July 26, 2017 / 3:42 PM / a year ago

Brazil's GPA sees falling food prices weighing on 3rd-qtr revenue

SAO PAULO, July 26 (Reuters) - Brazilian retailer GPA SA expects a drop in prices for food staples to weigh on revenue in the third quarter, executives told analysts on a Wednesday earnings call.

Chief Executive Officer Ronaldo Iabrudi said the sharp drop in the cost of a sack of beans, for example, to 139 reais this year from 480 reais in mid-2016, was affecting results. “Deflation generates a loss of sales at first ... because for the same volume that clients buy we get less revenue,” he said. (Reporting by Brad Haynes; Editing by Jeffrey Benkoe)

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