Earnings release
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1 Portuguese/English (Original language/Simultaneous translation) Videoconference: www.gpari.com.br Replay: www.gpari.com.br Conference call about the 3Q26 Earnings EARNINGS RELEASE 3Q26 November 04, 2026 Thursday November 05, 2026 9h00 a.m. (Brasília) 7h00 a.m. (NY)
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2 Efficiency Gains, Profitability Prioritization and Debt Reduction(1) • R$ 365 million in expense reductions captured, representing 88% of the 2026 guidance • Adjusted EBITDA margin expanded by 2.7 p.p. YoY, reflecting the execution of the Efficiency Plan • Pro forma(1) Net Debt(2) decreased by R$ 2.5 billion, representing a 67% reduction • Pro forma(1) Leverage(3) declined from 3.7x to 1.2x in 3Q26 Net Debt(2) and Leverage(3) pro forma(1) Adjusted EBITDA Sales Profitability initiatives account for the largest share of the decline in gross sales ° Total sales declined 6.5% compared to 3Q25, of which 4.9% was attributable to the discontinuation of the Aliados format, the termination of the fulfillment partnership at distribution centers and the sale of Stix ° Same-store sales (4) declined 1.4% YoY, reflecting higher stockout levels and a still challenging consumer environment Gross Margin Profitability improvement driven by a shift toward higher -margin channels and gross margin expansion following changes in the ICMS tax regime ° Gross margin reached 30.7%, expanding 3.1 p.p. compared to 3Q25 ° Growth was driven by the discontinuation of the Aliados format, the impact of changes in the ICMS tax regime, and an improved e-commerce sales mix Efficiency Plan Financial discipline and continued progress in capturing operational efficiencies ° In 9M26, the Company captured R$ 365 million in efficiency gains, equivalent to 88% of the annual guidance of R$ 415 million ° CAPEX totaled R$ 2 26 million in 9M26 ( -56% vs. 9M25), positioning the Company to meet its full - year guidance of R$ 300-350 million Cash Generation EBITDA improvement and CAPEX reduction offset working capital pressure arising from the out - of-court restructuring ° LTM Operating Free Cash Flow(5) reached R$ 341 million, declining YoY due to higher cash outflows to suppliers associated with the out-of-court restructuring process ° LTM Free Cash Flow (5) improved by R$ 47 million, reflecting lower CAPEX and reduced Other Operating Income and Expenses. Net Income Continued Net Loss totaled R$ 220 million ° Continued Net Loss totaled R$ 220 million, representing a R$ 362 million deterioration compared to the same period of the previous year. ° Excluding the positive impact of tax credits recognized in 3Q25, the result improved by 20.3% year- over-year. São Paulo, November 04, 2026. GPA (B3: PCAR3) announces its results for the third 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 sam e period in 2025, except where otherwise indicated. (1) Pro forma analysis based on the terms of the Out -of-Court Restructuring Plan presented on May 5, 2026, also considering the partial debt repayment using R$ 293 million in proceeds from the sale of FIC. The Plan is available on the Company’s Investor Relations website; (2) Net debt including non-advanced credit card receivables; (3) Net debt, including non-advanced credit card receivables, divided by Consolidated Adjusted EBITDA pre-IFRS 16 (last twelve months); (4) -0.4 p.p. adjustment to same-store sales due to calendar effects; (5) Adjusted for the deconsolidation of Stix’s cash balance 412 510 458 450 482 9.1% 3Q25 10.0% 4Q25 10.5% 1Q26 10.6% 2Q26 11.7% 3Q26 +2.7 p.p. +16.9% Adjusted EBITDA(R$ million) Margin (%) 3.4x 3Q25 3.8x 3Q26 1.2x Pro forma 3Q26(1) 2,917 3,755 1,246 -67% -2.5 x Net Debt and Leverage Financial Leverage(3) Financial Net Debt(2)
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3 Management Message The third quarter of 2026 was marked by significant progress in the execution of GPA's strategy, supported by three strategic pillars: (i) Customer Focus; (ii) Operational and Commercial Excellence; and (iii) Financial Discipline. We remained focused on en hancing our customers' shopping experience, strengthening commercial execution, and increasing operational efficiency. At the same time, we advanced initiatives aimed at reducing expenses, maintaining investment discipline, optimizing our logistics network and simplifying our technology infrastructure, with the objective of building a more competitive, efficient and financially sustainable Company. Commercial performance during the quarter continued to reflect a challenging consumer environment, characterized by pressure on purchasing power and high levels of household indebtedness. Additionally, the prolonged judicial approval process of the Out -of-Court Restructuring Plan continued to affect product availability and commercial relationships with suppliers. Although stockout levels improved compared to the second quarter, they remained above the levels observed at the beginning of the year. Restoring product availability and improving sales performance remain among our key priorities. On the operational front, we made progress in regionalizing store management, seeking to tailor product assortments to the characteristics and preferences of consumers in each region while increasing the participation of regional suppliers. This initiative aims to improve product availability, quality, and freshness, reduce stockout levels and product losses, and optimize logistics costs. We believe that an operation more closely aligned with the needs of each local market will be essential to strengthening our competitiveness and enhancing customer experience. We also made progress in reviewing Extra Mercado's value proposition and repositioning the banner. Following the assessment and planning efforts carried out throughout the quarter, we began implementing the new strategy in stores across Rio de Janeiro in O ctober, alongside the regionalization pilot project. Key initiatives include price reductions on more than 2,000 items, aimed at enhancing competitiveness and reinforcing the value proposition reflected in the banner's positioning, “Mais Barato, Mais Barat o. Extra” (“Cheaper, Cheaper. Extra”), as well as strengthening the banner's identity in key product categories. These initiatives aim to increase Extra Mercado's relevance to consumers and lay the groundwork for a consistent recovery in sales performance. Regarding efficiency and financial discipline, we continued to deliver tangible progress. In the first nine months of 2026, we captured approximately R$ 365 million in efficiency gains, equivalent to 88% of our full -year target. Over the same period, inves tments totaled R$ 226 million, consistent with our strategy of disciplined capital allocation and cash preservation, considering our full -year CAPEX guidance of R$ 300 million to R$ 350 million. These results reflect Management's commitment to simplifying operations, controlling expenses, and building a more efficient cost structure. On the financial front, we achieved a major milestone with the judicial approval of the Out -of-Court Restructuring Plan in October 2026. Under the approved terms, the financial obligations covered by the Plan will be subject to conditions substantially better aligned with the Company's financial capacity. The main estimated effects include: (i) extending the average debt maturity from 2.1 to 6.4 years, reducing scheduled debt payments through 2028 from R$ 5.2 billion to approximately R$ 400 million; (ii) re ducing the average cost of debt from CDI + 1.8% per annum to CDI + 0.5% per annum; (iii) reducing the outstanding balance of the obligations by more than 50% over time; and (iv) reducing leverage from 3.7x to 1.2x on a pro forma basis. These figures do not reflect any potential fair value measurement effects, which remain under assessment and will be disclosed in accordance with applicable accounting standards. This achievement represents a decisive step forward in the Company's debt restructuring, allowing Management to increasingly focus its efforts on operational and commercial recovery. It also creates more favorable conditions for normalizing commercial rela tionships with suppliers, restoring product availability, and strengthening our financial position. In addition, we will continue working to improve our liquidity position and cash generation, while also evaluating complementary alternatives to further str engthen our capital structure, always taking into account market conditions and maintaining discipline in capital allocation. We recognize that important challenges remain, particularly regarding the recovery of sales levels. At the same time, we enter the retail sector's peak seasonal period better prepared. Our priority is to translate the progress achieved through the restructuring into sustainable operating results, with a focus on customers, execution excellence, and cash generation. We remain committed to building a simpler, more competitive, and financially balanced GPA, creating long- term value for our customers, employees, suppliers, 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) 3Q26 3Q25 Δ 9M26 9M25 Δ Gross Revenue 4,595 4,913 -6.5% 14,137 15,071 -6.2% Net Revenue 4,119 4,556 -9.6% 12,721 13,999 -9.1% Gross Profit 1,264 1,259 0.4% 3,883 3,853 0.8% Gross Margin 30.7% 27.6% 3.1 p.p. 30.5% 27.5% 3.0 p.p. Selling, General and Administrative Expenses (821) (890) -7.8% (2,620) (2,746) -4.6% % of Net Revenue 19.9% 19.5% 0.4 p.p. 20.6% 19.6% 1.0 p.p. Equity Income 14 17 -19.6% 49 53 -9.0% Adjusted EBITDA Consolidated(1) 482 412 16.9% 1,389 1,240 12.0% Adjusted EBITDA Margin Consolidated (1) 11.7% 9.1% 2.7 p.p. 10.9% 8.9% 2.1 p.p. Other Operating Revenue and Expenses (76) (76) -1.0% (651) (151) 330.4% Net Income Controlling Shareholders – Continued Operations (220) 142 - (1,770) (128) 1286.0% Net Margin – Controlling shareholders – Continued Operations -5.3% 3.1% -8.5 p.p. -13.9% -0.9% -13.0 p.p. Net Income Controlling Shareholders – Discontinued Operations(2) (511) (8) 6071.4% (650) (124) 422.6% Net Income Controlling Shareholders Consolidated(3) (731) 134 - (2,420) (252) 860.0% (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) 3Q26 Variation 3Q26/3Q25 Total sales Share of Sales (%) Total Sales Same-Store Sales ex. calendar effect(4) Pão de Açúcar 2,464 53.6% -0.4% -0.7% Extra Mercado 1,506 32.8% -3.4% -1.9% Proximity 581 12.6% -10.8% -2.9% Other Businesses (1) 45 1.0% -51.0% n.d. GPA ex. Aliados 4,595 100.0% -3.8% -1.4% Aliados(2) 0 0.0% -100.0% n.d. GPA(3) 4,595 100.0% -6.5% -1.4% (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 3Q26, total sales reached R$ 4.6 billion, declining 6.5% compared to the same period of the previous year, mainly reflecting the strategic decision to prioritize profitability, which led to the discontinuation of certain business formats and operations. The 6.5% decline in total sales was primarily attributable to three factors: (i) 4.9 % from profitability-driven initiatives, including the discontinuation of the Aliados format, the termination of the fulfillment partnership at distribution centers, and the sale of Stix; (ii) 0.2 % related to portfolio and calendar effects; and (iii) 1.4 % resulting from the decline in same-store sales. Regarding the 1.4% decline in same-store sales, performance continued to be affected by the impact of the out-of-court restructuring process on store supply. Nevertheless, stockout levels improved compared to the previous quarter, maintaining a gradual nor malization trend, although they remained above the levels observed prior to the announcement of the out-of-court restructuring. It is worth highlighting that, in October 2026, the Out -of-Court Restructuring Plan received judicial approval, which we expect will help accelerate the normalization of product supply and mitigate the remaining impacts associated with the process. Finally, as observed in previous quarters, sales performance was also influenced by a more challenging consumer environment, characterized by high levels of household indebtedness and increased competition for disposable income between discretionary and non-discretionary spending. Historical Same-Store Sales Growth by Banner and Format YoY Growth Same-Store Sales(1) 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 Pão de Açúcar 6.5% 6.5% 3.5% 1.8% 0.2% -1.2% -0.7% Extra Mercado 6.6% 4.8% 5.5% 4.0% 1.2% 0.4% -1.9% Proximity 7.8% 0.2% 2.8% 3.2% 0.3% -2.3% -2.9% (1) Adjustment of -0.4 p.p. of calendar effect in same-store sales. Pão de Açúcar same-store sales declined 0.7%, mainly impacted by the strategy of prioritizing e-commerce profitability, which had a more pronounced effect on the banner and weighed on sales performance during the period. Results were also affected by stockout levels that remained above normalized levels due to the out-of-court restructuring process. Despite the decline in sales, the banner delivered improved profitability in both physical stores and e -commerce, reflecting progress in the strategy of prioritizing higher -margin channels and operations. We remain confident in Pão de Açúcar's value proposition, supported by a differentiated product assortment, high -quality perishables, and service excellence. These attributes position the banner to capture relevant consumer trends, particularly the growing demand for healthier food options. At Extra Mercado, same-store sales declined 1.9%, primarily reflecting the largest year-over-year increase in stockout levels among the Company's banners. Despite this challenging environment, the banner's perishables category outperformed the banner’s consolidated results, demonstrating the category's resilience. Extra Mercado has also been undergoing a review of its value proposition and subsequent repositioning, supported by our regionalization strategy, with the Rio de Janeiro operation serving as the pilot project. The new approach includes greater autonomy for regional management, closer relationships and negotiations with local suppliers, and a management team with extensive knowledge and experience in the regional market. These initiatives are expected to
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6 enable faster decision -making and a product offering better aligned with the needs and preferences of customers in each region. In the Proximity, Same -store sales declined 2. 9% during the quarter, reflecting the impact of the out -of-court restructuring process on store supply, which resulted in higher stockout levels during the period. Performance was also affected by a more challenging consumer environment. Despite these headwinds, the format contin ues to offer a differentiated value proposition, supported by convenience, proximity, and product assortments tailored to our customers' different shopping occasions. Strategic Initiatives Commercial On the Commercial front, supported by our regionalization strategy, we have been working to strengthen relationships with local suppliers, increasing the autonomy and negotiating power of regional teams while tailoring product assortments to the characteri stics and preferences of each market. As a pilot project for this strategy, we began implementation in stores across Rio de Janeiro, with particular emphasis on the Extra Mercado banner, which is also undergoing a repositioning process following a review o f its value proposition. In this context, we are implementing initiatives focused on strengthening key product categories, optimizing product assortments with greater participation from local suppliers, and reducing prices on more than 2,000 items, aiming to enhance competitiveness and reinforce the banner's market positioning. Additionally, following the judicial approval of the Out -of-Court Restructuring Plan and the gradual normalization of commercial relationships with suppliers, we expect to make further progress in restoring commercial terms. These initiatives, combined wit h more effective category management, aim to strengthen our competitiveness, reduce stockout levels, and improve operational profitability. Operations On the Operations front, we are implementing a more regionalized and efficient management model, with greater autonomy for local leadership and a simplified store management structure. In this context, we are reducing the number of points of contact and co nsolidating responsibilities under more experienced professionals, creating a simpler, more agile, and more efficient organizational structure. This initiative brings decision -making closer to store operations and customers, strengthening our execution capabilities and responsiveness to the needs of each region. At the same time, we continue to invest in employee training, particularly through our Perishables Academy, aiming to enhance execution quality, reduce product losses, and reinforce operational excellence in a strategic category across our banners. Supply Chain On the Logistics front, we have established a structured transformation and value creation plan through 2028, focused on redesigning our distribution network to make it simpler and more efficient, reducing transportation distances and lead times between su ppliers, Distribution Centers, and stores. The new configuration aims to reduce stockout levels, product losses, and logistics costs, while also contributing to working capital optimization. Additionally, we are advancing reverse logistics initiatives and rationalizing our physical infrastructure, with plans to reduce the total area occupied by Distribution Centers by approximately 50% by 2028. Prioritizing E-commerce profitability In 3Q26, the Company continued to execute its strategy of prioritizing operational profitability. In e -commerce, this strategy was reflected in an improved sales mix, with a higher share of the first-party (1P) channel and reduced exposure to third-party (3P) platforms. E-commerce sales totaled R$ 517 million in the quarter, declining 13.7% compared to the same period of the previous year. This performance reflected a 4.3% decrease in 1P sales and a 20.4% decline in 3P sales. Despite the lower sales contribution, the oper ation delivered a significant improvement in profitability, with operating margin expansion, demonstrating positive results of the strategy implemented. E-commerce penetration in total sales reached 11.6% in the quarter, down 1.4 p.p. YoY. On the other hand, the first - party (1P) channel increased its share of the e -commerce sales mix by 4.5 p.p., reinforcing the shift toward a more profitable and sustainable operating model.
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7 Financial Performance 2026 Efficiency Plan Capex Guidance In 9M26, Capex investments totaled R$ 226 million(1), representing a reduction of R$ 290 million, or 56%, compared to 9M25. This reduction was mainly driven by lower investments in store expansion, with a decrease of R$ 119 million, in addition to lower investments in information technology and logistics, which declined by R$ 130 million. Consistent with the disciplined capital allocation framework established under the 2026 Efficiency Plan, investments made during the first half of the year represented 75.3% of the lower end of the projected range of R$300 million and 64.6% 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 9M26, the Company reported expenses of R$ 4,156 million which, when compared to the “2026 Operating Expenses Considered” or “Baseline 2026” for 9M26 of R$ 4,521 million, represented a reduction of R$ 365 million, equivalent to 87.9% of the annual reduction target of R$ 415 million These efficiency gains were primarily driven by: (i) workforce reductions; (ii) the renegotiation of major IT contracts, as well as the review and termination of less efficient contracts; (iii) freight -related operational efficiency gains, through the optimization of transfers, route planning, and load utilization; and (iv) other initiatives, including lower advertising expenses, reduced operational losses, and the renegotiation of occupancy contracts . (1) Accounting view of Capex investments, excluding built-to-suit adjustments, presented at the end of this release. 2Q26 1,508 1,408 1,535 1,390 1,478 1,358 4,521 4,156 9M263Q261Q26 -99 -145 -121 -365 Baseline 2026 Reported 3Q26 Efficiency Capture "2025 Operating Expenses Considered" +5,3% Inflation + store portfolio effects Baseline 2026 (365) Captured To be captured Estimated "2026 Operating Expenses Considered" 5,778 6,086 5,671(50) Expense Plan Progress R$ 415 million
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8 Gross Margin expansion reflecting profitability-driven initiatives 3.1 p.p. expansion compared to 3Q25 In 3Q26, Gross Profit reached R$ 1.3 billion, with a gross margin of 30.7%, representing an expansion of 3.1 p.p. compared to the same period of the previous year. This significant improvement reflects a combination of strategic and operational initiatives, including: (i) the discontinuation of the Aliados format; (ii) the positive impact of the migration of certain products from the ICMS-ST tax regime to the standard ICMS regime; (iii) improved e -commerce profitability; and (iv) ongoing operational improvements across banners and formats, contributing to sustainable margin expansion. It is worth highlighting that, despite the 6.5% decline in total sales, Gross Profit increased by R$ 5 million in nominal terms, demonstrating the positive impact of the initiatives implemented to improve profitability. Equity Income, corresponding to GPA's share of FIC's results, totaled R$ 14 million in the quarter, representing a slight decrease compared to 3Q25. The Company is still awaiting approval from the Central Bank of Brazil to complete the sale of its stake in FIC. Upon completion of the transaction, the Company will be able to establish new partnerships in financial services, expanding opportunities to leverage the service counters across its banners. GPA operates 717 stores, serving more than 20 million customers per month, in addition to a significant e -commerce platform in the Brazilian food retail sector. This combination of physical and digital assets represents an opportunity to develop new solutions and partnerships, with the potential to further monetize its assets and generate additional value for the Company. 27.6% 3Q25 27.7% 4Q25 30.4% 1Q26 30.5% 2Q26 30.7% 3Q26 1,259 1,415 1,332 1,288 1,264 +3.1 p.p. +0.4% Gross Profit (R$ million) Gross Margin (%) Gross Profit and Margin
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9 Adjusted EBITDA up 16.9%, reaching a 11.7% margin Increase driven by profitability prioritization initiatives In 3Q26, SG&A totaled R$ 821 million, representing a significant nominal reduction of R$ 69 million compared to the same period of the previous year. This performance reflects progress from the initiatives implemented under the Company's Efficiency Plan, p articularly: (i) workforce reductions, which accounted for the largest share of savings captured during the period; (ii) the sale of Stix, whose expenses are no longer consolidated in the Company's results; and (iii) lower facilities -related expenses. Addi tionally, we continued to capture freight -related operational efficiency gains through the optimization of transfers, route planning, and logistics capacity utilization, alongside reduced operational losses and the renegotiation of occupancy contracts, reinforcing cost management discipline and continued improvements in operational efficiency. As a result of these initiatives, Adjusted EBITDA totaled R$ 482 million in the quarter, representing a significant increase of 16.9% compared to 3Q25, with a margin of 11.7%, equivalent to a YoY expansion of 2.7 p.p. This performance demonstrates the Company's improving profitability and reflects the positive results of measures implemented over recent quarters, particularly disciplined expense management, cost structure optimization, and the pri oritization of higher-margin operations. Other Operating Income and Expenses During the quarter, Other Operating Income and Expenses totaled R$ (76) million, remaining stable compared to the same period of the previous year. This result primarily reflects restructuring costs associated with the efficiency initiatives implemented by the Company, as well as expenses related to labor and tax contingencies . 746 808 773 756 722 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 16.4% 3Q25 15.8% 4Q25 17.7% 1Q26 17.9% 2Q26 3Q26 17.5% +1.2 p.p. -3% % of Net Revenue Selling Expenses Selling Expenses 145 129 143 126 98 -10 -5 0 5 10 0 50 100 150 200 250 300 350 400 450 3.2% 3Q25 2.5% 4Q25 3.3% 1Q26 3.0% 2Q26 3Q26 2.4% -32% -0.8 p.p. % of Net Revenue General and Administrative Expenses General and Administrative Expenses 412 510 458 450 482 9.1% 3Q25 10.0% 4Q25 10.5% 1Q26 10.6% 2Q26 11.7% 3Q26 +2.7 p.p. +16.9% Adjusted EBITDA (R$ million) Margin (%) Adjusted EBITDA and Margin
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10 Financial Result FINANCIAL RESULT (R$ million) 3Q26 3Q25 Δ 9M26 9M25 Δ Financial Revenue 13 127 -89.5% 88 302 -70.8% Financial Expenses (269) (319) -15.7% (858) (863) -0.6% Cost of Debt (132) (181) -27.0% (454) (484) -6.2% Cost of Receivables Discount (25) (28) -8.7% (76) (72) 5.6% Other Financial Expenses (112) (110) 1.0% (328) (307) 6.8% Net Financial Result – pre-IFRS 16 (256) (193) 32.7% (770) (561) 37.3% % of Net Revenue – pre-IFRS 16 -6.2% -4.2% -2.0 p.p. -6.1% -4.0% -2.1 p.p. Interest on Lease Liabilities (134) (124) 7.7% (386) (378) 2.1% Net Financial Result – post-IFRS 16 (389) (317) 22.9% (1,156) (939) 23.1% % Net Revenue – post-IFRS 16 -9.4% -6.9% -2.5 p.p. -9.1% -6.7% -2.4 p.p. In 3Q26, the Net Financial Result – pre-IFRS 16 totaled R$ ( 256) million, representing 6.2% of net revenue. Below are the main impacts compared to the same period of the previous year: • Financial Revenues : declined, mainly reflecting a lower average cash balance during the period and, consequently, lower income from financial investments. Additionally, the 3Q25 comparison base benefited from a positive non -recurring effect related to the monetary adjustment of tax credits recognized in prior periods. • Financial Expenses: decreased by 15.7%, reflecting lower debt servicing costs due to the decline in the Selic rate. Debt costs do not yet reflect the impacts of the judicial approval of the Out -of-Court Restructuring Plan, which will be recognized in 4Q26. As part of its cost efficiency initiatives, the Company has been actively optimizing its portfolio of outstanding guarantees through the release of guarantees associated with closed legal proceedings and, where applicable, the replacement of financial guarantees with lower-cost alternatives. As a result, the outstanding balance of issued guarantees decreased from R$ 13,500 million in June 2026 to R$ 12,532 million at the end of September and R$ 11,900 million at the end of October 2026. These reductions are expected to generate annual cost savings of approximately R$ 18 million, with further significant releases of guarantees anticipated over the coming months . Also regarding guarantees, the Company established its own captive insurance brokerage to capture a portion of the commissions associated with new insurance policies. This represents another initiative aimed at improving financial management efficiency. Including the effects of IFRS 16, the Net Financial Result, including interest expenses on lease liabilities, totaled R$ (389) million in 3Q26, equivalent to 9.4% of net revenue. Net Loss of Continued and Discontinued Operations In 3Q26, Net Loss from Continued Operations totaled R$ 220 million. For comparability purposes, it is worth highlighting that the 3Q25 results benefited from the recognition of a R$ 418 million tax credit. Excluding this non -recurring effect, the Net Loss from Continuing Operations in 3Q25 would have totaled R$ 276 million. Therefore, on a comparable basis, the 3Q26 results represented a 20.3% YoY improvement. The Net Loss from Discontinued Operations totaled R$ 511 million in 3Q26, primarily reflecting a R$ 467 million impact related to a provision. Excluding this effect in 3Q26 and, for comparability purposes, also excluding the positive impact of R$ 108 million related to a tax litigation case recognized in 3Q25, the results from Discontinued Operations improved by 62% YoY.
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11 Cash Generation and Net Debt NET DEBT VARIATION – MANAGERIAL VIEW (R$ million) 3Q26 3Q25 Δ R$ LTM(5) 3Q26 LTM(5) 3Q25 Δ R$ Adjusted EBITDA Consolidated pre-IFRS 16(1) 256 185 71 1,002 853 149 Equity Income (14) (17) 3 (55) (68) 14 Income Tax Paid (0) (1) 1 (3) (4) 1 Working Capital of Goods Variation 152 215 (64) (506) 480 (986) Inventory Variation 121 146 (25) (703) 301 (1,004) Suppliers Variation (16) 24 (41) 73 106 (33) Receivable Variation 47 45 2 124 73 52 Other Operating Asset and Liabilities Variation (114) 81 (195) (8) 169 (177) Operating Cash Flow 279 464 (184) 431 1,430 (999) Adjusted for the deconsolidation of Stix 0 (67) 67 252 (95) 347 Operating Cash Flow ex. Stix 279 396 (117) 683 1,334 (652) Capex adjusted by BTS(2) (64) (146) 82 (341) (675) 334 Operating Free Cash Flow ex. Stix 216 250 (35) 341 659 (318) Other Operating Income and Expenses (163) (197) 34 (418) (718) 301 Dividends Received 18 0 18 82 17 64 Free Cash Flow ex. Stix 71 54 17 5 (42) 47 Sale of Assets/ Offering(3) 32 67 (35) 60 103 (42) Cash Flow after Sale of Assets ex. Stix 103 121 (18) 66 61 4 Net Financial Cost(4) (203) (256) 53 (911) (817) (94) Net Debt Variation ex. Stix (100) (136) 35 (845) (756) (89) Impact of the deconsolidation of Stix 0 67 (67) (252) 95 (347) Net Debt Variation (100) (68) (32) (1,097) (660) (437) (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 3Q26 (LTM 3Q26), except when indicated. Pre-IFRS 16 Adjusted EBITDA totaled R$ 1.0 billion, representing a significant increase of 17.4% compared to the previous period, reflecting the initiatives highlighted above. Operating Cash Flow, after changes in working capital and excluding the negative impact of the deconsolidation of Stix, totaled R$ 683 million, representing a year -over-year decrease of R$ 652 million. This performance mainly reflects higher cash allocations to suppliers throughout the period, aimed at ensuring supply continuity and maintaining normal operations during the out-of-court restructuring process. Despite this year-over-year impact on Operating Cash Flow, we observed a sequential improvement in working capital dynamics. Supplier payment terms, measured in days of COGS, improved by 5 days compared to the previous quarter, reflecting progress in normalizing commercial relationships and the gradual recovery of negotiating terms with suppliers following the impacts of the out-of-court restructuring process. CAPEX, adjusted for built -to-suit financing, totaled R$ 341 million, representing a 49.4% reduction compared to the same period of the previous year, positioning the Company to close 2026 within its CAPEX guidance range of R$ 300 million to R$ 350 million. This improvement reflects greater discipline in capital allocation, with reduced investments in information technology and logistics, as well as the discontinuation of the store expansion plan, prioritizing cash preservation and the allocation of resources to higher-return initiatives. Other Operating Income and Expenses totaled a net expense of R$ 418 million, a reduction of R$ 301 million compared to the prior period. Recurring effects impacting this line totaled R$ 206 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$ 210 million, composed by: (i) disbursements for labor claims mainly related to Extra Hiper, currently in a reduction phase, amounting to approximately R$ 310 million; (ii) expenses with restructuring, including store closures, estimated at R$ 94 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. Proceeds from the sale of non-strategic assets totaled R$ 60 million during the period, mainly reflecting proceeds from the sale of Stix, installment payments related to the sale of fuel stations, and the disposal of real estate assets and underperforming stores. Finally, Net Financial Costs totaled R$ 911 million, an increase of R$ 94 million compared to the same period of the previous year. This change primarily reflects lower financial income due to a lower average cash balance during the period and, consequently, reduced returns on financial investments.
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12 Below is the table detailing the working capital for merchandise comparing 3Q26 and 3Q25. WORKING CAPITAL OF GOODS (R$ million) 3Q25 4Q25 1Q26 2Q26 3Q26 3Q26 vs 3Q25 3Q26 vs 2Q26 (+) Suppliers 2,577 3,189 2,149 1,753 1,874 (703) 121 (-) Inventory (1,905) (1,963) (1,971) (1,816) (1,833) 73 (16) (-) Receivables (247) (285) (231) (170) (122) 124 47 (=) Cash Flow after receivables 425 941 (53) (233) (81) (506) 152 In days of COGS 12 months(1) (+) Suppliers 59 74 52 44 49 (11) 5 (-) Inventory (44) (46) (47) (46) (48) (4) (2) (-) Receivables (6) (7) (6) (4) (3) 2 1 (=) Cash Flow after receivables 10 22 (1) (6) (2) (12) 4 (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 3Q26 3Q26 2Q26 1Q26 Short-Term Debt - 4,461 4,329 4,173 Loans and Financing - 1,509 1,489 1,437 Debentures - 2,952 2,840 2,735 Long-Term Debt 1,953 - - - Loans and Financing - - - - Debentures 1,953 - - - Total Gross Debt 1,953 4,461 4,329 4,173 Cash and Equivalents ex. Consolidation of Stix(1) (678) (678) (646) (756) Net Debt 1,275 3,783 3,683 3,417 On Balance Credit Card Receivables non-discounted (28) (28) (36) (29) Net Debt including Credit Card Receivables non-discounted 1,246 3,755 3,647 3,388 Adjusted EBITDA Consolidated (Last Twelve Months) 1,899 1,899 1,830 1,800 Net Debt including Credit Card Receivables non-discounted / 0.7x 2.0x 2.0x 1.9x Adjusted EBITDA Consolidated (Last Twelve Months) Adjusted EBITDA Consolidated pre-IFRS 16 (Last Twelve Months) 1,002 1,002 931 899 Net Debt including Credit Card Receivables non-discounted / 1.2x 3.7x 3.9x 3.8x 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$185 million as of June 2025). Net Debt, including non -advanced credit card receivables, totaled R$ 3.8 billion at the end of the period. Pre -IFRS 16 financial leverage - measured as the ratio of Net Debt to Consolidated Adjusted EBITDA pre -IFRS 16 for the last twelve months (including rental expenses) - reached 3.7x in 3Q26. On a pro forma basis, considering the terms of the Out-of-Court Restructuring Plan and the allocation of R$ 293 million in proceeds from the sale of FIC toward debt repayment, Net Debt, including non -advanced credit card receivables, would total R$ 1.2 billion. Pre -IFRS 16 financial leverage - measured as the ratio of Net Debt to Consolidated Adjusted EBITDA pre-IFRS 16 for the last twelve months (including rental expenses) - would reach 1.2x in 3Q26. Investments ADJUSTED CAPEX(1) (R$ million) 3Q26 3Q25 Δ R$ LTM 3Q26 LTM 3Q25 Δ R$ Expansion 1 11 (10) 11 136 (125) Store Renovation, Conversions, Maintenance 32 67 (35) 168 208 (41) IT, Digital and Logistics 31 69 (38) 162 330 (168) Total 64 146 (82) 341 675 (334) (1) Net from the financing of built to-suit format to the new stores of Pão de Açúcar In 3Q26, Adjusted Capex, excluding the effects of built-to-suit operations, totaled R$ 64 million, with reductions across all lines, resulting in a 56.4% decrease, or R$ 82 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
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13 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 In 3Q26, we closed one Pão de Açúcar store, one Extra Mercado store, six Minuto Pão de Açúcar stores, and one Mini Extra store due to underperformance, as part of our ongoing store portfolio assessment and optimization process . Stores by Banner 2Q26 3Q26 No. of Stores Openings Openings by conversion Closing Closing to conversion No. of Stores Sales area ('000 sq. m.) GPA 726 0 0 -9 0 717 540 Pão de Açúcar 201 0 0 -1 0 200 262 Extra Mercado 165 0 0 -1 0 164 191 Minuto Pão de Açúcar (Proximity) 205 0 0 -6 0 199 48 Mini Extra (Proximity) 155 0 0 -1 0 154 38
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14 Consolidated Financial Statements Balance Sheet BALANCE SHEET (R$ million) ASSETS Consolidated 09.30.2026 09.30.2025 Current Assets 4,352 4,828 Cash and Marketable Securities 678 1,348 Financial Applications 37 20 Accounts Receivable 122 247 Credit Card 28 22 Sales Vouchers and Trade Account Receivable 52 200 Allowance for Doubtful Accounts (1) (1) Resulting from Commercial Agreements 42 25 Inventories 1,833 1,905 Recoverable Taxes 753 669 Noncurrent Assets for Sale 337 57 Claims with Related Parties 54 0 Prepaid Expenses and Other Accounts Receivables 538 582 Noncurrent Assets 10,672 13,320 Long-Term Assets 4,130 4,827 Recoverable Taxes 1,672 2,092 Financial Instruments 0 0 Deferred Income Tax and Social Contribution 1,935 1,512 Amounts Receivable from Related Parties 1 5 Judicial Deposits 336 245 Prepaid Expenses and Others 186 973 Investments 0 840 Property and Equipment 5,669 6,007 Intangible Assets 873 1,646 TOTAL ASSETS 15,024 18,148
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15 Consolidated Financial Statements Balance Sheet BALANCE SHEET (R$ million) LIABILITIES Consolidated 09.30.2026 09.30.2025 Current Liabilities 8,830 6,861 Suppliers 2,036 2,470 Trade payable, agreement 37 294 Loans and Financing 1,509 661 Debentures 2,952 1,340 Lease Liability 528 499 Payroll and Related Charges 363 397 Taxes and Social Contribution Payable 618 357 Financing for Purchase of Fixed Assets 66 91 Advertisement 16 14 Provision for Restructuring 1 4 Unearned Revenue 21 166 Liabilities on Noncurrent Assets for Sale 48 106 Others 634 461 Long-Term Liabilities 6,515 8,584 Loans and Financing 0 723 Debentures 0 1,311 Lease Liability 3,543 3,681 Income tax payable 63 80 Tax Installments 774 621 Provision for Contingencies 2,041 2,003 Unearned Revenue 24 44 Others 70 121 Shareholders' Equity (321) 2,703 Attributed to controlling shareholders (321) 2,688 Capital 2,511 2,511 Capital Reserves (68) (51) Profit Reserves (2,763) 228 Other Comprehensive Results (1) (0) Minority Interest 0 15 TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY 15,024 18,148
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16 Consolidated Financial Statements Income Statement – 3rd Quarter of 2026 (R$ Million) Consolidated 3Q26 3Q25 Δ Gross Revenue 4,595 4,913 -6.5% Net Revenue 4,119 4,556 -9.6% Cost of Goods Sold (2,830) (3,270) -13.5% Depreciation (Logistics) (25) (27) -6.1% Gross Profit 1,264 1,259 0.4% Selling Expenses (722) (746) -3.1% General and Administrative Expenses (98) (145) -32.0% Selling, General and Adm. Expenses (821) (890) -7.8% Equity Income 14 17 -19.6% Other Operating Revenue (Expenses) (76) (76) -1.0% Depreciation and Amortization (213) (262) -18.8% Earnings before interest and Taxes - EBIT 169 47 256.5% Financial Revenue 13 127 -89.5% Financial Expenses (403) (443) -9.1% Net Financial Result (389) (317) 23.0% Income (Loss) Before Income Tax (221) (269) -18.0% Income Tax 1 415 -99.8% Net Income (Loss) Company - continuing operations (220) 145 - Net Income (Loss) Company - discontinued operations (511) (8) 6071.4% Net Income (Loss) - Consolidated Company (731) 137 - Net Income (Loss) - Controlling Shareholders - continuing operations (220) 142 - Net Income (Loss) - Controlling Shareholders - discontinued operations (511) (8) 6071.4% Net Income (Loss) - Consolidated Controlling Shareholders (731) 134 - Minority Interest - Non-controlling - continuing operations 0 4 -100.0% Minority Interest - Non-controlling - discontinued operations 0 0 - Minority Interest - Non-controlling - Consolidated 0 4 -100.0% Earnings before Interest, Taxes, Depreciation, Amortization - EBITDA 406 336 21.0% Adjusted EBITDA(1) 482 412 16.9% % of Net Revenue Consolidated 3Q26 3Q25 Δ Gross Profit 30.7% 27.6% 3.1 p.p. Selling Expenses -17.5% -16.4% -1.2 p.p. General and Administrative Expenses -2.4% -3.2% 0.8 p.p. Selling, General and Adm. Expenses -19.9% -19.5% -0.4 p.p. Equity Income 0.3% 0.4% 0.0 p.p. Other Operating Revenue (Expenses) -1.8% -1.7% -0.2 p.p. Depreciation and Amortization -5.2% -5.8% 0.6 p.p. Earnings before interest and Taxes - EBIT 4.1% 1.0% 3.1 p.p. Net Financial Result -9.5% -6.9% -2.5 p.p. Income (Loss) Before Income Tax -5.4% -5.9% 0.6 p.p. Income Tax 0.0% 9.1% -9.1 p.p. Net Income (Loss) Company - continuing operations -5.3% 3.2% -8.5 p.p. Net Income (Loss) - Consolidated Company -17.7% 3.0% -20.8 p.p. Net Income (Loss) - Controlling Shareholders - continuing operations -5.3% 3.1% -8.5 p.p. Net Income (Loss) - Consolidated Controlling Shareholders -17.7% 2.9% -20.7 p.p. Minority Interest - Non-controlling - continuing operations 0.0% 0.1% -0.1 p.p. Minority Interest - Non-controlling - Consolidated 0.0% 0.1% -0.1 p.p. Earnings before Interest, Taxes, Depreciation, Amortization - EBITDA 9.9% 7.4% 2.5 p.p. Adjusted EBITDA(1) 11.7% 9.1% 2.7 p.p. (1) Adjusted EBITDA excludes Other Operating Income and Expenses