#Brazil #São Paulo #Financial Performance #revenue growth #Assaí

Assaí Reports Strong Financial Performance for 2024

Assaí, a leading player in the Brazilian retail market, has announced impressive financial results for 2024, closing the year with a gross revenue of R$80.6 billion. This marks a significant increase of 10.7% compared to the previous year, with exceptional performance in the fourth quarter where revenue reached R$22 billion, up 9.4%. This growth is attributed to a series of strategic operational efficiency improvements and disciplined financial management, contributing to a robust profit increase of 8.3%. Net profit after adjusting for IFRS16 was notably recorded at R$769 million.

Operational Improvements and Store Expansion

Belmiro Gomes, CEO of Assaí, stated, "In 2024, we surpassed the milestone of 300 stores and celebrated 50 years with outstanding results." The company successfully opened 15 new stores, bringing the total to 302 units, further solidifying its position in key Brazilian urban centers. A pivotal aspect of Assaí's strategy included the completion of a project converting 66 hypermarkets acquired previously into operational units. This move played a crucial role in enhancing the company’s market presence and operational capacity.

Financial Leverage Reduction

Another key highlight of Assaí’s performance in 2024 was the reduction in financial leverage, which decreased to 3.04 times. This achievement is noteworthy given Brazil's ongoing high-interest rate environment. The company reduced its net debt by R$0.6 billion in the fourth quarter, reflecting strong financial stability and cash generation capabilities.

Diversified Service Units

Throughout 2024, Assaí expanded its services, ending the year with a total of 618 service units. This includes 254 butcher shops, 191 deli sections, and 173 bakeries distributed across its retail locations, contributing to its enhanced customer shopping experience. The increased focus on operational efficiency led to substantial EBITDA margin expansion, with pre-IFRS16 margins at 5.7% (an increase of 0.4 percentage points) and post-IFRS16 margins reaching 7.5% (also rising by 0.4 percentage points).

Future Outlook

Looking ahead, Assaí is set on a path to continue its growth trajectory while maintaining a disciplined approach to expansion. Plans are in place to open approximately 10 new stores and to invest between R$1 billion and R$1.2 billion in capital expenditures throughout 2025. With a strong foundation built in 2024, the company aims to further enhance its operational and financial performance while fostering a positive shopping experience for its customers.

Conclusion

Assaí's financial results from 2024 showcase its resilience and capacity for growth in a competitive market. With a robust operational strategy and a commitment to improving financial health, the company is well-positioned for continued success in the coming years.