Ruben Couto's questions to Companhia Brasileira de Distribuicao SA (CBDBY) leadership • Q1 2025
Question
Ruben Couto asked about the significant gap between GPA's EBITDA development and its cash flow generation, questioning what levers the company will use to close this gap throughout the year.
Answer
Rafael Russowsky, an executive, explained the gap was influenced by the Easter calendar shift impacting both EBITDA and working capital. He highlighted that significant non-recurring expenses, such as tax settlements (BRL 225 million over 12 months) and legacy dismissal lawsuits (BRL 280 million over 12 months), are expected to decrease substantially. Russowsky also mentioned that the company is actively pursuing asset sales to further mitigate cash burn.