Grupo Mateus SA (BSP:GMAT3) (Q2 2026) Earnings Call Highlights: Resilient Growth Amid Macro ...

Q: Can you provide more color on the gross margin dynamics? We saw a slight sequential improvement. What is the outlook for the second half of the year, and what are the main drivers for margin expansion? A: (CFO and IRO) The gross margin in the second quarter was resilient, coming in at 20.2%. We are seeing a gradual improvement, driven by a combination of factors. We have been working on a multi-strategic movement, including better commercial negotiations, a more efficient mix of products, and a strong focus on productivity gains. The "Novo Mateus" banner is evolving well and contributing positively. We expect this trend to continue in the second half of the year, with a gradual recovery in sales and a continued focus on the fundamentals of gross margin and operating expenses. The sequential improvement is a result of our disciplined execution, and we believe we can maintain this trajectory.

Q: There was a mention of a deflationary environment, particularly in commodities. How is this impacting your sales and pricing strategy, and how are you managing the competitive landscape? A: (VP of Operations, Logistics, and Commercial) We are indeed seeing a deflationary scenario in some categories, especially in commodities like rice, beans, and sugar. This has impacted our sales value, but we are seeing an acceleration in volume, which is a positive sign. We are strategically managing our pricing to remain competitive and gain market share. We have a strong commercial team that is working on a daily basis to adjust prices and promotions. This is a challenging environment, but we are focused on maintaining our resilience and gaining share, particularly in the cash & carry channel.

Q: Regarding the "Novo Mateus" banner, could you give us an update on its performance and its contribution to the company's overall results? A: (CFO and IRO) The "Novo Mateus" banner is showing a very important evolution. In the second quarter, its gross margin improved significantly compared to the first quarter. We are seeing the results of our efforts to unify systems and improve the commercial mix. The banner is becoming more mature, and we are confident in its trajectory. It is contributing positively to the company's overall margin, and we expect this to continue as we move forward.

Q: Can you talk about the productivity gains and the initiatives you have implemented to improve operational efficiency? A: (VP of Operations, Logistics, and Commercial) We have been working on several fronts to improve productivity. We have implemented new systems and processes, and we are seeing a significant evolution in our key performance indicators. The unification of our systems, particularly for the "Novo Mateus" banner, has been a major driver. We are also focusing on improving our logistics and distribution network. These initiatives are starting to bear fruit, and we expect to see further improvements in the second half of the year. We are very focused on this and believe it is a key part of our strategy to improve profitability.

Q: The company mentioned a strong cash generation in the quarter. Could you elaborate on the working capital dynamics and the main drivers behind this performance? A: (CFO and IRO) Yes, we had a very strong cash generation in the second quarter. This was driven by a combination of factors, including a reduction in inventory levels and an improvement in our payment terms with suppliers. We have been very disciplined in managing our working capital. We also had a positive impact from the reversal of some provisions. This strong cash generation is a testament to our operational efficiency and our focus on capital discipline.

Q: Given the challenging macro scenario, what is your strategy for opening new stores? Are you planning to slow down or accelerate your expansion plans? A: (Founder and Chairman of the Board) We are being very cautious and disciplined with our expansion plans. We are not opening stores at any cost. We are analyzing each opportunity carefully, focusing on the potential return on investment. We have a strong pipeline of projects, but we are prioritizing those with the best potential. We are also focusing on improving the profitability of our existing stores. Our strategy is to grow sustainably, and we will continue to be selective in our capital allocation.

Q: Could you provide more details on the performance of the different regions in Brazil? We saw that the Northeast is performing better. Is this trend expected to continue? A: (VP of Operations, Logistics, and Commercial) Yes, the Northeast region is performing very well, with same-store sales growth that is higher than the national average. This is due to a combination of factors, including a less competitive environment and a strong brand presence. However, we are also seeing positive results in other regions, such as Minas Gerais and Sao Paulo. We are confident in our ability to grow in all regions, but the Northeast remains a key strategic area for us.

Q: Regarding the competitive environment, are you seeing any changes in the behavior of your competitors, especially in the cash & carry segment? A: (VP of Operations, Logistics, and Commercial) The competitive environment is intense, but we are well-positioned. We are seeing some competitors being more aggressive on price, but we are managing this by focusing on our value proposition and our operational efficiency. We have a strong commercial team that is constantly monitoring the market and adjusting our strategy. We are confident in our ability to compete effectively and gain market share.

Q: What is the outlook for the second half of the year in terms of sales and profitability? A: (CFO and IRO) We are cautiously optimistic about the second half of the year. We expect to see a gradual recovery in sales, driven by our commercial initiatives and the continued growth of

For the complete transcript of the earnings call, please refer to the full earnings call transcript .