- Profits amounting to Ch$21,299 million (US$40.4 million) are mainly due to the 31.7% improvement in operating income. At the same time, the Company's EBITDA increased 17.7%, equivalent to 7.6% of revenues SANTIAGO, Chile, Aug. 9 /PRNewswire-FirstCall/ -- During the first half of 2007 D&S, the main supermarket chain in Chile, showed net profits of Ch$21,299 million (US$40.4 million), representing a 50.4% growth over results for the same period in 2006. This increase is explained by the 5.5% increase in revenues compared to the previous year, amounting to Ch856,301 million (US$1,625.3 million) and by the 31.7% improvement in operating income, amounting to Ch$37,714 million (US$71.6 million). "The significant increase in D&S's profits is manly due to the 3.6% nominal increase in same store sales (SSS), in addition to the opening of 13 new LIDER stores and a 38.5% increase in revenues at PRESTO financial division in comparison with the same period of 2006, amounting to Ch$54,111 million (US$102.7 million)," explained the Company CFO, Mr. Alejandro Droste. With regards to operating profit, Droste said, the improvement came from the selling and administrative expenses reduction at the supermarket division due to the implementation of the Operational Excellence focused on maximizing efficiencies throughout the Company, especially the LIDER retail division. Compared to the closing of the first half of 2006, 13 new stores have been opened -- 5 Hiper by LIDER hypermarkets and 8 Express by LIDER supermarkets -- resulting in a 6.5% increase in sales area, which currently totals 476,720 square meters. Out of these 13 stores, 4 were opened during the month of June 2007, hence their scarce contribution to the total sales increase for the period. In addition to the LIDER openings, 19 Ekono discount stores have been opened as of today. However, their impact on consolidated Company sales is still marginal, Droste remarked. The Company's EBITDA increased by 17.7%, amounting to Ch$65,364 million (US$124.1 million) compared to the first half of 2006. EBITDA margin for the period was equivalent to 7.6% of revenues, which compares favorably to the 6.8% EBITDA margin shown in the same period the previous year. As of today, D&S has 33 hypermarkets and 28 compact hypermarkets Hiper by LIDER, 45 supermarkets Express by LIDER, 19 Ekono discount stores and 9 shopping centers. Consolidated Results Period January-June 2007 Ch$ US$ % of Rev. millions millions Sales 703,713 1,335.7 82.2% Other Income 152,588 289.6 17.8% Net revenues 856,301 1,625.3 100.0% Cost of sales 609,726 1,157.3 71.2% Gross Income / Margin 246,575 468.0 28.8% Recurring Operating Expenses 180,833 343.2 21.1% Start-up Expenses 378 0.7 0.0% Total Operating Expenses (SG&A) 181,210 343.9 21.2% EBITDA 65,364 124.1 7.6% Depreciation 27,650 52.5 3.2% Total Operating Expenses 208,860 396.4 24.4% Operating Income 37,714 71.6 4.4% Financial Expenses (10,891) (20.7) -1.3% Other Non-operating Income (Expenses) (591) (1.1) -0.1% Monetary Correction (449) (0.9) -0.1% Non-Operating Income (11,931) (22.6) -1.4% Income before Tax 25,783 48.9 3.0% Income Tax (4,502) (8.5) -0.5% Minority Interest 17 0.0 0.0% Income 21,299 40.4 2.5% Amortization of Goodwill - - 0.0% Net Income 21,299 40.4 2.5% Consolidated Results Period January-June 2006 Ch$ US$ % of Change millions millions Rev. % YoY Sales 679,532 1,289.8 83.7% 3.6% Other Income 132,259 251.0 16.3% 15.4% Net revenues 811,791 1,540.8 100.0% 5.5% Cost of sales 585,293 1,110.9 72.1% 4.2% Gross Income / Margin 226,498 429.9 27.9% 8.9% Recurring Operating Expenses 170,362 323.4 21.0% 6.1% Start-up Expenses 597 1.1 0.1% -36.7% Total Operating Expenses (SG&A) 170,959 324.5 21.1% 6.0% EBITDA 55,539 105.4 6.8% 17.7% Depreciation 26,895 51.0 3.3% 2.8% Total Operating Expenses 197,854 375.5 24.4% 5.6% Operating Income 28,644 54.4 3.5% 31.7% Financial Expenses (11,224) (21.3) -1.4% -3.0% Other Non-operating Income (Expenses) 174 0.3 0.0% -439.3% Monetary Correction (71) (0.1) 0.0% 534.5% Non-Operating Income (11,120) (21.1) -1.4% 7.3% Income before Tax 17,524 33.3 2.2% 47.1% Income Tax (3,385) (6.4) -0.4% 33.0% Minority Interest 19 0.0 0.0% -9.2% Income 14,158 26.9 1.7% 50.4% Amortization of Goodwill - - 0.0% Net Income 14,158 26.9 1.7% 50.4% 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). For further information, please contact: Alejandro Droste, Chief Financial Officer: Phone: 56-2-484 7750 Loreto Bradford, Investor Relations Officer: Phone: 56-2-484 7757 DATASOURCE: Distribucion y Servicio D&S S.A. CONTACT: Alejandro Droste, Chief Financial Officer, +011-56-2-484-7750, , Loreto Bradford, Investor Relations Officer, +011-56-2-484-7757, , both of D&S Web site: http://www.dys.cl/

Copyright