Assaí Achieves Remarkable 55% Profit Increase Amid Economic Challenges

In a striking announcement, Assaí has reported a 55.2% increase in its adjusted recurring net income for the third quarter of 2026, reaching R$ 248 million. This impressive growth underscores the strength of its business model in a challenging consumer environment. Assaí’s accounting net income soared even higher, totaling R$ 427 million, a staggering increase of 119%. This surge has been accompanied by unexpected PIS/COFINS tax credits amounting to R$ 179 million, highlighting the company's strategic handling of its finances.

Despite the backdrop of rising household debt impacting consumer spending, Assaí managed to attract over 40 million customers monthly, reflecting a slight 2.1% increase in customer traffic. The company's gross revenue reached R$ 21.3 billion, which is a 2.7% growth from the previous year. This success can be attributed to an increase in gross margin to 17.2% and effective expense management controls, which grew at only 4.2%—beneath the inflation rate of 4.4% (IPCA).

The company reported an adjusted EBITDA of R$ 1.1 billion, maintaining a consistent margin of 5.7%. One significant achievement is the robust operational cash flow generation amounting to R$ 3.3 billion over the past year, leading to a reduction in leverage to 2.15x, a notable decrease from 3.03x in the same quarter last year. The decrease in financial costs, which included an 8.8% reduction in net financial expenses, resulted from lower borrowing costs and a significant 61% drop in the cost of receivables discounting.

Belmiro Gomes, CEO of Assaí, pointed out that the third quarter illustrated their ability to navigate through operational challenges and deliver on essential performance metrics. “We have achieved top-line growth, preserved market share, and reduced our leverage,” he stated. The focus remains on cash generation, competitive pricing, operational efficiency, and financial discipline, all crucial for the company’s growth strategy and ecosystem expansion.

Ecosystem Expansion Plans

In addition to impressive financial results, Assaí continues to expand its ecosystem, particularly in the healthcare sector. Assaí Farma has opened 11 new pharmacy units in São Paulo between July and November and aims to reach a total of 25 pharmacies by the end of the year. Furthermore, the company is enhancing its e-commerce capabilities through the launch of its own website within the 'Meu Assaí' app, offering in-store pickup options. The dietary supplement category has also seen growth, with plans to feature these products in 300 stores across the region.

The expansion under its Private Label brand included the launch of over 30 new products during the quarter, resulting in a total of 140 SKUs available across Assaí, Assaí Chef, Econobom, and the newly introduced Assaí Bloom brands. This move aims to achieve a total of 250 SKUs by the year’s end.

Moreover, last-mile sales have skyrocketed by 204% across 104 stores, indicating a strong response from consumers for convenient shopping options, further bolstering Assaí’s competitive edge. The recent acquisition of 18 gas stations in São Paulo marks a new strategic initiative, scheduled to commence operations in August 2027, further diversifying Assaí's revenue streams.

Assaí's performance in Q3 clearly exemplifies how integrating strategic expansions while maintaining operational efficiency can lead to significant profit growth, reinforcing its position as a strong contender in the retail space amidst economic challenges.