Sendas Distribuidora (ASAI3) Q1 2025 earnings summary

Executive summary

• Gross revenue rose 7.8% year-over-year to R$20.3 billion, with same-store sales growth of 5.5% and net revenue up 7.7%, driven by new store maturation and operational discipline.

• Net income pre-IFRS16 surged 74.2% to R$162 million, with post-IFRS16 net income at R$117 million, up 95% year-over-year.

• EBITDA pre-IFRS16 grew 13.9% to R$1.02 billion, with margin at 5.5%, the highest since 1Q21, reflecting operational efficiency and expense control.

• Recognized as the 92nd largest global retailer and top-ranked Brazilian company in Deloitte's 2025 ranking, and awarded "Best Wholesaler" in São Paulo for the 10th consecutive time.

• Focused on cash generation, deleveraging, and maintaining strong operational discipline, with ongoing ESG and diversity initiatives.

Financial highlights

• Free cash flow reached R$1.6 billion over the last 12 months, reversing a negative flow from the prior year.

• Net debt reduced by R$448 million year-over-year to R$13.4 billion, with leverage ratio improved to 3.15x (net debt/EBITDA), down from 3.75x.

• Gross profit increased 9.4% to R$3.1 billion, with gross margin up 0.3 p.p. to 16.5%.

• Cash and cash equivalents totaled R$6.0 billion, up 17% year-over-year.

• Investments dropped to R$79 million in 1Q25, reflecting a focus on financial discipline and delayed expansion.

Outlook and guidance

• Guidance for 2025 and 2026 targets ~10 new store openings per year, with some projects postponed due to higher capital costs and interest rates.

• Leverage projected to reach ~2.6x by year-end 2025, with CAPEX between R$1.0–1.2 billion.

• Focus remains on organic growth and disciplined expansion, with M&A considered but not prioritized.