Dimed (PNVL3) Q1 2026 earnings summary

Executive summary

• 1Q26 marked the start of a new growth cycle, with strong sales, margin expansion, and operational improvements aligned with the 2030 plan.

• Retail gross revenue grew 15.1% year-over-year to R$1.56 billion, with digital channels reaching 28.6% of retail revenue.

• Adjusted EBITDA rose 25.6% year-over-year to R$81.2 million, with margin improving to 5.2%.

• Adjusted net income increased 38.1% year-over-year to R$38.5 million, with margin at 2.4%.

• Market share in the Southern Region reached a record 13.3%, with gains across all states and categories.

Financial highlights

• Consolidated gross revenue: R$1,571 million (+15.8% YoY); retail gross revenue: R$1,555 million (+15.1% YoY).

• Retail gross margin held at 29.4%, up 14.9% year-over-year.

• Operational cash generation was R$35.8 million; free cash flow was R$12.4 million, positive for the fifth consecutive quarter.

• EBITDA 4Wall grew 24.3% year-over-year, reaching a record for the first quarter.

• Net debt/EBITDA ratio decreased to 0.88x, the lowest in recent quarters.

Outlook and guidance

• New growth cycle for 2026–2030 initiated, targeting R$11.5–12 billion in revenue and 950–1,000 stores by 2030.

• EBITDA margin guidance between 6.7%–7% for the period.

• Continued focus on digitalization, private label expansion, and operational efficiency.

• Strategic initiatives for 2026 include expanding digital tools, enhancing customer journeys, and deepening loyalty programs.