Grupo Mateus (GMAT3) Q3 2025 earnings summary

Executive summary

• The merger with Novo Atacarejo in July 2025 expanded the store network to 306 locations, including 36 Novo Atacarejo units, and increased market share to 37.7% in Pernambuco, Paraíba, and Alagoas.

• The combined entity serves over 47,000 clients monthly across more than 1,800 cities and opened 13 new stores by Q3 2025, with further expansion planned.

• Net revenue for 3Q25 reached BRL 10.8 billion, up 29.1% year-over-year, with same-store sales growth of 2.8% (4.3% excluding electronics and Novo Atacarejo).

• Portfolio optimization included the closure of 16 electronics stores and 15 electronics departments in food retail stores.

• Operational synergies, broader geographic reach, and enhanced logistics have positioned the company as a market leader in the Northeast.

Financial highlights

• 3Q25 consolidated net revenue was BRL 10.8 billion (+29.1% YoY); 9M25 net revenue was BRL 27.9 billion (+19.3% YoY).

• Adjusted gross profit (excluding extraordinary effects) was BRL 2.2 billion in 3Q25 (+16.0% YoY), with a gross margin of 23.2%.

• Adjusted EBITDA (post IFRS 16, excluding extraordinary effects) was BRL 744 million in 3Q25 (+14.8% YoY), margin 8.0%.

• Adjusted net income for 3Q25 was BRL 509 million (+48.4% YoY), margin 4.7%; net income (ex extraordinary effects and Novo Atacarejo) was BRL 471 million (+37.3% YoY), margin 5.1%.

• Net debt at 3Q25 was BRL 1.44 billion, with net debt/Adjusted EBITDA (pre IFRS 16) at 0.51x consolidated.

Outlook and guidance

• Expansion strategy continues with 13 new stores launched by Q3 and 22 more planned for 2025, focusing on cash-and-carry and supermarkets in the Northeast.

• Portfolio optimization is ongoing, with electronics segment downsizing due to macroeconomic headwinds.

• Continued focus on operational efficiency, cost control, and integration synergies to sustain profitability.