Sendas Distribuidora (ASAI3) Q3 2024 earnings summary

Executive summary

• Achieved a turnaround in the net debt cycle, reducing leverage and nominal debt by R$218 million in Q3 2024, with a continued focus on deleveraging into 2025.

• Opened 21 new stores in the last 12 months, expanding total sales area by 8% and surpassing 300 operational units by December.

• Revenue exceeded R$20.2 billion in 3Q24, up 9.3% year-over-year, with 77.7 million tickets sold, an increase of 1.7 million.

• Enhanced operational efficiency and customer experience contributed to financial improvements.

• Maintained strong cash generation, funding 90% of investments internally, and prioritized expansion in key markets.

Financial highlights

• EBITDA pre-IFRS16 grew 12% to R$1.021 billion, margin at 5.5% (+0.1p.p.), and post-IFRS16 EBITDA was R$1.4 billion, margin 7.3%.

• Net income pre-IFRS16 increased 10% year-over-year to R$198 million; profits after income tax rose 83%.

• Gross profit rose to over R$3 billion in Q3 2024, with gross margin improving to 16.4%.

• EBIT pre-IFRS16 grew 83% to R$260 million.

• 9M24 net revenue reached R$53.7 billion (+11.6%), with adjusted EBITDA up 21.2%.

Outlook and guidance

• Deleveraging remains a priority, targeting a net debt/EBITDA ratio below 3.2x by end-2024 and 2.6x by end-2025.

• Store expansion for 2025 is mostly secured, with ~10 new units and gross CAPEX of R$1.0–1.2 billion planned.

• Margin improvement expected in 2025, despite ICMS tax increases and inflationary pressures.

• Continued focus on expansion, cash generation, and asset monetization, including retail media initiatives.