Brazilian retailer Assaí Atacadista has reported a 9.3% increase in revenue in the third quarter of its financial year, to R$20.2 billion (€3.23 billion).
The group noted that the growth was driven by the ‘maturation of its expansion strategy’, as well as the continued strengthening of its customer base.
Pre-IFRS 16 EBITDA grew by 12.1% in the quarter, with Assaí reporting a margin of 5.5%, exceeding sales growth. Elsewhere, leverage decreased to 3.52x (-0.13x vs 2Q24), in line with its goal of achieving levels below 3.2x by year end.
‘Significant Progress’
“In the third quarter, we achieved significant progress,” commented Belmiro Gomes, Assaí’s chief executive.
“Continuing our improvement of the debt profile, we successfully issued debentures in October, totalling R$2.8 billion [€448 million], at a cost lower than the company’s average debt cost. We started the process of reducing net debt and continued lowering leverage, aiming to reach a level below 3.2x by the end of 2024,” Gomes stated.
Same-store sales went up by 2.6% in the quarter, despite what the company noted was a ‘challenging economic environment’ due to food price inflation and pressure on purchasing power.
‘Mature’ Offering
Assaí has opened 117 stores across Brazil in the last three years, with its offering having ‘matured’ with the introduction of butcher shops, bakeries, and deli sections, it noted in a statement.
During the third quarter, the retailer opened four new outlets, taking its total store count to 297. It added that it expects to exceed the 300-store mark by the end of 2024.
Since the end of the first quarter, the Brazilian retailer has raised R$5.3 billion in loans and capital markets, extending the average debt maturity to 41 months (vs 32 months in March 2024) and reducing the average debt cost to CDI+1.40% (vs CDI+1.49% in March 2024).
