Sendas Distribuidora (ASAI3) Q2 2026 earnings summary

Executive summary

• Achieved record customer traffic and market share gains, surpassing 40 million monthly customers, with 11 new stores opened in the last 12 months and resilient profitability despite a pressured consumption environment.

• Revenue grew 2.4% year-over-year to R$21.4 billion, with same-store sales up 0.9% and operational focus on cash generation and deleveraging, reducing leverage to its lowest level since 3Q21.

• Launched Brazil's first in-store pharmacy (Assaí Farma), expanded private label and digital initiatives, and advanced new growth avenues including wellness and financial services.

• Maintained profitability and advanced deleveraging, reducing leverage to 2.37x EBITDA.

• Operational evolution sustained profitability, with stable EBITDA margin and higher gross margin.

Financial highlights

• Gross revenue reached R$21.4 billion (+2.4% year-over-year); net revenue was R$19.2 billion (+0.9%), with gross profit of R$3.3 billion (margin 17.1%, +0.4 p.p.).

• Recurring net income reached R$344 million, up 94% year-over-year; reported net income was R$537 million, up 103% year-over-year, including non-recurring tax credits.

• Adjusted EBITDA margin was 5.6%, nearly flat year-over-year, with free cash flow generation of R$2.7 billion in the last 12 months.

• Total cash availability stood at R$7.0 billion (+20.9% year-over-year), covering two years of debt maturities.

• Net debt reduced by R$1.4 billion year-over-year; discounted receivables reduced by R$953 million.

Outlook and guidance

• Expansion of Assaí Farma with a plan for 25 pharmacies in São Paulo by year-end and up to 250 locations in coming years.

• Continued focus on digital transformation, private label launches, and new financial services to drive future growth and margin improvement.

• 2026 guidance revised to 5 new store openings and R$700 million in investments, reflecting a focus on deleveraging.

• Positive same-store sales in July (+0.5%) indicate stability, but macroeconomic pressures are likely to persist.

• Deleveraging trend expected to continue, with further reductions in leverage anticipated.