Grupo Mateus (GMAT3) Q1 2026 earnings summary

Executive summary

• Gross revenue for 1Q26 reached R$10.7 billion, up 13.7% year-over-year, driven by store expansion and consolidation of Novo Atacarejo.

• Net income attributable to shareholders was R$213 million, down 21.8% year-over-year, reflecting higher operating expenses and severance costs.

• Focus shifted from rapid expansion to operational efficiency, with rigorous supervision and integration of Novo Atacarejo.

• Same-store sales declined 7.3% year-over-year, impacted by macroeconomic headwinds and strategic reduction in low-margin telesales.

• Multi-channel strategy emphasized, with ongoing optimization of store formats and channel profitability.

Financial highlights

• Gross margin improved to 22.9%, up 0.7 percentage points year-over-year, driven by strategic reduction in low-margin telesales.

• EBITDA (post-IFRS 16) was R$543 million, down 7.3% year-over-year, with a margin of 5.8%.

• Net margin declined to 2.3%, a decrease of 1.3 percentage points year-over-year.

• Operating expenses increased 29.3% year-over-year, reaching up to R$1.715 billion, mainly due to Novo Atacarejo consolidation and severance.

• Cash generation reached R$323.5 million in the quarter, with net debt/EBITDA at 0.33x.

Outlook and guidance

• Continued focus on balancing margin and sales, with disciplined expense management and working capital optimization.

• Integration with Novo Atacarejo to share best practices and enhance governance.

• Expectation of further efficiency gains and profitability improvements as store integration and channel strategies mature.