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 despite a challenging consumption environment marked by high household indebtedness and food inflation.

• Gross revenue reached R$21.4 billion, up 2.4% year-over-year, and same-store sales grew 0.9%.

• Maintained resilient profitability and advanced deleveraging, reducing leverage to 2.37x EBITDA, the lowest since 3Q21.

• Launched Brazil's first in-store pharmacy (Assaí Farma), expanded private label and digital initiatives, and integrated new business lines.

• Operational focus on cash generation, with free cash flow of R$2.7 billion and total cash availability of R$7.0 billion (+20.9% year-over-year).

Financial highlights

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

• Gross profit was R$3.3 billion (margin 17.1%, +0.4 p.p. vs 2Q25); adjusted EBITDA margin was 5.6%, nearly flat year-over-year.

• Free cash flow generation was R$2.7 billion, with final cash generation of R$1.4 billion after CapEx and leasebacks.

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

• Total cash availability reached R$7.0 billion, covering two years of debt maturities.

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%), with expectations for continued stability or slight growth.

• Strategic initiatives aim to capture consumption trends and deepen customer engagement.