Assaí Atacadista Reports Strong Growth and Lower Leverage

Assaí Achieves Impressive Revenue Growth

Assaí Atacadista has reported remarkable results for the latest quarter, achieving a revenue milestone of R$ 20.2 billion, marking a 9.3% increase compared to last year. This growth underscores the success of its expansion strategy and the ongoing development of its loyal customer base. The ability to increase revenue amidst changing economic environments speaks volumes about the company's operating efficiencies.

Focus on Profitability

The company has put significant emphasis on its profitability and financial sustainability. Its pre-IFRS16 EBITDA, a key indicator of operational performance, surged by 12.1%, reaching R$ 1 billion, with a solid margin of 5.5%. This performance exceeded sales growth, illustrating the strength of Assaí's business model and its operational efficiency.

Decreasing Financial Leverage

Assaí’s financial leverage has seen a downward trend, falling to 3.52 times, a positive change from the previous quarter. This commitment to maintaining a sustainable financial space aligns well with the company’s target of achieving a leverage ratio below 3.2 times by the end of the fiscal year.

CEO Insights

Belmiro Gomes, the CEO of Assaí Atacadista, expressed his satisfaction with the progress made this quarter. He emphasized the importance of improving the company’s debt profile, noting a successful issuance of debentures totaling R$ 2.8 billion in October at favorable terms. This initiative is pivotal as it significantly contributes to the reduction of net debt, reinforcing their financial stability.

Strong Profit Margins

Gross profit also demonstrated a favorable trend, climbing by 10.7% to R$ 3 billion with a 16.4% profit margin. In terms of net income, the pre-IFRS16 figures stood at R$ 198 million, a 10% rise compared to last year's performance. When considering post-IFRS16 adjustments, the quarterly net income recorded was R$ 156 million, maintaining a consistent net margin of 0.8%. This steady performance showcases Assaí's capability in managing both growth and cost-efficiency effectively.

Store Expansion and Same-store Sales Growth

Assaí’s growth story is further complemented by a 2.6% rise in same-store sales (SSS), achieved despite a challenging economic landscape marked by food deflation and pressures on consumer purchasing power. The company has continued to expand, opening four new stores during the quarter and totaling 297 locations. Anticipations are set to exceed 300 operational stores by the end of the year, further entrenching their market presence.

Financial Strategy and Future Outlook

Throughout the past months, Assaí has successfully secured R$ 5.3 billion in loans and capital market funding. This strategic move has extended the average maturity of its debt to 41 months, alongside a reduction in the average debt cost from CDI+1.49% to CDI+1.40%. These financial maneuvers are viewed as essential steps to bolster the company's fiscal strength heading into the next year.

Frequently Asked Questions

What were Assaí's revenue figures for the latest quarter?

Assaí reported revenue of R$ 20.2 billion for the third quarter, showcasing a 9.3% year-over-year growth.

How has Assaí's EBITDA changed?

Assaí's pre-IFRS16 EBITDA grew by 12.1%, reaching R$ 1 billion with a 5.5% margin, indicating improved profitability.

What is the company's financial leverage?

The financial leverage of Assaí has decreased to 3.52 times, moving the company closer to its goal of below 3.2 times.

How has the CEO contributed to the company's progress?

CEO Belmiro Gomes highlighted initiatives like the successful debenture issuance to improve the debt profile and decrease net debt.

What is the outlook for Assaí in terms of store expansion?

Assaí plans to exceed 300 operational stores by the end of this year, bolstered by four new openings during the quarter.

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