Sendas Distribuidora S.A. American Depositary Share (each representing five common shares)

ASAI

Market cap $1.26B

I recommend holding Sendas Distribuidora shares, due to improving results but challenging Brazilian macroeconomic conditions and high interest rates. Sendas Distribuidora's revenue grew 9.5% y/y, driven by new store openings and food inflation, with improved margins and profitability. The company's deleveraging efforts and pragmatic 2025 strategy are positive, but the high Brazilian interest rate curve poses risks.

Sendas Distribuidora S.A. (OTC:ASAIY) Q4 2024 Results Conference Call February 20, 2025 9:00 AM ET Company Participants Belmiro de Gomes - Chief Executive Officer Vitor Faga - Vice President-Finances and Investor Relations Sandra Vicari - Vice President-Commercial and Logistics Anderson Castilho - Vice President of Operations Conference Call Participants Danniela Eiger - XP Felipe Rached - Goldman Sachs Joseph Giordano - JPMorgan João Soares - Citi Ruben Couto - Santander Operator Welcome to the earnings call for the Fourth Quarter of 2024 at Assaí Atacadista.

SÃO PAULO, Dec. 19, 2024 /PRNewswire/ -- Sendas Distribuidora S.A. (B3: ASAI3; NYSE: ASAI) ("Company") announces that the Company's Board of Directors approved at the meeting held on this date, the intention of the Company to proceed with the voluntary delisting of its American Depositary Shares ("ADSs"), each representing five common shares of the Company and represented by American Depositary Receipts ("ADRs"), from the New York Stock Exchange ("NYSE") ("Delisting"), including the change of the Company's ADR program to Level 1, in order to enable investors to maintain ownership of their ADSs, which may be traded on over-the-counter markets after the Delisting, as applicable, and deregistration with the United States Securities and Exchange Commission ("SEC"), once the Company complies with the applicable deregistration requirements.

Sendas Distribuidora S.A. (NYSE:ASAI ) Q3 2024 Earnings Conference Call November 8, 2024 9:00 AM ET Company Participants Gabrielle Helú - Investor Relations Director Belmiro de Gomes - Chief Executive Officer Vitor Fagá - Vice President-Finances and Investor Relations Sandra Vicari - Vice President-Commercial and Logistics Wlamir dos Anjos - Commercial Vice President and Logistics Conference Call Participants Joseph Giordano - JPMorgan João Pedro Soares - Citi Danniela Eiger - XP Eric Huang - Santander Luiz Felipe Guanais - BTG Irma Sgarz - Goldman Sachs Vinicius Strano - UBS Daniela Bretthauer - HSBC Operator Good afternoon and thank you for waiting.

Despite improved margins from cost control and store maturation, the company's high leverage remains a concern, impacting profitability. Valuation shows a potential downside of 6.7%, making the shares unattractive; however, a potential merger with Grupo Mateus could alter the outlook. Overall, advise waiting for further deleveraging and developments regarding the merger before making any changes to the investment position.

Sendas Distribuidora S.A. (NYSE:ASAI ) Q2 2024 Earnings Conference Call August 9, 2024 10:00 AM ET Company Participants Gabrielle Helú - IR Director Belmiro Gomes - CEO Vitor Fagá - VP-Finances and IR Sandra Vicari - VP-Commercial and Logistics Conference Call Participants João Pedro Soares - Citi Clara Lustosa - Itau BBA Danniela Eiger - XP Eric Huang - Santander Luiz Guanais - BTG Pactual Felipe Rached - Goldman Sachs Vinicius Strano - UBS Bob Ford - Bank of America Nicolas Larrain - JPMorgan Andrew Ruben - Morgan Stanley Operator Good morning, everyone, and thank you for waiting.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Investors interested in stocks from the Consumer Products - Discretionary sector have probably already heard of Sendas Distribuidora S.A. Sponsored ADR (ASAI) and VIZIO Holding Corp. (VZIO).

Assai is the second largest grocery player in Brazil's cash and carry segment, with significant growth potential. The company has been aggressively increasing its store count and expects continued organic store growth. Profitability has been impacted by investments in store conversions and store openings, but is expected to improve as the stores mature and SG&A costs decrease.

Sendas Distribuidora S.A. (ASAI) Q1 2024 Earnings Call Transcript