By Brazil Stock Guide – Assaí Atacadista (B3: ASAI3) reported operational cash generation of R$4.2 billion in the third quarter of 2025, up sharply from a year earlier, marking a turning point in its balance sheet management. Free cash flow reached R$3.1 billion over the last 12 months, reversing a R$1.1 billion outflow seen a year ago, and leverage dropped to 3.03x EBITDA, the lowest level since 2021.
Efficiency Drives Financial Strength
Despite Brazil’s tight credit conditions and subdued consumption, Assaí maintained profitability. Net income stood at R$195 million, stable year-on-year, while EBITDA rose 6% to R$1.1 billion with a 5.7% margin. CEO Belmiro Gomes credited the result to “financial discipline and operational efficiency,” emphasizing that the company entered the year’s final stretch focused on execution and sustainable value creation.
Sales and Store Maturation
Revenue grew 2.7% to R$20.8 billion, supported by new stores and ongoing maturation of units converted from hypermarkets. Same-store sales were flat, as Brazil’s highest interest rates in 20 years weighed on purchasing power, especially among low-income consumers. Converted stores continued to outperform, with margins of 6.2%, while B2C traffic held steady and B2B sales volumes softened.
Digital and Operational Levers
Assaí’s digital platform “Meu Assaí” surpassed 16 million users, who spent 28% more and visited stores 44% more frequently than non-identified customers. Identified sales accounted for 46% of total revenue, and partnerships with last-mile platforms, notably iFood, lifted delivery sales 260% year-on-year.
Capex Discipline and Outlook
Investments fell to R$222 million in the quarter, aligned with the company’s deleveraging strategy. With 305 stores in operation and a modest expansion plan of about 10 openings in 2025, Assaí continues to prioritize cash flow, efficiency, and margin resilience amid a still-fragile retail environment.
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