ASAI3

Assaí, the brand name under which Sendas Distribuidora S.A. operates, is a Brazilian company founded in 1974 with the opening of the first Assaí Atacadista store. The business originally focused on supplying so‑called small transformers, that is, professional customers who buy food and inputs for resale or preparation, such as bars, restaurants and snack bars. In 2007, the company had an equity stake acquired by Companhia Brasileira de Distribuição (GPA), controlled by the Casino Group, which completed the full acquisition of its capital in 2011. At the end of 2008, the chain had 28 stores in three states, a number that rose to 59 stores in 2011, already with a presence in more federal units. From 2011 onwards, the company began investing in a new store standard with a broader product assortment and infrastructure improvements such as covered parking, wi‑fi, air conditioning and natural lighting. The company’s shares started trading on B3 in 2021 under the ticker ASAI3, following a corporate reorganization that carved out the cash & carry business from the rest of GPA’s operations.

Assaí’s business model is based on the self‑service wholesale format, or cash & carry, combining characteristics of wholesale and food retail. The company operates exclusively in Brazil, selling food and non‑food products to transformers, users, resellers and end consumers through physical stores under the Assaí banner. In 2023, according to the Brazilian Association of Self‑Service Wholesalers (ABAAS), Assaí was the largest pure‑play operator in the self‑service wholesale segment in terms of consolidated gross revenue and the second‑largest retailer in the country. In the fiscal year ended December 31, 2024, all net operating revenue came from the cash & carry segment, which reached R$ 73.8 billion. The company adopts a lean cost structure, strong purchasing scale and decentralized logistics, combining high sales volumes, heavy customer traffic and a competitive pricing policy as the pillars of its economic model.

Assaí’s operations are organized into different store formats, with significant variation in sales area and usage profile. At the end of 2024, the company operated 302 stores spread across virtually the entire country, with a total sales area of more than 1.5 million square meters. Of this total, 29 stores had between 1,000 and 3,000 m² of sales area, a format more geared toward rapid restocking and frequent purchases; 106 stores had between 3,000 and 5,000 m², suited to large families in urban centers; and 167 stores were in the 5,000 to 9,000 m² range, aimed at higher‑volume purchases. The portfolio exceeds 9,000 items, including dry grocery, perishables, beverages, packaging, hygiene and cleaning products, among others, and more than 250 stores offer in‑house butchery services. The company also offers financial services in partnership with Financeira Itaú CBD (FIC), through the co‑branded Passaí credit card, which allows individuals to access wholesale prices under certain purchasing conditions and accounted for around 4.4% of gross sales in 2024.

Assaí’s geographic footprint is nationwide and has expanded rapidly over the past decade. In 2012, the company had 61 stores in six states and 182,000 m² of sales area. In 2024, the chain had 302 stores in 24 states and the Federal District, in addition to 12 distribution centers located in nine states. The highest concentration of units is in the Southeast region, but there is significant presence in the Northeast, Center‑West, North and South. The logistics model combines direct‑to‑store deliveries from suppliers, which account for approximately 73% of distributed volume, with about 27% supplied via distribution centers. These centers are used mainly for slower‑moving items, while stores are designed with large storage capacity to handle high volumes. The logistics network and capillarity in major urban centers and mid‑sized cities support the flow of more than 40 million customers per month in the stores, with strong growth in the number of transactions in recent years.

Assaí’s customer base is diversified and includes both legal entities and end consumers. The main groups include prepared‑food retailers such as restaurants, pizzerias and snack bars; institutional users, including schools, small businesses, religious institutions, hospitals and hotels; conventional retailers such as mom‑and‑pop groceries, neighborhood supermarkets and bars; as well as families and individual consumers seeking price advantages by purchasing in volume. The company is not dependent on concentrated customers: there is no single customer accounting for more than 10% of total net operating revenue. In addition to in‑store purchasing, Assaí is developing complementary channels such as telesales with in‑store pickup, aimed predominantly at businesses that make larger‑volume purchases and account for around 10% of sales, allowing direct negotiation of prices, terms and payment conditions.

Assaí’s strategy also involves digital initiatives and partnerships with last‑mile delivery platforms. Starting in 2021, the company began a digital expansion through agreements with third‑party delivery apps, enabling online purchases of items from its in‑store assortment. Partnerships have been established with platforms such as Cornershop, Rappi and iFood, with presence in dozens of cities and growing coverage across the chain’s stores. In these operations, the selection, picking and delivery of products are carried out by drivers associated with the partner platforms, while Assaí provides its assortment and store infrastructure. In parallel, the company invests in information technology for systems integration, improved governance and support for commercial operations, allocating significant amounts annually to technology projects, in addition to online and offline marketing campaigns targeting professional customers and end consumers.

From a regulatory standpoint, the self‑service wholesale business operated by Assaí is subject to a wide set of licenses and permits required for the construction, installation and operation of stores and distribution centers. Each unit requires a set of authorizations issued by different agencies, including environmental, sanitary, operating, safety and engineering licenses. Environmental licensing follows the guidelines of the National Environmental Policy, which determines, depending on the potential impact of the activity, the need for a Preliminary License, Installation License and Operating License at the federal, state or municipal level. In addition, there are specific requirements related to solid waste management, vegetation suppression, use of water resources and compliance with the Forest Code in permanent preservation areas. Stores also depend on municipal permits, sanitary licenses issued by local health authorities, authorizations from the Fire Department and specific registrations with the Ministry of Agriculture, Livestock and Supply, among others.

Environmental, social and governance issues are also relevant to Assaí’s operations. The company must comply with regulations related to proper waste handling and disposal, in order to avoid soil and water contamination and administrative or criminal penalties. Hiring licensed companies for the transportation, treatment and final disposal of waste is part of this compliance framework. In the social and people‑management sphere, Assaí has been recognized by independent organizations such as Great Place to Work (GPTW), which ranked it among the best food retail companies to work for in Brazil among organizations with more than 10,000 employees. In 2024, the company had more than 86,000 employees in stores, distribution centers and administrative structures, reinforcing its position as a major employer in the food retail sector. Corporate governance is underpinned by its listing on B3’s Novo Mercado segment, which imposes specific transparency and ownership‑structure standards, and by the trading of its common shares under the ticker ASAI3, representing the gateway for investors to the company’s equity.