Sendas Distribuidora (ASAI3) Q2 2025 earnings summary

Executive summary

• Revenue reached R$21 billion in 2Q25, up 7.2% year-over-year, driven by new store maturation and same-store sales growth of 4.6%, with stable market share despite persistent trade-down trends and consumer pressure from high interest rates and inflation.

• EBITDA pre-IFRS16 increased 11.8% to R$1.1 billion, with margin up 0.3 p.p. to 5.7%, driven by store maturity, innovation, and strict expense controls.

• Net income pre-IFRS16 rose 60% to R$264 million, aided by R$86 million in tax credits and ongoing debt reprofiling.

• Free cash flow before interest payments was R$2.7 billion in the last 12 months, reflecting EBITDA growth, lower investment cycles, and disciplined working capital management.

• Recognized as the most valuable brand in food retail in Brazil and renewed GPTW certification.

Financial highlights

• EBITDA margin pre-IFRS16 reached 5.7% (+0.3 p.p. YoY); adjusted EBITDA pre-IFRS16 rose by R$0.5 billion LTM.

• Net income pre-IFRS16 grew 60% to R$264 million; net margin improved by 0.5 p.p. to 1.4%.

• 90% of EBITDA converted to free cash flow over the last 12 months.

• Net debt reduced by R$200 million year-over-year, with leverage dropping 0.48x to 3.17x.

• Operating cash generation reached R$3.9 billion in the last 12 months.

Outlook and guidance

• Guidance targets net debt/EBITDA of ~2.6x by year-end 2025, with financial net debt at about 2x.

• Expansion plan targets 10 new stores in 2025 and 10 in 2026, with CAPEX of R$1.0–1.2 billion for 2025.

• Expectation for recovery in same-store sales, focusing on new projects, private label, and increasing share of wallet.

• Expansion schedule remains on track, with nearly 10 stores to open by year-end.