SAO PAULO (Reuters) – Brazilian food retailer Assai said on Thursday it now forecasts it will open about 10 new stores next year, half its previous estimate of about 20, according to a paper filing valuable.
Assai, which operates a chain of stores in a hybrid wholesale format, began slowing expected store openings last year as its management works to financially deleverage the company after aggressive expansion.
From opening 60 stores in 2022 to 27 in 2023 and a target number of approximately 15 stores this year. On Thursday, the company said it doesn’t expect to resume expansion until 2026, estimating about 20 stores to open.
Assai added that it sees its leverage – measured by net debt/EBITDA – at around 2.6 times by the end of 2025, while maintaining its target of less than 3.2 times this year.
Assai said the forecasts, which also include cash investments ranging from 1 billion reais ($176.92 million) to 1.2 billion reais for 2025, were mainly based on the recent interest rate hike in Brazil and changes in the local yield curve.
($1 = 5.6522 real)
