Earnings release
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GPA Grupo Pão de Açúcar EARNINGS RELEASE 2Q26 August 04 , 2026 PCAR B3 LISTED NM I Conference call about the 2Q26 Earnings Wednesday August 05 , 2026 9h00 a.m. ( Brasília ) 8h00 a.m. ( NY ) 1h00 p.m. ( London ) Portuguese / English ( Original language / Simultaneous translation ) Videoconference : www.gpari.com.br Replay : www.gpari.com.br
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2 Profitability focused strategy and deleveraging(1) after the conclusion of the Out-of-Court Restructuring Plan(2) • Adjusted EBITDA margin expanded by 1.7 p.p. vs. 2T25, reflecting the efficiency plan • Pro forma(1) Net Debt decreased by R$2.5 billion, representing a 68% reduction • Pro forma(1) Net Leverage(3) declined from 3.9x to 1.3x in 2Q26 • Free Cash Flow(4) LTM improved by R$269 million compared with the LTM 2Q25. Net Debt(1) and Leverage(4) pro forma Adjusted EBITDA Sales Diligent commercial execution mitigates the impacts of the out-of-court restructuring process ° Total sales declined 7.0% vs. 2Q25, reflecting the discontinuation of the Aliados format and the fulfillment partnership operated through the Company's distribution centers ° Same-store sales(5) declined 0.8% vs. 2Q25, concentrated in the first two months of 2Q26, reflecting the period of greatest impact from the out-of-court restructuring plan ° Sales returned to growth in June, supported by the positive impact of the FIFA World Cup Gross Margin Profitability improvement driven by the prioritization of higher -margin channels and the gross margin benefit from the new ICMS tax treatment ° Gross margin reached 30.5%, expanding 3.1 p.p. YoY ° Growth driven by the discontinuation of the Aliados format, the ICMS-ST impact, and an improved e-commerce sales mix, prioritizing margin expansion Efficiency Plan Continued financial discipline and further operational efficiency gains ° 1S26 Capex totaled R$ 162 million (-55%), keeping the Company on track to achieve annual target of R$ 300 million to R$ 350 million ° In 1 S26, the Company captured R$ 244 million in efficiencies gains, equivalent to 58.9% of the annual target of R$ 415 million Cash Generation Lower Capex and EBITDA improvement offset the working capital impact resulting from the out- of-court restructuring plan ° Operating Free Cash Flow LTM(4) reached R$363 million, remaining stable compared to the previous year, despite higher supplier-related cash outflows due to out-of-court restructuring process ° LTM Free Cash Flow LTM(4) improved by R$269 million, reflecting lower Capex and reduced Other Operating Income and Expenses Net Income Continued Net Loss totaled R$ (204) million ° Continued Net Loss amounted to R$ (204) million, increasing 15.5% compared to the same period of the previous year ° Excluding the positive impact of the tax litigation settlement recognized in 2Q25, net loss decreased by 28.5% São Paulo, August 04, 2026. GPA (B3: PCAR3) announces its results for the second quarter of 2026. The following comments refer to the results of continuing operations, with the adoption of IFRS 16/CPC 06 (R2), and include comparisons with the same period in 2024, except where otherwise indicated. 252 291 263 294 326 397 372 396 399 498 409 420 412 510 458 450 8.1% 1Q24 8.8% 2Q24 8.9% 3Q24 9.5% 4Q24 5.8% 1Q25 9.0% 2Q25 9.1% 3Q25 10.0% 4Q25 10.5% 1Q263Q22 5.9% 4Q22 6.3% 1Q23 6.7% 2Q23 8.6% 2Q26 10.6% 7.4% 3Q23 8.1% 4Q23 +1.7 p.p. +7.1% Adjusted EBITDA(R$ million) Margin (%) (1) Pro forma analysis considering the terms presented in the out-of-court Restructuring Plan filed on May 5, 2026, also considering the amortization of part of the debt with proceeds from the sale of FIC amounting to R$ 2 98 million — the plan is available on the Company’s Investor Relations website; (2) subject to court approval; (3 ) net debt including non -anticipated credit card receivables divided by Consolidated Adjusted EBITDA pre-IFRS 16 (last twelve months); (4) Adjusted to exclude the deconsolidation effects related to Stix; (5) +0.4 p.p. adjustment to same-store sales due to calendar effects 3.2x 2Q25 3.9x 2Q26 1.3x Pro forma 2Q26 2,757 3,647 1,182 -68% -2.6 x Financial Leverage(3) Financial Net Debt
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3 Management Message The macroeconomic environment remained challenging during the second quarter of 2026 . Brazilian households continued to face elevated indebtedness and higher delinquency levels, while customers’ disposable income became increasingly pressured by essential consumption, financial obligations, and new categories of discretionary spending, such as online betting platforms. Despite this backdrop, we continued to execute our stabilization and transformation agenda, with confidence that we are on the right path. Our strategy is guided by three core pillars, which continue to drive every decision made by management: (i) Customer Centricity; (ii) Operational and Commercial Excellence; and (iii) Financial Discipline. Our ability to execute this strategy is supported by GPA's key competitive advantages. We own some of Brazil’s strongest and most recognized retail brands, which have been part of consumers' daily lives for decades and complement one another, while also holding a leading position in the premium food retail segment. We are the fourth -largest wine importer in Brazil, the country's leading sushi retailer, and the largest producer of naturally fermented bakery products, in addition to holding leadership positions across several other product categories. We also deliver excellence in fresh products , a category with high penetration in our sales mix. Within our fruits, vegetables and greens category, approximately 85% of products are sourced directly from growers, enabling a true farm-to-table model that ensures superior freshness and quality , attributes that meet customers’ growing preference for healthier food choices. We believe that a more regionalized approach to assortment management, combined with a complementary omnichannel strategy, is essential to serving different customer shopping missions. This approach is supported by our Pão de Açúcar, Extra Mercado, Proximity, and E-commerce banners. All these initiatives share a single objective: deliver ing an increasingly differentiated shopping experience for our customers, who remain at the center of every decision we make. This execution is expected to translate into stronger customer loyalty, higher shopping frequency, and increased average ticket. On the operational front, we have already achieved significant progress under our Efficiency Plan, delivering reductions in both operating expenses and Capex that have already exceeded 50% of our full-year targets, with additional efficiency opportunities still ahead. We continue to capture efficiencies through initiatives including organizational restructuring, process optimization, logistics and store network optimization, systems integration, and strict cost management. Consistent with our profitability focused strategy, sales and revenue declined during the quarter, while Adjusted EBITDA increased to R$450 million, up 7.3% compared with 2Q25. We believe that sustainable long-term value creation requires rebuilding sales volumes without compromising profitability. From a financial standpoint, the Company carried a capital structure that was no longer compatible with its current scale and cash generation profile. To preserve business continuity and protect the operating franchise , we made the difficult decision to carry out an Out-of-court restructuring process . This process is expected to reduce indebtedness and financing costs, extend debt maturities, and preserve the continuity of our operations as well as our relationships with customers, suppliers and business partners. Accordingly, on March 10, 2026, we reached an agreement with our principal non -operating creditors regarding the proposed restructuring plan. On May 5, 2026, only 56 days later, the Company submitted an amended plan supported by creditors representing 57.49% of the affected claims. Following the filing and publication of the court notice, creditors had until July 13, 2026, to challenge the plan and elect their preferred settlement option. The outcome demonstrated the balanced nature of the proposed plan, with a very limited number of objections and approximately 97% of creditors selecting one of the available settlement alternatives. At the current stage, we are awaiting court approval of the plan, with completion expected during 3Q26, allowing for the issuance of the new debentures and the raising of additional funding. Upon court approval, the Company's financial indebtedness is expected to: (i ) increase its average maturity from 2.1 years to 6.4 years, reducing scheduled debt repayments through 2028 from R$5.2 billion to approximately R$400 million; (ii) reduce the average funding cost from CDI + 1.8% per year to CDI + 0.5% per year; (iii) redu ce the total debt balance by more than 50% over time; and (iv) decrease net leverage from 3.9x to 1.3x. We remain committed to executing our long-term strategy with discipline and responsibility , strengthening our competitive position and building a sustainable path of value creation for our customers, employees, suppliers, business partners and shareholders. Alexandre Santoro GPA CEO
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4 Financial Highlights As a result of the process of discontinuing the activities of the Extra hypermarkets in 2021 and gas stations in 2024, as disclosed in material facts and notices to the market, these operations have been accounted for as discontinued operations (IFRS 5/CPC 31). Accordingly, the impacts on the Income Statement were retrospectively adjusted pursuant to CVM Resolution No. 108/22, which governs non -current assets held for sale and discontinued operations. The following comments refer to the results from continuing operations. FINANCIAL HIGHLIGHTS (R$ million, except when indicated) 2Q26 2Q25 Δ 6M26 6M25 Δ Gross Revenue 4,713 5,066 -7.0% 9,542 10,158 -6.1% Net Revenue 4,228 4,676 -9.6% 8,602 9,443 -8.9% Gross Profit 1,288 1,280 0.6% 2,619 2,594 1.0% Gross Margin 30.5% 27.4% 3.1 p.p. 30.5% 27.5% 3.0 p.p. Selling, General and Administrative Expenses (883) (906) -2.6% (1,799) (1,856) -3.1% % of Net Revenue 20.9% 19.4% 1.5 p.p. 20.9% 19.7% 1.3 p.p. Equity Income 19 19 1.1% 35 36 -4.0% Adjusted EBITDA Consolidated(1) 450 419 7.3% 907 828 9.6% Adjusted EBITDA Margin Consolidated (1) 10.6% 9.0% 1.7 p.p. 10.5% 8.8% 1.8 p.p. Other Operating Revenue and Expenses (30) 10 - (576) (75) 668.5% Net Income Controlling Shareholders – Continued Operations (204) (176) 15.5% (1,550) (270) 475.0% Net Margin – Controlling shareholders – Continued Operations -4.8% -3.8% -1.1 p.p. -18.0% -2.9% -15.2 p.p. Net Income Controlling Shareholders – Discontinued Operations(2) (49) (41) 19.3% (139) (116) 19.7% Net Income Controlling Shareholders Consolidated(3) (252) (217) 16.2% (1,689) (386) 337.9% (1) Operating income before interest, taxes, depreciation and amortization adjusted by other Operating Income and Expenses ; (2) It includes the results from the disconti nued operation of hypermarkets and gas stations; and (3) It considers results from both continued and discontinued operations
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5 Sales Performance Total and Same-Store Sales GROSS REVENUE AND SAME-STORE SALES (R$ million) 2Q26 Variação 2Q26/2Q25 Vendas totais Participação das vendas (%) Total lojas Mesmas lojas ex. efeito calendário(4) Pão de Açúcar 2,488 52.8% -2.2% -1.2% Extra Mercado 1,561 33.1% -3.4% 0.4% Proximity 585 12.4% -9.6% -2.3% Other Businesses (1) 80 1.7% 8.2% n.d. GPA ex. Aliados 4,713 100.0% -3.4% -0.8% Aliados(2) 0 0.0% -100.0% n.d. GPA(3) 4,713 100.0% -7.0% -0.8% (1) Revenues mainly from commercial centers rentals agreements and Stix Fidelidade; (2) Direct sales model for small businesses; (3) Excludes Gas Stations revenue, which was classified as discontinued activities since 1Q24; (4) Adjustment of +0.4 p.p. of calendar effect in same-store sales. In 2Q26, total sales reached R$ 4. 7 billion, declining 7.0% compared to the same period of the previous year. This performance reflects the execution of the Company's strategy to prioritize higher -margin channels, including the discontinuation of the Aliados format a direct sales model for small retailers , the rebalancing of the e -commerce sales mix, as well as the impact of the store portfolio and calendar effects, which together had a 6.1% negative impact on sales performance. Excluding these factors, sales declined by 0.8%. The quarter was also affected by the impacts of the out-of-court restructuring process on stores product availability, resulting in a temporary increase in stockout levels and, consequently, lower sales. In line with this operational recovery, sales returned to growth in June, supported by the gradual recovery of product availability and continued progress toward the normalization of operations. Beyond the quarter -specific factors, the macroeconomic environment remained consistent with that observed in previous quarters, characterized by more moderate demand and continued pressure on consumer spending, as household budget remain increasingly divided between discretionary and non-discretionary expenditures. Historical Same-Store Sales Growth by Banner and Format YoY Growth Same-Store Sales(1) 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Pão de Açúcar 2.7% 4.6% 10.2% 6.5% 6.5% 3.5% 1.8% 0.2% -1.2% Extra Mercado 3.4% 5.8% 10.3% 6.6% 4.8% 5.5% 4.0% 1.2% 0.4% Proximity 6.9% 4.6% 4.9% 7.8% 0.2% 2.8% 3.2% 0.3% -2.3% (1) Adjustment of +0.4 p.p. of calendar effect in same-store sales. Pão de Açúcar same-store sales declined 1.2%, as previously discussed, primarily reflecting the impacts of the Out-of- court restructuring process , which resulted in higher stockout levels. Performance also continued to be affected by greater deflation in the basic grocery category, as in the previous quarters. In contrast, the perishables category outperformed the banner overall, reinforcing its relevance in the customer’s basket, even in a more challenging consumer environment. In addition, the strategy of prioritizing higher-margin e-commerce channels, which resulted in lower sales volumes, had a more pronounced impact on the banner's performance during the quarter. Nevertheless, Pão de Açúcar's value proposition, supported by a premium assortment, high-quality perishables, and excellence in customer service, remains well positioned to benefit from evolving consumer preferences, particularly the growing demand for healthier food choices. At Extra Mercado, same -store sales increased 0.4%, demonstrating the format resilience despite the headwinds experienced during the quarter , supported by the positive impact of promotional campaigns held during the banner's anniversary month . As observed at Pão de Açúcar, the perishables category outperformed the banner overall, contributing to positive sales growth during the period. In addition, the assortment review and category management initiative continued to strengthen the banner's value proposition a nd support its growth. In the Proximity, Same-store sales declined 2.3% during the quarter, reflecting the temporary impacts of the Out-of- court restructuring process, which were more pronounced in this format due to the higher increase in stockout levels compared with the Company's other banners. In addition, performance was affected by a more challenging market environment, characterized by continued pressure on cons umer spending. Nevertheless, the format maintained the strength of its value proposition and the consistency of its operational execution.
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6 E-commerce Sales In 2Q26, the Company continued executing its profitability driven strategy across operations. In e -commerce, this translated into significant adjustments to the sales mix, with greater focus on the proprietary channel (1P) and lower exposure to third-party platforms (3P). As a result, e-commerce sales totaled R$ 504 million, declining 16.2% during the period. Despite the decline in sales, the operation delivered a meaningful improvement in profitability, reflected in higher operating margins. This performance was driven by a modest 2.9% decline in the 1P channel, compared with a 25.3% reduction in the 3P channel, consistent with the Company's strategy of prioritizing channels with superior return profiles. E-commerce represented 11.1% of total sales during the quarter, a decrease of 1.6 p.p. compared with the prior year . At the same time, the first-party (1P) channel increased its share of the e -commerce sales mix by 6.5 p.p. compared to the previous period, reinforcing the Company's strategy of concentrating sales in higher-margin channels.
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7 Financial Performance 2026 Efficiency Plan As disclosed in the Material Fact dated November 4, 2025, the Company established the 2026 Efficiency Plan, focused on optimizing costs, expenses and investments. In this context, two main targets were defined: (i ) 2026 Capex investments, including property and equipment acquisitions, and investments in intangible assets, estimated between R$ 300 million and R$ 350 million; and (ii) a reduction of at least R$ 415 million in operating costs and expenses, primarily related to store operations support and administrative structure. Capex Guidance In 1S26, Capex investments totaled R$ 162 million(1), representing a reduction of R$ 1 95 million, or 55%, compared to 1S25. This reduction was mainly driven by lower investments in store expansion, with a decrease of R$ 96 million, in addition to lower investments in information technology and logistics, which declined by R$ 93 million. Consistent with the disciplined capital allocation framework established under the 2026 Efficiency Plan, investments made during the first half of the year represented 54.1% of the lower end of the projected range of R$300 million and 46.4% of the upper limit of R$350 million. Expense Guidance Regarding the expense guidance, a perimeter was defined to achieve a reduction of at least R$ 415 million. Please refer to the “Comments on the Behavior of Business Projections” section of the Financial Statement for further details regarding the definitions adopted. In 1S26, the Company reported expenses of R$ 2,798 million which, when compared to the “2026 Operating Expenses Considered” or “Baseline 2026” for 1QS26 of R$ 3,042 million, represented a reduction of R$ 244 million, equivalent to 58.9% of the annual reduction target of R$ 415 million These gains were primarily captured through: (i) headcount optimization initiatives; (ii) the review of relevant IT contracts, as well as the revision and discontinuation of less efficient agreements; (iii) operational efficiency gains related to freight, including transfer optimization, route planning, and improved load utilization; and (iv) other initiatives associated with lower advertisement expenses, reductions in operational losses, and the renegotiation of occupancy agreements. (1) Accounting view of Capex investments, excluding built-to-suit adjustments, presented at the end of this release. 1Q26 2Q26 1S26 3,042 2,798 1,508 1,408 1,535 1,390 -99 -145 -244 Baseline 2026 Reported 2Q26 Efficiency Capture "2025 Operating Expenses Considered" +5,3% Inflation + store portfolio effects Baseline 2026 (244) Captured (171) To be captured Estimated "2026 Operating Expenses Considered" 5.778 6.086 5.671 Expense Plan Progress R$ 415 million
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8 Gross margin expansion reflects profitability prioritization initiatives 3.1 p.p. expansion compared to 2Q25 In 2Q26, Gross Profit reached R$ 1.3 billion, with a solid margin of 30.5%, representing a 3.1 p.p. increase compared to the same period of the previous year. This significant profitability improvement reflects a combination of strategic and operational initiatives, including: (i ) the discontinuation of the Aliados format; (ii) the positive impact from the reclassification of certain products from the ICMS -ST tax regime to the regular ICMS regime ; (iii) higher e-commerce profitability; (i v) the growth of retail media revenues, which increased 39% year over year during the quarter; (v) ongoing operational improvements across banners and formats, supporting sustainable profitability gains; and (v i) lower logistics costs. Equity Income, corresponding to GPA’s share in FIC’s results, totaled R$ 19 million, remaining stable compared to 2Q25. In addition, and in line with its divestment strategy, the Company announced the sale of its stake in FIC, with closing subject to the fulfillment of certain conditions precedent. Following the completion of the transaction, the Company will be able to enter into new partnership agreements in the financial services segment, aiming to leverage service counters across its banners — totaling 726 stores with traffic exceeding 20 million customers per month — as well as its e-commerce platform, currently the largest in Brazil’s food retail segment, unlocking and enhancing the value of its assets. Adjusted EBITDA margin expands 7.1% and reaches 10.7% Increase driven by profitability prioritization initiatives 27.6% 1Q25 27.4% 2Q25 27.6% 3Q25 27.7% 4Q25 1Q26 30.5% 2Q263Q24 27.2% 1Q24 30.4% 28.2% 1,245 1,265 1,244 2Q24 1,315 1,280 1,259 1,4151,417 1,288 27.7% 27.2% 4Q24 1,332 +3.1 p.p. +0.6% Gross Profit (R$ million) Gross Margin (%) Gross Profit and Margin 760 746 808 773 756 2 4 6 8 10 12 14 16 18 20 22 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 16.3% 2Q25 16.4% 3Q25 15.8% 4Q25 17.7% 1Q26 2Q26 17.9% +1.6 p.p. -1% % of Net Revenue Selling Expenses Selling Expenses 145 145 129 143 126 0 50 100 150 200 250 300 350 400 450 -10 -5 0 5 10 3.1% 2Q25 3.2% 3Q25 2.5% 4Q25 3.3% 1Q26 2Q26 3.0% -0.1 p.p. -13% % of Net Revenue General and Administrative Expenses General and Administrative Expenses
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9 In 2Q26, SG&A totaled R$ 883 million, representing a nominal reduction of approximately R$ 23 million compared to the same period of the previous year. This performance reflects the benefits of the initiatives implemented under the Company's Efficiency Plan, including workforce optimization, the discontinuation of less efficient contracts, and lower advertising expenses. In addition, the Company continued to capture operational efficiency gains in logistics through the optimization of inventory transfers, route planning and logistics utilization, as well as lower operating losses and the renegotiation of occupancy contract s, reinforcing disciplined cost management and continued improvements in operational efficiency. As a result of these initiatives, Adjusted EBITDA totaled R$ 4 50 million in the quarter, increasing 7.1% compared to 2Q25, with a margin of 10.6%, equivalent to an expansion of 1.7 p.p. compared to the previous year. The result highlights the Company’s discipline in executing efficiency-driven measures, with emphasis on expense reduction, optimization of the operating cost structure, and prioritization of higher-margin operations. Other Operating Income and Expenses During the quarter, Other Income and Expenses totaled R$ ( 30) million, primarily reflecting restructuring costs related to the efficiency initiatives implemented by the Company, as well as labor and tax contingencies . Financial Result FINANCIAL RESULT (R$ million) 2Q26 2Q25 Δ 6M26 6M25 Δ Financial Revenue 33 117 -71.5% 75 176 -57.3% Financial Expenses (293) (295) -0.8% (589) (544) 8.3% Cost of Debt (157) (165) -4.6% (322) (302) 6.6% Cost of Receivables Discount (27) (23) 18.9% (51) (44) 15.9% Other Financial Expenses (109) (108) 0.9% (216) (198) 9.1% Net Financial Result – pre-IFRS 16 (260) (178) 45.6% (514) (368) 39.6% % of Net Revenue – pre-IFRS 16 -6.1% -3.8% -2.3 p.p. -6.0% -3.9% -2.1 p.p. Interest on Lease Liabilities (125) (126) -0.8% (252) (254) -0.6% Net Financial Result – post-IFRS 16 (385) (304) 26.4% (766) (622) 23.2% % Net Revenue – post-IFRS 16 -9.1% -6.5% -2.6 p.p. -8.9% -6.6% -2.3 p.p. In 2Q26, the Net Financial Result – pre-IFRS 16 totaled R$ ( 260) million, representing 6.1% of net revenue. Below are the main impacts compared to the same period of the previous year: • Financial Revenues : decreased, mainly driven by a lower average cash balance during the period and the resulting decline in interest income. • Financial Expenses: Declined by 0.8%, reflecting lower debt servicing costs driven by the decline in the Selic rate. Including the effects of IFRS 16, Net Financial Result, including interest on lease liabilities, amounted to R$ (385) million in 2Q26, equivalent to 9.1% of net revenue. 372 396 399 498 409 420 412 510 458 450 8.1% 1Q24 8.8% 2Q24 8.9% 3Q24 9.5% 4Q24 8.6% 1Q25 9.0% 9.1% 3Q25 10.0% 4Q25 10.5% 1Q26 10.6% 2Q262Q25 +1.7 p.p. +7.1% Adjusted EBITDA (R$ million) Margin (%) Adjusted EBITDA and Margin
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10 Net Loss of Continued and Discontinued Operations In 2Q26, Net Loss from Continu ed Operations totaled R$ (204) million, slightly higher than in the same period of the previous year, reflecting the factors discussed above. It is important to note, however, that the 2Q25 result benefited from a non-recurring positive effect recorded under Other Operating Income and Expenses. Also in 2Q26, Net Loss from Discontinued Operations totaled R$ ( 49) million , increasing modestly by R$ 8 million compared with the prior year. Cash Generation and Net Debt NET DEBT VARIATION – MANAGERIAL VIEW (R$ million) 2Q26 2Q25 Δ R$ LTM(5) 2Q26 LTM(5) 2Q25 Δ R$ Adjusted EBITDA Consolidated pre-IFRS 16(1) 228 197 32 931 856 75 Equity Income (19) (19) (0) (58) (68) 10 Income Tax Paid (0) (2) 1 (3) (3) (0) Working Capital of Goods Variation (179) 114 (294) (442) 235 (677) Inventory Variation (396) (87) (309) (678) 98 (776) Suppliers Variation 155 185 (30) 113 66 47 Receivable Variation 62 17 45 122 71 52 Other Operating Asset and Liabilities Variation (145) 22 (167) 174 76 98 Operating Cash Flow (116) 312 (428) 601 1.095 (494) Adjusted for the deconsolidation of Stix 187 (31) 218 185 (38) 223 Operating Cash Flow ex. Stix 71 281 (210) 786 1.057 (271) Capex adjusted by BTS(2) (76) (159) 84 (424) (711) 287 Operating Free Cash Flow ex. Stix (5) 122 (127) 363 347 16 Other Operating Income and Expenses (99) (176) 77 (450) (687) 236 Dividends Received 15 0 15 63 47 16 Free Cash Flow ex. Stix (89) (54) (35) (24) (293) 269 Sale of Assets/ Offering(3) 10 9 1 96 123 (28) Cash Flow after Sale do Assets ex. Stix (79) (45) (34) 71 (170) 241 Net Financial Cost(4) (188) (204) 16 (951) (703) (247) Net Debt Variation ex. Stix (266) (249) (18) (879) (873) (7) Impact of the deconsolidation of Stix (187) 31 (218) (185) 38 (223) Net Debt Variation (453) (218) (235) (1.064) (835) (229) (1) it considers EBITDA adjusted by Other Operating Income and Expenses, including the result of Equity Income and rental costs and expenses, (2) net from the financing of built to suit (BTS) format to the new stores of Pão de Açúcar; (3) it includes revenues from the sale of assets and strategic projects; (4) It includes interest of gross debt, cash profitability, cost with banks guarantees and cost with discount of receivables. For comparison purposes, we will analyze the changes over the 12 -month period ending in 2Q26 (LTM 2Q26), except when indicated. Pre-IFRS 16 Adjusted EBITDA totaled R$ 931 million, reflecting a 8.8% increase compared to the previous period. Operating Cash Flow, after working capital variations, reached R$ 601 million, a decrease of R$ 494 million year over year, primarily reflecting higher cash outflows to suppliers aimed at preserving normal business operations throughout the Out-of-court restructuring process. Capex totaled R$ 424 million, representing a 40.4% reduction compared with the prior year. On a quarterly basis, Capex declined 52.5%, reflecting the Company's more disciplined capital allocation approach, with lower investments in information technology and logistics, as well as the discontinuation of its store expansion plan. Other Operating Income and Expenses totaled a net expense of R$ 450 million, a reduction of R$ 236 million compared to the prior period. Recurring effects impacting this line totaled R$ 223 million, mainly composed of payments for tax, civil, and regulatory contingencies, as well as legal fees. On the other hand, non-recurring effects totaled R$ 228 million, composed by: (i) disbursements for labor claims mainly related to Extra Hiper, currently in a reduction phase, amounting to approximately R$ 314 million; (ii) expenses with restructuring, including store closures, estimated at R$ 106 million, partially offset by (iii) tax refunds totaling R$ 138 million and ( iv) compensation related to a tax lawsuit in the amount of R$ 55 million. The non-strategic asset sales totaled R$ 96 million during the period, primarily reflecting installment payments related to the sale of gas stations, partial proceeds from the sale of Stix, and the disposal of real estate assets and underperforming stores. Finally, Net Financial Costs totaled R$ 951 million, an increase of R$ 247 million compared with the same period of the previous year. This variation primarily reflects the impact of higher Selic interest rates over the twelve -month
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11 comparison period, higher net debt levels, and the concentration of premium payments related to the renewal of guarantees associated with tax disputes under judicial sphere. Below is the table detailing the working capital for merchandise comparing 2Q26 and 2Q25. WORKING CAPITAL OF GOODS (R$ million) 2Q25 3Q25 4Q25 1Q26 2Q26 2Q26 vs 2Q25 2Q26 vs 1Q26 (+) Suppliers 2,431 2,577 3,189 2,149 1,753 (678) (396) (-) Inventory (1,929) (1,905) (1,963) (1,971) (1,816) 113 155 (-) Receivables (292) (247) (285) (231) (170) 122 62 (=) Cash Flow after receivables 209 425 941 (53) (233) (442) (179) In days of COGS 12 months(1) (+) Suppliers 56 59 74 52 44 (12) (8) (-) Inventory (44) (44) (46) (47) (46) (1) 2 (-) Receivables (7) (6) (7) (6) (4) 2 1 (=) Cash Flow after receivables 5 10 22 (1) (6) (11) (5) (1) Working capital lines were divided by the Cost of Goods Sold from continuing and discontinued operations over the last 12 months and multiplied by the number of days in the year Net Debt Consolidated INDEBTEDNESS (R$ million) Pro Forma ER 2Q26 2Q26 1Q26 2Q25 Short-Term Debt - 4,329 4,173 923 Loans and Financing - 1,489 1,437 59 Debentures - 2,840 2,735 864 Long-Term Debt 1,864 - - 3,465 Loans and Financing - - - 1,366 Debentures 1,864 - - 2,123 Financial Instruments - - - (24) Total Gross Debt 1,864 4,329 4,173 4,388 Cash and Equivalents ex. Consolidation of Stix(1) (646) (646) (756) (1,584) Net Debt 1,218 3,683 3,417 2,804 On Balance Credit Card Receivables non-discounted (36) (36) (29) (28) Net Debt including Credit Card Receivables non-discounted 1,182 3,647 3,388 2,776 Adjusted EBITDA Consolidated (Last Twelve Months) 1,830 1,830 1.800 1.725 Net Debt including Credit Card Receivables non-discounted / 0.6x 2.0x 1.9x 1.6x Adjusted EBITDA Consolidated (Last Twelve Months) Adjusted EBITDA Consolidated pre-IFRS 16 (Last Twelve Months) 931 931 899 856 Net Debt including Credit Card Receivables non-discounted / 1.3x 3.9x 3.8x 3.2x Adjusted EBITDA Consolidated pre-IFRS 16 (Last Twelve Months) (1) Figures exclude Stix's impact, which was previously consolidated into the Company's cash position (R$187 million as of March 2026 and R$185 million as of June 2025). Net debt, including the balance of n on-discounted receivables, totaled R$ 3.6 billion at the end of the period. Pre -IFRS 16 financial leverage - measured by the ratio between net debt and pre -IFRS 16 Consolidated Adjusted EBITDA for the last 12 months (including lease expenses) - reached 3.9x in 2Q26. On a pro forma basis, reflecting the terms of the Out-of-court restructuring process and the use of R$ 298 million in proceeds from the sale of FIC to repay a portion of the Company's debt, net debt, including the balance of non - discounted receivables, would reach R$ 1.2 billion. Accordingly, pre-IFRS 16 net leverage - measured as the ratio of net debt to Consolidated Adjusted EBITDA before IFRS 16 for the last twelve months (including lease expenses) – would decline to 1.3x in 2Q26.
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12 Investments ADJUSTED CAPEX(1) (R$ million) 2Q26 2Q25 Δ R$ LTM 2Q26 LTM 2Q25 Δ R$ Expansion 1 31 (31) 21 154 (133) Store Renovation, Conversions, Maintenance 47 51 (4) 202 218 (16) IT, Digital and Logistics 28 77 (49) 200 338 (138) Total 76 159 (84) 424 711 (287) (1) Net from the financing of built to-suit format to the new stores of Pão de Açúcar In 2Q26, Adjusted Capex, excluding the effects of built-to-suit operations, totaled R$ 76 million, with reductions across all lines, resulting in a 52.5% decrease, or R$ 84 million, compared to the same period of the previous year. A significant reduction in investments in new store openings was observed, reflecting the discontinuation of the expansion plan, as well as lower IT investments. As disclosed, within the context of the 2026 Efficiency Plan, the Company projects annual Capex between R$ 300 million and R$ 350 million, mainly driven by the discontinuation of expansion initiatives and lower investments in IT and store renovations. These initiatives reinforce the focus on cash preservation and capital allocation efficiency, contributing to the reduction of net debt. Breakdown of Store Changes by Banners During 2Q26, the Company converted 8 Minuto Pão de Açúcar stores and 5 Pão de Açúcar Fresh stores to the Pão de Açúcar banner, aiming to enhance regional operating efficiency and optimize the management of its store network. During the same period, the Company also closed one Pão de Açúcar store due to its underperformance, as part of its ongoing process of evaluating and optimizing the store portfolio. Stores by Banner 1Q26 2Q26 No. of Stores Openings Openings by conversion Closing Closing to conversion No. of Stores Sales area ('000 sq. m.) GPA 727 0 13 -1 -13 726 545 Pão de Açúcar 189 0 13 -1 0 201 263 Extra Mercado 165 0 0 0 0 165 193 Minuto Pão de Açúcar (Proximity) 218 0 0 0 -13 205 50 Mini Extra (Proximity) 155 0 0 0 0 155 39
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13 Consolidated Financial Statements Balance Sheet BALANCE SHEET (R$ million) ASSETS Consolidated 06.30.2026 06.30.2025 Current Assets 4,398 5,218 Cash and Marketable Securities 646 1,769 Financial Applications 23 16 Accounts Receivable 170 292 Credit Card 36 28 Sales Vouchers and Trade Account Receivable 99 233 Allowance for Doubtful Accounts (0) (1) Resulting from Commercial Agreements 35 32 Inventories 1,816 1,929 Recoverable Taxes 811 560 Noncurrent Assets for Sale 343 114 Claims with Related Parties 54 0 Prepaid Expenses and Other Accounts Receivables 535 538 Noncurrent Assets 11,163 13,145 Long-Term Assets 4,476 4,559 Recoverable Taxes 1,572 2,278 Financial Instruments 0 24 Deferred Income Tax and Social Contribution 1,689 1,094 Amounts Receivable from Related Parties 1 5 Judicial Deposits 313 229 Prepaid Expenses and Others 901 929 Investments 0 823 Property and Equipment 5,801 6,075 Intangible Assets 886 1,688 TOTAL ASSETS 15,561 18,363
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14 Consolidated Financial Statements Balance Sheet BALANCE SHEET (R$ million) LIABILITIES Consolidated 06.30.2026 06.30.2025 Current Liabilities 8,470 5,515 Suppliers 1,994 2,345 Trade payable, agreement 28 270 Loans and Financing 1,489 59 Debentures 2,840 864 Lease Liability 504 482 Payroll and Related Charges 337 373 Taxes and Social Contribution Payable 510 359 Financing for Purchase of Fixed Assets 67 104 Advertisement 16 20 Provision for Restructuring 2 4 Unearned Revenue 22 187 Liabilities on Noncurrent Assets for Sale 50 117 Others 610 330 Long-Term Liabilities 6,682 10,284 Loans and Financing 0 1,366 Debentures 0 2,123 Lease Liability 3,627 3,783 Income tax payable 69 84 Tax Installments 859 621 Provision for Contingencies 2,022 1,911 Unearned Revenue 28 49 Others 77 347 Shareholders' Equity 409 2,564 Attributed to controlling shareholders 409 2,553 Capital 2,511 2,511 Capital Reserves (69) (53) Profit Reserves (2,032) 96 Other Comprehensive Results (1) (0) Minority Interest 0 11 TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY 15,561 18,363
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15 Consolidated Financial Statements Income Statement – 2nd Quarter of 2026 (R$ Million) Consolidated 2Q26 2Q25 Δ Gross Revenue 4,713 5,066 -7.0% Net Revenue 4,228 4,676 -9.6% Cost of Goods Sold (2,915) (3,370) -13.5% Depreciation (Logistics) (25) (27) -6.2% Gross Profit 1,288 1,280 0.6% Selling Expenses (756) (760) -0.5% General and Administrative Expenses (126) (146) -13.7% Selling, General and Adm. Expenses (883) (906) -2.6% Equity Income 19 19 1.1% Other Operating Revenue (Expenses) (30) 10 - Depreciation and Amortization (216) (265) -18.3% Earnings before interest and Taxes - EBIT 178 138 29.7% Financial Revenue 33 117 -71.5% Financial Expenses (418) (421) -0.8% Net Financial Result (385) (304) 26.4% Income (Loss) Before Income Tax (206) (167) 23.6% Income Tax 4 (8) - Net Income (Loss) Company - continuing operations (203) (175) 15.8% Net Income (Loss) Company - discontinued operations (49) (41) 19.3% Net Income (Loss) - Consolidated Company (251) (216) 16.5% Net Income (Loss) - Controlling Shareholders - continuing operations (204) (176) 15.5% Net Income (Loss) - Controlling Shareholders - discontinued operations (49) (41) 19.3% Net Income (Loss) - Consolidated Controlling Shareholders (252) (217) 16.2% Minority Interest - Non-controlling - continuing operations 1 1 -33.6% Minority Interest - Non-controlling - discontinued operations 0 0 - Minority Interest - Non-controlling - Consolidated 1 1 -33.6% Earnings before Interest, Taxes, Depreciation, Amortization - EBITDA 420 429 -2.2% Adjusted EBITDA(1) 450 419 7.3% % of Net Revenue Consolidated 2Q26 2Q25 Δ Gross Profit 30.5% 27.4% 3.1 p.p. Selling Expenses -17.9% -16.3% -1.6 p.p. General and Administrative Expenses -3.0% -3.1% 0.1 p.p. Selling, General and Adm. Expenses -20.9% -19.4% -1.5 p.p. Equity Income 0.5% 0.4% 0.0 p.p. Other Operating Revenue (Expenses) -0.7% 0.2% -0.9 p.p. Depreciation and Amortization -5.1% -5.7% 0.5 p.p. Earnings before interest and Taxes - EBIT 4.2% 2.9% 1.3 p.p. Net Financial Result -9.1% -6.5% -2.6 p.p. Income (Loss) Before Income Tax -4.9% -3.6% -1.3 p.p. Income Tax 0.1% -0.2% 0.3 p.p. Net Income (Loss) Company - continuing operations -4.8% -3.7% -1.1 p.p. Net Income (Loss) - Consolidated Company -5.9% -4.6% -1.3 p.p. Net Income (Loss) - Controlling Shareholders - continuing operations -4.8% -3.8% -1.0 p.p. Net Income (Loss) - Consolidated Controlling Shareholders -6.0% -4.6% -1.3 p.p. Minority Interest - Non-controlling - continuing operations 0.0% 0.0% 0.0 p.p. Minority Interest - Non-controlling - Consolidated 0.0% 0.0% 0.0 p.p. Earnings before Interest, Taxes, Depreciation, Amortization - EBITDA 9.9% 9.2% 0.8 p.p. Adjusted EBITDA(1) 10.6% 9.0% 1.7 p.p. (1) Adjusted EBITDA excludes Other Operating Income and Expenses