Distribution & Service D&S 6K Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 6-K

REPORT OF FOREIGN ISSUER

PURSUANT TO RULE 13a-16 OR 15b-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

For August, 2007

Distribution and Service D&S, Inc.

(Translation of registrant’s name into English)

Avenida Presidente Eduardo Frei Montalva 8301

Quilicura, Santiago, Chile

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F

Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

PRESS RELEASE - D&S SECOND QUARTER RESULTS

Santiago, Chile, August 9, 2007: Distribución y Servicio D&S S.A. (NYSE: DYS; Latibex: XDYS) announces earnings for the second quarter 2007.

Highlights II Quarter 2007

39.2% increase in net profit to Ch$11,975 million (US$22.7 million) representing 2.7% of revenues.

Net income for the quarter = Ch$1.84/share; Ch$110.20/ADR; US$0.21/ADR

18.6% increase in EBITDA. EBITDA margin increased 90 bp. to 7.8% of revenues.

Operating income up 27.8% to Ch$20,427 million (US$38.8 million). Operating margin increased by 80 bp. to 4.6% of revenues.

6.0% nominal increase in total sales, 3.8% nominal increase in same store sales (SSS).

New store openings: 13 new stores have been added compared to the closing of the second quarter 2006: 8 stores in the period June-December 2006 (6 supermarkets Express by LIDER, 2 compact hypermarkets Hiper by LIDER) and 5 stores in the period January-June 2007 (2 Express by LIDER: Consistorial in Peñalolén, Metropolitan Region, with 1,640m2 of sales area and La Serena-Balmaceda in the IV Region, with 2,161m2; 2 compact hypermarkets Hiper by LIDER: Coronel in the VIII Region with 4,196m2 and Melipilla in the Metropolitan Region with 4,196m2; and one hypermarket in Chillán, VIII Region, with 6,398m2). On the other hand, Express Pajaritos store (2,891 m2) was closed in November 2006, and hypermarket LIDER Kennedy (6,975m2) and Express Parque Arauco (500m2) were closed in January 2007. All this resulted in a net increase of 25,878m2 of sales area, equivalent to a 6.5% growth over sales area at June 30, 2006.

Financial debt as of June 30, 2007 amounts to US$874.7 million, 42.1% short term.

Figures in this report are expressed in US$ Millions, drawn from figures in Chilean pesos restated by the CPI at June 30, 2007 and converted into dollars using the observed exchange rate for the same date (1US$=Ch$526.86).

Second Quarter Consolidated Results

	2007									2006									Var.
	Ch$ millones			US$ millones			% of Rev.			Ch$ millones			US$ millones			% of Rev.			%
Sales		362,060			687.2			82.4	%		351,070			666.3			83.8	%		3.1	%
Other Income		77,442			147.0			17.6	%		67,885			128.8			16.2	%		14.1	%
Net revenues		439,503			834.2			100.0	%		418,955			795.2			100.0	%		4.9	%
Cost of sales		313,221			594.5			71.3	%		302,111			573.4			72.1	%		3.7	%
Gross Income / Margin		126,281			239.7			28.7	%		116,844			221.8			27.9	%		8.1	%
Recurring Operating Expenses		91,628			173.9			20.8	%		87,549			166.2			20.9	%		4.7	%
Start-up Expenses		158			0.3			0.0	%		208			0.4			0.0	%		-23.8	%
Total Operating Expenses (SG&A)		91,787			174.2			20.9	%		87,757			166.6			20.9	%		4.6	%
EBITDA		34,495			65.5			7.8	%		29,088			55.2			6.9	%		18.6	%
Depreciation		14,068			26.7			3.2	%		13,103			24.9			3.1	%		7.4	%
Total Operating Expenses		105,854			200.9			24.1	%		100,860			191.4			24.1	%		5.0	%
Operating Income		20,427			38.8			4.6	%		15,985			30.3			3.8	%		27.8	%
Financial Expenses		(5,499	)		(10.4	)		-1.3	%		(5,920	)		(11.2	)		-1.4	%		-7.1	%
Other Non-operating Income (Expenses)		(205	)		(0.4	)		0.0	%		284			0.5			0.1	%		-172.0	%
Monetary Correction		(143	)		(0.3	)		0.0	%		504			1.0			0.1	%		-128.5	%
Non-Operating Income		(5,847	)		(11.1	)		-1.3	%		(5,132	)		(9.7	)		-1.2	%		13.9	%
Income before Tax		14,580			27.7			3.3	%		10,852			20.6			2.6	%		34.4	%
Income Tax		(2,602	)		(4.9	)		-0.6	%		(2,256	)		(4.3	)		-0.5	%		15.3	%
Minority Interest		(4	)		(0.0	)		0.0	%		9			0.0			0.0	%		-146.5	%
Income		11,975			22.7			2.7	%		8,605			16.3			2.1	%		39.2	%
Amortization of Goodwill		-			0.0			0.0	%		-			0.0			0.0	%
Net Income		11,975			22.7			2.7	%		8,605			16.3			2.1	%		39.2	%

For an extended version visit our website www.dys.cl

For further information please contact:

Alejandro Droste

Chief Financial Officer

adroste@dys.cl

56-2-484 7754

Miguel Núñez S.

Finance Manager Retail

mnunez@dys.cl

56-2-484 7754

Loreto Bradford

Investor Relations Officer

lbradford@dys.cl

56-2-484 7757

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the city of Santiago, Chile.


	DISTRIBUCIÓN Y SERVICIO D&S S.A.

	By:	/s/ Alejandro Droste B.
		Alejandro Droste B.
		Chief Financial Officer

Dated: August 8, 2007

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