Empreendimentos Pague Menos (PGMN3) Q2 2025 earnings summary

Executive summary

• Achieved sixth consecutive quarter of accelerated growth, with same-store sales up 18.1% year-over-year, outpacing inflation by five times and reaching record national market share of 6.6%.

• Digital channels accounted for 18.7% of gross revenue, up 4.6 p.p. year-over-year, and omnichannel sales grew 56.8%.

• Adjusted EBITDA grew 37.9% year-over-year to R$244.1 million, with margin expanding to 6.1%.

• Adjusted net income rose 36.2% year-over-year to R$60.2 million, with margin at 1.5%.

• Operational efficiency, customer base expansion, and employee engagement drove robust sales and profitability improvements.

Financial highlights

• Gross revenue reached R$3.98 billion in 2Q25, up 18.0% year-over-year; gross profit was R$1.22 billion, up 19.2%.

• EBITDA increased nearly 40% to BRL 244 million, with margin reaching 6.1%, the highest since Q2 2021.

• Net income attributable to controlling shareholders was R$50.2 million in 2Q25, up from R$32.6 million in 2Q24.

• Cash and equivalents increased to R$243.8 million at quarter-end, up from R$149.1 million at year-end 2024.

• Working capital cycle improved by 3 days year-over-year, mainly through better stock management, now at 53 days.

Outlook and guidance

• Management expects continued operational evolution and financial deleveraging to support higher net profitability in the future.

• Ongoing investments in store openings, renovations, and digital channels are expected to sustain growth momentum.

• Store portfolio reached 1,657 units, with 16 net openings in 1H25.

• Guidance for 2025 is a minimum of 20–30 gross store openings.

• Anticipates positive impact from upcoming patent expirations in GLP-1 inhibitors, broadening access and category growth.