Empreendimentos Pague Menos (PGMN3) investor relations material

Executive summary

• 3Q26 gross revenue rose 6.9% YoY to R$4.429bn; adjusted EBITDA was R$278.8m, up 7.2%, with a 6.3% margin.

• Adjusted net income increased 19.5% YoY to R$96.3m; Q3 operating cash flow was R$164.8m, more than 3x 3Q25.

• Net leverage fell to 1.8x for a 13th consecutive quarter of deleveraging; priorities include profitable growth, continuous-care clients, digital channels and disciplined execution.

Financial highlights

• 9M26 gross revenue reached R$12.916bn, up 10.0% YoY; adjusted EBITDA was R$765.2m, up 16.9%, and adjusted net income was R$225.5m, up 46.5%.

• Q3 gross profit rose 7.2% to R$1.327bn; gross margin increased 0.1 p.p. YoY to 30.0%, its highest Q3 level since 2018.

• Adjusted net margin expanded 0.3 p.p. YoY to 2.2%; contribution margin was 8.6%, down 0.2 p.p.

• Selling expenses grew 8.5% to R$946m; excluding R$9.6m of one-off severance costs, growth was 7.4%.

• Financial result expense declined 13.0% YoY to R$112.7m; income tax expense was R$14.4m and the effective tax rate was 13.0%.

Outlook and guidance

• More than 20 stores were in advanced development and planned to open in Q4; expansion focuses on North and Northeast regions and popular-income areas.

• Management expected cash-cycle days and supplier payment terms to recover in Q4 as replenishment normalizes and sales growth stabilizes.

• Q4 preparations included tactical inventory build-up, particularly in GLP-1, and accelerated investment ahead of more store openings.