Investment Thesis - Sendas Distribuidora's Q2 results were mixed, showing an 11.8% revenue growth but a slowdown in same-store sales growth, leading to a cautious recommendation to hold shares [2][17]. Financial Performance - The company reported a net revenue of BRL 17.8 billion ($3.2 billion) for Q2, reflecting an annual increase of 11.8% due to an expansion strategy that included the opening of 24 stores, 9 of which were renovated [4][5]. - Same-store sales growth was only 2.9%, a decrease of 0.5% compared to Q1 2024, and significantly lower than competitor Atacadão's 7.4% year-over-year growth [5][6]. - Gross margin improved to 16.5%, up from 16.2% year-over-year, while adjusted EBITDA increased by 18.4% to BRL 965 million [7][6]. Cost Management - The company achieved gross margin and adjusted EBITDA expansion through strict cost and expense control, with no promotional campaigns during the quarter [6][7]. Debt and Leverage - Sendas Distribuidora reduced its leverage to 3.6x EBITDA from 4.25x in Q2 2023, with net debt reaching BRL 13.9 billion ($2.48 billion) [8][10]. - The company aims to further deleverage to below 1x EBITDA, which is seen as a potential trigger for share price increases [10]. Net Income - Net income fell by 21% year-over-year to BRL 123 million ($22 million), impacted by higher financial expenses and accounting adjustments [11][12]. Valuation - The P/E comparative evaluation indicates a P/E of 13.3x for Sendas Distribuidora, suggesting a downside of 6.7% for its shares based on an average P/E of 12.4x among competitors [14][15]. Market Rumors - There are ongoing rumors regarding a potential merger between Sendas Distribuidora and Grupo Mateus, which could significantly impact the market perception and future performance of the company [16][17].

Financial Data and Key Metrics Changes - The company reported an EBITDA of R$965 million, an 18% increase compared to the previous year, driven by sales growth and margin expansion [14][23][24] - Net income for the semester increased to R$258 million, reflecting a significant growth compared to the previous year [26] - The leverage ratio improved to 4.25x, a reduction of 0.6x compared to the previous year [29] Business Line Data and Key Metrics Changes - Same-store sales growth was close to 3%, with overall growth of 11% year-over-year [13] - The company opened 80 new services in existing stores, contributing to customer attraction [12] - The gross profit margin remained stable at 16.5% for the second quarter [19] Market Data and Key Metrics Changes - The company welcomed over 2 million new monthly customers, reaching a total of 79 million customers [8] - The company experienced a significant increase in customer traffic, being the most present in Brazilian households [9] - The competitive environment remains challenging, with pressure on consumer purchasing power due to high debt levels and interest rates [9][10] Company Strategy and Development Direction - The company aims to preserve cash positions while focusing on store maturity and maintaining competitiveness [10] - Expansion plans include opening 15 new stores in 2024 and 20 in 2025, with a focus on organic growth [46] - The company is committed to enhancing customer loyalty through strong marketing campaigns, including a significant 50th-anniversary campaign [37][39] Management's Comments on Operating Environment and Future Outlook - Management noted that the second quarter was slightly below expectations but anticipates a more positive second half of the year [45] - The company is closely monitoring inflation and its impact on consumer behavior, with expectations of stability in the market [58] - Management emphasized the importance of maintaining a balance between sales growth and margin recovery [44] Other Important Information - The company generated R$7.6 billion in operational cash over the past two years, funding 88% of its investments through cash generation [27][28] - The sustainability strategy focuses on efficient operations, community development, and ethical practices, with recognition for diversity and leadership initiatives [34][35] Q&A Session Summary Question: Competitive environment and growth dynamics - Management acknowledged shifts in the market and the need for tailored services in different regions, with expectations for a more positive second semester [42][45] Question: Same-store sales performance - Management indicated that while the second quarter was slightly below expectations, they expect improvements in the third quarter [48][62] Question: Food inflation dynamics - Management noted that while there are month-to-month variations, overall stability is expected, with attention to external factors like currency fluctuations [58][59] Question: Working capital dynamics - Management clarified that working capital behavior is expected to remain consistent, with a cash cycle of about five days [52][53]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Sendas Distribuidora (ASAI) as a strong candidate for value investors due to its favorable metrics and Zacks Rank [1][2][3] Company Metrics - Sendas Distribuidora (ASAI) has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [2] - ASAI's PEG ratio is 0.31, which is lower than the industry's average PEG of 0.39, suggesting it may be undervalued [2] - The stock's P/B ratio is 2.91, significantly lower than the industry's average P/B of 6.17, further indicating attractiveness [2] Historical Performance - Over the past year, ASAI's PEG ratio has fluctuated between a high of 1.49 and a low of 0.27, with a median of 0.63 [2] - ASAI's P/B ratio has ranged from a high of 4.68 to a low of 2.50, with a median of 3.97 over the past 52 weeks [2]

Core Insights - Investors are evaluating Sendas Distribuidora S.A. Sponsored ADR (ASAI) and VIZIO Holding Corp. (VZIO) for potential undervalued stock opportunities [1] - ASAI has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while VZIO has a Zacks Rank of 5 (Strong Sell) [1] Valuation Metrics - ASAI has a forward P/E ratio of 17.62, significantly lower than VZIO's forward P/E of 111.05 [2] - ASAI's PEG ratio is 0.44, while VZIO's PEG ratio is 4.44, indicating ASAI's better valuation relative to its expected earnings growth [2] - ASAI's P/B ratio is 2.91 compared to VZIO's P/B of 4.80, further supporting ASAI's valuation advantage [2] Value Grades - ASAI has a Value grade of A, while VIZIO has a Value grade of F, highlighting ASAI's superior valuation metrics and earnings outlook [3]

EARNINGS RESULTS 1ST QUARTER 2024 APRIL 25TH , 2024 REVENUE: R$18.8 BILLION, WITH INCREASE IN TICKETS AND ACCELERATED ‘SAME-STORE’ SALES Operational leverage results in +90bps of expansion in EBITDA Mg. Pre-IFRS 16 +4 NEW STORES IN 1Q24 SALES growth driven by the maturation of 28 stores opened in the last 12 months expansion and performance of stores with more • Openings 1Q24: Vila Maria (SP Capital), Cidade than 12 months Tiradentes (SP Capital), 2nd store in Macapá (AP) • Revenue: R$ 18.8 bi (+14%) and Cu ...

Financial Data and Key Metrics Changes - The company reported R$18.8 billion in revenue, representing a 14% growth compared to the previous year [13] - EBITDA margin reached 38%, returning to pre-IFRS levels, indicating a significant recovery in profitability [12][21] - Net income increased by 19%, driven by improved operational efficiency and store maturity [25][26] Business Line Data and Key Metrics Changes - The company opened 28 new stores, contributing to a total of 293 stores in operation, with plans to exceed 300 by year-end [10][11] - The conversion project has shown positive results, with new stores achieving an average sale of R$18.2 million, higher than market averages [13][16] - Gross profit increased from R$1 billion in 2019 to R$2.8 billion in the first quarter, with gross margin rising from 15.3% to 16.3% [17] Market Data and Key Metrics Changes - The company has increased its market share in the same-store category, demonstrating effective strategies in a competitive environment [13] - The competitive landscape in São Paulo remains challenging, with the company maintaining its position as the largest player in the region [45][46] Company Strategy and Development Direction - The company aims to be the best cost option for both B2C and B2B customers, focusing on expanding into new markets and social levels [11] - There is a strong emphasis on sustainability and community engagement, with significant investments in employee development and environmental initiatives [31][34] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding consumer behavior, noting that while unemployment rates are dropping, debt levels remain high, impacting purchasing power [39][40] - The company anticipates food inflation to be around 3% to 4% in 2024, with expectations for a gradual recovery in the market [40] Other Important Information - The company has successfully reduced its net debt-to-EBITDA ratio from 3.5 to below 3.2, reflecting improved cash generation and operational efficiency [14][29] - Significant cash generation of R$4.9 billion over the last 12 months, indicating strong operational performance [27] Q&A Session Summary Question: Competitive environment in São Paulo - Management noted an increase in ICMS rates affecting net revenue correlation and highlighted the company's strong position despite increased competition [44][46] Question: Volume growth and pricing dynamics - Management acknowledged a smaller contribution from volume growth and indicated that inflationary pressures were more significant in the first quarter [50] Question: B2B customer dynamics and restocking - Management indicated that B2B customers are not expected to stock up significantly due to stable inflation expectations [56] Question: Gross margin and EBITDA margin expectations - Management expressed a focus on maintaining margins amid competitive pressures, with no significant improvements expected in the near term [63] Question: Store maturity and app functionalities - Management discussed the importance of store maturity and the impact of the Meu Assaà app on transaction frequency and size [72]

As filed with the Securities and Exchange Commission on April 23, 2024. Title of Each Class Trading Symbol Name of Each Exchange on which Registered Common Shares, without par value ASAI New York Stock Exchange American Depositary Share, each representing five common shares New York Stock Exchange UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO S ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION _____________________ _____________________ Washington, D.C. 20549 FORM 6-K Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of April 2024 Commission File Number: 001-39928 Sendas Distribuidora S.A. (Exact Name as Specified in its Charter) Sendas Distributor S.A. (Translation of registrant's name into English) Avenida Ayrton Senna, No. 6,000, Lote 2, Pal 48959, Anexo A Jacarepaguá 22775-00 ...

Financial Data and Key Metrics Changes - The company reported a 16% growth in total sales for 2023, with a significant increase of R$2.7 billion in sales during the fourth quarter [7][8][17] - The net income for the fourth quarter reached R$736 million, with a margin of 1.9%, while the full year profit was R$776 million, representing a margin of 1.2% [23][26] - Operational cash generation for 2023 was R$4.6 billion, an increase of R$453 million year-over-year [26][27] Business Line Data and Key Metrics Changes - The company opened 27 new stores in 2023, including 12 in the fourth quarter, bringing the total to 288 stores [8][9] - The number of tickets sold in the fourth quarter was 79 million, totaling 290 million for the year, indicating strong customer flow [11][12] Market Data and Key Metrics Changes - The company experienced a market share gain in the fourth quarter, with a 3% increase in sales volumes [9][10] - The company reported a stable inflation environment, with household inflation at 0.50% for the year [7] Company Strategy and Development Direction - The company is focusing on a conversion project to enhance its store network and customer base, aiming for a strong presence in mid and high-income regions [12][35] - The strategy includes improving service levels and expanding product offerings, particularly in butchery and bakery services [12][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the beginning of 2024, expecting a positive sales environment influenced by inflation and improved stock levels among B2B customers [40][41] - The company anticipates a stable gross margin moving forward, despite challenges in the competitive landscape [48][62] Other Important Information - The company has made significant strides in sustainability, achieving a 10% reduction in emissions and delivering over 480 tons of food to social organizations [32][33] - The company plans to reduce its investment levels in 2024, with only 15 new stores expected, which will aid in deleveraging efforts [35][36] Q&A Session Summary Question: Sales performance at the beginning of the year and expectations for B2B stock levels - Management noted a positive start to the year, with expectations of 4% to 5% inflation impacting sales positively, while B2B customers are expected to maintain cautious stock levels [40][41] Question: Drivers behind the drop in gross margin in Q4 - Management explained that the drop in gross margin was due to operational efficiency efforts and the impact of new store openings, with expectations for stable margins moving forward [46][48] Question: CapEx initiatives and expense management - Management confirmed ongoing initiatives to reduce CapEx and maintain expense control, emphasizing the importance of operational efficiency [49][50] Question: Performance of organic vs. conversion stores - Management indicated that while cannibalization was expected, the legacy stores remain stable, and the conversion project is benefiting the overall store network [55][56] Question: Competitive environment and growth expectations - Management highlighted the unique value proposition of the company in the competitive cash & carry market, with expectations for continued growth driven by volume rather than inflation [60][62]

Core Viewpoint - Investors are evaluating Sendas Distribuidora S.A. (ASAI) and VIZIO Holding Corp. (VZIO) for potential undervalued stock opportunities, with ASAI currently showing stronger metrics and a better outlook for value investors [1][2]. Group 1: Company Rankings and Earnings Outlook - ASAI has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while VZIO has a Zacks Rank of 3 (Hold) [2]. - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, suggesting ASAI is likely experiencing a more favorable earnings outlook [2]. Group 2: Valuation Metrics - ASAI has a forward P/E ratio of 13.85, significantly lower than VZIO's forward P/E of 50.65, indicating ASAI may be undervalued [3]. - ASAI's PEG ratio is 0.66, compared to VZIO's PEG ratio of 2.03, suggesting ASAI has better growth prospects relative to its valuation [3]. - ASAI's P/B ratio is 4.04, while VZIO's P/B ratio is 4.56, further indicating ASAI's more attractive valuation metrics [3]. Group 3: Overall Value Assessment - ASAI holds a Value grade of A, whereas VZIO has a Value grade of D, reinforcing the conclusion that ASAI is the superior option for value investors at this time [3].