By Brazil Stock Guide – Assaí (ASAI3) reported adjusted net income of R$ 347 million in the fourth quarter of 2025, a 26.8% decline compared with the same period a year earlier. The drop reflects the impact of higher interest rates and a one-off accounting impairment related to its financial services joint venture.
On a reported basis (pre-IFRS16), net income totaled R$ 78 million in the quarter, significantly lower due to a R$ 521 million impairment booked in operating expenses. The charge had no cash effect but weighed heavily on headline profit.
Revenue performance remained solid. Gross sales reached R$ 22.8 billion in 4Q25, up 3.4% year-on-year, supported by 0.9% same-store sales growth and a 2.1% increase in customer traffic. This came despite broad food deflation in key commodities such as rice, milk and sugar, which limited nominal growth.
Operating performance was resilient. Adjusted EBITDA rose 1.2% to R$ 1.3 billion, with a margin of 6.3%, only slightly below the prior year. The company maintained cost discipline even in a challenging environment marked by high household indebtedness and tighter credit.
The main pressure came from financial expenses. Net financial results totaled R$ 584 million in the quarter, a 46% increase year-on-year, reflecting Brazil’s elevated interest rates. In short, operations held up — but the cost of money significantly reduced bottom-line profitability.