Day: February 17, 2020

Magazine Luiza posts 11.4% drop in Q4 profit

Brazilian retailer Magazine Luiza SA reported on Monday a 11.4% drop in its fourth-quarter net income year-on-year, as a 51.3% jump in total sales, including third-party sellers, was overshadowed by higher operating costs, driving margins down. In a securities filing, the company said its quarterly net profit hit 168 million reais ($39.1 million) compared with 189.6 million reais in the same period a year ago.

Brazil analyses a $5bn bi-national hydroelectric power plant with Bolivia

Brazil is studying the construction of a bi-national hydroelectric plant with Bolivia on the Mamoré river (northwest of the country) at a cost of $5 billion, said the Brazilian general director of Itaipu Binacional, general Joaquim Silva e Luna. In the next three years, Itaipú Binacional will have its debt settled for the construction of its plant, which will release about $2 billion annually, half for Paraguay and half for Brazil, which can count on this money to invest in the construction of the new central, he said.

Private firms pledge to pay soy farmers more than $14mn not to deforest Brazil’s Cerrado

The Funding for Soy Farmers in the Cerrado Initiative (FSFCI) launched by Nutreco, Grieg Seafood and Tesco in December has already secured more than $14 million to provide savanna soy producers with financial incentives to ensure that future soy cultivation expansion in the Cerrado biome only is carried out on existing agricultural lands. The exact mechanism by which these funds will be disbursed has not yet been developed.

Carrefour buys 30 stores & 14 gas stations from rival Makro for $454mn

The Brazilian unit of France’s Carrefour SA has agreed to buy 30 stores and 14 gas stations in 17 states from rival retailer Makro’s Brazilian subsidiary for 1.95 billion reais ($453.69 million), the French retailer said in a securities filing on Sunday. The stores will be integrated into the cash & carry Atacadão chain. Makro will continue to operate in Brazil but with only 24 stores in the country’s richest state, Sao Paulo.

State judge accepts charges against Vale ex-CEO over dam burst

A Brazilian Minas Girais state judge has accepted charges of homicide against Vale SA former Chief Executive Fabio Schvartsman and 15 others related to the disaster at the iron ore miner’s Brumadinho tailings dam a year ago that killed 270 people. Prosecutors allege Vale, Brazil’s largest mining company, and German inspection firm TÜV SÜD systematically and intentionally hid information about safety issues at its tailings dams for years.