M. Dias Branco (MDIA3) Q1 2026 earnings summary

Executive summary

• Net income rose 53% year-over-year to R$106.3 million in 1Q26, with EBITDA up 21.8% to R$195.9 million and net revenue stable at R$2.2 billion (+0.4% YoY).

• Sales volume increased 3.4% YoY to 407.5 thousand tons, with market share gains in cookies & crackers, granola, and wheat flour.

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

Financial highlights

• Gross profit reached R$717.7 million (+5% YoY), with gross margin improving to 32.4% from 30.9% in 1Q25.

• EBITDA margin expanded to 8.8% (from 7.3% YoY), while net cash from operations was R$194.5 million.

• Cost of goods sold fell 1.5% YoY, mainly due to a 5% drop in raw material costs.

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

• Ended 1Q26 with R$1.9 billion in cash and net cash of R$688 million; total indebtedness dropped 39.2% YoY.

Outlook and guidance

• Management expects continued market share gains and value capture through premium product launches and operational discipline.

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