Assaí (ASAI3) profit reached R$527 million in Q421, up 76% – Money Times

a Say (ASAI3) recorded a growth of 76.3% in net income for the fourth quarter of 2021 compared to the same period in 2020, reaching R$527 million, according to the report issued by the company on Monday (21).

In 2021, profits amounted to R$1.6 billion, an increase of 60.5% over the previous year.

The result was affected by the introduction of tax exemptions:

(i) R$216 million (175 million R$ in net revenue and 41 million R$ from cash restatement) referring to the unconstitutionality of including IMIS in the basis of the MIS and COFINS account; And the
(2) R$85 million (R$81 million in income tax and social contribution and R$4 million in the financial result, resulting from the cash restatement) referring to the unconstitutionality of taxes on the IRPJ and social contribution on net income (CSLL) on the SELIC rate charged to the taxpayer in repeat unpaid tax.

In the fourth quarter, Assaí recognized credits of R$ 241 million referring to investment subsidies, which, as required by law, are excluded from the basis of the IRPJ and CSLL calculation of the amount formed in the tax incentive reserve ( R$709 million).

As a result, the total impact of tax credits on annual net income was R$470 million.

sales

The company’s net revenue reached a record R$11.5 billion in the first quarter, which represents an 8.1% growth year-over-year, buoyed by the performance of stores opened in the past 12 months (+11%) and acceleration of openings. right on time.

The SSS (Same Store Sales) fell 3.1% in the quarter due to the strong base comparison (+19.4% in the previous year) and lower purchasing power of Brazilians in a higher inflation scenario.

In the year, total net revenue was R$41.8 billion, an increase of 16.5% over R$35.9 billion reported in 2020. According to Assaí, the advance is explained by:

(1) Strong organic expansion performance (+12.1%), due to rapid maturity of stores opened in the last 12 months;
(2) an increase in SSS (+4.8%), despite the high comparison base (+14% in 2020);
(3) a successful business strategy, adapting the assortment to the needs and preferences of each region, as well as the challenging macroeconomic and sanitation context; And the
(4) The gradual return of B2B generics to stores with the development of vaccination in the second half of the year, although with caution given the progression of the epidemic in Brazil.

In the fourth quarter, Assaí reached an adjusted Ebitda (earnings before interest, tax, depreciation, and amortization) of R$911 million, an increase of 3.6% year-over-year. From January to December 2021, the result increased by 23.1% and totaled R$3.3 billion.

Expansion of warehouses

Assaí finished 2021 with 28 openings, 24 of which were membership, and four conversions from other formats, for a total of 212 stores in operation.

For 2022, the company expects to open approximately 50 new stores, including the first wave of transfers from additional supermarkets (about 40), with openings in the second half of the year.