Companhia Brasileira de Distribuicao (PCAR3) Q1 2025 earnings summary

Executive summary

• Q1 2025 marked the start of a new strategic cycle (2025–2027) focused on sales, customers, digital, expansion, profitability, and ESG, with strong progress in sales, margin, and volume despite a volatile macroeconomic environment.

• Achieved 4.6% gross revenue growth and 3.9% net revenue growth year-over-year, with market share gains in premium and proximity formats.

• Proximity format posted its best result in eight quarters (+7.8%) and leads São Paulo with a 63% market share (+2.4 p.p.).

• Digital channel sales advanced 16.9% year-over-year, totaling R$2.3 billion over the last 12 months and representing 12.6% of total sales.

• Omnichannel customers shop 3.3x more frequently and have a 4.5x higher average ticket than single-channel customers.

Financial highlights

• Same-store sales grew 7.3% year-over-year, with Proximity up 7.8%, Extra Mercado up 6.6%, and Pão de Açúcar up 6.5%.

• Gross profit reached R$1.3 billion (27.6% margin), up 0.4 p.p. from Q1 2024.

• Adjusted consolidated EBITDA grew 9.9% year-over-year to R$409 million, with margin up 0.5 p.p. to 8.6%.

• Net loss reduced by 77% to R$93 million compared to Q1 2024, driven by improved operating results and lower provisions.

• LTM operating cash generation reached R$1.0 billion, with CAPEX of R$709 million focused on store expansion and renovations.

Outlook and guidance

• Ongoing expansion of the premium proximity format, with 169 stores opened since 2022 and 10–11 new units in Q1 2025.

• Store expansion plan targets 250 proximity stores by 2026, with rapid ramp-up and above-average profitability in new units.

• CapEx planned at 3% of revenue, with maintenance CapEx at R$400–450 million, supporting store refurbishments and expansion.

• Retail media channel projected to grow at high double digits in 2025, with further expansion into new banners and digital channels.

• Focus on efficiency gains, digital growth, and market share advances in premium and proximity segments.