Assaí Next Steps After Converting Extra . Stores

Assaí Next Steps After Converting Extra . Stores

Assaí’s (ASAI3) organic expansion should close the group in 2022 with revenue of more than R$60 billion, according to the company’s chief financial officer Daniela Sabbag. Not to mention the conversion of Extra Stores to Assaí, a deal that closed in October 2021 with Grupo Pão de Açúcar.

“We will convert an additional 20 stores in the third quarter, another 20 by December and from 20 to 30 in 2023,” the executive said. The agreement with Pão de Açúcar provides for the conversion of up to 71 additional units in Assaí – 61 has already been confirmed. These stores are in the main capitals, in the main centers, they are stores that have a prime location. We intend to triple their revenue,” he said.

I participated in Inside the resultswhich is the project in which Infomoney Interviews with CEOs and directors of important companies traded in Brazil or abroad. Executives talk about budget and forecasts for the second quarter of 2022. To catch up on all the interviews in the series, Subscribe to InfoMoney YouTube channel.

Also read: How an increase in interest rates affects the recycling of registry assets in the medium term, according to the CEO

But the group was not harmed by the increase in Cilic’s rate. “We have a context in which the interest rate has risen four times on an annual basis,” Daniela said, showing that Assaí’s financial result in the first half of 2022 was negative R$630 million, compared to a negative R$145 million. a year ago. In the second quarter, the negative figure was 328 million R$, compared to 145 million R$ between April and June 2021.

“Of the annual growth, we attribute 80% of it to the interest rate. 20% of this increase comes from the company’s high indebtedness, which is a miraculous plan to confront this project, which is one of the company’s most important projects, which is the transformation of 70 acquired hypermarkets. [Extra] At the end of 2021. According to Daniela, a decrease in debt is expected in 2023.

The CEO also talked about helping increase Auxílio Brasil to R$600 for the group’s balance sheet. “It’s still very recent, but yeah, actually, when there were higher payments, it somehow made us have a better sales moment than it was in our budget, so it’s likely [foi por causa do Auxílio Brasil]. We joke that the money is not sealed, so there is no way for us to know exactly where it is coming from, but there is an expectation,” he said.

“Imagine it [o Auxílio Brasil em R$ 600] You will make an interesting contribution. Especially because when we read about the topic, see surveys and interviews, everyone ends up dedicating an important part [do benefício] nutrition. So, we have this expectation, as it was in the past [com o Auxílio Emergencial na pandemia de Covid]Which also boosted our sales, we hope this also contributes very positively to our results.”

Gabriel Helou, Assaí’s Director of Investor Relations, spoke about the group’s digital expansion. “We’ve been in partnerships with delivery apps for nine months and they’ve already given encouraging results. Today, the stores we run are on the sidelines and serving a public that may not be willing to pay for this extra service. In the stores we identify are closest to consumers paying for that convenience, We’ve seen more penetration.”

According to Helú, sales through delivery partners do not reach 1% of group sales, but “there is a great potential for Extra conversions.” “We have another social class out there that is willing to pay because at the end of the day, logistics in Brazil and food logistics are very expensive,” he said.

The CEO also said that it is important to digitize the business for efficiency. Assaí’s own application should focus on defining a customer consumption profile and delivering targeted products and personalized offers. The platform is still being tested.

Daniela and Gabriel also commented on regional competition, shareholder compensation, the potential for new mergers and acquisitions (mergers and acquisitions), ESG policies (environmental, sustainability and governance) and payment facilitation in areas where consumer income is most affected, in addition to renegotiation with suppliers. Watch the live broadcast above, or click here.

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