While Distribucion y Servicio D&S;S.A. (DYS) reported revenues above our estimate, operating profit was in line with our estimate. However, adjusted1 net income was significantly below our expectation due to higher-than-expected financial expenses. DYS increased its sales area by 5,997 square meters, bringing the total retail format sales area to 525,046 square meters at the end of 1Q 09. Going forward, we expect the opening of new…

While Distribucion y Servicio D&S;S.A. (DYS) recorded 2.5% y-o-y revenue growth in 4Q 08, higher than our estimate, operating profit and adjusted1 net income declined y-o-y. Going forward, DYS is expecting to open new stores in both Peru and Chile. In addition, the company’s continuous effort of opening new stores under the Aceunta and Ekono brands, coupled with the focus on the lower and middle-income group, by offering…

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Distribucion y Servicio D&S;S.A. (DYS) achieved our target price on 22 December 2008, reflecting the impact of the announcement of a tender offer from Wal-Mart Stores, Inc. (Wal-Mart) to acquire all of DYS’ issued and outstanding as well as all American Depository Shares. As the stock price now trades close to the proposed acquisition price, we downgrade the common stock from a BUY to a HOLD rating. As the ADR price has appreciated significantly…