ASSA REACHES R$ 80.6 BILLION IN REVENUE AND REDUCES LEVERAGE IN 2024

Profit grows 8.3%, and the company surpasses its annual guidance

SO PAULO , Feb. 20, 2025 /PRNewswire/ -- Assa closed 2024 with gross revenue of R$ 80.6 billion, a 10.7% increase compared to the previous year. In 4Q24, revenue reached R$ 22 billion, up 9.4%. This growth reflects operational efficiency improvements, strong cash generation, and disciplined financial cost management, all of which contributed to higher profitability. Net profit after IFRS16 totaled R$ 769 million, an increase of 8.3%.

"In 2024, we surpassed the milestone of 300 stores and celebrated 50 years with outstanding results,"says Belmiro Gomes, CEO of Assa."We reduced leverage to 3.04x and remain committed to enhancing the customer shopping experience."The company opened 15 new stores, bringing its total to 302 units and strengthening its presence in strategic markets. Additionally, it completed the conversion of the 66 hypermarkets acquired in 2021. Another major achievement was leverage reduction, closing the year at 3.04x, surpassing the company's guidance. Net debt fell by R$ 0.6 billion in 4Q24, despite Brazil's high-interest rate environment, reinforcing the company's financial strength.

As part of its evolving business model, Assa ended 2024 with 618 service units, including 254 butcher shops, 191 deli sections, and 173 bakeries across its stores. Operational efficiency efforts led to EBITDA margin expansion:

• Annual: 5.7% pre-IFRS16 (+0.4 p.p.) and 7.5% post-IFRS16 (+0.4 p.p.), returning to pre-conversion levels.
• Quarterly: 6.4% pre-IFRS16 (+0.3 p.p.) and 8.1% post-IFRS16 (+0.3 p.p.).

Pre-IFRS16 LAIR surged 83%, reaching R$ 1.2 billion, underscoring the company's strong operational performance. For 2025, Assa remains focused on reducing leverage and executing disciplined expansion, with plans to open approximately 10 new stores and invest between R$ 1.0 billion and R$ 1.2 billion (CAPEX).

Photo - https://mma.prnewswire.com/media/2623612/Vila_Maria_Unit.jpg