Atacadão (CRFB3) Q1 2025 earnings summary

Executive summary

• Q1 2025 consolidated gross sales reached R$28.8bn, up 3.6% year-over-year, with adjusted net income surging 5.5x to R$282m compared to Q1 2024, driven by cost discipline, capital management, and strong Atacadão performance.

• Atacadão led growth with 7.3% YoY sales increase and 6.9% LfL, outperforming the C&C market for the fifth consecutive quarter.

• E-commerce GMV rose 28.9% YoY to R$3.1bn, now 11.2% of sales, with 1P food sales up 65.6% YoY.

• Shareholders approved Carrefour Group's offer to acquire the free float, transitioning the company to private status for greater agility and operational simplification.

• Portfolio optimization continued with 37 supermarket stores sold by March 2025 and ongoing ESG progress, including a 56% reduction in Scope 1 and 2 emissions and top 10 B3 Corporate Sustainability Index ranking.

Financial highlights

• Adjusted EBITDA was R$1.5bn (+3.7% YoY), margin 5.6% (-8bps YoY); gross profit reached R$5.2bn (+2.3% YoY), gross margin at 19.8% (-56bps YoY).

• Net income, group share, was R$225m (476.9% YoY increase); adjusted net income was R$282m (5.5x YoY).

• SG&A expenses grew 1.6% YoY, with SG&A as % of net sales down 49bps, reflecting efficiency gains.

• Net financial result improved to -R$593m from -R$700m YoY, aided by lower bank debt costs.

• E-commerce penetration reached 11.2% of sales, with GMV up 28.9% and 1P food sales up 65.6% YoY.

Outlook and guidance

• Management will continue executing its strategy for profitable growth, maintaining its position as Brazil's #1 food retailer for the 10th year.

• As a private company, expects increased agility and simplified structure post-acquisition by Carrefour Group.

• Expansion plans for Atacadão continue, with room for growth in São Paulo, Pará, and Northeast regions.

• Management notes forward-looking statements are subject to risks and uncertainties, with no guarantee of future performance.