Sendas Distribuidora (ASAI3) Q1 2026 earnings summary

Executive summary

• Revenue reached R$ 20.6 billion in Q1 2026, up 1.7% year-over-year, despite high family debt and -12% commodity deflation impacting food consumption and sales.

• Gross margin and EBITDA margin remained stable, reflecting operational resilience and disciplined cost control.

• Recurring net income rose 7% to R$ 174 million, while accounting net income pre-IFRS16 was R$ 367 million, aided by PIS/COFINS credits.

• Strategic initiatives included automation, cost control, expansion into drugstores/pharmacies, private label products, and digital partnerships.

• ESG progress continued, with advances in efficient operations, diversity, and social impact, and recognition in ISE B3 for the 4th year.

Financial highlights

• Gross profit reached R$ 3.1 billion, with a margin of 16.7% (+0.3 p.p. vs. 1Q25), driven by price management and store maturation.

• Adjusted EBITDA margin was 5.5% (pre-IFRS16), stable year-over-year; adjusted EBITDA was R$ 1.0 billion.

• Net income reached BRL 367 million (1.97% of net revenue), with recurring net income up 7% to R$ 174 million.

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

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

Outlook and guidance

• Focus remains on deleveraging, financial discipline, and margin preservation amid ongoing market uncertainty.

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

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

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