Companhia Brasileira de Distribuicao (PCAR3) Q2 2025 earnings summary

Executive summary

• Gross revenue grew 5.8% and net revenue 4.2% year-over-year in Q2 2025, driven by strong performance in premium and proximity formats, with same-store sales up 5.1% and Pão de Açúcar banner up 6.5%.

• Proximity format sales rose 16.8%, supported by new store openings and digital channel expansion.

• E-commerce sales increased 16.3%-16.4%, reaching 13% of total sales, with omnichannel customers shopping more frequently and with higher average tickets.

• Adjusted EBITDA margin improved to 9.0% (+0.2pp), with adjusted EBITDA up 6.1% to R$420 million, reflecting SG&A efficiency and operational improvements.

• Net loss from continuing operations narrowed by 35.5% to R$176 million, with consolidated net loss down 34.9%.

Financial highlights

• Gross profit reached R$1.28–1.3 billion, with gross margin at 27.4% (-0.8pp YoY).

• SG&A expenses reduced to 19.4% of net revenue, a 1.0pp improvement year-over-year.

• Net financial expenses were R$304 million, with financial revenues boosted by non-recurring tax credits.

• Operating free cash flow (LTM) increased to R$383 million (+22.6% YoY); operational cash flow reached R$1.1 billion.

• CapEx totaled R$159–711 million, with a trend toward reduced expansion investments.

Outlook and guidance

• Store opening guidance discontinued for H2 2025 and 2026 due to macroeconomic challenges and slower expansion pace.

• Focus remains on operational efficiency, margin preservation, and strengthening premium and proximity formats.

• ESG goals include a 60% reduction in emissions by 2030, with ongoing progress and recognition for diversity and inclusion.