ASSAÍ: Revenue Surges to R$ 20 Billion, Leverage Continues to Decline

Assaí Atacadista (ASAI) has reported impressive results for the third quarter of 2024, with revenue reaching R$ 20.2 billion, a 9.3% year-over-year increase. This remarkable performance is a testament to the company's strategic expansion and focus on financial sustainability. As the company continues to grow, it has also successfully reduced its leverage ratio, demonstrating a strong commitment to maintaining a solid financial foundation.

Assaí's expansion strategy has been a key driver of its revenue growth. The company opened 21 new stores in Q4 2021 alone, more than double the rate of the previous year. This aggressive expansion, along with the successful conversion of former Extra hypermarkets into Assaí stores, has contributed to a significant increase in the company's sales area and store count. Assaí's expansion plan for 2022 includes opening approximately 50 new stores, including ten organic stores and the first wave of Extra Hiper conversions. This strategy aims to grow the store network to over 300 stores and achieve revenue of R$100 billion by 2024.



Assaí's commitment to enhancing debt terms and reducing leverage has significantly contributed to its financial stability and growth. In Q3 2024, the company successfully raised R$ 5.3 billion in financing, improving debt terms and extending the average debt maturity to 41 months. This strategic move reduced the average debt cost to CDI+1.40%, demonstrating ASAI's ability to manage its financial obligations effectively. Additionally, the company's leverage decreased to 3.52x, reflecting a 0.13x reduction from the previous quarter and bringing it closer to its year-end target of below 3.2x.



Despite the modest same-store sales growth of 2.6% amidst food deflation, Assaí has maintained its revenue growth trajectory and reduced leverage. The company's focus on profitability, effective debt management, and strategic expansion has driven its competitive advantage in the retail sector. As Assaí continues to navigate economic challenges and maintain its financial stability, investors can expect the company to remain a strong performer in the long term.

In conclusion, Assaí Atacadista's impressive revenue growth and leverage reduction demonstrate the company's commitment to strategic expansion and financial sustainability. With a focus on profitability, effective debt management, and a growing store network, Assaí is well-positioned to continue its success in the retail sector. As the company continues to grow and adapt to market conditions, investors can expect strong performance and a solid return on investment.