# GPA Cuts Net Loss 48% and Lifts Margin to 10% in 4Q25

*Brazilian food retailer advances turnaround plan as cost discipline boosts profitability despite weak top-line growth.*

- Published: 2026-02-24
- Updated: 2026-02-25
- Section: Insights
- Tags: Brazil food retail, Brazil supermarket sector, Brazilian retail stocks, EBITDA margin, emerging markets retail, GPA 4Q25 results, GPA earnings, GPA turnaround, PCAR3
- URL: https://brazilstockguide.com/insights/gpa-4q25-results-net-loss-margin/

![GPA, Pão de Açúcar, Retail](https://i0.wp.com/brazilstockguide.com/wp-content/uploads/2025/09/GPA-Pao-de-Acucar-Retail.png?fit=1024%2C683&ssl=1)

*GPA, Pão de Açúcar, Retail*

**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.

---

Source: Brazil Stock Guide, https://brazilstockguide.com/insights/gpa-4q25-results-net-loss-margin/