Sendas Distribuidora (ASAI3) Q4 2025 earnings summary

Executive summary

• Sales reached R$84.7 billion in 2025, up 5.2% year-over-year, with 10 new stores opened, totaling 312 in operation.

• Free cash flow totaled R$2.8 billion, with 84% EBITDA conversion to cash and leverage reduced to 2.56x, the lowest since 2021 and below guidance.

• EBITDA margin improved to 5.8%, with pre-IFRS net income of R$847 million, impacted by a R$521 million non-cash impairment from the FIC split.

• Focused on operational discipline, expense control, and financial discipline, supporting profitability and market share gains.

• Strategic initiatives for 2026 include selective growth, digital expansion, private label, health and wellness, and continued deleveraging.

Financial highlights

• Adjusted EBITDA (Pre-IFRS16) for 2025 was R$4.5 billion (+7.5% YoY), with a margin of 5.8% (+0.2 p.p.).

• Net debt reduced by R$1.2 billion year-over-year.

• Gross margin expanded to 16.8% (+0.3p.p.), driven by commercial execution and store maturity.

• Same-store sales grew 2.6% year-over-year, with volume and market share gains despite commodity deflation.

• Net financial result was a loss of R$2.3 billion in 2025, mainly due to high interest rates.

Outlook and guidance

• 2026 guidance includes opening five new stores, with estimated Capex of R$700 million, prioritizing deleveraging and capital structure improvement.

• Focus on asset monetization, operational efficiency, and expansion of digital, private label, and financial services.

• Launch of 25 pilot pharmacy units and continued review of store portfolio for optimization.