#Brazil #São Paulo #Financial Growth #Assaí #R$ 80.6 billion

Assaí's Financial Triumph in 2024

Assaí Atacadista has made significant strides in business performance, recently announcing its 2024 financial results. The company closed the year with impressive gross revenue totaling R$ 80.6 billion. This figure represents a robust increase of 10.7% compared to 2023. The fourth quarter was particularly strong, with revenue soaring to R$ 22 billion, a remarkable increase of 9.4%.

The driving factors behind this growth include operational efficiency enhancements, consistent cash flow, and stringent financial management. Such strategies have led to increased profitability, with net profit registering at R$ 769 million after incorporating IFRS16 adjustments, an increase of 8.3%.

Belmiro Gomes, CEO of Assaí, expressed his satisfaction with the results, stating, "In 2024, we surpassed the milestone of 300 stores and celebrated 50 years with outstanding results." The essence of their business approach is evident as they successfully reduced leverage to a commendable 3.04x, surpassing prior expectations. Furthermore, despite Brazil’s challenging high-interest rate environment, Assaí managed to reduce its net debt by R$ 0.6 billion in the fourth quarter alone, underscoring its financial resilience.

Throughout 2024, Assaí has expanded its footprint by opening 15 new stores, bringing the total number of units to 302. This expansion is complemented by the completion of a conversion project involving 66 hypermarkets that were acquired in 2021, aiming to reinforce their presence in key urban markets across Brazil.

In response to evolving consumer preferences, Assaí has diversified its service offerings. As of the end of 2024, the company boasts 618 service units, including 254 butcher shops, 191 deli sections, and 173 bakeries across its retail locations. These initiatives reflect a commitment to providing comprehensive shopping experiences that cater to a wide range of customer needs.

The company's operational efficiency strategy has also yielded positive financial results. The EBITDA margins have exhibited growth, with an annual pre-IFRS16 margin at 5.7% and a post-IFRS16 margin at 7.5%, both reflecting a 0.4 percentage point increase. Quarterly results echo this success, showing a pre-IFRS16 margin of 6.4% and a post-IFRS16 margin of 8.1%, also with a 0.3 percentage point rise.

Most notably, the company's pre-IFRS16 LAIR has surged by 83%, achieving R$ 1.2 billion. This is a strong indicator of Assaí's operational capabilities and highlights its focus on maintaining high performance levels.

Looking ahead, Assaí is committed to maintaining its upward trajectory in 2025. The company plans to reduce leverage further and pursue disciplined growth strategies. It aims to open approximately 10 new stores while investing between R$ 1.0 billion and R$ 1.2 billion in capital expenditures (CAPEX), reinforcing its dedication to long-term expansion and market presence.

In conclusion, Assaí’s 2024 financial achievements stand as a testament to its strong operational framework and strategic foresight. As the company navigates an evolving retail landscape, its focus on enhancing customer experiences, coupled with fiscal prudence, will likely sustain its growth momentum in the years to come.