ASSAÍ: REVENUE REACHES R$ 20 BILLION IN THE QUARTER, LEVERAGE CONTINUES TO DECLINE

Rhea-AI Summary

Assaí Atacadista (ASAI) reported strong Q3 2024 results with revenue reaching R$ 20.2 billion, up 9.3% year-over-year. Pre-IFRS16 EBITDA grew 12.1% to R$ 1 billion with a 5.5% margin. Gross profit increased 10.7% to R$ 3 billion, while pre-IFRS16 net income rose 10% to R$ 198 million. The company's leverage decreased to 3.52x, with a target of below 3.2x by year-end. Same-store sales grew 2.6% despite food deflation challenges. The company opened four new stores in Q3, reaching 297 locations, and successfully raised R$ 5.3 billion in financing while improving debt terms.

Positive

• Revenue growth of 9.3% YoY to R$ 20.2 billion
• Pre-IFRS16 EBITDA increase of 12.1% to R$ 1 billion
• Gross profit growth of 10.7% to R$ 3 billion
• Pre-IFRS16 net income up 10% to R$ 198 million
• Leverage reduction to 3.52x from previous quarter
• Successful R$ 5.3 billion debt refinancing with improved terms
• Store network expansion with 4 new locations

Negative

• Modest same-store sales growth of 2.6% amid food deflation
• Still elevated leverage ratio above 3.5x
• Lower post-IFRS16 net income of R$ 156 million with 0.8% margin

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SÃO PAULO, Nov. 8, 2024 /PRNewswire/ -- Assaí Atacadista (ASAI) reported solid results for the third quarter of 2024, with revenue reaching R$ 20.2 billion, a 9.3% year-over-year growth, reflecting the maturation of its expansion strategy and continued strengthening of its customer base.

Focusing on profitability and financial sustainability, pre-IFRS16 EBITDA grew by 12.1%, reaching R$ 1 billion, with a 5.5% margin, exceeding sales growth. Leverage decreased to 3.52x (-0.13x vs. 2Q24), reinforcing the company's commitment to sustainable financial growth, aligned with its goal of achieving levels below 3.2x by year-end.

"In the third quarter, we achieved significant progress," highlighted Belmiro Gomes, Assaí's CEO. "Continuing our improvement of the debt profile, we successfully issued debentures in October, totaling R$ 2.8 billion, at a cost lower than the company's average debt cost. We started the process of reducing net debt and continued lowering leverage, aiming to reach a level below 3.2x by the end of 2024," he stated.

Gross profit increased by 10.7%, reaching R$ 3 billion with a 16.4% margin (+0.2 p.p. vs. 3Q23), while pre-IFRS16 net income stood at R$ 198 million, a 10% increase compared to the same period in 2023. Post-IFRS16, the quarterly net income was R$ 156 million, with a net margin of 0.8%.

Same-store sales (SSS) rose by 2.6%, despite a challenging economic environment with food deflation and pressure on purchasing power. The maturation of its 117 stores opened in the past three years continued, along with the strengthening of its differentiated services, such as butcher shops, bakeries, and deli sections. During the quarter, the company opened four new stores, bringing the total to 297. The company expects to exceed 300 stores in operation by the end of 2024.

Since the end of the first quarter, Assaí raised R$ 5.3 billion in loans and capital markets, extending the average debt maturity to 41 months (vs. 32 months in March 2024) and reducing the average debt cost to CDI+1.40% (vs. CDI+1.49% in March 2024).

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SOURCE Assaí Atacadista

FAQ

What was Assaí's (ASAI) revenue in Q3 2024?

Assaí's revenue reached R$ 20.2 billion in Q3 2024, representing a 9.3% year-over-year growth.

How many stores did Assaí (ASAI) operate as of Q3 2024?

Assaí operated 297 stores as of Q3 2024, after opening 4 new stores during the quarter.

What was Assaí's (ASAI) leverage ratio in Q3 2024?

Assaí's leverage ratio was 3.52x in Q3 2024, decreasing by 0.13x compared to Q2 2024.

What was Assaí's (ASAI) same-store sales growth in Q3 2024?

Assaí's same-store sales grew by 2.6% in Q3 2024, despite challenges from food deflation and pressure on purchasing power.