Sendas Distribuidora (ASAI3) Q3 2024 earnings summary

Executive summary

• Gross revenue reached R$20.2 billion in 3Q24, up 9.3% year-over-year, with net revenue at R$18.6 billion (+9.2%), and 77.7 million tickets sold (+6%).

• EBITDA pre-IFRS16 grew 12.1% to R$1.0 billion, margin at 5.5% (+0.1p.p.), and net income pre-IFRS16 was R$198 million (+10%).

• Opened 4 new stores in 3Q24, totaling 9 in 9M24 and 21 in the last 12 months, surpassing 300 operational units by December.

• Achieved a turnaround in the net debt cycle, reducing leverage to 3.52x and nominal debt for the first time since the last seasonal drop.

• Recognized for sustainability, diversity, and customer experience, including multiple awards and entry into GPTW national ranking.

Financial highlights

• Gross profit in 3Q24 was R$3.0 billion (+10.7%), with a gross margin of 16.4% (+0.2p.p.).

• Adjusted EBITDA pre-IFRS16 for 9M24 was R$2.9 billion (+21.2%), margin at 5.4% (+0.5p.p.).

• Net income pre-IFRS16 was R$198 million (+10%), margin 1.1%; post-IFRS16 was R$156 million (-15.7%), margin 0.8%.

• Earnings before taxes (pre-IFRS16) rose 83% to R$260 million in 3Q24.

• Operational cash generation reached R$7.7 billion over 24 months, funding 90% of expansion investments.

Outlook and guidance

• Targeting leverage below 3.2x by end-2024 and around 2.6x by end-2025.

• 2024: ~15 new stores expected; 2025: ~10 new units, gross CAPEX R$1.0–1.2 billion.

• Expansion strategy revised to accelerate deleveraging in response to high interest rates and macroeconomic volatility.

• Margin improvement expected in 2025, despite ICMS tax increases and inflationary pressures.

• Continued focus on cash generation, asset monetization, and retail media initiatives.