D&S First Quarter Results

SANTIAGO, Chile, May 2 /PRNewswire-FirstCall/ -- Distribucion y Servicio D&S S.A. NYSE: DYS announced earnings for the first quarter 2008:

    Highlights I Quarter 2008

    -- Net income increased 11.7% to Ch$11,081 million (US$25.3 million). Net
       margin increased 20 bp. to 2.4% of revenues.
    -- 12.0% increase in EBITDA, which totaled Ch$37,669 million
       (US$86.1 million). EBITDA margin increased 40 bp. to 8.0% of revenues.
    -- Operating income up 16.4% to Ch$22,332 million (US$51.0 million).
       Operating margin increased by 50 bp. to 4.8% of revenues.
    -- Gross income up 6.3%, amounting to Ch$136,018 million
       (US$310.7 million). Gross margin increased by 20 bp. to 29.1% of
       revenues.
    -- 5.6% increase of net revenues to Ch$468,142 million
       (US$1,069.5 million).
    -- New store openings: 13 new stores have been added compared to the
       closing of the first quarter 2007. Of these, 7 are Express by LIDER, 5
       are Hiper LIDER and 3 are stores of the new warehouse concept,
       Superbodega Acuenta. Additionally, one Express store was closed, one
       was transformed into a warehouse Acuenta, and one Hiper LIDER store was
       remodeled adding 1,716m2 of sales area.  All this accounted for a net
       increase of 41,608 m2 of sales area, equivalent to an increase of 9.0%
       over total sales area at March 31, 2007. Additionally, 22 new
       Ekono stores have been added to the 14 existing at March 31, 2007,
       totaling 36 stores in operation.
    -- Financial debt reached US$1,325.6 million, 55.5% short term.
    -- Net income for the quarter = Ch$1.70/share; Ch$101.97/ADR; US$0.23/ADR.

*Figures in this report are expressed in US$ Millions, drawn from figures in Chilean pesos restated by the CPI at March 31, 2008 and converted into dollars using the observed exchange rate for the same date (1US$=Ch$437.71).

Results of Operations -- First Quarter 2008

The following table sets forth the main items of the income statement for the periods indicated, their respective percentages of net revenues and percentages change between periods:

    I Quarter Consolidated Results

                             2008                      2007               Var.

                    Ch$       US$     %       Ch$       US$       %         %
                  million   million   of    million   million     of
                                     Rev.                        Rev.
    Sales         382,228    873.2   81.6%  363,510   830.5      82.0%    5.1%
    Other Income   85,914    196.3   18.4%   79,953   182.7      18.0%    7.5%
    Net revenues  468,142   1069.5  100.0%  443,464  1013.1     100.0%    5.6%
    Cost of sales 332,124    758.8   70.9%  315,474   720.7      71.1%    5.3%
    Gross Income
     / Margin     136,018    310.7   29.1%  127,989   292.4      28.9%    6.3%
    Recurring
     Operating
     Expenses      98,192    224.3   21.0%   94,125   215.0      21.2%    4.3%
    Start-up
     Expenses         157      0.4    0.0%      234     0.5       0.1%  -32.9%
    Total
     Operating
     Expenses
     (SG&A)        98,349    224.7   21.0%   94,358   215.6      21.3%    4.2%
    EBITDA         37,669     86.1    8.0%   33,631    76.8       7.6%   12.0%
    Depreciation   15,337     35.0    3.3%   14,451    33.0       3.3%    6.1%
    Total
     Operating
     Expenses     113,685    259.7   24.3%  108,810   248.6      24.5%    4.5%
    Operating
     Income        22,332     51.0    4.8%   19,179    43.8       4.3%   16.4%
    Financial
     Expenses      (7,418)   (16.9)  -1.6%   (6,524)  (14.9)     -1.5%   13.7%
    Other
     Non-operating
     Income
     (Expenses)      (240)    (0.5)  -0.1%     (412)   (0.9)     -0.1%  -41.6%
    Monetary
     Correction    (1,343)    (3.1)  -0.3%     (325)   (0.7)     -0.1%  313.0%
    Non-Operating
     Income        (9,001)   (20.6)  -1.9%   (7,260)  (16.6)     -1.6%   24.0%
    Income before
     Tax           13,331     30.5    2.8%   11,919    27.2       2.7%   11.8%
    Income Tax     (2,264)    (5.2)  -0.5%   (2,022)   (4.6)     -0.5%   12.0%
    Minority
     Interest          14      0.0    0.0%       23     0.1       0.0%  -38.4%
    Income         11,081     25.3    2.4%    9,920    22.7       2.2%   11.7%
    Amortization
     of Goodwill        -      0.0    0.0%        -     0.0       0.0%
    Net Income     11,081     25.3    2.4%    9,920    22.7       2.2%   11.7%

    Currency of March 2008, exchange rate US$=Ch$437.71 of March 31, 2008.


    For an extended version, visit our website: http://www.dys.cl

    For further information, please contact:
    Alejandro Droste
    Chief Financial Officer
    adroste@dys.cl
    56-2-484 7754

    Miguel Nunez S.
    Finance Manager
    mnunez@dys.cl
    56-2-484 7754

    Loreto Bradford
    Investor Relations Officer
    lbradford@dys.cl
    56-2-484 7757