Financial Data and Key Metrics Changes - The company achieved a total sales volume of BRL 84.7 billion for the year, with same-store sales growth of 2.6% and a leverage ratio of 2.55x [4] - EBITDA increased by 0.2 percentage points, reaching a margin of 5.8%, with net income reported at BRL 847 million pre-IFRS and BRL 645 million post-IFRS [5][6] - Net debt was reduced by BRL 1.2 billion, resulting in a leverage ratio of 2.56, aligning with the company's guidance [11] Business Line Data and Key Metrics Changes - The butchery and deli area, representing 5% of total sales, positioned the company as the largest protein seller in South America, despite challenges in CapEx [13] - The company is focusing on expanding its product offerings, including a new private label brand and health-related products, to adapt to changing consumer preferences [20][23] Market Data and Key Metrics Changes - A significant trend of deflation was observed in various commodities, impacting sales volumes, particularly among low-income customers [6][7] - The company noted a shift in consumer behavior, with high-income formats gaining sales while low-income formats experienced a decline [8] Company Strategy and Development Direction - The company is entering a new cycle of changes in cash and carry, with initiatives aimed at increasing customer loyalty and sales volumes [5] - A partnership with Mercado Livre is set to enhance the digital channel, offering 400 SKUs through a fulfillment model [14][15] - The company is also focusing on optimizing its store portfolio, potentially closing or selling underperforming locations [50] Management's Comments on Operating Environment and Future Outlook - Management highlighted the impact of high debt levels on consumer purchasing power, particularly in Northeast Brazil, and the ongoing trade-down movement among customers [49] - The company anticipates a positive outlook for 2026, considering it an election year with potential fiscal incentives [60] Other Important Information - The company is implementing various cost-reduction initiatives, including technology upgrades and operational efficiencies [41][42] - A new CFO is expected to join the team in March, which is anticipated to enhance capital discipline [37] Q&A Session Questions and Answers Question: Can you elaborate on the sales dynamics and the impact of deflation? - Management explained that the sales volume growth is influenced by a trade-down effect, where customers are purchasing cheaper products due to economic pressures [48][49] Question: What are the plans regarding the store portfolio review? - The company is considering closing or selling underperforming stores and optimizing its network based on regional performance [50] Question: How does the company view the upcoming election year in terms of sales? - Management expressed optimism about increased cash flow in the economy during the election year, although caution was advised due to high debt levels among consumers [60]

Financial Data and Key Metrics Changes - The company achieved a total sales volume of BRL 84.7 billion for the year, with same-store sales growth of 2.6% and a leverage ratio of 2.55x [4] - EBITDA increased by 0.2 percentage points, reaching a margin of 5.8%, with net income reported at BRL 847 million pre-IFRS and BRL 645 million post-IFRS [5] - Net debt was reduced by BRL 1.2 billion, resulting in a leverage ratio of 2.56, aligning with the company's guidance [11] Business Line Data and Key Metrics Changes - The butchery and deli area accounted for 5% of total sales, positioning the company as the largest protein seller in South America [14] - The company opened 10 new stores, bringing the total to 312 stores by the end of 2025 [4] - The company is focusing on cash and carry, with new projects aimed at enhancing customer loyalty and sales volumes [5] Market Data and Key Metrics Changes - A significant trend of deflation was observed in various commodities, with rice prices dropping by nearly 37%, milk by 16%, and sugar by 11% [6] - The K Effect was noted, where high-income formats saw a 4% sales increase, while low-income formats experienced a 9% decline [8] - The company is experiencing a shift in consumer behavior, with increased demand for protein products and a decline in carbohydrate consumption [50] Company Strategy and Development Direction - The company is focused on reducing leverage while continuing to grow, with plans for new projects and partnerships, including a collaboration with Mercado Livre [15][16] - The introduction of private label products is expected to enhance margins and meet customer demand for quality at lower prices [22] - The company is exploring financial services and partnerships to expand its offerings and improve customer engagement [30][35] Management's Comments on Operating Environment and Future Outlook - Management highlighted the challenges posed by high debt levels among consumers, impacting purchasing power, particularly in Northeast Brazil [49] - The company anticipates a positive outlook for 2026, driven by government programs and potential tax exemptions, despite current economic challenges [58] - Management emphasized the importance of adapting to consumer trends and the potential for increased sales as commodity prices stabilize [60] Other Important Information - The company received recognition for its ESG initiatives, including efforts to include diverse leadership and support for employees from various backgrounds [42] - A new CFO, Rafael Sachete, is set to join the team in March, expected to enhance capital discipline [37] Q&A Session Summary Question: Market dynamics and sales growth - Management explained the mismatch in purchasing power between high and low-income consumers, noting that while volume growth is present, it is driven by cheaper products due to the K Effect [48][49] Question: Portfolio review and store closures - Management indicated that the portfolio review may lead to closing or selling underperforming stores, particularly in regions with overlapping operations [50] Question: Sales dynamics in 2026 - Management acknowledged the potential for increased consumption in 2026 due to fiscal incentives but cautioned about the ongoing high debt levels affecting consumer spending [58] Question: Tax credit recurrence - Management clarified that the estimated value of BRL 1.5 billion in tax credits is considered a contingency asset, with expectations for monetization within two years [57][58] Question: CapEx guidance and store openings - Management confirmed that the CapEx guidance remains at BRL 700 million, with a focus on maintenance and new projects, despite a reduction in the number of new store openings [66]

Financial Data and Key Metrics Changes - The company achieved total sales of BRL 84.7 billion in 2025, with same-store sales growth of 2.6% and a leverage ratio of 2.55x [3] - EBITDA increased by 0.2 percentage points, reaching a margin of 5.8%, with net income reported at BRL 847 million pre-IFRS and BRL 645 million post-IFRS [4] - Net debt was reduced by BRL 1.2 billion, resulting in a leverage ratio of 2.56, aligning with the company's guidance [8] Business Line Data and Key Metrics Changes - The company opened 10 new stores in 2025, bringing the total to 312 stores [3] - The butchery and deli area, representing 5% of total sales, positioned the company as the largest protein seller in South America [10] - The company experienced a significant trend of deflation in commodities, impacting sales volumes, particularly in low-income customer segments [5] Market Data and Key Metrics Changes - The company noted a persistent deflation across multiple commodity categories, with rice prices dropping by 37%, milk by 16%, and sugar by 11% [5] - High-income customer segments showed a 4% growth in sales, while low-income segments experienced a 9% decline [6] - The company highlighted the K Effect, where high-income customers shifted to more expensive products, while low-income customers traded down [6][42] Company Strategy and Development Direction - The company is focused on reducing leverage while continuing to grow, with plans for new projects in cash and carry and enhancing customer loyalty [4][10] - A partnership with Mercado Livre was announced to expand digital channels, offering 400 SKUs through a fulfillment model [11][13] - The company aims to replicate successful sales strategies seen in other markets, such as the In & Out project, which offers exclusive products at competitive prices [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges related to consumer purchasing power and high debt levels affecting low-income customers [42] - The company anticipates a positive outlook for 2026, considering it an election year with potential fiscal incentives [47] - Management emphasized the importance of adapting to changing consumer behaviors, particularly the shift towards protein consumption [43] Other Important Information - The company is exploring monetization of assets and reviewing its store portfolio to optimize performance [9][43] - A new CFO, Rafael Sachete, will join the team in March to support capital discipline [33] - The company continues to focus on ESG initiatives and has received recognition for its efforts in diversity and sustainability [37] Q&A Session Summary Question: Market dynamics and sales growth - The company discussed the mismatch between high and low-income customer performance, highlighting the K Effect and the impact of deflation on sales volumes [40][42] Question: Portfolio review and store closures - Management indicated that some stores may be closed or sold based on performance assessments, particularly in regions with overlapping store networks [43] Question: Sales dynamics in 2026 - The company expects better consumption due to increased cash flow in the economy, but remains cautious about high debt levels among consumers [47] Question: Tax credit relevance - Management considers the tax credit a contingent asset, with an estimated value of BRL 1.5 billion, and expects to monetize it within two years [45][46]

Free Cash Generation of R$2.8 billion and leverage of 2.56x (vs guidance of 2.60x) Gross profit optimization, focus on expense control, and financial discipline EARNINGS RESULTS 4 TH QUARTER 2025 FEBRUARY 12 TH, 2026 • Free Cash Generation: R$ 2.8 billion • 84% EBITDA to cash conversion • 2.56x, below guidance (2.60x) • Reduction in Net Debt: R$1.2 billion • R$84.7 billion (+5.2%) • SSS excl. Calendar effect: +2.6% • +10 new stores, 312 in operation • Pre-IFRS 16 EBITDA: R$4.5 bi | Margin 5.8% (+0.2 p.p.) • ...

Financial Data and Key Metrics Changes - The company has achieved a reduction in net debt by BRL 500 million, starting from an operational cash generation of BRL 4.2 billion, which is higher than the previous quarter [15][16][20] - EBITDA increased from 5.5% to 5.7%, reaching a margin of 7.6% [13][20] - Net income for the quarter was BRL 195 million, slightly down from BRL 198 million, reflecting the impact of financial results and tax credits [20][22] Business Line Data and Key Metrics Changes - The company has seen a performance difference between sectors, with classes A and B gaining volume while classes C, D, and E experienced a retraction in volumes [7][9] - B2B sales, which represent about 40-45% of total sales, showed a significant drop in volume, particularly in cash and carry formats [6][9] Market Data and Key Metrics Changes - Brazil's interest rates reached an all-time high of 15%, impacting consumer debt levels and spending behavior [7][9] - Retail formats serving classes A and B saw a volume increase of 2.7%, while cash and carry formats experienced an 8.3% drop in volume [8][9] Company Strategy and Development Direction - The company is focused on deleveraging and maintaining a strong cash generation strategy, with plans to continue opening new stores selectively [15][22] - There is an emphasis on expanding private label offerings and enhancing digital channels, particularly through partnerships for last-mile delivery [27][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging economic environment but expressed confidence in the company's ability to maintain stability and continue deleveraging [4][20] - The company anticipates a potential recovery in the bar sector and expects strong sales initiatives during the end-of-year period [49] Other Important Information - The company has set a public goal to achieve zero landfill by 2035 and is actively working on sustainability initiatives [23][24] - The app has registered 21 million customers, with 16 million being contactable, indicating strong customer engagement [55] Q&A Session Summary Question: Financial services dynamic and core business expenses - Management discussed ongoing initiatives to control expenses and the potential for further efficiency improvements without compromising customer service [30][31][32] Question: Profitability and CapEx guidance - The company reinforced its guidance for margin improvement while managing working capital and maintaining discipline in supplier relationships [35][36] Question: Update on private label and cash and carry trends - Management highlighted the importance of the cash and carry model and its exposure to lower-income consumers, while also discussing the potential for private label growth [39][40][41] Question: CapEx and store expansion strategy - The company confirmed plans to open new stores with high return potential while being cautious about overall investment levels due to rising interest rates [42][43][46] Question: October sales performance and competition in hygiene and beauty categories - Management expressed optimism about October's strong sales and acknowledged competitive pressures in the beauty market, particularly from higher-income segments [47][48] Question: Self-checkout impact and labor challenges - The company noted that self-checkout has improved customer experience and efficiency, despite challenges in hiring and maintaining staff levels [50][51][52] Question: Updates on app and Black Friday initiatives - Management shared plans for Black Friday promotions and highlighted the app's strong customer base as a key growth avenue [54][55]

EARNINGS RESULTS 3 rd QUARTER 2025 November 7 TH, 2025 1 PROFITABILITY EVOLUTION: MARGIN IMPROVEMENT AND EXPENSE CONTROL Strong cash generation results in the lowest leverage level since 2021 B2C: Stable sales and behavior • Attractiveness of the model • Stable Flow • Maintaining the trade down level B2B: Volume reduction • Flow maintenance • Average ticket price drop • Market Performance | Supermarkets(1) that serve: o Classes C, D, and E ( -8.3%) • Same -store sales in the four -month period (July 2025 to ...

Financial Data and Key Metrics Changes - The company reported revenue of 21 billion reais for the second quarter, with same-store sales lagging behind food inflation, which was around 7% to 7.5% [4] - EBITDA margin pre-IFRS increased by 30 basis points year-over-year to 5.7%, reflecting store maturity and innovation efforts [6] - Free cash flow before interest payments was 2.7 billion reais, with a conversion rate of approximately 90% of EBITDA into cash [7][21] - Net debt decreased by 200 million reais year-over-year, with a leverage ratio dropping to 3.17, down 0.48 from the previous year [9][22] Business Line Data and Key Metrics Changes - The company is focusing on store maturity, particularly for converted stores, which are still in the maturation phase [5][12] - The average sales per store in downtown areas reached approximately 26 million reais, indicating strong performance despite ongoing maturity challenges [11] Market Data and Key Metrics Changes - The company noted a persistent trade-down movement of about 3.5% to 4%, influenced by high interest rates and changing consumer behaviors [4] - The penetration rate across various social classes has improved, with significant engagement from classes A, B, and C [14][16] Company Strategy and Development Direction - The company is focused on expanding its product categories, including private labels, particularly in the Southeast region of Brazil [16][60] - There is an emphasis on enhancing customer experience through new projects and services, aiming to break down the stigma associated with cash-and-carry formats [16][46] - The company is also exploring opportunities in the pharmaceutical sector, pending legal approvals [70] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of the year, despite acknowledging the challenges posed by inflation and consumer purchasing power [32][44] - The company is cautious about the trade-down phenomenon, noting that it may not solely be driven by economic factors but also by changing consumer habits [36][38] Other Important Information - The company has implemented various ESG initiatives, including social inclusion programs and sustainability efforts, which have contributed to its brand value [29][30] - The company has been recognized as one of the best places to work in its segment, reflecting its commitment to employee satisfaction and customer service excellence [30] Q&A Session Summary Question: How is the company positioned in the current disinflation scenario? - Management indicated that while there are pressures on consumer purchasing power, they expect some normalization in product categories and are focusing on new projects to drive volume [32][34] Question: What is the reason for the higher tax rate observed? - The higher tax rate is attributed to changes in tax substitution processes due to reforms in certain states, impacting the correlation between net and gross sales [39][40] Question: Can you elaborate on the private label implementation project? - The private label project aims to increase margins and competitiveness, with expectations of launching in the second half of the year [57][60] Question: What is the current status of the drugstore project? - The drugstore project is still under discussion, with potential benefits for the company once approved, leveraging existing infrastructure to enhance competitiveness [70][72] Question: How is the company addressing the challenges in the B2B segment? - Management noted that B2B sales remain stable, with a focus on adjusting payment terms and pricing strategies to maintain competitiveness [48][51]

Financial Performance - Gross Revenue increased to R$ 21 billion, a growth of 7.2%[11] - Pre-IFRS16 Net Income reached R$ 264 million, up 60%[12] - Post-IFRS16 Net Income reached R$ 219 million, up 78%[12] - Free Cash Flow reached R$ 2.7 billion LTM[13] Profitability - EBITDA Margin Pre-IFRS16 increased by 0.3 percentage points to 5.7%[5, 13] - EBITDA increased by R$ 0.5 billion Pre-IFRS16 LTM[12] Debt and Leverage - Net debt decreased by R$ 0.2 billion[12] - Leverage reduced by 0.48x to 3.17x compared to Q2 2024[12] - Net Debt + Discounted Receivables was R$ 13.8 billion as of June 2025[21] Cash Generation - Operating Cash Generation was R$ 3.9 billion, representing 90% EBITDA conversion to cash[21] - Total Cash Generation was R$ 0.7 billion[21] Expansion and Sales - Same Store Sales increased by 4.6%[11] - The company plans to open 10 new stores in 2025 and 10 new stores in 2026[7] Sustainability - Achieved a 20% reduction in scope 1 and 2 emissions compared to the target, aligned with a 42% reduction by 2030 (base year 2021)[29] - Reused 44% of waste, an increase of 1.2 percentage points compared to Q2 2024[29]

Financial Position - As of December 31, 2024, the company had total borrowings of R$16,175 million, with R$1,991 million classified as current borrowings and R$14,184 million as non-current borrowings[41]. - The company is still a guarantor for contracts worth R$1.4 billion related to legal proceedings, which may pose financial risks[90]. - Sendas must pay at least 25% of its annual net income as dividends, but this may not be available if the board determines distributions are inadvisable[197]. - The company may incur significant costs for environmental remediation if soil or underground water contamination is identified[135]. Revenue and Sales - For the years ended December 31, 2024, 2023, and 2022, 50%, 49%, and 49% of the company's net operating revenue was represented by sales in installments, primarily through credit card sales[66]. - The company generated more net sales in the fourth quarter, particularly during the Black Friday and Christmas sales season, which significantly impacts overall performance[98]. - Approximately 13.9% of total sales for the year ended December 31, 2024, were derived from five main suppliers for beverage and beef products[115]. - The company is dependent on credit card sales, and any changes in the policies of merchant acquirers may adversely affect its revenue[66]. Market and Competition - The company faces significant competition in the Brazilian cash and carry sector, which may adversely affect its market share and net income[39]. - The company faces competition from internet sales, which have increased significantly in Brazil, potentially reducing reliance on traditional distribution channels[102]. - The company faces intense competition for attracting and retaining key personnel, which is essential for maintaining its competitive position[75]. - Seasonal fluctuations in sales and operating results may not meet investor expectations, adversely affecting share prices[101]. Operational Risks - The company may not be able to renew lease agreements for stores or distribution centers on acceptable terms, which could adversely affect its operations[58]. - The company’s operations rely on information systems for managing manufacturing processes, and disruptions in these systems could significantly impact operations[52]. - Labor shortages and increased turnover could lead to higher employee-related costs, negatively impacting profitability[67]. - The company must manage inventory effectively to avoid stockouts or excess inventory, which could adversely affect financial results[78]. Regulatory and Compliance - Non-compliance with Brazil's General Data Protection Law (LGPD) could result in fines up to 2% of the company's revenue in Brazil, capped at R$50 million per violation[71]. - The company may face penalties and operational disruptions due to failures in personal data protection, which could adversely affect its reputation and financial results[73]. - The company is subject to extensive environmental laws and regulations, with potential fines ranging from R$50 to R$50 million for non-compliance[128]. - Regulatory changes affecting the financial operations of the company could adversely impact profitability compared to competitors without such operations[120]. Economic Environment - The Brazilian economy's GDP contracted by 4.1% in 2020, followed by growth of 4.8% in 2021, 3.0% in 2022, and 2.9% in 2023[139]. - The unemployment rate in Brazil decreased from 9.3% on December 31, 2022, to 6.2% on December 31, 2024, but high interest rates (SELIC rate at 12.25%) continue to limit credit availability for consumers[116]. - The Brazilian General Price Index (IGP-M) recorded inflation of 6.24% in 2024, deflation of (3.2)% in 2023, and inflation of 5.5% in 2022[155]. - The depreciation of the real could lead to inflationary pressures, increased interest rates, and reduced consumer spending, adversely affecting the Brazilian economy[160]. Corporate Governance - The absence of a controlling shareholder may expose the company to hostile takeover attempts and conflicts among shareholders, potentially affecting corporate governance[82]. - The company's new board of directors was appointed in April 2023, consisting of a majority of independent members following the divestiture by Casino Group[225]. - The protections for minority shareholders in Brazil are less developed than in the U.S. or Europe, making enforcement of rights more challenging[203]. - Disputes involving Sendas must be resolved through arbitration in Brazil, which may discourage shareholders outside Brazil from bringing claims[202]. Strategic Initiatives - The company’s growth strategy includes opening new stores, which may require new distribution centers or expansion of existing ones[65]. - Sendas acquired 96.57% of Éxito for approximately R$9.5 billion, expanding operations into Colombia, Uruguay, and Argentina[211]. - The Extra Transaction involved converting up to 70 Extra Hiper stores into Assaí stores for nearly R$4.0 billion, with 66 stores converted by the end of 2024[217][219]. - Digital partnerships with last-mile delivery services expanded to over 70 cities, enhancing customer convenience and shopping experience[215][216]. Financial Instruments and Capital Management - On January 13, 2025, the company raised US$100.0 million (R$608 million) with a 3-year maturity for working capital reinforcement[230]. - A swap contract was entered into on January 13, 2025, to hedge against exchange rate fluctuations, with a cost of CDI + 1.22% per year[230]. - On March 18, 2025, the board approved a capital stock increase of R$184,074,731 through partial capitalization of the expansion reserve, raising total capital stock to R$1,455,769,805[233]. - The total number of common shares remains at 1,352,215,647 with no par value after the capital increase[233].

Core Insights - The article emphasizes the importance of in-depth research and insights for informed investment decisions in the Latin American equity market [1] Group 1 - The company has over 5 years of experience in equity analysis specifically focused on Latin America [1] - The research provided aims to assist clients in making informed investment decisions [1]