By Brazil Stock Guide – GPA (B3: PCAR3) cut its consolidated net loss by 48% year over year in the fourth quarter of 2025, reaching R$ 572 million, while adjusted EBITDA margin expanded to 10.0%, up 0.4 percentage points from a year earlier. The numbers suggest early traction in the company’s efficiency plan, even as revenue growth remains modest in Brazil’s competitive food retail market.
Net revenue totaled R$ 5.1 billion in 4Q25, down 2.0% versus 4Q24, mainly reflecting the discontinuation of the Aliados format. Excluding that effect, total sales grew 2.4%, with same-store sales rising 2.7%. Gross margin expanded to 27.7%, supported by better commercial negotiations, lower shrinkage and stronger penetration of private labels. Adjusted EBITDA reached R$ 510 million, up 2.5% year over year.
E-commerce remained a structural growth driver. Digital sales rose 6.6% to R$ 667 million, accounting for 12.6% of total food sales, up 0.6 percentage point from a year earlier. The company maintained leadership in online food retail in Brazil, with perishables representing roughly one-third of digital sales. At the same time, general and administrative expenses fell 21% year over year, underscoring tighter cost control.
Still, the balance sheet demands attention. Net debt, including non-advanced receivables, stood at approximately R$ 2.0 billion, implying leverage of 2.4x EBITDA on a pre-IFRS 16 basis. Financial expenses increased as Brazil’s higher interest rates pushed up debt costs. While operating cash flow improved significantly — free operational cash flow reached R$ 669 million in 2025, 2.6 times the previous year — the turnaround remains execution-dependent.
Looking ahead, GPA plans to capture at least R$ 415 million in additional operating efficiencies in 2026 while cutting annual capex to a range of R$ 300 million to R$ 350 million. Margin recovery is underway. Revenue acceleration is not — at least not yet.
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