Empreendimentos Pague Menos (PGMN3) Q3 2026 earnings summary

Executive summary

• 3Q26 gross revenue rose 6.9% YoY to R$4.429bn; same-store sales grew 5.6%.

• Adjusted EBITDA was R$278.8m, up 7.2%, with a 6.3% margin; adjusted net income rose 19.5% to R$96.3m.

• Operational cash flow reached R$164.8m, more than 3x 3Q25, while adjusted net debt/EBITDA declined to 1.8x from 2.5x.

• Growth priorities included continuous-care clients, digital channels, private labels and AI-enabled customer engagement.

Financial highlights

• 9M26 gross revenue grew 10.0% to R$12.916bn; adjusted EBITDA rose 16.9% to R$765.2m and adjusted net income rose 46.5% to R$225.5m.

• Q3 gross profit increased 7.2% to R$1.327bn; gross margin reached 30.0%, up 0.1 p.p. YoY and the highest Q3 level since 2018.

• Q3 adjusted net margin expanded 0.3 p.p. to 2.2%; contribution margin was 8.6%, down 0.2 p.p.

• Selling expenses rose 8.5% to R$946m; growth was 7.4% excluding R$9.6m of one-off severance costs.

• Financial result expense fell 13.0% YoY to R$112.7m.

Outlook and guidance

• More than 20 stores were in advanced development for Q4 openings; expansion is focused on North and Northeast regions and popular-income areas.

• Cash-cycle days and supplier payment terms are expected to recover in Q4 as replenishment normalizes and sales stabilize.

• Q4 preparations included tactical inventory build-up, particularly in GLP-1, and accelerated investment ahead of increased store openings.

• Profitability initiatives include expense controls, digital conversion, private-label penetration, CRM and productivity improvements.