Empreendimentos Pague Menos (PGMN3) Q4 2025 earnings summary

Executive summary

• Achieved record-breaking operational and financial results in 2025, with five consecutive quarters of same-store sales growth above 17% and strong momentum across all key metrics, especially in the North and Northeast.

• Underwent a profound transformation and strategic repositioning over the past two years, driving operational excellence, digital transformation, and investment resumption.

• Maintained a transparent, people-centric strategy, strengthening organizational culture, employee satisfaction, and stakeholder perception.

Financial highlights

• Gross revenue grew 19.8% year-over-year to R$16,049 million in 2025, with same-store sales up 18.6% in Q4 and five consecutive quarters above 17%.

• Adjusted EBITDA reached R$904.7 million (margin 5.6%), nearly doubling in two years, and adjusted net income rose to R$286.6 million, up over 70% year-over-year.

• Free cash flow improved by R$323 million over two years, reaching R$212.1 million in 2025.

• Net debt/EBITDA reduced to 2.0x, down from 4.3x in 2023, and ROIC increased by 9.3 percentage points to 21%.

Outlook and guidance

• 2026 is positioned as the "year of scale," focusing on expanding logistics, digital channels, private brands, and launching new projects such as Store 4.0.

• Strategic plan maturation, organizational efficiency, and further productivity gains are priorities, with generics and similars for GLP-1 drugs expected to drive volume and reduce receivables pressure.

• Nearly one-third of CAPEX allocated to logistics improvements, with commitment to further deleveraging and cash generation.