Assa stores once again trimmed the projection and the customer sees migrating to cheap brands
In the first quarter of 2025, the Assa He accelerated efforts to disappoint debt, but faced challenges with slowdown in growth, which was lower than inflation, especially due to movement Business down In customers.
The company has achieved 5.5% growth in sales in the same stores, which is less performance (in the order of 7.5%), which reflects the change in the behavior of the population, especially in the low purchasing power classes. Volumes have not fallen, but sales income, yes.
“We are looking at a significant exchange of brands and a reduction in packaging size, especially in the northeast, the income loss is more clearly visible” Belmiro GomesCEO of Assa.
In spite of Maturity and increased activity margins of new storesAssa had to review its expansion strategy to 2026, reducing its initial projection from 20 to 10 units. The decision was taken in the wake of increased interest rates. The company has reduced its store projection to 10 units of 2025.
“The decision to reduce the projection of new stores does not indicate the change of the route, but a strategic response to the challenging economic scenario,” Gomes said. For Assa, reducing the rhythm of expansion aims to focus on profitability and cash production. “The goal is to reduce our leverage without compromising for long -term growth.”
In the first quarter of 2025, the company reported $ 18.6 billion in net income of $ 18.6 billion, 7.7% in the same period last year. The net profit rose 95% in 2024 during the same period of $ 117 million.
The adjusted EBITDA R has reached $ 1.37 billion, which is 12.7%growth and the EBITDA margin is 7.4%. Leverage has also been reduced, which has reached 3.15 times, thanks to a decrease of 0.6 points compared to the first quarter of 2024, thanks to solid cash production and debt control.
The company has seen significant progress on its gross margin, which has reached 16.5%, which is a 0.3 percent point improvement compared to the first quarter, focusing on operational improvement and profitability.
