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]