Sendas Distribuidora (ASAI3) Q3 2025 earnings summary

Executive summary

• Revenue grew 2.7% year-over-year in 3Q25 to R$20.8 billion, with same-store sales up 1.3% for July–October and 5.2% in October alone.

• EBITDA margin (pre-IFRS 16) improved by 0.2 p.p. to 5.7%, with EBITDA up 6.0% year-over-year; net income (pre-IFRS 16) was R$195 million.

• Free cash flow reached R$3.1 billion in the last 12 months, reversing a negative result from the prior year.

• Leverage (Net Debt/EBITDA pre-IFRS 16) dropped to 3.03x, the lowest since 2021, with a R$0.5 billion reduction in net debt.

• Maintained market share and leadership in the cash & carry segment, with stable B2C sales and B2B volume declines.

Financial highlights

• Gross profit in 3Q25 was R$3.2 billion, with a margin of 16.7% (+0.34 p.p. YoY).

• Adjusted EBITDA (pre-IFRS 16) reached R$1.1 billion in 3Q25 (+6.0% YoY), margin of 5.7%.

• Net income (pre-IFRS 16) was R$195 million in 3Q25, with a net margin of 1.0%.

• Net financial result was a negative R$604 million in 3Q25, impacted by high interest rates.

• Cash and cash equivalents totaled R$6.0 billion at quarter-end, up 2.4% year-over-year.

Outlook and guidance

• Guidance reaffirmed: ~10 new stores in 2025, leverage target of ~2.6x by year-end, and capex of R$1–1.2 billion.

• Expansion pace for 2026 revised to ~10 stores, reflecting a focus on financial discipline amid higher interest rates.

• Leverage projected to decrease further to approximately 2.6x by year-end 2025.

• CapEx for 2024 expected to be below BRL 1.2 billion, with a further reduction to BRL 700 million in 2025.

• No significant refinancing needs until 2028, with plans to prepay and extend maturities.