Empreendimentos Pague Menos (PGMN3) Q4 2025 earnings summary

Executive summary

• Achieved record operational and financial results in 2025, with five consecutive quarters of same-store sales growth above 17% and accelerated growth across all regions, especially in the North and Northeast.

• Underwent a profound transformation over the past two years, driving operational excellence, digital expansion, and strategic repositioning.

• Consolidated position as a leading pharmacy retailer, expanding to 1,689 stores and reaching 6.9% national market share.

• Strengthened organizational culture, improved employee satisfaction, and enhanced stakeholder perception.

Financial highlights

• Gross revenue grew 19.8% year-over-year in Q4 2025, reaching R$16.049 billion for the year; same-store sales up 18.6% in Q4 and 17.9% for the year.

• Adjusted EBITDA rose 44% to R$904.7 million (margin 5.6%), nearly doubling in two years.

• Adjusted net income increased 88.5% to R$286.6 million; 4Q25 net income up 72.2% to R$132.7 million.

• Free cash flow reached R$212.1 million, up 61.1% year-over-year; operating cash flow was R$474 million.

• Net debt/EBITDA reduced to 2.0x, with gross debt duration extended to 2.5 years and only 11% maturing short-term.

Outlook and guidance

• 2026 is positioned as the "year of scale," focusing on efficiency gains, logistics optimization, digital channels, and private brands.

• CAPEX will prioritize a new distribution center, WMS implementation, and logistics improvements.

• Expects generics and similars for GLP-1 drugs to drive volume and reduce receivables pressure.

• Commitment to further deleveraging and cash generation, with expectations of lower interest rates supporting earnings growth.