Sendas Distribuidora (ASAI3) Q4 2024 earnings summary

Executive summary

• Achieved record annual revenue of R$80.6 billion in 2024, up 10.7% year-over-year, with 15 new stores opened and the hypermarket conversion project completed, surpassing 300 stores in operation.

• EBITDA margin (pre-IFRS16) rose to 5.7% (+0.4 p.p.), and net income (pre-IFRS16) increased 19.8% to R$930 million for the year; post-IFRS16 net income was R$769 million (+8.3%).

• Expansion into strategic cities, digital initiatives, and a 32% increase in online sales drove growth, with 14 million app users and phygital strategies boosting customer engagement.

• Recognized as the best wholesale and retail company in Brazil, with strong ESG and diversity progress, including a 10% reduction in emissions.

• Accelerated deleveraging, reducing net debt by R$571 million and surpassing leverage guidance.

Financial highlights

• 4Q24 net sales reached R$22.1 billion (+9.4% YoY); annual sales totaled R$80.6 billion (+10.7% YoY); net revenue was R$73.8 billion (+11.0%).

• Adjusted EBITDA (pre-IFRS16) for 4Q24 was R$1.29 billion (+15.7%), with a margin of 6.4% (+0.3 p.p.); annual adjusted EBITDA was R$4.2 billion (+19.5%), margin 5.7% (+0.4 p.p.).

• Net income (pre-IFRS16) for 4Q24 was R$474 million (+38.2%), and for 2024 was R$930 million (+19.8%).

• Gross profit for 2024 was R$12.2 billion (+12.9%), with a gross margin of 16.5% (+0.3 p.p.).

• Available cash position increased 17% YoY to R$7.6 billion in 4Q24.

Outlook and guidance

• 2025 guidance includes opening ~10 new stores, CAPEX of R$1.0–1.2 billion, and targeted leverage of ~2.6x.

• Expansion pace moderated due to higher Selic rates and interest rate expectations, with focus on deleveraging and operational efficiency.

• Store opening guidance for 2026 may be revised downward to match the more conservative expansion pace of 2025.