Atacadão (CRFB3) Q1 2025 earnings summary

Executive summary

• Q1 2025 gross sales reached BRL 28.8 billion, up 3.6% year-over-year, led by Atacadão's 7.3% YoY growth and digital expansion, with adjusted net income surging 5.5x to BRL 282 million due to operational improvements and lower tax burden.

• E-commerce GMV rose 28.9% YoY to BRL 3.1 billion, now 11.2% of sales, with first-party food sales up 66% YoY.

• Portfolio optimization included the sale of 37 supermarket stores and ongoing network expansion with new Atacadão and wholesale units.

• Shareholders approved merger and delisting, transitioning to private status for greater agility and efficiency.

• ESG progress included a 56% reduction in Scope 1 and 2 emissions and a top 10 ranking in the B3 Corporate Sustainability Index.

Financial highlights

• Net sales increased 5.1% YoY to BRL 26.1 billion; gross profit up 2.3% to BRL 5.2 billion; gross margin at 19.8%, down 56bps YoY.

• Adjusted EBITDA reached BRL 1.5 billion (+3.7% YoY), margin 5.6%, stable year-over-year.

• Adjusted net income was BRL 282 million, 5.5x higher than Q1 2024, driven by improved operations and tax management.

• SG&A expenses rose 1.6% YoY, below inflation, and declined as a percentage of net sales by 49bps.

• Free cash flow for the last 12 months was negative BRL 584 million, impacted by inventory buildup, CapEx, and Easter calendar shift.

Outlook and guidance

• Focus remains on profitable growth, maintaining leadership in Brazil's food retail market, and enhanced agility post-merger and delisting.

• Expansion plans for Atacadão, especially in São Paulo, North, and Northeast regions.

• Management notes forward-looking statements are subject to risks and uncertainties.