Brazilian retail group GPA closed the first quarter of 2026 with revenues down 5,2% year-over-year, reaching 4,8 billion Brazilian reais, equivalent to approximately €812 million. This result reflects a continuing weak consumer environment in Brazil, marked by pressure on household purchasing power and slowing retail demand.
Despite the decline in sales, the group showed improved operating profitability thanks to a strategy focused on higher-margin channels and strict cost control. Gross margin rose to 30,4%, up 2,9 percentage points compared to the same period of the previous year, while adjusted EBITDA reached 10,5%, an increase of 1,9 points.
In the quarter, GPA generated efficiencies of 99 million Brazilian reais, equal to nearly 24% of the company's annual target. At the same time, the group reduced investments by 55%, with capex falling to 87 million Brazilian reais, in line with its decision to optimize strategic investments and focus resources on existing assets.
There are also signs of improvement on the debt front. Pro forma net debt could decrease by 74%, reaching 2,4 billion reais, while pro forma leverage could fall to 0,9 times, a reduction of 2,7 times from previous levels.
However, the net result remains poor. GPA recorded a loss of 1,35 billion Brazilian reais, approximately 228 million euros, mainly due to extraordinary and non-cash items. The adjusted net loss, however, stood at 333 million Brazilian reais.
On the commercial front, like-for-like sales grew 0,6%, with all the group's brands posting positive results. Extra Mercado stood out in particular, recording a 1,2% increase. Fresh and perishable products, considered one of the main growth drivers of the quarter, were key drivers of performance.
Digital business, however, was weaker. E-commerce sales stood at 542 million Brazilian reais, down 7,7%, with online penetration accounting for 11,6% of total revenue.
During the period, the group converted two Pão de Açúcar Fresh stores into standard Pão de Açúcar locations, while one Minuto Pão de Açúcar location was permanently closed following a fire. GPA also confirmed that no new openings are planned in the short term, thus reinforcing its strategy of optimizing the existing network rather than expanding.
At the end of the first quarter of 2026, the group's network had 727 points of sale, of which 218 Minuto Pão de Açúcar, 189 Pão de Açúcar, 164 Extra Mercado and 155 Mini Extra.
CEO Alexandre Santoro emphasized that the group initiated an out-of-court debt restructuring process in the quarter, concluding negotiations with inactive creditors in less than 60 days. According to the manager, the agreement will allow for a structural improvement in the debt profile, resulting in lower financing costs, debt reduction, and relief from cash flow pressures.
