Sendas Distribuidora (ASAI3) Q4 2025 earnings summary

Executive summary

• Sales reached R$84.7 billion in 2025, up 5.2% year-over-year, with 10 new stores opened, totaling 312, and same-store sales growth of 2.6%.

• Free cash flow totaled R$2.8 billion, with EBITDA to cash conversion at 84% and leverage reduced to 2.56x, the lowest since 2021.

• Focused on gross profit optimization, expense control, and financial discipline, supporting profitability and operational efficiency.

• Navigated significant commodity deflation and high household indebtedness, impacting nominal sales but increasing sales volume.

• Launched new digital, private label, and financial service initiatives, including Mercado Livre and iFood partnerships, and pharmacy pilots.

Financial highlights

• Adjusted EBITDA (Pre-IFRS16) for 2025 was R$4.5 billion (margin 5.8%, +0.2p.p.), with net income (pre-IFRS16) at R$847 million.

• Fourth quarter EBITDA margin was 6.3%, stable year-over-year despite deflationary pressures.

• Gross margin expanded to 16.8% (+0.3p.p.), driven by commercial execution and store maturity.

• Net income impacted by a R$521 million non-cash impairment related to the FIC split.

• Maintained SG&A stability since 2011, with ongoing cost control and efficiency initiatives.

Outlook and guidance

• 2026 guidance includes opening five new stores, with estimated Capex of R$700 million and focus on asset monetization.

• Continued emphasis on financial discipline, deleveraging, and operational efficiency.

• Expectation of margin improvement through private label expansion and new service categories.

• Monitoring macroeconomic factors, including commodity price normalization and potential government stimulus in an election year.