Sendas Distribuidora (ASAI3) Q4 2025 earnings summary

Executive summary

• Annual revenue reached R$84.7 billion in 2025, up 5.2% year-over-year, with resilience despite commodity deflation and high household indebtedness; 10 new stores opened, totaling 312.

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

• EBITDA margin improved to 5.8% (pre-IFRS16), with net income of R$847 million (pre-IFRS16) and R$645 million (post-IFRS16); net income impacted by a R$521 million non-cash impairment related to FIC.

• Strategic focus for 2026 includes selective growth, digital and private label expansion, new pharmacy units, and continued deleveraging.

• Operational discipline and expense control supported margin expansion and market share gains.

Financial highlights

• Gross revenue for 2025 was R$84.7 billion (+5.2% YoY); 4Q25 gross revenue was R$22.8 billion (+3.4% YoY).

• Adjusted EBITDA (pre-IFRS16) for 2025 was R$4.5 billion (+7.5% YoY), with a margin of 5.8% (+0.2 p.p.).

• Net debt reduced by R$1.2 billion year-over-year.

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

• Net financial result was a loss of R$2.3 billion in 2025, mainly due to high interest rates.

Outlook and guidance

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

• Launch of 25 pilot pharmacy units, private label products, and expansion of digital and financial services planned.

• Continued emphasis on financial discipline, margin improvement, and monitoring macroeconomic factors.