Brazilian cash and carry chain Assaí Atacadista has reported a 12.9% increase in net sales in the first half of its financial year, BRL 35.1 billion (€5.97 billion).
The São Paulo-based group said that its improved performance – an additional BRL 4 billion (€680 million), year-on-year – was driven by its newly-converted stores, as well as a 2.9% increase in same-store sales.
Quarterly net sales were up 11.8%, to BRL 17.8 billion (€3.03 billion), contributing to a reduction in leverage to 3.65x.
Strategic Locations
Assaí Atacadista operates a members' club system, similar to that of Costco Wholesale in the US. Since 2021, the business has acquired a number of strategic locations in and around densely populated cities, increasing its store count from 212 at the end of 2021 to 293 today.
In addition, in recent years, it has introduced butcher counters, delicatessens and wine cellars, which now feature in 80% of its stores.
'Improved Profitability'
"We closed June with new units, improved profitability, and reduced leverage, further solidifying our presence nationwide," commented Belmiro Gomes, CEO of Assaí. "Assaí is now present in 1 out of every 4 Brazilian households, and we plan to continue offering competitive prices with modern and innovative stores, strengthening our leadership in Brazil's cash & carry market."
In the second half of this year, Assaí plans to open 10 more stores, reaching 300 by year-end, while focusing on reducing leverage to below 3.2x, as well as 'reinforcing its commitment to sustainable growth and value creation for shareholders', it said.
It will also continue to expand its 'Meu Assaí' app, which has 14 million registered users, an increase of one million in the last quarter.
