SAO PAULO -(Dow Jones)- Brazilian grocer Companhia Brasileira de Distribuicao (NYSE:CBD) (CBD), or CBD, forecasts gross sales of 20 billion Brazilian reals ($11.2 billion) in 2008, company officials said, according to the local Estado newswire Friday.

Gross sales, which include new stores opened in the last 12 months, totaled BRl15.3 billion in the first eleven months of 2007.

The company expects to open 105 new stores in 2008, of which 80 will be the Extra Facil convenience stores, executives told analysts during a conference call.

Same store sales will grow above inflation next year, which is forecast at about 4%, according to CBD. Food sales will rise in line with inflation while nonfood sales will grow by close to double digit levels.

In 2008, the company expects a gross margin of between 27% and 27.5%, which is slightly below the 2007 figure. The margin will decline because of the recent purchase of cash and carry outfit Assai and attempts to increase competitiveness.

The company's margin on earnings before tax, depreciation and amortization, or Ebitda, is pegged at 7% to 7.5% for next year, topping 2007 forecasts. The dilution of margins is due to increased expenses on the new Assai line, executives said.

Investments in 2008 will total BRL1 billion, of which some 54% will be used to open new units.

French retailer Casino Guichard-Perrachon SA (12558.FR) owns a 34.3% stake in CBD.

-By Alastair Stewart; Dow Jones Newswires; 5511 3145-1479; alastair.stewart@ dowjones.com

    (END) Dow Jones Newswires   12-14-07 0742   Copyright (c) 2007 Dow Jones & Company, Inc.