M. Dias Branco (MDIA3) Q1 2026 earnings summary

Executive summary

• Net income rose 53% year-over-year to R$106.3 million in 1Q26, with EBITDA up 21.8% to R$195.9 million and net revenue stable at R$2.2 billion (+0.4% YoY), despite a pressured consumption environment and lower average prices.

• Sales volume increased 3.4% year-over-year to 407.5 thousand tons, with market share gains in cookies & crackers, granola, and wheat flour.

• Operational adjustments, commercial restructuring, and product innovation drove performance amid high household indebtedness.

Financial highlights

• Net revenue reached R$2,217.3 million (+0.4% YoY), supported by higher sales volume but offset by a 2.9% decrease in average price.

• EBITDA: R$195.9 million (+21.8% YoY), margin 8.8% (up 1.5 p.p.); gross margin improved to 32.4% from 30.9% in 1Q25.

• SG&A expenses grew 6.6% year-over-year, mainly due to volume growth, inflation, and increased marketing.

• Operating cash generation was R$194.5 million, with net cash position of R$688 million and net (cash) debt/EBITDA (LTM) at -0.6x.

• Capex nearly doubled YoY to R$171.7 million, focused on automation, industrial optimization, and energy efficiency.

Outlook and guidance

• Management expects continued market share gains and double-digit growth in adjacencies and healthy products, supported by premium launches and operational discipline.

• Anticipates slight cost increases in Q2 due to commodity and fuel price pressures, but expects to offset with pricing adjustments and operational improvements.

• Ongoing investments in automation and capacity expansion are expected to support mid- to long-term margin growth.

• Trends and guidance may change with market conditions and the Brazilian economy.