Business · Companies · 4 hrs ago
GPA reports quarterly loss as auditor warns of uncertainty over its future
Brazilian retailer GPA reported a 731 million reais loss for the third quarter of 2026, reversing a profit a year earlier.
A 511 million reais loss from discontinued operations accounted for most of the quarterly loss.
GPA set aside the full 708 million reais it says Casas Bahia owes it, because it is uncertain how much it will recover and when.
Auditor EY flagged significant uncertainty about GPA’s ability to continue operating, citing losses, negative equity and current liabilities that exceed current assets.
The warning remains even though a court approved GPA’s out-of-court debt restructuring plan in October.
GPA’s debt shifted into the short term after creditors accelerated repayment, while its cash fell to 678 million reais by September.
The company says it is pursuing restructuring and other options to strengthen its finances, but says the outcome remains uncertain.
GPA reported a consolidated net loss of R$731 million in the third quarter of 2026, compared with a net profit of R$134 million a year earlier.
EY warned of material uncertainty that could raise significant doubt about the retailer’s ability to continue operating.
Discontinued operations lost R$511 million, including a provision linked to a receivable from Grupo Casas Bahia.
GPA’s adjusted EBITDA rose 16.9% year on year to R$482 million, while net revenue fell 6.5% to R$4.6 billion.
GPA says its recovery plan, restructuring measures and expected cash generation support the assumption that it will continue operating.
- Who
- Grupo Pão de Açúcar (GPA), a Brazilian retailer. EY reviewed its financial statements.
- What
- GPA reported a R$731 million third-quarter net loss. EY warned of material uncertainty about the company’s ability to continue operating.
- When
- The results cover the third quarter of 2026 and were published on November 4, 2026.
- Where
- Brazil. The report says a São Paulo court approved GPA’s out-of-court restructuring plan.
- Why
- Discontinued operations and a provision related to a receivable from Grupo Casas Bahia contributed to the loss. EY cited accumulated losses, a current-liability shortfall and negative equity in its warning.
GPA management
EY
Business continuity
GPA management
Management says approval of the restructuring plan, restructuring measures and expected cash generation support the assumption that GPA will continue operating.
EY
EY says the factors it identified create material uncertainty that may raise significant doubt about GPA’s ability to continue operating.
GPA filed for out-of-court restructuring.
Casas Bahia filed for judicial recovery, affecting how GPA classified its receivable from the company.
A São Paulo court approved GPA’s out-of-court restructuring plan.
The court’s decision approving the plan was published.
GPA published its third-quarter results, reporting a R$731 million net loss.
- Third-quarter net loss
- R$731 million
- Third-quarter 2025 result
- R$134 million net profit
- Discontinued operations loss
- R$511 million
- Adjusted EBITDA
- R$482 million, up 16.9% year on year
- Third-quarter net revenue
- R$4.6 billion, down 6.5% year on year
- Nine-month accumulated losses
- R$2.42 billion
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What people are saying
A foto é essa, mas o filme é outro. Nós já estamos começando a colher frutos do que nos propomos a fazer em termos de ganho de eficiência
Esses dois pilares são questão de sobrevivência. É resolver passivo estrutural e reduzir custos, adequar a companhia à nova realidade