Empreendimentos Pague Menos (PGMN3) Q3 2025 earnings summary

Executive summary

• Achieved 18.0% year-over-year gross revenue growth in 3Q25, surpassing R$4.1 billion, with same-store sales up 17.6% and digital channels representing 19.8% of sales.

• Market share reached a record 6.7% nationally, with consistent gains across all regions and strong performance in prescription and generic drugs.

• Adjusted EBITDA rose 36.4% to R$260.1 million, with margin expanding to 6.3%, and adjusted net income increased 49.6% to R$80.6 million.

• Customer base and store productivity improved, with mature stores (26% of base) now generating over R$1 million/month.

• Strategic focus on operational excellence, continuous care clients, and omnichannel digital strategy, with CCC clients accounting for over 70% of sales.

Financial highlights

• Gross profit grew 20.0% year-over-year to R$1.24 billion, with gross margin at 29.9%, up 0.5p.p.

• Adjusted EBITDA margin improved by 0.9 p.p. to 6.3%, and adjusted net margin reached 1.9% (+0.4 p.p.).

• Net income for the quarter was R$80.6 million adjusted (IAS 17), with LTM net income at a record R$231 million.

• Average monthly sales per store reached R$831,000, up 32.4% year-over-year.

• Net debt/EBITDA improved to 2.5x, reflecting ongoing deleveraging.

Outlook and guidance

• Management expects continued margin expansion and profitability improvement as deleveraging progresses and interest rates normalize.

• Strategic investments in logistics, technology, and store expansion are planned to sustain growth, with increased store openings and a new distribution center in Paraíba.

• Focus on financial deleveraging and disciplined capital allocation, with expectations for improved cash generation in 4Q25.

• Optimistic about continued top and bottom-line growth, with new levers like private label and pricing projects to be more visible in 2026.

• Anticipates further market share gains, especially with the introduction of generic GLP-1 drugs.