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, outpacing inflation by over 3x for the seventh consecutive quarter.

• Net income reached R$55.6 million, more than quadrupling from Q1 2025, with net margin expanding by 0.9 percentage points.

• EBITDA rose 36.1% year-over-year to R$204.7 million, marking the seventh consecutive quarter of over 30% EBITDA growth.

• National market share expanded 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.

Financial highlights

• Gross margin improved by up to 0.8 percentage points year-over-year to 29.5%, aided by favorable product mix and commercial conditions.

• SG&A expenses grew 13%, slightly below revenue growth, with a 0.1 percentage point dilution.

• 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.

• Earnings per share hit an all-time high of R$0.50 (LTM).

Outlook and guidance

• Pipeline of new stores supports gradual acceleration of organic growth for the remainder of the year.

• Gross margin for the full year expected to be slightly lower than 2025, but EBITDA margin improvement remains a focus.

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

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

• Anticipate positive impact on margins from the new Paraíba distribution center starting Q3 2026.