Companhia Brasileira de Distribuicao (PCAR3) Q2 2025 earnings summary

Executive summary

• Q2 2025 saw a challenging consumer environment with high interest rates and food inflation, but operational adjustments and cost control drove resilience and efficiency gains.

• Total sales reached BRL 5.1 billion, up 5.8% year-over-year, with same-store sales up 5.1% and strong performance in premium and proximity formats.

• Premium segment same-store sales grew 6.5%, Extra Mercado up 4.8%, and proximity format sales rose 16.8% year-over-year.

• Digital sales reached BRL 609.5 million (+16.3% year-over-year), accounting for 13% of total sales, with omnichannel customers shopping more frequently and with higher ticket size.

• 213 new stores opened since 2022, mainly in premium and proximity formats, with ongoing ESG achievements in emissions reduction and diversity.

Financial highlights

• Gross profit was BRL 1.3 billion with a margin of 27.4%, a 0.8pp decrease year-over-year.

• Adjusted EBITDA reached BRL 420 million, up 6.1% year-over-year, with a margin of 9% (+0.2pp), driven by SG&A efficiency.

• SG&A expenses reduced to 19.4% of net revenue, a 1.0pp improvement year-over-year.

• Net loss from continuing operations was BRL 176 million, a 35.5% reduction from Q2 2024; net loss from discontinued activities was BRL 41 million, down 32.2%.

• Operating cash flow for the last 12 months was BRL 1.1 billion, with pre-IFRS 16 adjusted EBITDA of BRL 856 million (+37.3% year-over-year).

Outlook and guidance

• Store openings will slow in H2 2025 and 2026 due to macroeconomic challenges and significant progress in expansion.

• CapEx and other cash-consuming expenses are expected to decrease, with a focus on deleveraging and operational improvements.

• Management expects price stability in key categories and continued resilience in premium segments, with ongoing ESG and sustainability targets.