Sendas Distribuidora (ASAI3) investor relations material

Executive summary

• Revenue reached R$21 billion in Q2, up 7.2% year-over-year, with stable market share and same-store sales growth of 4.6%.

• EBITDA margin pre-IFRS16 improved to 5.7% (+0.3 p.p. YoY), driven by operational efficiency, expense control, and store conversions.

• Net income pre-IFRS16 rose 60% to R$264 million, aided by tax credits and efficiency gains.

• Expansion into new categories, private labels, and financial services aims to increase share of wallet and margins.

• Recognized as the most valuable brand in food retail and renewed GPTW certification.

Financial highlights

• Free cash flow before interest payments reached R$2.7 billion, with 90% EBITDA-to-cash conversion.

• Net income improved, aided by tax credits and debt reprofiling, despite high interest costs.

• Operational cash generation over the last 12 months totaled R$3.9 billion, with CapEx at R$1.2 billion.

• Net financial result was a negative R$565 million, impacted by higher interest rates and increased debt burden.

• Cash and cash equivalents totaled R$5.8 billion at quarter-end.

Outlook and guidance

• Guidance targets net debt/EBITDA of 2.6x by year-end 2025, with leverage already reduced to 3.17x.

• Management expects stable conditions in H2, with focus on new projects and product categories to drive growth.

• Expansion plan targets 10 new stores in 2025 and 10 in 2026, with CAPEX between R$1.0–1.2 billion for 2025.

• Same-store sales recovery is a priority, aiming to exceed inflation rates through increased share of wallet and new initiatives.

• Expansion schedule remains on track, with nearly 10 stores to open by year-end.