Empreendimentos Pague Menos (PGMN3) investor relations material

Executive summary

• Achieved 14.4% year-over-year revenue growth in Q1 2026, with same-store sales up 13% and national market share rising to 6.7%, led by strong gains in the North and Northeast regions.

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

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

• Digital channels accounted for 22.2% of sales, up 4.6 percentage points year-over-year, with omnichannel sales up 43.7%.

• Continuous care customers now represent 28% of the base, with increased purchase frequency and average ticket.

Financial highlights

• Gross revenue reached R$4.14 billion (+14.4% YoY); gross profit was R$1.22 billion (+17.2% YoY); gross margin expanded to 29.5% (+0.8p.p. YoY).

• Adjusted EBITDA margin reached 4.9% in Q1, up 0.8 percentage points year-over-year.

• Adjusted net income margin was 1.3% (+0.9p.p. YoY); earnings per share hit an all-time high of R$0.50 (LTM).

• Net debt/EBITDA improved to 1.9x, down 0.9x year-over-year, reflecting deleveraging.

• ROIC reached 21.2%, up 6.8 percentage points over two years.

Outlook and guidance

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

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

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

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

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