Assaí Achieves Record Revenue Growth and Strategic Expansion Plans

Author: Evelyn Baker Updated: 02-20-2025 05:10 AM

Assaí Achieves New Revenue Heights

Assaí has closed the year with an impressive gross revenue of R$ 80.6 billion, marking a significant growth of 10.7% compared to the previous year. During the last quarter of the year, the company reported revenue of R$ 22 billion, which is a 9.4% increase. This success is attributed to improvements in operational efficiency, strong cash generation, and a disciplined approach to managing financial costs, all contributing to a notable rise in profitability.

Profitable Growth and Financial Strength

The net profit after accounting for IFRS16 reached R$ 769 million, showing an increase of 8.3%. This growth exemplifies Assaí's robust performance throughout the year. Belmiro Gomes, the CEO of Assaí, shared insights on these achievements, stating, "In 2024, we surpassed the milestone of 300 stores and celebrated 50 years with outstanding results." He emphasized the company's commitment to enhancing the customer shopping experience while maintaining financial discipline.

Expanding Market Presence

Assaí successfully opened 15 new stores, taking its total to 302 units. This expansion highlights the company's strategy to strengthen its footprint in key markets across Brazil. Moreover, the company completed the conversion of 66 hypermarkets acquired in 2021, showcasing its dedication to transforming its business model to meet evolving consumer needs.

Reduction in Leverage

In a remarkable achievement, Assaí reduced its leverage to 3.04x, a significant improvement that exceeded the company’s expectations. By the end of the fourth quarter, net debt decreased by R$ 0.6 billion, showcasing the company's capacity to navigate a challenging interest rate environment while fortifying its financial position.

Operational Efficiency and Future Investments

As a part of its ongoing improvements, Assaí concluded 2024 with 618 service units, comprising 254 butcher shops, 191 deli sections, and 173 bakeries across its stores. This diversity in service offerings is crucial for enhancing customer satisfaction. The company also observed a rise in its EBITDA margin, reflecting operational efficiency:

Annual: 5.7% pre-IFRS16 (+0.4 p.p.) and 7.5% post-IFRS16 (+0.4 p.p.), showcasing a return to pre-conversion levels.
Quarterly: 6.4% pre-IFRS16 (+0.3 p.p.) and 8.1% post-IFRS16 (+0.3 p.p.), indicating sustained performance.

Looking Ahead

For the year ahead, Assaí remains committed to reducing leverage and executing a disciplined plan for expansion. The company plans to open approximately 10 new stores and is preparing to invest between R$ 1.0 billion and R$ 1.2 billion as part of its capital expenditure, ensuring that it continues to enhance its operational capabilities and customer offerings.

Frequently Asked Questions

What was Assaí's gross revenue for 2024?

Assaí reported a gross revenue of R$ 80.6 billion for the year 2024, a 10.7% increase from the previous year.

How many stores does Assaí currently have?

As of now, Assaí operates a total of 302 stores across Brazil after opening 15 new stores in 2024.

What are Assaí's plans for the future?

The company aims to open approximately 10 new stores and plans to invest between R$ 1.0 billion and R$ 1.2 billion in capital expenditure over the coming year.

Who is the CEO of Assaí?

Belmiro Gomes serves as the CEO of Assaí, leading the company through its expansion and financial strategies.

How much did Assaí reduce its leverage?

Assaí successfully reduced its leverage to 3.04x, surpassing its guidance for the year.

About The Author

Greetings, I'm 32-year-old author and financial specialist Evelyn Baker. My introduction into the financial industry started with an economics degree and continued with a wealth of experience in wealth management and financial consulting. My great passion over the years has been assisting people and companies in making wise, well-informed decisions to reach their financial objectives.

My goal with writing is to simplify difficult financial ideas into understandable, doable guidance. My goal in writing many books and articles is to make personal finance understandable to everyone, irrespective of their experience or background. I want to give readers the information they need to take charge of their financial futures, from investing and retirement planning to budgeting and saving.

Along with my writing, I lead webinars and workshops where I provide doable advice and methods for achieving financial success. To reach a larger audience, I also frequently contribute to financial blogs and publications. My method is always to offer doable, real-world guidance that can actually improve people's lives.

Aside from my job, I like to cook, travel, and experience other cultures. I work hard to apply my belief in the value of a balanced life to my financial counsel. My goal in working is to encourage and enable people to succeed financially so they may lead the best lives possible.

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