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 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]