Sendas Distribuidora (ASAI3) Q3 2025 earnings summary

Executive summary

• Maintained a strong deleveraging trajectory, achieving the lowest debt-to-EBITDA ratio since 2021, with leverage at 3.03x and net debt reduced by R$0.5 billion, despite high interest rates and a challenging macroeconomic environment.

• Revenue grew 2.7% year-over-year in 3Q25 to R$20.8 billion, with same-store sales up 1.3% for July–October and 5.2% in October alone.

• EBITDA margin (pre-IFRS 16) improved by 0.2 p.p. to 5.7%, driven by operational efficiency, expense control, and store maturation.

• Net income (pre-IFRS 16) was R$195 million, with a net margin of 1.0%–1.1%, supported by disciplined expense control.

• Free cash flow reached R$3.1 billion in the last 12 months, reversing a negative result from the prior year.

Financial highlights

• Gross profit rose 4.2% year-over-year to R$3.2 billion, with gross margin up to 16.7%.

• Adjusted EBITDA (pre-IFRS 16) increased 6.0% to R$1.1 billion, margin at 5.7%.

• Operational cash generation reached BRL 4.2 billion in the last 12 months, with 96% EBITDA conversion.

• CapEx for the last 12 months was BRL 1.1 billion, with investments in 3Q25 totaling R$222 million.

• Cash and cash equivalents totaled R$6.0 billion at quarter-end, up 2.4% year-over-year.

Outlook and guidance

• Guidance for the next quarter maintained, with expectations of continued deleveraging and strong cash generation.

• Leverage projected to decrease further to approximately 2.6x by year-end 2025.

• CapEx for 2024 expected to be below BRL 1.2 billion, with a further reduction to BRL 700 million in 2025.

• Expansion plan on track with 10 new stores targeted for 2025; 3 stores already opened by October.

• No need for new cash or refinancing in 2025-2027; maturities concentrated in 2028-2030, with plans for prepayment to smooth out future obligations.