Adjusted EBITDA: EBITDA adjusted for the income statement line item “other income and expenses” (comprising losses on disposals of assets, restructuring costs, income & expenses related to litigation, and tax credits recovered related to prior periods).
Adjusted EBITDA Margin: Adjusted EBITDA divided by net sales for the relevant period, expressed as a percentage.
Adjusted Net Income: Net Income, excluding Other Income and Expenses and the corresponding financial and income tax effect.
EBITDA: Net income (for the year or period) adjusted for “financial result, net,” “income tax and social contribution” and “depreciation and amortization.” EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin are not measures of financial performance under Brazilian GAAP or IFRS, and should not be considered as alternatives to net income or as measures of operating performance, operating cash flow or liquidity. EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin have no standardized meaning, and our definitions may not be comparable to those used by other companies.
Free Cash Flow: Net cash provided by our operating activities, less interest received from short-term investments, plus cash used in changes in judicial deposits and judicial freeze of deposits (and opposite), and unrealized interest income from marketable securities, less cash provided from the disposal of non-operational assets, less cash used in additions to property and equipment, and less cash used in additions to intangible assets.
Global Functions: Costs relating to our central functions and headquarters. These comprise the activities of (i) the cost of our holding divisions, (ii) certain expenses incurred in relation to certain support functions of our parent company that are allocated to segments in proportion to their sales, and (iii) cost allocations from our parent company, which are not specific to any segment.
GMV: Gross Merchandise Volume refers to all online sales (own sales + marketplace sales) as well as freight revenues. It excludes marketplace commissions but includes sales taxes.
Gross Profit Margin: Gross profit divided by net sales for the relevant period, expressed as a percentage.
Gross sales: Total sales revenue generated by our stores, gas stations, drugstores, and e-commerce platform.
Like for Like: LFL sales compare gross sales in the relevant period with those in the immediately preceding period based on gross sales provided by comparable stores, which are defined as stores that have been open and operating for at least twelve consecutive months and that were not subject to closure or renovation within that period. As petrol sales are very sensitive to market prices, they are excluded from the LFL computation. Other retail companies may calculate LFL sales differently from us, and therefore, our historical and future LFL sales performance may not be comparable with metrics used by other companies.
Net Income Margin: Net income for the year divided by net sales for the relevant period, expressed as a percentage.
Net Promoter Score (NPS): A management tool used to gauge the degree of loyalty customers have to a company. It works as an alternative to the traditional customer satisfaction survey.
Net sales: Gross sales adjusted for taxes levied on sales (in particular, PIS/COFINS and ICMS).
Other revenue: Comprises revenue from our Financial Solutions segment (including bank card fees and interest from consumer credit activities), shopping mall rentals, and commissions related to other services provided in the stores, fast checkout, and handling fees.