Assaí reports fall in profit, but exceeds forecasts in the 3rd quarter

Assaí had a drop in profit in the third quarter, under pressure from higher operating and financial expenses, but exceeded profit forecasts, with reinforcement of new stores and increase in comparable sales, even with the recent deflation in the country.

The cash and carry chain controlled by French Casino also raised the forecast of conversions of ex-Extra stores to be opened in 2022, from 40 to 45.

Assaí opened this Thursday (20) the season for the release of balance sheets from July to September of companies listed on the B3, reporting a net profit of R$ 281 million for the period, a drop of 47.8% compared to the same stage in 2021. The profit, however, came above the average forecast of analysts consulted by Refinitiv, of R$ 246 million.

Gross revenue for the quarter, of R$15.2 billion, was 30.1% higher year-on-year, reflecting the contribution of 44 stores opened in the 12 months through September (14 conversions), and a 9% increase in sales in the same comparison bases.

Assaí’s operating result from July to September measured by adjusted earnings before taxes, interest, depreciation and amortization (Ebitda) was R$1.011 billion, up 20.6% year-on-year and almost in line with analysts’ forecasts. heard by Refinitiv, of R$ 996 million. The Ebitda margin, however, retreated 0.5 percentage point, to 7.3%.

Assaí’s shares had strong volatility this week, in the face of market rumors involving divestments of its controller, Casino, which it denied the day before.

General expenses grew 30.2% year-on-year to R$1.27 billion, net of pre-operating expenses with store expansion and conversion.

Assaí stated that it now expects to complete the conversion of 45 of the 70 Extra stores purchased from GPA last year in 2022. The previous forecast was to convert 40 units by December. Also including the 13 organic openings, Assaí expects to close this year with 58 new stores.