Sendas Distribuidora (ASAI3) Q2 2025 earnings summary

Executive summary

• Revenue reached R$21 billion in Q2, up 7.2% year-over-year, with stable market share and same-store sales growth of 4.6% despite persistent trade-down trends and consumer pressure from high interest rates and inflation.

• EBITDA margin pre-IFRS16 improved by 0.3 p.p. year-over-year to 5.7%, driven by store maturity, innovation, and strict expense controls.

• Free cash flow before interest payments reached R$2.7 billion in the last 12 months, reflecting lower investment cycles, disciplined working capital management, and strong cash generation.

• Net income pre-IFRS16 rose 60% to R$264 million, aided by operational efficiency, tax credits, and ongoing debt reprofiling.

• Recognized as the most valuable brand in food retail and renewed GPTW certification for the 4th year.

Financial highlights

• EBITDA margin pre-IFRS16 reached 5.7% (+0.3 p.p. YoY); EBITDA pre-IFRS16 rose by R$0.5 billion LTM.

• Net income pre-IFRS16 grew 60% to R$264 million; net margin improved by 0.5 p.p. to 1.4%.

• 90% of EBITDA converted to free cash flow over the last 12 months.

• Net debt reduced by R$200 million year-over-year, with leverage dropping 0.48x to 3.17x.

• Operational cash generation reached R$3.9 billion in the last 12 months.

Outlook and guidance

• Guidance targets net debt/EBITDA of 2.6x by year-end 2025, with financial net debt at about 2x.

• Expansion plan targets 10 new stores in 2025 and 10 in 2026, with CAPEX between R$1.0–1.2 billion for 2025.

• Expectation for recovery in same-store sales, focusing on new projects and increasing share of wallet.

• Private label and new product categories to drive margin improvement and competitiveness.