Sendas Distribuidora (ASAI3) Q1 2025 earnings summary

Executive summary

• Gross revenue reached BRL 20.3 billion in Q1 2025, up 7.8% year-over-year, with same-store sales growth of 5.5% and new store maturation contributing to results.

• Achieved highest EBITDA margin since 1Q21 at 5.5%, driven by operational efficiency and expense control.

• Net income pre-adjustments was BRL 162 million (+74.2%), with post-adjustments at BRL 117 million (+95.0%).

• Recognized as the 92nd largest global retailer and top-ranked Brazilian company in Deloitte's 2025 ranking.

• Focused on cash generation, deleveraging, and maintaining a balance between growth and financial health.

Financial highlights

• Adjusted EBITDA pre-IFRS16 reached BRL 1.0 billion, margin up 0.3 p.p. year-over-year to 5.5%.

• Net income increased by 74% year-over-year, with significant improvement in both pre- and post-vision metrics.

• Free cash flow generation totaled BRL 1.6 billion over the last twelve months.

• Net debt reduced from BRL 13.8 billion to BRL 13.4 billion, and net debt/EBITDA ratio improved to 3.15x.

• Cash and cash equivalents totaled BRL 6.0 billion, up 17% from 1Q24.

Outlook and guidance

• Expansion plan for 2025 and 2026 targets approximately 10 new store openings per year, with some projects postponed due to higher capital costs and interest rates.

• Guidance to reach a net debt/EBITDA ratio of 2.6x by end of 2025, with CAPEX between BRL 1.0–1.2 billion.

• Focus remains on organic growth, with M&A considered but not prioritized under current macroeconomic conditions.