The following is a summary of the Sendas Distribuidora SA (ASAI) Q4 2023 Earnings Call Transcript:
Financial Performance:
Sendas Distribuidora SA reported a 16% growth in total in 2023 leading to a 60% overall growth across two years, representing an additional R$2.7 billion in Q4 sales.
Sales progression was at 3% at the end of Q4 2023, with significant market gain.
Operational cash generation reached R$4.6 billion in 2023.
Q4 2023 resulted in a net income of 1.9 with a total annual net income of 1.2%.
The company invested more than R$5 billion in 2023, adding to a total investment of around R$16 billion over the past three years.
Earnings reached R$736 million in Q4, leading to a full-year financial result of R$1.8 billion, an annual increase of over R$200 million and R$800 million respectively.
Quarter-end net income was R$3.3 million, with a profit margin of 1.9%.
Annual profit reached R$776 million with a margin of R$1.2.
Cash generation growth increased by R$453 million year-over-year to R$4.6 billion.
With financing costs of R$1.8 billion, the year-end net debt was R$13.1 billion with a leverage ratio of R$3.8.
Business Progress:
Sendas Distribuidora opened 27 new stores in 2023, augmenting to 288 stores and showing nearly 90% growth over the last three years.
Their regional expansion and customer service improvements catered to almost 50% penetration in certain regions.
The company showcased sustainability by reducing carbon emissions by 10% and increasing waste reuse.
Sendas Distribuidora plans to reduce their leverage in 2024 while maintaining operational efficiency.
Market penetration was achieved through offering new services and product lines, mainly to the wealthier customer segments.
The company plans to continue its strategic expansion while also exploring opportunities for in-store advertising.
After tripling in size over the three years, they have plans of intensifying their deleveraging process in 2024.
Sendas Distribuidora expects inflation rates of about 4-5% this year due to volatility in commodities, but remains positive due to an increase in Q4 sales.
Control over expenses, delivering a low-cost operation, and working capital management, particularly benefitting small entrepreneurs, are key in their strategic plans.
More details: Sendas Distributor IR
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