This article first appeared on GuruFocus .
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Gross Margin:27.7%, an increase of 50 basis points year over year.
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Adjusted EBITDA Margin:10%, an expansion of 40 basis points.
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Same-Store Sales Growth:2.7% overall; Bonjasuka grew 1.8%, Extra Market advanced 4%.
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Digital Sales:Nearly BRL700 million, up 6.6% over 4Q24.
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Net Loss from Continuing Activities:BRL523 million, with BRL175 million excluding non-recurring effects.
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Operating Free Cash Flow:BRL699 million over the past 12 months.
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SG&A Expenses:Decreased by 2.5%, now 18.3% of net revenues.
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CapEx:BRL612 million invested over the past 12 months, with a planned reduction to BRL300-350 million for 2026.
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Net Financial Income:BRL920 million, an increase of BRL325 million year over year.
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Financial Leverage:Pre-IFR 16 leverage at 2.4 times, up from 1.6 times the previous year.
Release Date: February 25, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Companhia Brasileira De Distribuicao ( CBDBY ) recorded a gross margin of 27.6% in 2025, the highest in the segment.
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The company achieved a 2.7% growth in same-store sales, with notable performance in premium segments.
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Adjusted EBITDA margin reached 10%, reflecting consistent progress in operational efficiency.
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Nominal SG&A decreased by 2.5%, highlighting the company's ability to capture efficiencies despite inflation pressures.
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The company generated BRL699 million in operating free cash flow after CapEx over the past 12 months, a significant improvement from the previous period.
Negative Points
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Companhia Brasileira De Distribuicao ( CBDBY ) reported a net loss of BRL523 million in the quarter, largely due to non-recurring effects.
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The company's expense structure remains high, indicating significant room for improvement in efficiency.
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Net debt increased by BRL686.025 million, leading to a financial leverage of 2.4 times, up from 1.6 times the previous year.
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The company faces significant upcoming debt maturities, which are being addressed as a priority.
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Approximately 20-25% of stores are underperforming, requiring focused efforts to improve their performance.
Q & A Highlights
Q: What was the driver for the increase in suppliers, and how sustainable is that looking into the future? Also, how do you see the impact of GLP-1 in your basket? A: The increase in suppliers is aligned with last year's revenue, especially after discontinuing the Allies program. The average term for suppliers comes from specific negotiations related to Q4. We expect a more significant cash consumption in Q1 due to seasonality. Regarding GLP-1, we see a trend towards healthier products, which aligns with our focus on health and well-being. This trend may expedite or increase sales in the short term. (Rodrigo Manso, Investor Relations Director)
Q: Can you provide more details on the efficiency plan and how quickly you expect to capture new efficiencies? Also, how are you addressing liquidity issues? A: The efficiency plan includes actions like infrastructure adjustments and CapEx decisions, aiming to halve last year's BRL700 million expenditure. We are optimizing contracts and reducing unnecessary expenses. Regarding liquidity, we are actively negotiating with creditors and focusing on operational cash generation. Our strategy remains active in seeking tax agreements to manage liquidity effectively. (Alexandre Santoro, CEO)
Q: Considering store closures, do you expect further optimization in 2026? What are the non-recurring elements in your expense reduction plan? A: We constantly analyze store performance and aim to avoid closures. We are testing reduced assortments in proximity stores to improve logistics and profitability. The efficiency plan includes contract renegotiations and organizational restructuring, with non-recurring effects expected to impact results throughout 2026. (Alexandre Santoro, CEO)
Q: Are there any plans to sell underperforming branches, and how are sales performing in the first months of the year? A: We are prioritizing investments in key regions like Sao Paulo, Rio, and DF. We are reassessing opportunities and focusing on improving store performance. Sales have shown improvement at the beginning of the year, with our premium segment standing out. We aim to capture gains above the overall market. (Alexandre Santoro, CEO)
Q: What is the B2B profitability, and how does it impact your gross margin? Also, how do you expect surety bond renewals to affect financial costs in 2026? A: B2B profitability was close to zero, leading to the discontinuation of the Allies program. The financial impact of surety bond renewals will be smaller in 2026 compared to 2025 due to fewer renewals and active cost reduction initiatives. We anticipate a reduction in financial costs through collateral swaps and replacements. (Rodrigo Manso, Investor Relations Director)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
