Assaí, a top player in the dynamic retail sector, established an impressive financial benchmark in the first quarter of 2024.
The company achieved a notable 19.2% increase in net profit, reaching R$93 million ($18.06 million).
This figure significantly surpassed the LSEG’s forecast of R$54.3 million ($10.54 million).
Such performance not only shows resilience but also demonstrates strategic acumen, positioning Assaí well ahead of market expectations.
Assaí’s adjusted EBITDA for this period soared to R$897 million ($174.17 million), marking a 37.6% increase year-over-year.
Although this fell short of the expected R$1.2 billion ($232.52 million), it effectively highlighted the success of the company’s expansion and conversion strategies.
Additionally, the EBITDA margin saw a significant improvement, rising by 0.9 percentage points to 5.2% from January to March.
The company also reported a growth story through its revenue figures.
Assaí’s net revenue totaled R$17.2 billion ($3.34 billion), reflecting a 14.1% rise from the same quarter last year, though it was slightly below the LSEG projection of R$17.4 billion ($3.38 billion).
Meanwhile, gross profit increased by 16.8% to R$2.795 billion ($542.43 million), and the gross margin improved by 0.4 percentage points to 16.2%.
Operationally, Assaí saw its selling, general, and administrative expenses increase by 9.3% to R$1.923 billion ($373.88 million).
Despite these higher costs, the company managed its finances effectively.
It faced a worsening net financial loss of R$510 million ($98.98 million), a 19.2% increase from Q1 2023.
The quarter ended with Assaí’s net debt standing at R$11.177 billion ($2.17 billion), a 31.2% increase from the previous year.
Nevertheless, the financial leverage ratio improved, dropping by 0.94 percentage points to 3.75 times.
This shows Assaí’s strong strategy in managing debt while investing in growth opportunities, setting a solid base for future success.