Grupo Mateus (GMAT3) Q2 2025 earnings summary

Executive summary

• Net revenue grew 14.9% year-over-year in 2Q25 to BRL 8.8 billion, driven by 6.1% same-store sales growth; 1H25 net revenue was BRL 17.1 billion (+13.9%).

• EBITDA reached BRL 705 million in 2Q25 (post IFRS 16), up 24.7% year-over-year, with margin expanding to 8.0% (+0.6 p.p.); 1H25 EBITDA was BRL 1.35 billion, margin at 7.9%.

• Net income for 2Q25 was BRL 349 million (+6.7% year-over-year), with a net margin of 4.0%; 1H25 net income was BRL 668 million (+17.6%).

• Opened 4 new cash and carry stores in 2Q25, closed 10 Electronics & Furniture stores, and ended with 271 stores; 16 projects are under construction.

• Wholesale (B2B) and Cash and Carry segments were key growth drivers, while Electronics & Furniture faced declines due to macroeconomic headwinds.

Financial highlights

• Gross margin improved by 0.6 p.p. to 23.0% in 2Q25, with gross profit up 18.1% year-over-year.

• Operating expenses in 2Q25 totaled BRL 1.3 billion, up 14.2% year-over-year, but fell as a percentage of revenue to 15.0% (-0.1 p.p.).

• Cash conversion cycle improved to 72 days, two days better than both last year and the previous quarter.

• Net debt reached BRL 1.1 billion at June 2025, with Net Debt/EBITDA (pre-IFRS 16) at 0.47x.

• Investments in 2Q25 were BRL 255.6 million (-18.6% year-over-year), mainly for new stores and infrastructure.

Outlook and guidance

• Continued focus on store expansion, with 16 projects underway and new market entries in the Northeast and other regions.

• Management expects continued margin improvement from store maturation and regional expansion.

• Targeting a cash conversion cycle of 70 days by year-end, with ongoing working capital optimization.

• Anticipate further efficiency gains and synergies from Novum/Novo Atacarejo integration, with consolidated results to be reported next quarter.

• Optimism for continued market share gains and robust performance in the second half, especially during the anniversary campaign.