Empreendimentos Pague Menos (PGMN3) Q3 2025 earnings summary

Executive summary

• Achieved 18% year-over-year revenue growth, with same-store sales up 17.6% and a record 6.7% national market share, driven by prescription and generic drugs, and a focus on continuous care customers.

• Customer base expanded to 22.2 million, with a 14.1% increase in continuous care clients and higher average ticket and purchase frequency.

• Digital channels contributed 19.8% of total sales, with omnichannel sales up 52.9% year-over-year.

• Strategic focus on operational excellence, employee empowerment, and omnichannel digital strategy, with a new strategic plan and Transformation Office launched.

• Store portfolio reached 1,667 units, with 27 net openings over the last 12 months and ongoing portfolio optimization.

Financial highlights

• Gross revenue reached R$4,145 million in 3Q25, with gross profit up 20% to R$1.24 billion and gross margin at 29.9%, up 0.5p.p.

• Adjusted EBITDA rose 36.4% year-over-year to R$260.1 million, with margin at 6.3%–6.7%, the highest for a third quarter.

• Net income increased 49.6% to R$80.6 million for the quarter; LTM net income hit a record R$231 million.

• Average monthly sales per store reached R$831,000, up 32.4% year-over-year.

• Contribution margin reached 8.8%, up 1.0p.p. year-over-year.

Outlook and guidance

• Focus on financial deleveraging, disciplined capital allocation, and improved cash generation in 4Q25 and 2026.

• Strategic plan emphasizes scaling investments, operational efficiency, and value creation through the Transformation Office.

• Optimistic about continued top and bottom-line growth, with new levers like private label and pricing projects to be more visible in 2026.

• Anticipates further market share gains, especially with the introduction of generic GLP-1 drugs and increased store openings.

• Continued emphasis on expanding the continuous care customer base and enhancing customer experience.