Magazine Luiza (MGLU3) investor relations material

Executive summary

• Entered a new strategic cycle focused on consolidating AI-driven omnichannel leadership, expanding physical and online reach, and accelerating monetization of service platforms and fintech offerings, including partnerships with third-party channels.

• Strong double-digit growth in physical stores, with 10.3% year-over-year growth and 9.7% same-store sales growth, alongside significant market share gains and new store formats.

• Online segment prioritized profitability, with e-commerce sales declining 11.9% but margin discipline maintained; new partnerships (notably Amazon and AliExpress) are expected to drive future growth.

• Service platforms (Magalog, Magalu Cloud, Magalu Pay, Magalu Ads) delivered robust results, with notable expansion in logistics, cloud, and financial services.

• Preserved margins and maintained financial discipline, reinforcing a solid foundation for future growth.

Financial highlights

• Gross revenue reached R$11.1 billion, a 2.2% year-over-year decrease, with net revenue at R$8.9 billion, mainly due to a challenging economic context.

• Gross margin improved to 30.6%, among the highest for a second quarter.

• Adjusted EBITDA was R$708.8 million (8.0% margin), sustained by expense control and strong financial operations.

• Adjusted net loss was R$50.4 million, impacted by high interest rates and financial expenses.

• Robust cash position of R$5.8 billion and net cash of R$0.8 billion at quarter-end.

Outlook and guidance

• Confident in resuming online growth in the second half, especially Q4, through third-party platform partnerships and improved logistics.

• Expect continued high single-digit to double-digit growth in physical stores and further market share gains.

• Anticipate improved profitability and cash generation as inventory and receivables are optimized and interest rates decline.

• Service platforms expected to ramp up, with Magalog and Magalu Cloud expanding client base and capabilities.