M. Dias Branco (MDIA3) investor relations material

Executive summary

• Net revenue reached R$2.2 billion in 1Q26, stable year-over-year (+0.4%), with volume up 3–3.4% and EBITDA rising 21.8–22% to R$195.9–196 million.

• Net income rose 53–56% year-over-year to R$106–106.3 million, reflecting improved execution and market share gains in cookies, granola, and flour.

• The company maintained a net cash position of R$688 million, with negative leverage of -0.6x and a AAA Fitch rating for the eighth consecutive year.

• Despite pressured consumption and high household indebtedness, operational adjustments and commercial restructuring drove performance.

Financial highlights

• Gross margin improved to 32.4% in 1Q26, up from 30.9% in 1Q25, driven by lower variable costs and currency appreciation.

• EBITDA margin expanded to 8.8%, with net cash from operations at R$194.5–195 million.

• SG&A expenses increased 6.6% year-over-year, mainly due to volume growth, inflation, and higher marketing spend.

• Capex nearly doubled YoY to R$171.7–172 million, focused on automation, industrial optimization, and energy efficiency.

• Cash generation was impacted by seasonality, with working capital improvements through extended supplier payment terms.

Outlook and guidance

• Management expects continued market share gains and value capture through premium product launches, operational discipline, and ongoing investments in marketing, innovation, and capacity expansion.

• Expectation of slight cost increases in Q2 due to commodity and fuel price pressures, partially offset by currency appreciation.

• Ongoing promotional campaigns and product innovation are expected to support sell-out and category leadership.

• Management notes trends are based on past and present actions and may change with market conditions and the Brazilian economy.