exercise | May 30, 2019 | |
Exercise price at the grant date | R$ / shares | R$ 37.21 | |
Number of shares granted | 823 | |
Number of shares exercised | (640) | |
Number of shares cancelled | (110) | |
Number of shares expired | (73) | |
Series B4 [Member] | ||
Grant date | May 31, 2017 | |
First date of exercise | May 31, 2020 | |
Exercise price at the grant date | R$ / shares | R$ 0.01 | |
Number of shares granted | 537 | |
Number of shares exercised | (211) | |
Number of shares cancelled | (54) | |
Number of shares expired | ||
Total number of shares outstanding | 272 | |
Series C4 [Member] | ||
Grant date | May 31, 2017 | |
First date of exercise | May 31, 2020 | |
Exercise price at the grant date | R$ / shares | R$ 56.78 | |
Number of shares granted | 537 | |
Number of shares exercised | (209) | |
Number of shares cancelled | (55) | |
Number of shares expired | ||
Total number of shares outstanding | 273 | |
Series B3 - Tranche 2 [Member] | ||
Grant date | Apr. 27, 2018 | |
First date of exercise | May 30, 2019 | |
Exercise price at the grant date | R$ / shares | R$ 0.01 | |
Number of shares granted | 95 | |
Number of shares exercised | (95) | |
Number of shares expired | ||
Series C3 - Tranche 2 [Member] | ||
Grant date | Apr. 27, 2018 | |
First date of exercise | May 30, 2019 | |
Exercise price at the grant date | R$ / shares | R$ 56.83 | |
Number of shares granted | 95 | |
Number of shares exercised | (95) | |
Number of shares expired | ||
Series B5 [Member] | ||
Grant date | May 31, 2018 | |
First date of exercise | May 31, 2021 | |
Exercise price at the grant date | R$ / shares | R$ 0.01 | |
Number of shares granted | 594 | |
Number of shares exercised | (116) | |
Number of shares cancelled | (37) | |
Number of shares expired | ||
Total number of shares outstanding | 441 | |
Series C5 [Member] | ||
Grant date | May 31, 2018 | |
First date of exercise | May 31, 2021 | |
Exercise price at the grant date | R$ / shares | R$ 62.61 | |
Number of shares granted | 594 | |
Number of shares exercised | (115) | |
Number of shares cancelled | (38) | |
Number of shares expired | ||
Total number of shares outstanding | 441 | |
Series B6 [Member] | ||
Grant date | May 31, 2019 | |
First date of exercise | May 31, 2022 | |
Exercise price at the grant date | R$ / shares | R$ 0.01 | |
Number of shares granted | 434 | |
Number of shares exercised | (3) | |
Number of shares cancelled | (17) | |
Number of shares expired | ||
Total number of shares outstanding | 414 | |
Series C6 [Member] | ||
Grant date | May 31, 2019 | |
First date of exercise | May 31, 2022 | |
Exercise price at the grant date | R$ / shares | R$ 70.62 | |
Number of shares granted | 331 | |
Number of shares exercised | (2) | |
Number of shares cancelled | (17) | |
Number of shares expired | ||
Total number of shares outstanding | 312 |
25. Shareholders' equity (Det_2
25. Shareholders' equity (Details 2) - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in equity [abstract] | ||
Number of shares | 267,997 | 266,845 |
Balance of effective stock options granted | 2,153 | 2,755 |
Maximum percentage of dilution | 0.80% | 1.03% |
25. Shareholders' equity (Det_3
25. Shareholders' equity (Details 3) | 12 Months Ended | |
Dec. 31, 2019sharesR$ / shares | Dec. 31, 2018sharesR$ / shares | |
Changes in equity [abstract] | ||
Options, outstanding, beginning | shares | 2,755 | |
Options, granted | shares | 4,863 | 1,378 |
Options, cancelled | shares | (126) | (229) |
Options, exercised | shares | (2,144) | (697) |
Options, expired | shares | (161) | (236) |
Options, outstanding, ending | shares | 2,153 | 2,755 |
Options, exercisable | shares | 2,153 | 2,755 |
Weighted average exercise price, outstanding, beginning | R$ / shares | R$ 26.03 | |
Weighted average exercise price, granted | R$ / shares | 30.55 | R$ 30.91 |
Weighted average exercise price, cancelled | R$ / shares | 31.75 | 38.64 |
Weighted average exercise price, exercised | R$ / shares | 21.55 | 31.96 |
Weighted average exercise price, expired | R$ / shares | 16.74 | 68.62 |
Weighted average exercise price, outstanding, ending | R$ / shares | 30.25 | 26.03 |
Weighted average exercise price, exercisable | R$ / shares | R$ 30.25 | R$ 26.03 |
Weighted average of remaining contractual term, ending | 1 year 6 months | 1 year 4 months 13 days |
Weighted average of remaining contractual term, exercisable | 1 year 6 months | 1 year 4 months 13 days |
25. Shareholders' equity (Det_4
25. Shareholders' equity (Details 4) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in equity [abstract] | ||
Net income (loss) for the year | R$ 790 | R$ 1149 |
Legal reserve | (39) | (60) |
Governmental subsidy reserve | (10) | |
Calculation basis of dividends | 751 | 1,079 |
Mandatory minimum dividends - 25% | 188 | 270 |
Additional dividends | 11 | |
Payment of interim dividends as interest on own capital, net of withholding taxes | (32) | (225) |
Dividends payable | R$ 156 | R$ 56 |
25. Shareholders' equity (Det_5
25. Shareholders' equity (Details Narrative) R$ / shares in Units, R$ in Millions | Jun. 24, 2019BRL (R$) | Mar. 25, 2019BRL (R$) | Jun. 29, 2018BRL (R$) | Dec. 31, 2019BRL (R$)sharesR$ / shares | Dec. 31, 2018BRL (R$)sharesR$ / shares | Dec. 31, 2017BRL (R$) | Aug. 29, 2019R$ / shares | May 27, 2019R$ / shares |
Subscribed and paid-up capital | shares | 267,997 | 266,845 | ||||||
Capital stock | R$ | R$ 6857 | R$ 6825 | R$ 6822 | |||||
Number of peferred share issued | shares | 1,152 | 265 | ||||||
Value of preferred share issued | R$ | R$ 32 | R$ 3 | ||||||
Description of rights and advantages of preferred shareholder's | (i) preference in the redemption of capital in the case of liquidation, (ii) preference in the annual minimum dividend payment in the amount of R$0.08 per share, non-cumulative; (iii) entitled to an additional 10% dividend payment over dividends on common shares, including for the purposes of the calculation the amount paid in (ii) above. | |||||||
Percentage of legal reserve corresponds of net income | 5.00% | |||||||
Percentage of legal reserve limted of capital | 20.00% | |||||||
Percentage of allocation of net income | 100.00% | |||||||
Exercise price (in dollar per share) | R$ / shares | R$ 30.25 | R$ 26.03 | ||||||
Number of shares granted | shares | 4,863 | 1,378 | ||||||
Expectation of remaining average life of the series outstanding | 1 year 6 months | 1 year 3 months | ||||||
Weighted average fair value of options granted | R$ / shares | R$ 56.41 | R$ 45.24 | ||||||
Other comprehensive income | R$ | R$ 218 | R$ 9 | R$ 36 | |||||
Cumulative effect of exchange gains and losses | R$ | R$ 151 | 26 | ||||||
Transfer to tax incentives | R$ | R$ 58 | |||||||
Minimum payment of profit percentage | 25.00% | |||||||
Interests on own capital related to profit | R$ | R$ 37 | R$ 192 | ||||||
Interest own capital per preferred share | R$ / shares | R$ 0.142512451 | R$ 0.747146155 | ||||||
Interest own capital per common share | R$ / shares | R$ 0.129556774 | R$ 0.67922378 | ||||||
Advances total gross amount | R$ | R$ 37 | |||||||
Net amount of interests on own capital | R$ | R$ 32 | |||||||
Series B3 [Member] | ||||||||
Number of shares granted | shares | 823 | |||||||
Series B4 and C4 [Member] | ||||||||
Expectation of dividends rate | 0.57% | |||||||
Expectation of volatility rate | 35.19% | |||||||
B5 and C5 Series [Member] | ||||||||
Expectation of dividends rate | 0.41% | |||||||
Expectation of volatility rate | 36.52% | |||||||
Weighted average interest rate | 9.29% | |||||||
B6 and C6 Series [Member] | ||||||||
Expectation of dividends rate | 0.67% | |||||||
Expectation of volatility rate | 32.74% | |||||||
Weighted average interest rate | 7.32% | |||||||
Compensation Plan [Member] | ||||||||
Option vesting period | 36 months | |||||||
Description of option exercise period | May only be exercised in the period beginning on the first day of the 37 (thirty-seventh) month from the date of grant, through the 42 (forty-second) month from the date of grant ("Exercise Period"). | |||||||
Exercise price (in dollar per share) | R$ / shares | R$ 0.01 | |||||||
Option Plan [Member] | ||||||||
Option vesting period | 36 months | |||||||
Description of option exercise period | May only be exercised in the period beginning on the first day of the 37 (thirty-seventh) months as from the Grant Date, and ends on the last day of the 42 (forty-second) month as of the Grant Date ("Exercise Period"), provided the exceptions included in the Compensation Plan. | |||||||
Option Plan [Member] | Series B3 [Member] | ||||||||
Percentage of closing average price | 80.00% | |||||||
Number of trading days | 20 days | |||||||
Share Based Payment Plan-GPA [Member] | ||||||||
Maximum percentage of total share issued | 0.70% | |||||||
Number of treasury preferred shares used upon exercised option | shares | 233 | |||||||
Number of shares granted | shares | 765 | |||||||
Preferred share market price (in dollar per share) | R$ / shares | R$ 87.65 | |||||||
Top Of Range [Member] | ||||||||
Maximum number of authorized share capital | shares | 400,000 | |||||||
Capital stock | R$ | R$ 32 | R$ 3 | ||||||
Top Of Range [Member] | Series B4 and C4 [Member] | ||||||||
Option vesting period | 36 months | |||||||
Weighted average interest rate | 10.07% | |||||||
Bottom Of Range [Member] | Series B4 and C4 [Member] | ||||||||
Option vesting period | 18 months | |||||||
Weighted average interest rate | 9.28% | |||||||
Common Shares [Member] | ||||||||
Subscribed and paid-up capital | shares | 99,680 | 99,680 | ||||||
Preferred Shares [Member] | ||||||||
Subscribed and paid-up capital | shares | 168,317 | 167,165 |
26. Revenue from the sale of _3
26. Revenue from the sale of goods and / or services (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
RevenueLineItems [Line Items] | |||
Revenues | R$ 56635 | R$ 49388 | R$ 44634 |
Gross Sales [Member] | |||
RevenueLineItems [Line Items] | |||
Revenues | 61,544 | 53,615 | 48,439 |
Goods [Member] | |||
RevenueLineItems [Line Items] | |||
Revenues | 61,176 | 53,643 | 48,597 |
Services Rendered [Member] | |||
RevenueLineItems [Line Items] | |||
Revenues | 641 | 456 | 365 |
Sales Returns and Cancellations [Member] | |||
RevenueLineItems [Line Items] | |||
Revenues | (273) | (484) | (523) |
Taxes On Sales [Member] | |||
RevenueLineItems [Line Items] | |||
Revenues | R$ 4909 | R$ 4227 | R$ 3805 |
27. Expenses by nature (Details
27. Expenses by nature (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
ExpenseByNatureLineItems [Line Items] | |||
Cost of sales | R$ 44445 | R$ 37779 | R$ 33585 |
Selling expenses | (7,431) | (6,553) | (6,323) |
General and administrative expenses | (923) | (1,049) | (1,026) |
Operating expense | (52,799) | (45,381) | (40,934) |
Cost of Inventories [Member] | |||
ExpenseByNatureLineItems [Line Items] | |||
Operating expense | (42,688) | (36,239) | (32,140) |
Personnel Expenses [Member] | |||
ExpenseByNatureLineItems [Line Items] | |||
Operating expense | (5,332) | (4,846) | (4,691) |
Outsourced Services [Member] | |||
ExpenseByNatureLineItems [Line Items] | |||
Operating expense | (636) | (636) | (648) |
Overhead Expenses [Member] | |||
ExpenseByNatureLineItems [Line Items] | |||
Operating expense | (1,904) | (1,536) | (1,568) |
Commercial Expenses [Member] | |||
ExpenseByNatureLineItems [Line Items] | |||
Operating expense | (1,481) | (1,334) | (1,226) |
Other Expenses [Member] | |||
ExpenseByNatureLineItems [Line Items] | |||
Operating expense | R$ 758 | R$ 790 | R$ 661 |
28. Other operating expenses,_3
28. Other operating expenses, net (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
OtherOperatingExpensesNetLineItems [Line Items] | ||||
Other operating expenses, net | R$ 459 | R$ 203 | R$ 576 | |
Tax Installments and Other Tax Risks [Member] | ||||
OtherOperatingExpensesNetLineItems [Line Items] | ||||
Other operating expenses, net | (211) | (181) | (217) | |
Restructuring Expenses [Member] | ||||
OtherOperatingExpensesNetLineItems [Line Items] | ||||
Other operating expenses, net | [1] | (292) | (147) | (107) |
Gain (Losses) on Disposal of Property and Equipment [Member] | ||||
OtherOperatingExpensesNetLineItems [Line Items] | ||||
Other operating expenses, net | [2] | 44 | 125 | (244) |
Others [Member] | ||||
OtherOperatingExpensesNetLineItems [Line Items] | ||||
Other operating expenses, net | R$ 8 | |||
[1] | amounts related to restructuring expenses in the Brazilian operations and those incurred in connection with the acquisition of Exito Group. | |||
[2] | includes the result of sale lease back of R$45 in 2019 (R$ 201 in 2018 and there was no such transaction in 2017). |
28. Other operating expenses,_4
28. Other operating expenses, net (Details Narrative) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Other Operating Expenses Net | ||
Sale lease | R$ 45 | R$ 201 |
29. Financial income (expense_3
29. Financial income (expenses), net (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
FinancialIncomeExpensesNetLineItems [Line Items] | |||
Total financial expenses | R$ 1655 | R$ 1292 | R$ 1476 |
Total financial income | 449 | 231 | 181 |
Financial results, net | (1,206) | (1,061) | (1,295) |
Interest On Lease Liabilities [Member] | |||
FinancialIncomeExpensesNetLineItems [Line Items] | |||
Total financial expenses | (666) | (609) | (589) |
Cost Of Debt [Member] | |||
FinancialIncomeExpensesNetLineItems [Line Items] | |||
Total financial expenses | (584) | (368) | (474) |
Monetary Restatement Loss [Member] | |||
FinancialIncomeExpensesNetLineItems [Line Items] | |||
Total financial expenses | (157) | (78) | (131) |
Cost Of The Discounting Receivables [Member] | |||
FinancialIncomeExpensesNetLineItems [Line Items] | |||
Total financial expenses | (136) | (155) | (144) |
Other Finance Expenses [Member] | |||
FinancialIncomeExpensesNetLineItems [Line Items] | |||
Total financial expenses | (112) | (82) | (138) |
Income From Short Term Instruments [Member] | |||
FinancialIncomeExpensesNetLineItems [Line Items] | |||
Total financial income | 168 | 26 | 38 |
Monetary Restatement Gain [Member] | |||
FinancialIncomeExpensesNetLineItems [Line Items] | |||
Total financial income | 270 | 194 | 137 |
Other Financial Income [Member] | |||
FinancialIncomeExpensesNetLineItems [Line Items] | |||
Total financial income | R$ 11 | R$ 11 | R$ 6 |
30. Earnings per share (Details
30. Earnings per share (Details 1) - BRL (R$) R$ / shares in Units, R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Basic numerator | |||
Net income (loss) allocated to ordinary shareholders - continuing operations | R$ 478 | R$ 1156 | R$ 357 |
Net income (loss) allocated to ordinary shareholders - discontinued operations | 312 | (7) | 150 |
Net income (loss) allocated to ordinary shareholders | R$ 790 | R$ 1149 | R$ 507 |
Basic denominator | |||
Weighted average of shares | 267 | 267 | 266 |
Basic earnings per share - continuing operations (in R$ per shares) | R$ 1.78980 | R$ 4.33836 | R$ 1.34175 |
Basic earnings per share - discontinued operations (in R$ per shares) | 1.16824 | (0.02627) | 0.56376 |
Basic earnings per share - total (in R$ per shares) | R$ 2.95804 | R$ 4.31209 | R$ 1.90551 |
Diluted numerator | |||
Net income (loss) allocated to ordinary shareholders - continuing operations | R$ 478 | R$ 1156 | R$ 357 |
Net income (loss) allocated to ordinary shareholders - discontinued operations | 312 | (7) | 150 |
Net income (loss) allocated to ordinary shareholders | R$ 790 | R$ 1149 | R$ 507 |
Diluted denominator | |||
Weighted average of shares | 267 | 267 | 266 |
Stock option | 1 | 1 | 1 |
Diluted weighted average of shares | 268 | 268 | 267 |
Diluted earnings per share - continuing operations (in R$ per shares) | R$ 1.78696 | R$ 4.31977 | R$ 1.33637 |
Diluted earnings per share - discontinued operations (in R$ per shares) | 1.16657 | 0.56100 | |
Diluted: continued and discontinued operations (in R$ per shares) | R$ 2.95353 | R$ 4.29350 | R$ 1.89737 |
31. Segment information (Detail
31. Segment information (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disclosure of operating segments [line items] | |||||
Net operating revenue | R$ 56635 | R$ 49388 | R$ 44634 | ||
Gross profit | 12,190 | 11,609 | 11,049 | ||
Depreciation and amortization | (1,413) | (1,202) | (1,117) | ||
Operating income | 1,964 | 2,602 | 2,007 | ||
Net financial expenses | (1,206) | (1,061) | (1,295) | ||
Profit(loss) before income tax and social contribution | 760 | 1,569 | 619 | ||
Share of profit of associates | 2 | 28 | (93) | ||
Income tax and social contribution | (272) | (413) | (262) | ||
Net income (loss) for continuing operations | 488 | 1,156 | 357 | ||
Net income (loss) from discontinued operations | 348 | 128 | 500 | ||
Net income (loss) of year end | 836 | 1,284 | 857 | ||
Current assets | 19,968 | 40,518 | 36,889 | ||
Noncurrent assets | 38,507 | 21,139 | 18,890 | ||
Current liabilities | 23,135 | 37,256 | 33,312 | ||
Noncurrent liabilities | 21,792 | 11,242 | 10,311 | ||
Shareholders' equity | 13,548 | 13,159 | 12,156 | R$ 11487 | |
Retail [Member] | |||||
Disclosure of operating segments [line items] | |||||
Net operating revenue | 26,654 | 26,490 | 26,194 | ||
Gross profit | 7,005 | 7,444 | 8,091 | ||
Depreciation and amortization | (967) | (892) | (878) | ||
Operating income | 467 | 956 | 1,121 | ||
Net financial expenses | (815) | (903) | (1,158) | ||
Profit(loss) before income tax and social contribution | (241) | 132 | 11 | ||
Share of profit of associates | 107 | 79 | 48 | ||
Income tax and social contribution | 121 | 42 | (36) | ||
Net income (loss) for continuing operations | (120) | 174 | (25) | ||
Net income (loss) from discontinued operations | 312 | (73) | (91) | ||
Net income (loss) of year end | 192 | 101 | (116) | ||
Current assets | 8,002 | 7,529 | |||
Noncurrent assets | 15,568 | 15,138 | |||
Current liabilities | 11,557 | 8,358 | |||
Noncurrent liabilities | 9,810 | 9,834 | |||
Shareholders' equity | 2,203 | 4,475 | |||
Cash & Carry [Member] | |||||
Disclosure of operating segments [line items] | |||||
Net operating revenue | 27,797 | 22,898 | 18,440 | ||
Gross profit | 4,578 | 4,165 | 2,958 | ||
Depreciation and amortization | (386) | (310) | (239) | ||
Operating income | 1,526 | 1,646 | 886 | ||
Net financial expenses | (184) | (158) | (137) | ||
Profit(loss) before income tax and social contribution | 1,342 | 1,488 | 749 | ||
Share of profit of associates | |||||
Income tax and social contribution | (439) | (455) | (226) | ||
Net income (loss) for continuing operations | 903 | 1,033 | 523 | ||
Net income (loss) from discontinued operations | |||||
Net income (loss) of year end | 903 | 1,033 | 523 | ||
Current assets | 5,292 | 4,176 | |||
Noncurrent assets | 7,475 | 6,001 | |||
Current liabilities | 4,317 | 5,296 | |||
Noncurrent liabilities | 2,295 | 1,408 | |||
Shareholders' equity | 6,155 | 3,473 | |||
Exito Group [Member] | |||||
Disclosure of operating segments [line items] | |||||
Net operating revenue | [1] | 2,151 | |||
Gross profit | 608 | ||||
Depreciation and amortization | (59) | ||||
Operating income | 27 | ||||
Net financial expenses | (208) | ||||
Profit(loss) before income tax and social contribution | (187) | ||||
Share of profit of associates | (6) | ||||
Income tax and social contribution | 44 | ||||
Net income (loss) for continuing operations | (143) | ||||
Net income (loss) from discontinued operations | |||||
Net income (loss) of year end | (143) | ||||
Current assets | 6,664 | ||||
Noncurrent assets | 15,438 | ||||
Current liabilities | 7,252 | ||||
Noncurrent liabilities | 9,686 | ||||
Shareholders' equity | 5,164 | ||||
Assets Held For Sale And Discontinued Operations [Member] | |||||
Disclosure of operating segments [line items] | |||||
Net operating revenue | |||||
Gross profit | |||||
Depreciation and amortization | |||||
Operating income | |||||
Net financial expenses | |||||
Profit(loss) before income tax and social contribution | |||||
Share of profit of associates | |||||
Income tax and social contribution | |||||
Net income (loss) for continuing operations | |||||
Net income (loss) from discontinued operations | 36 | 201 | 591 | ||
Net income (loss) of year end | 36 | 201 | 591 | ||
Current assets | 28,813 | ||||
Noncurrent assets | |||||
Current liabilities | 23,602 | ||||
Noncurrent liabilities | |||||
Shareholders' equity | 5,211 | ||||
Other Businesses [Member] | |||||
Disclosure of operating segments [line items] | |||||
Net operating revenue | 33 | ||||
Gross profit | (1) | ||||
Depreciation and amortization | (1) | ||||
Operating income | (56) | ||||
Net financial expenses | 1 | ||||
Profit(loss) before income tax and social contribution | (154) | (51) | (141) | ||
Share of profit of associates | (99) | (51) | (141) | ||
Income tax and social contribution | 2 | ||||
Net income (loss) for continuing operations | (152) | (51) | (141) | ||
Net income (loss) from discontinued operations | |||||
Net income (loss) of year end | (152) | (51) | R$ 141 | ||
Current assets | 10 | ||||
Noncurrent assets | 26 | ||||
Current liabilities | 9 | ||||
Noncurrent liabilities | 1 | ||||
Shareholders' equity | R$ 26 | ||||
[1] | Includes sales in Colombia of R$ 1,694, Uruguay R$ 350 and Argentina of R$ 107. |
31. Segment information (Deta_2
31. Segment information (Details 2) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of operating segments [line items] | ||||
Net operating revenue | R$ 56635 | R$ 49388 | R$ 44634 | |
Brazil [Member] | ||||
Disclosure of operating segments [line items] | ||||
Net operating revenue | 54,484 | 49,388 | 44,634 | |
Assai [Member] | ||||
Disclosure of operating segments [line items] | ||||
Net operating revenue | 27,797 | 22,899 | 18,440 | |
Extra / Compre Bem [Member] | ||||
Disclosure of operating segments [line items] | ||||
Net operating revenue | 15,624 | 15,792 | 16,110 | |
Pao de Acucar [Member] | ||||
Disclosure of operating segments [line items] | ||||
Net operating revenue | 6,786 | 6,860 | 6,659 | |
Proximidade [Member] | ||||
Disclosure of operating segments [line items] | ||||
Net operating revenue | 1,273 | 1,182 | 1,085 | |
Gas Stations / Drugstores / Delivery [Member] | ||||
Disclosure of operating segments [line items] | ||||
Net operating revenue | 2,971 | 2,655 | 2,340 | |
Other business | ||||
Disclosure of operating segments [line items] | ||||
Net operating revenue | 34 | |||
Exito Group [Member] | ||||
Disclosure of operating segments [line items] | ||||
Net operating revenue | [1] | R$ 2151 | ||
[1] | Includes sales in Colombia of R$ 1,694, Uruguay R$ 350 and Argentina of R$ 107. |
33. Noncurrent assets held fo_3
33. Noncurrent assets held for sale and discontinued operations (Details 1) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
NonCurrentAssetsHeldForSaleAndDiscontinuedOperationsLineItems [Line Items] | |||
Assets held for sale | R$ 223 | R$ 28687 | R$ 26663 |
Liabilities held for sale | 23,545 | R$ 21864 | |
Liabilities From Discontinued Operations [Member] | |||
NonCurrentAssetsHeldForSaleAndDiscontinuedOperationsLineItems [Line Items] | |||
Assets held for sale | 23,545 | ||
Assets Of Discontinued Operations [Member] | |||
NonCurrentAssetsHeldForSaleAndDiscontinuedOperationsLineItems [Line Items] | |||
Assets held for sale | 28,657 | ||
Properties / Lands Held For Sale [Member] | |||
NonCurrentAssetsHeldForSaleAndDiscontinuedOperationsLineItems [Line Items] | |||
Assets held for sale | 171 | 30 | |
Real Estate Developments Held For Sale - Exito [Member] | |||
NonCurrentAssetsHeldForSaleAndDiscontinuedOperationsLineItems [Line Items] | |||
Assets held for sale | R$ 52 |
33. Noncurrent assets held fo_4
33. Noncurrent assets held for sale and discontinued operations (Details 2) - BRL (R$) R$ in Millions | Dec. 31, 2019 | May 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current Assets | ||||||
Total current assets | R$ 19968 | R$ 40518 | R$ 36889 | |||
Noncurrent | ||||||
Total noncurrent assets | 38,507 | 21,139 | 18,890 | |||
Total assets | 58,475 | 61,657 | 55,779 | |||
Current | ||||||
Total current liabilities | 23,135 | 37,256 | 33,312 | |||
Noncurrent | ||||||
Total noncurrent liabilities | 21,792 | 11,242 | 10,311 | |||
Shareholders' equity | 13,548 | 13,159 | 12,156 | R$ 11487 | ||
Total liabilities and shareholders' equity | R$ 58475 | 61,657 | R$ 55779 | |||
Via Varejo [Member] | ||||||
Current Assets | ||||||
Total current assets | [1] | R$ 9871 | 13,412 | |||
Noncurrent | ||||||
Total noncurrent assets | [1] | 16,266 | 15,401 | |||
Total assets | [1] | 26,137 | 28,813 | |||
Current | ||||||
Total current liabilities | [1] | 13,484 | 15,733 | |||
Noncurrent | ||||||
Total noncurrent liabilities | [1] | 7,375 | 7,869 | |||
Shareholders' equity | [1] | 5,278 | 5,211 | |||
Total liabilities and shareholders' equity | [1] | R$ 26137 | R$ 28813 | |||
[1] | Before elimination of transactions carried out with the Company. |
33. Noncurrent assets held fo_5
33. Noncurrent assets held for sale and discontinued operations (Details 3) - BRL (R$) R$ in Millions | 5 Months Ended | 12 Months Ended | ||
May 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
NonCurrentAssetsHeldForSaleAndDiscontinuedOperationsLineItems [Line Items] | ||||
Cash flow provided by (used in) operating activities | R$ 1135 | R$ 4267 | R$ 3540 | |
Net cash used in investing activities | (3,266) | (1,897) | (1,605) | |
Net cash used in financing activities | 1,894 | (1,641) | (3,726) | |
Increase (decrease) of cash and cash equivalents | R$ 237 | 729 | (1,791) | |
Via Varejo [Member] | ||||
NonCurrentAssetsHeldForSaleAndDiscontinuedOperationsLineItems [Line Items] | ||||
Cash flow provided by (used in) operating activities | R$ 2640 | 1,609 | 807 | |
Net cash used in investing activities | (234) | (590) | (260) | |
Net cash used in financing activities | (651) | (867) | (1,018) | |
Increase (decrease) of cash and cash equivalents | R$ 3525 | R$ 152 | R$ 471 |
33. Noncurrent assets held fo_6
33. Noncurrent assets held for sale and discontinued operations (Details 4) - BRL (R$) R$ in Millions | 5 Months Ended | 12 Months Ended | ||
May 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
NonCurrentAssetsHeldForSaleAndDiscontinuedOperationsLineItems [Line Items] | ||||
Net operating revenue | R$ 56635 | R$ 49388 | R$ 44634 | |
Profit before income tax and social contribution | 760 | 1,569 | 619 | |
Income tax and social contribution | 272 | 413 | 262 | |
Net income for the year | 836 | 1,284 | 857 | |
Profit from discontinued operations | 348 | 128 | 500 | |
Attributable to: | ||||
Non-controlling shareholders | R$ 36 | 135 | 350 | |
Via Varejo [Member] | ||||
NonCurrentAssetsHeldForSaleAndDiscontinuedOperationsLineItems [Line Items] | ||||
Net operating revenue | R$ 10527 | 26,928 | 25,690 | |
Profit before income tax and social contribution | 169 | 341 | 876 | |
Income tax and social contribution | (119) | (101) | (268) | |
Net income for the year | 50 | 240 | 680 | |
Other results from discontinued operations | (100) | (112) | (108) | |
Gain on the sale of discontinued operations (note 12.3) | 398 | |||
Profit from discontinued operations | 348 | 128 | 500 | |
Attributable to: | ||||
Controlling shareholders of the Company | 312 | (7) | 150 | |
Non-controlling shareholders | R$ 36 | R$ 135 | R$ 350 |
33. Noncurrent assets held fo_7
33. Noncurrent assets held for sale and discontinued operations (Details Narrative) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | |
NonCurrentAssetsHeldForSaleAndDiscontinuedOperationsLineItems [Line Items] | ||||
Assets held for sale | R$ 223 | R$ 28687 | R$ 26663 | |
Non current liabilities held for sale | 23,545 | 21,864 | ||
Via Varejo [Member] | ||||
NonCurrentAssetsHeldForSaleAndDiscontinuedOperationsLineItems [Line Items] | ||||
Assets held for sale | R$ 115 | |||
Net income (loss) from discontinued operations | R$ 87 | R$ 91 | R$ 32 |
34. Insurance coverage (Details
34. Insurance coverage (Details 1) R$ in Millions | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Property And Equipment And Inventories [Member] | |
Disclosure of types of insurance contracts [line items] | |
Covered risks | Operating risks |
Amount insured | R$ 26120 |
Business Interruption [Member] | |
Disclosure of types of insurance contracts [line items] | |
Covered risks | Loss of profits |
Amount insured | R$ 12306 |
Cars And Others [Member] | |
Disclosure of types of insurance contracts [line items] | |
Covered risks | Damages |
Amount insured | R$ 378 |
34. Insurance coverage (Detai_2
34. Insurance coverage (Details Narrative) R$ in Millions | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Disclosure of types of insurance contracts [line items] | |
Insurance policies | R$ 315 |
General Civil Liability [Member] | |
Disclosure of types of insurance contracts [line items] | |
Insurance policies | 100 |
Civil Responsibility [Member] | |
Disclosure of types of insurance contracts [line items] | |
Insurance policies | 134 |
Fraud And Risk (Criminal) [Member] | |
Disclosure of types of insurance contracts [line items] | |
Insurance policies | 44 |
Damage Protection And Cybersecurity Responsibility (Cyber) [Member] | |
Disclosure of types of insurance contracts [line items] | |
Insurance policies | R$ 37 |
35. Subsequent events (Details
35. Subsequent events (Details Narrative) R$ / shares in Units, R$ in Millions, $ in Millions | Jul. 01, 2020BRL (R$) | Jun. 29, 2020BRL (R$) | May 29, 2020BRL (R$) | Apr. 30, 2020 | Apr. 24, 2020BRL (R$) | Mar. 05, 2020BRL (R$)Properties | Jan. 09, 2020USD ($) | Jan. 06, 2020BRL (R$) | Sep. 30, 2020BRL (R$) | Dec. 31, 2019BRL (R$)R$ / shares | Dec. 31, 2018BRL (R$) | Dec. 31, 2017 |
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||
Dividends payable | R$ 156 | R$ 56 | ||||||||||
Dividends per common share | R$ / shares | R$ 0.582024107 | |||||||||||
Notional amount | ||||||||||||
Borrowings, interest rate | 10.73% | 12.61% | 12.87% | |||||||||
Events After Reporting Period [Member] | ||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||
Description of Sale and Leaseback | On December 23, 2019, the Company signed a commitment to sell 6 properties (Pão de Açúcar stores) in the Sale and Leaseback modality to Rio Bravo Investimentos Distribuidora de Titulos e Valores Imobiliários Ltda. of a total amount of R$92, of which R$91 was paid upon signing the commitment. On September 30, 2020, the Company concluded the sale of 5 of the 6 stores. The parties entered into lease agreements for the 5 properties, with a term of 10 years, renewable for the same period, ensuring the continuity of GPA operations in properties with sustainable financial conditions. | |||||||||||
Events After Reporting Period [Member] | Sendas Distribuidora S.A. ("Sendas") [Member] | ||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||
Description of receipt of dividends from Exito | In April 2020, the subsidiary Sendas received R$1.2 billion of dividend and fully used to amortize the debt for the acquisition of Éxito. | |||||||||||
Events After Reporting Period [Member] | Foreign Currency Loan Agreement [Member] | Sendas Distribuidora S.A. ("Sendas") [Member] | ||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||
Currency loan agreement | $ | $ 50 | |||||||||||
Events After Reporting Period [Member] | National Currency Loan Agreement [Member] | ||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||
Currency loan agreement | R$ 500 | |||||||||||
Currency loan agreement, maturity | Matures on April 25, 2022 and bear annual interest | |||||||||||
Events After Reporting Period [Member] | National Currency Loan Agreement [Member] | Sendas Distribuidora S.A. ("Sendas") [Member] | ||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||
Currency loan agreement | R$ 150 | R$ 250 | ||||||||||
Currency loan agreement, maturity | Matures on June 20, 2022 and bears half-year interest | |||||||||||
Events After Reporting Period [Member] | National Currency Loan Agreement [Member] | CBD [Member] | ||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||
Currency loan agreement | R$ 400 | R$ 500 | R$ 250 | |||||||||
Currency loan agreement, maturity | Matures on June 21, 2022 and bears half-year interest | Matures on May 30, 2022 and bears quarterly interest | ||||||||||
Events After Reporting Period [Member] | Sale And Leaseback [Member] | GPA [Member] | ||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||
Description of Sale and Leaseback | On May 29, 2020, the Company concluded the sale of 5 properties. On June 29, 2020, the Company concluded the sale of 7 properties. On July 22, 2020, the Company concluded the sale of another 16 properties. On July 30, 2020, the Company concluded the sale of the remaining 11 properties, whose transfer was completed on August 28, 2020. The Company completed the sale of 39 properties for a total amount of R$1,183, of which R$ 1,179 has been already received. Four properties of non-relevant value from the total volume were not sold. The parties entered into lease agreements for each property, with a term of 15 years, renewable for the same period. | |||||||||||
Sale of properties | Properties | 43 | |||||||||||
Proceeds from sale of properties | R$ 1246 | |||||||||||
Events After Reporting Period [Member] | Seventeen Issue Of Debentures [Member] | ||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||
Notional amount | R$ 2000 | |||||||||||
Borrowings, maturity | P3Y | |||||||||||
DailyAverageRates | 100.00% | |||||||||||
Borrowings, interest rate | 1.45% | |||||||||||
Effects Of COVID-19 On The Consolidated Financial Statements [Member] | ||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||
Description of the complete analysis of the consolidated financial statements | Due to the uncertainty regarding the end of the pandemic, and its macroeconomic consequences, management assessed the existence of indicators of impairment for some of its assets and, consequently, performed an impairment test on June 30, 2020. The recoverable amount is determined by means of a calculation based on the value in use and on cash projections from financial budgets, which were reviewed and approved by Senior Management for the next three years, considering the updated projections for June 30, 2020.The discount rate applied to cash flow projections was 8.1% on June 30, 2020 (8.4% on December 31, 2019), and cash flows that exceed the three-year period were extrapolated using a growth rate of 3.9% on June 30, 2020 (4.8% on December 31, 2019). | |||||||||||
Expenses incurred as a result of the pandemic | R$ 200 |