Assaí's Financial Ascend: Revenue Hits R$ 80.6 Billion in 2024
Assaí Records Impressive Growth in 2024
In an inspiring showcase of resilience and growth, Assaí has completed the fiscal year with remarkable achievements. The company reported a staggering R$ 80.6 billion in gross revenue for 2024, marking a significant increase of 10.7% from the previous year. This success is a testament to the operational efficiency, strategic decision-making, and unwavering commitment to meeting customer needs.
Strengthening Financial Position
Assaí's fourth-quarter earnings also reflected robust performance, boasting quarterly revenues of R$ 22 billion, an increase of 9.4%. The company's proactive measures in financial management have led to a net profit soaring to R$ 769 million after accounting for IFRS16, which translates to an impressive growth of 8.3% year-on-year. Under the leadership of CEO Belmiro Gomes, Assaí has strategically navigated through a challenging economic landscape and has significantly improved its financial leverage, bringing it down to a healthy ratio of 3.04x.
Expanding Retail Footprint
In 2024, the retailer celebrated a monumental milestone by reaching a total of 302 stores across various regions. This expansion included the establishment of 15 new units, demonstrating Assaí's commitment to growing its market presence. Furthermore, the completion of the conversion of 66 hypermarkets acquired previously in 2021 has positioned the company favorably within urban Brazilian landscapes.
Enhancing Customer Experience
Assaí's success is not just about numbers; it’s about providing customers with exceptional shopping experiences. By expanding its service offerings, the retailer now boasts 618 service units, which include 254 butcher shops, 191 deli sections, and 173 bakeries. These additions show that Assaí is evolving to meet the diverse needs of its clientele. Operational improvements have also led to enhanced EBITDA margins, with a noted increase in profitability:
Annual Performance Highlights
Assaí has reported a pre-IFRS16 EBITDA margin of 5.7%, reflecting a growth of 0.4 percentage points, while the post-IFRS16 figure stands at 7.5%, showcasing another 0.4 percentage point increase. These figures demonstrate Assaí's return to its pre-conversion profitability levels, underlining its effective operational strategies.
Quarterly Performance Insights
For the fourth quarter specifically, the pre-IFRS16 EBITDA margin was recorded at 6.4%, with a growth of 0.3 percentage points. Meanwhile, the post-IFRS16 margin reached 8.1%, also up by 0.3 percentage points. This strong performance reflects the company’s consistent efforts to enhance operational efficiency.
Future Growth Plans
Looking ahead, Assaí has ambitious plans for growth. The company intends to continue pursuing a strategy of disciplined expansion, with the goal of opening approximately ten new stores in the upcoming year. Additionally, Assaí is poised to invest between R$ 1.0 billion and R$ 1.2 billion in capital expenditure (CAPEX), aiming to solidify its market presence and further enhance its operational capabilities as it moves into 2025.
Frequently Asked Questions
What revenue did Assaí achieve in 2024?
Assaí closed 2024 with a gross revenue of R$ 80.6 billion.
How many new stores did Assaí open in 2024?
Assaí opened 15 new stores, bringing its total to 302 units.
What was the net profit reported for 2024?
The net profit for Assaí in 2024 was R$ 769 million.
What was the leverage ratio for Assaí at the end of 2024?
Assaí successfully reduced its leverage ratio to 3.04x.
What are Assaí’s plans for 2025?
Assaí plans to open approximately ten new stores and invest between R$ 1.0 billion and R$ 1.2 billion in capital expenditures.
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