Quarterly Information

Empreendimentos Pague Menos S.A.

March 31, de 2023

With Independent Auditor's Report on Review of Quarterly Information

Empreendimentos Pague Menos S.A.

Quarterly information - ITR

March 31, 2023 and 2022

Table of Contents

Earnings release

3

Balance sheet

25

Income statement

27

Comprehensive income statement

28

Cash flow statement

29

Statements of chance in shareholders' equity

30

Statements of added value

31

Accompanying explanatory notes to the quarterly information

32

Comment on the behavior of business projections

72

Independent Auditor's Report on the financial statements

74

Declaration Company's Officers to the quarterly information

77

Declaration Company's Officers to the quarterly review report

79

EARNINGS

RELEASE

1Q23

Fortaleza, Ceará, May 8, 2023.

Empreendimentos Pague Menos S.A. ("Company" or "Pague Menos"), the main Health Hub of the Brazilian middle class, present in every state in Brazil and more than 380 municipalities, announces its results for the 1st quarter of 2023.

HIGHLIGHTS 1Q23

SALES GROWTH

SAME STORE SALES

Gross revenue expansion of 9.7% in

SSS of 7.2% for Pague Menos and 6.5%

Pague Menos standalone

for Extrafarma (ex-Covid tests)

OMNICHANNEL SALES

CUSTOMER BASE

Growth of 66.0%, reaching 12.5% of Pague

Consolidated active base of 19.9

Menos sales and 5.0% for Extrafarma

million customers, 28.4% increase

MARKET SHARE

PRODUCTIVITY

Organic growth above the market in

Growth in average sales per employee

all regions except North

of 10.2% in Pague Menos standalone

EXTRAFARMA SYNERGIES

ADJUSTED EBITDA

Actions already executed resulted in

Consolidated growth of 3.8% and

BRL 12.2 million in 1Q23 (BRL 48.6

reduction of 5.9% in Pague Menos

million on an annualized basis)

standalone

02

EARNINGS RELEASE 1Q23

DISCLOSURE CRITERIA

On August 1, 2022, the acquisition process of Imifarma Produtos Farmacêuticos e Cosméticos S.A. (Extrafarma) with Ultrapar Participações S.A. (Ultrapar) was completed. With the completion of the precedent conditions and incorporation of the equity balances, Extrafarma was consolidated and became part of the consolidated financial statements of Empreendimentos Pague Menos S.A. (The Company) that same month.

In order to facilitate the analysis of the results, we will present the segregated operational data of Pague Menos and Extrafarma in this release, while the financial information is presented as Pague Menos "standalone" (ex-Extrafarma) and Consolidated (Pague Menos plus Extrafarma).

Since 2019, our financial statements have been prepared in accordance with IFRS 16, which changed the criteria for recognition of rental contracts. To demonstrate the effects of implementing this standard and facilitate comparability between periods, we present on page 18 of this release the Income Statement for the Year excluding the effects of IFRS 16.

FINANCIAL HIGHLIGHTS PAGUE MENOS STANDALONE

in BRL million and % of Gross Revenue

1Q22

1Q23

Δ

Gross Revenue

2,111.5

2,315.9

9.7%

Gross profit

625.2

669.4

7.1%

% Gross Margin

29.6%

28.9%

(0.7 p.p.)

Contribution Margin

227.1

218.7

(3.7%)

Contribution Margin %

10.8%

9.4%

(1.4 p.p.)

Adjusted EBITDA

162.4

152.8

(5.9%)

Adjusted EBITDA Margin %

7.7%

6.6%

(1.1 p.p.)

Adjusted Net Profit

24.4

(43.2)

-

Adjusted Net Margin %

1.2%

(1.9%)

(3.1 p.p)

CONSOLIDATED FINANCIAL HIGHLIGHTS

in BRL million and % of Gross Revenue

1Q22

1Q23

Δ

Gross Revenue

2,111.5

2,813.2

33.2%

Gross profit

625.2

817.5

30.8%

% Gross Margin

29.6%

29.1%

(0.5 p.p.)

Contribution Margin

227.1

256.5

13.0%

Contribution Margin %

10.8%

9.1%

(1.7 p.p.)

Adjusted EBITDA

162.4

168.5

3.8%

Adjusted EBITDA Margin %

7.7%

6.0%

(1.7 p.p.)

Adjusted Net Profit

24.4

(55.3)

-

Adjusted Net Margin %

1.2%

(2.0%)

(3.2 p.p.)

|||UNTRANSLATED_CONTENT_S

OPERATIONAL HIGHLIGHTS

TART|||DESTAQUES

1Q22

1Q23

Δ

1Q23

Operation / Indicator

OPERACIONAIS

Stores (units)

1,169

1,271

8.7%

376

TED_

CONTENT_END|||

Average Sale/store/month (BRL thousand)

603

608

0.8%

441

Average Ticket (BRL)

72.75

78.49

7.9%

69.16

Employees (quantity)

20,055

19,673

(1.9%)

5,700

Employees/store (quantity)

17.2

15.5

(9.8%)

15.2

Avg. Sale/Employee/Month (BRL thousand)

35.2

38.7

10.2%

29.6

Omnichannel Share (% revenue)

9.0%

12.5%

3.5 p.p.

5.0%

Private Labels (% revenue)

6.4%

6.7%

0.3 p.p.

4.5%

Pharmaceutical Clinics (units)

893

991

11.0%

68

03

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Empreendimentos Pague Menos SA published this content on 12 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 June 2023 22:31:30 UTC.