By Brazil Stock Guide – Retail group GPA (B3: PCAR3) posted a net profit of R$145 million in the third quarter of 2025, reversing a R$252 million loss a year earlier. The rebound was fueled by the recognition of tax credits and tighter cost management, while operating results showed steady improvement despite muted consumer demand. Adjusted EBITDA rose 3.4% to R$412 million, lifting the margin to 9.1%, and the gross margin remained firm at 27.6%.
Premium and Proximity Lead Sales Growth
Same-store sales increased 4.1%, supported by solid performances at Extra Mercado (+5.5%) and Pão de Açúcar (+3.5%), while the proximity segment surged 17.3% in total sales thanks to store expansion and stronger customer loyalty. GPA expanded its market share by 0.6 percentage point in the premium format and 1.6 p.p. in proximity, confirming the strength of its multi-format strategy.
E-commerce revenue climbed 9.8% to R$604 million, now accounting for 13.1% of total sales, consolidating GPA’s leadership in Brazil’s online food retail. The channel’s pre-IFRS 16 EBITDA margin reached 10.3%, underscoring efficiency in logistics and store-based fulfillment.
Lean Structure and Solid Cash Generation
Administrative and selling expenses fell to 19.5% of net revenue, down 0.3 p.p. year-on-year, thanks to structural simplification and cost discipline. GPA expects annual savings of around R$190 million once its two-phase administrative streamlining plan is fully executed. The company’s operating free cash flow doubled to R$744 million over the last 12 months, reflecting gains in working capital and lower capital expenditures, which dropped to R$146 million in the quarter.
At quarter-end, net debt stood at R$2.7 billion, with leverage at 3.1x pre-IFRS 16 EBITDA, slightly higher than a year earlier. The company has prioritized preserving cash, optimizing supplier terms, and tightening inventory management.
Leave a Reply