Group Pão de Açúcar released its balance for the first quarter of 2025 (Image: Disclosure)
THE Pão de Açúcar Group (PCAR3), or just GPAreported a consolidated net loss of R $ 169 million in the first quarter of 2025 (1T25), 74.4% lower than the damage reported in the same period in 2024, shows results report released on Monday (5).
The figure considers results of continued and discontinued operations in 2021 and 2024. Consensus gathered by Bloomberg It pointed to a net loss of R $ 189 million from January to March this year.
The balance the 1T25 showed that the EBITDA (profits before interest, taxes, depreciation and amortization) adjustedwhich measures operational performance, totaled R $ 409 million, a 9.9% increase in the annual comparison.
THE Ebitda Margin adjusted It was 8.6%, improvement of 0.5 percentage point compared to the same period by 2024.
Already the net revenue He added R $ 4.7 billion, a 3.9% increase compared to the first quarter of 2024.
In an interview with Money Timesthe CEO Marcelo Pimentel stressed that, more than an advance in reducing the damage, the balance shows the evolution of the company after the process of turnaround (strategic restructuring process) performed between 2022 and 2024.
Among the reported numbers, the executive highlights the gain of Market Share (market share) in proximity format, which has the flags Minute Pão de Açúcar and Mini Extra Market. According to the balance, this format reached 63% participation in São Paulo.
Pimentel also emphasizes the growth of sales in online, advancement in Ebitda, consolidation of penetration in premium customers and the opening of more than 10 stores of the proximity concept.
According to him, even in the current challenging macroeconomic environment, with the high level of the basic interest rate (Selic), the company is anchored in the recovery of Pão de Açúcar brand, search for the premium client and the expansion of the digital channel and the proximity.
“This combination has guaranteed the assertiveness of the company’s strategy. I venture to say that the first trimester of Sugar Loaf will probably be one of the best – if not the best – result of Brazilian food retail.”
Other Balance Numbers
In the first quarter of this year, total GPA sales reached R $ 5.1 billion, with growth of 4.6%. The quarter performance was impacted by adverse seasonal effects on the annual comparison, due to Easter holiday displacement to the second quarter of the year and one day less in February.
The balance points out that, adjusted sales for the concept of same stores (SSS), excluding the calendar impact, there was an increase of 7.3%.
In the quarter, e-commerce registered significant performance, with total sales of R $ 587.9 million, which represents a growth of 16.9% over the same period of 2024.
The company’s gross margin reached 27.6%, an advance of 0.4 percentage point by annual comparison, driven by improvements in all flags.
Focus on debt reduction and cash generation
The GPA CEO reinforced the retailer’s commitment to pursue the reduction of his leverage.
Leverage is measured by the relationship net debt about EBITDA. The higher the number, the greater the financial risk. The 1T25 report shows that the GPA has the indicator 2.8 times.
Pimentel recalls that in 2022 the GPA leverage reached 10 times. The company’s priority, according to the executive, is to continue this reduction, while promoting operational improvement, also aiming at cash generation.
Despite recognizing the challenging scenario created by interest, Pimentel says that the current level, in the 14%, is within what the retailer has prepared to deal this year.
“We prepared for a Selic in the levels that are taking place. The GPA has planned since the beginning of the year to live this challenging year,” he said.
According to him, the company will continue with its strategy focused on the premium client, which helps in this scenario, as it has greater and more resilient acquisition power and prioritizes the quality of the service.
“We believe that, at this moment, food retail is a little more resilient. Our strategy of offering the best brands and the best productions, as well as strengthening our own brand with great value for money and quality, becomes very important.”
See the GPA balance in full
Source: Moneytimes
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