Grupo Mateus (GMAT3) investor relations material

Executive summary

• Gross revenue for 1Q26 reached R$10.7 billion, up 13.7% year-over-year, driven by store expansion and consolidation of Novo Atacarejo.

• Net income attributable to shareholders was R$213 million, down 21.8% year-over-year, reflecting higher operating expenses and severance costs.

• Same-store sales declined 7.3% due to macroeconomic pressures and strategic reduction in low-margin telesales.

• Integration with Novo Atacarejo completed, creating a unified company structure and systems, with ongoing efforts to extract further commercial synergies.

• Multi-channel strategy refined, with selective channel prioritization and optimization of store formats to maximize profitability.

Financial highlights

• Gross margin improved to 22.9%, up 0.7 p.p. year-over-year, with a further 0.4 p.p. increase sequentially.

• EBITDA (post-IFRS 16) was R$543 million, down 7.3% year-over-year, with a margin of 5.8%.

• Net margin declined to 2.3%, a decrease of 1.0 p.p. year-over-year.

• Operating expenses increased 29.3% year-over-year, reaching R$1.64 billion, mainly due to Novo Atacarejo consolidation and expansion.

• Cash generation reached R$323.5 million in the quarter.

Outlook and guidance

• Management expects continued focus on balancing margin and sales, with disciplined expense control and further efficiency gains.

• Ongoing optimization of working capital and cash conversion cycle, targeting further reductions in operational expenses.

• Strategy includes leveraging multi-channel logistics and selective promotional activity to recover volumes without sacrificing profitability.

• Integration with Novo Atacarejo to share best practices and enhance governance.

• Disciplined capital allocation and strict criteria for new store openings.