Distribution & Service D&S Sa - Report of Foreign Issuer (6-K)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 6-K

REPORT OF FOREIGN ISSUER

PURSUANT TO RULE 13a-16 OR 15b-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

For May, 2008

Distribution and Service D&S, Inc.

(Translation of registrant’s name into English)

Avenida Presidente Eduardo Frei Montalva 8301

Quilicura, Santiago, Chile

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F

Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

D&S First Quarter Results

SANTIAGO, Chile, May 2 /PRNewswire-FirstCall/ -- Distribucion y Servicio D&S S.A. (NYSE: DYS; Latibex: XDYS) announced earnings for the first quarter 2008:

Highlights I Quarter 2008

Net income increased 11.7% to Ch$11,081 million (US$25.3 million). Net margin increased 20 bp. to 2.4% of revenues.

12.0% increase in EBITDA, which totaled Ch$37,669 million (US$86.1 million). EBITDA margin increased 40 bp. to 8.0% of revenues.

Operating income up 16.4% to Ch$22,332 million (US$51.0 million). Operating margin increased by 50 bp. to 4.8% of revenues.

Gross income up 6.3%, amounting to Ch$136,018 million (US$310.7 million). Gross margin increased by 20 bp. to 29.1% of revenues.

5.6% increase of net revenues to Ch$468,142 million (US$1,069.5 million).

New store openings: 13 new stores have been added compared to the closing of the first quarter 2007. Of these, 7 are Express by LIDER, 5 are Hiper LIDER and 3 are stores of the new warehouse concept, Superbodega Acuenta. Additionally, one Express store was closed, one was transformed into a warehouse Acuenta, and one Hiper LIDER store was remodeled adding 1,716m2 of sales area. All this accounted for a net increase of 41,608 m2 of sales area, equivalent to an increase of 9.0% over total sales area at March 31, 2007. Additionally, 22 new Ekono stores have been added to the 14 existing at March 31, 2007, totaling 36 stores in operation.

Financial debt reached US$1,325.6 million, 55.5% short term.

Net income for the quarter = Ch$1.70/share; Ch$101.97/ADR; US$0.23/ADR.

*Figures in this report are expressed in US$ Millions, drawn from figures in Chilean pesos restated by the CPI at March 31, 2008 and converted into dollars using the observed exchange rate for the same date (1US$=Ch$437.71).

Results of Operations -First Quarter 2008

The following table sets forth the main items of the income statement for the periods indicated, their respective percentages of net revenues and percentages change between periods:

I Quarter Consolidated Results

	2008									2007									Var.
	Ch$ million			US$ million			% of Rev.			Ch$ million			US$ million			% of Rev.			%
Sales		382,228			873.2			81.6	%		363,510			830.5			82.0	%		5.1	%
Other Income		85,914			196.3			18.4	%		79,953			182.7			18.0	%		7.5	%
Net revenues		468,142			1069.5			100.0	%		443,464			1013.1			100.0	%		5.6	%
Cost of sales		332,124			758.8			70.9	%		315,474			720.7			71.1	%		5.3	%
Gross Income / Margin		136,018			310.7			29.1	%		127,989			292.4			28.9	%		6.3	%
Recurring Operating Expenses		98,192			224.3			21.0	%		94,125			215.0			21.2	%		4.3	%
Start-up Expenses		157			0.4			0.0	%		234			0.5			0.1	%		-32.9	%
Total Operating Expenses (SG&A)		98,349			224.7			21.0	%		94,358			215.6			21.3	%		4.2	%
EBITDA		37,669			86.1			8.0	%		33,631			76.8			7.6	%		12.0	%
Depreciation		15,337			35.0			3.3	%		14,451			33.0			3.3	%		6.1	%
Total Operating Expenses		113,685			259.7			24.3	%		108,810			248.6			24.5	%		4.5	%
Operating Income		22,332			51.0			4.8	%		19,179			43.8			4.3	%		16.4	%
Financial Expenses		(7,418	)		(16.9	)		-1.6	%		(6,524	)		(14.9	)		-1.5	%		13.7	%
Other Non-operating Income (Expenses)		(240	)		(0.5	)		-0.1	%		(412	)		(0.9	)		-0.1	%		-41.6	%
Monetary Correction		(1,343	)		(3.1	)		-0.3	%		(325	)		(0.7	)		-0.1	%		313.0	%
Non-Operating Income		(9,001	)		(20.6	)		-1.9	%		(7,260	)		(16.6	)		-1.6	%		24.0	%
Income befote Tax		13,331			30.5			2.8	%		11,919			27.2			2.7	%		11.8	%
Income Tax		(2,264	)		(5.2	)		-0.5	%		(2,022	)		(4.6	)		-0.5	%		12.0	%
Minority Interest		14			0.0			0.0	%		23			0.1			0.0	%		-38.4	%
Income		11,081			25.3			2.4	%		9,920			22.7			2.2	%		11.7	%
Amortization of Goodwill		-			0.0			0.0	%		-			0.0			0.0	%
Net Income		11,081			25.3			2.4	%		9,920			22.7			2.2	%		11.7	%

Currency of March 2008, exchange rate US$=Ch$437.71 of March 31, 2008.

For an extended version visit our website http://www.dys.cl

For further information please contact:

Alejandro Droste

Chief Financial Officer

adroste@dys.cl

56-2-484 7754

Miguel Núñez S.

Finance Manager

mnunez@dys.cl

56-2-484 7754

Loreto Bradford

Investor Relations Officer

lbradford@dys.cl

56-2-484 7757

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the city of Santiago, Chile.