Sendas Distribuidora (ASAI3) Q1 2026 earnings summary

Executive summary

• Revenue reached R$20.6 billion in 1Q26, up 1.7% year-over-year, despite -12% commodity deflation and record household indebtedness impacting lower-income consumers.

• Market share increased by 0.3 p.p. on a same-store basis, with 11 new stores opened in the last 12 months, expanding sales area by 3.7%.

• Adjusted EBITDA was R$1.0 billion, with a stable margin of 5.5% versus 1Q25, reflecting disciplined cost control and operational efficiency.

• Recurring net income rose 7.3% to R$174 million, while accounting net income pre-IFRS16 was R$367 million, boosted by R$281 million in new PIS/COFINS tax credits.

• Free cash flow over the last 12 months was R$2.2 billion, up 34% year-over-year, supporting deleveraging and capital discipline.

Financial highlights

• Gross profit reached R$3.5 billion, with a margin of 16.7% (+0.3 p.p. vs. 1Q25), driven by price management and store maturation.

• SG&A expenses were R$2.1 billion (+2.7%), below inflation, representing 11.4% of net revenue.

• Net financial result was a negative R$564 million (3.0% of net revenue), impacted by higher CDI rates and lower average cash invested.

• Net debt reduced by R$1.2 billion year-over-year; leverage ratio (Net Debt + Discounted Receivables/EBITDA Pre-IFRS16) improved to 2.52x from 3.15x in 1Q25.

• Cash and cash equivalents totaled R$7.5 billion at quarter-end.

Outlook and guidance

• Focus remains on operational efficiency, cash generation, and sustainable value creation.

• Expansion plans include opening five new stores in 2026 and scaling up pharmacy operations to 25 stores by year-end.

• Continued investment in digital initiatives, private label products, and financial services, with ongoing pilots and partnerships.

• Investments will be aligned with cash flow, aiming for productivity and margin improvements.

• Inflationary trends anticipated in Q2, with price corrections likely in May and June.