Empreendimentos Pague Menos (PGMN3) investor relations material

Executive summary

• Achieved 14.4% year-over-year gross revenue growth in Q1 2026, with 13% same-store sales growth, marking the ninth consecutive quarter of double-digit same-store sales increases and outpacing inflation by over 3x.

• Net income reached BRL 55.6 million, over four times higher than Q1 2025, with net margin expanding by 0.9 percentage point.

• National market share increased to 6.7%, with strong gains in the North and Northeast regions.

• Digital channels accounted for 22.2% of sales, with omnichannel sales up 43.7% year-over-year.

• Active customer base reached 22.4 million (+3.6% YoY), driven by loyalty and continuous care initiatives.

Financial highlights

• Gross margin improved by up to 0.8 percentage point year-over-year to 29.5%, aided by better commercial conditions and a one-off margin recomposition effect.

• Adjusted EBITDA rose 36.1% year-over-year to BRL 204.7 million, with margin up 0.8 percentage point to 4.9%.

• Earnings per share hit an all-time high of BRL 0.50 (LTM), with adjusted net income up over 320% year-over-year.

• Net debt/EBITDA improved to 1.9x, reflecting deleveraging and improved capital allocation.

• ROIC reached 21.2%, up 6.8 percentage points year-over-year.

Outlook and guidance

• Plans to accelerate store openings after a slow Q1, with a focus on disciplined capital allocation and continued deleveraging.

• Gross margin expected to normalize in coming quarters, with full-year margin slightly lower than 2025 but EBITDA margin improvement anticipated.

• Continued focus on digital expansion, continuous care customer engagement, and operational efficiency to drive further margin and profitability gains.

• Ongoing initiatives in digital, assortment, and customer service are expected to sustain the next growth cycle.

• Under-development projects include new store models, pricing policies, and private label reinvention.