Assaí Reports Strong Performance Amid Economic Challenges in 2026

Assaí's Q1 2026 Performance: A Testament to Resilience

In the face of a challenging economic landscape characterized by high interest rates and increasing family debts, Assaí, the largest food retailer in Brazil, has showcased its strength and stability in the first quarter of 2026. With net sales hitting R$ 20.6 billion—a 1.7% increase compared to the same period last year—the company not only maintained its profitability but also secured market share gains in an inflationary environment.

Assaí's robust financial standing was reflected in its consistent performance metrics. The company achieved a recurring net income before IFRS16 of R$ 174 million, marking a 7% rise from the previous year. The EBITDA margin remained steady at 5.5%, attributed to a combination of a matured store portfolio and enhanced pricing strategies, which effectively mitigated the impact of growing expenses due to a more measured growth trajectory.

Alongside impressive sales performance, Assaí reported a significant generation of free cash flow, reaching R$ 2.2 billion over the past year. This growth was underpinned by disciplined capital allocation policies and a deliberate pace of expansion, allowing the company to diminish its leverage ratio to 2.52x Net Debt / EBITDA, the lowest it has seen since the fourth quarter of 2021.

Strategic Growth Initiatives

During this quarter, Assaí actively pursued a sustainable growth strategy. Notably, the company’s digital sales saw remarkable growth, with last-mile sales more than doubling, and it made a landmark transition into the pharmacy segment, expected to launch in July 2026. The introduction of private label products marked yet another crucial development in Assaí's ongoing transformation. Additionally, the company inaugurated its first store of the year in São José dos Campos, SP.

CEO Belmiro Gomes commented on the prevailing economic circumstances and Assaí's strategic response: "We are navigating a dual challenge of simultaneous deflation in essential commodities such as rice, beans, and flour, alongside historic debt levels among Brazilian households. Despite these adversities, our stable EBITDA margins reflect our commitment to effective price management, maturity of newer stores, and rigorous expense control."

Commitment to Sustainability and Community Support

Assaí has also made commendable strides in its environmental, social, and governance (ESG) efforts. The company amplified its initiatives aimed at reducing environmental impact, achieving a 48% increase in the number of stores equipped with composting facilities. In terms of workforce diversity, the representation of women in leadership positions now stands at 26.6%. Community support remains a priority, with over 1.2 million meals distributed through the Assaí Institute this quarter.

For the fourth consecutive year, Assaí has been featured in B3's Corporate Sustainability Index (ISE), being the only food retail company to receive this recognition. This accolade underscores the company's commitment to not only financial success but also its role in driving positive social implications.

Conclusion: Future Outlook for Assaí

Assaí's performance in early 2026 serves as a compelling illustration of its resilience amidst economic headwinds. With ongoing emphasis on operational discipline, strategic partnerships, and a focus on sustainable practices, Assaí is well-positioned to navigate these uncertain times while continuing to address the dynamic needs of its shoppers and communities. As Brazil's largest food retailer evolves, it remains dedicated to fostering growth, enhancing customer satisfaction, and contributing positively towards societal development in Brazil.

In conclusion, Assaí's achievements this quarter demonstrate an unwavering commitment to operational excellence and community well-being, solidifying its standing in the market and paving the way for future expansions.