Q2 2026 Grupo Multi SA Earnings Call

August 13, 2026

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Speaker #2: When announced, a prompt to activate your microphone will appear on the screen. We advise that the questions be asked all at once. We emphasize that the information contained in this presentation, and any statements that may be made during the video conference regarding the business prospects, projections, and operational and financial goals of Grupo Multilaser, constitute beliefs and assumptions of the company's management.

Speaker #2: As well as information currently available. Future considerations or forward-looking statements are not a guarantee of performance. They involve risks, uncertainties, and assumptions, as they refer to future events and therefore depend on circumstances that may or may not occur.

Operator: We emphasize the information contained in this presentation and any statement that maybe made during the video conference regarding the business prospects projections and operational and financial goals of Grupo Multilaser constitutes beliefs and assumptions of the company's management as well as information currently available. Future [inaudible] are forward looking statements and not a guarantee of performance. They involve [inaudible] and assumptions and as they were for the future events and therefore the circumstances may or may not occur. [Inaudible] Market conditions and other operating factors may affect Grupo Multi's future performances and lead to results that differ materially from those expressed in such forward looking statements. For the full disclaimer see the second to last slide of this presentation. Today we have the presence of the company's executive, André Poroger CEO and Eduardo Belelas CFO. I turn the floor to Mr. André to continue with the presentation.

Operator: Options to mute the audio in Portuguese by clicking on mute original audio. Video conference will be recorded and will be made available on the company's IR website where the complete set of materials of the earnings of this result will be available. You can also download the presentation from the [inaudible] icon in Portuguese and English. To listen to this to this conversation all the participants will have their microphone disabled. At the end of the presentation will begin the questions and answers session. To ask a question click on Q&A icon at the bottom of your screen and write your question. To join the queue indicate whether you would like to enable audio and or video. When announced prompt to activate your microphone will appear on the screen. We advise that the questions be asked all at once.

André Poroger: Its also important to say that as we mentioned in the last call part of this is facts based to a fact. [Inaudible]. The other fact would be an advance and anticipation of margin as you know the cost of electronic component this year, the end of last year to this year increased steeply. We've been repricing our products so that's a lot of work for our pricing team. Repricing it by the replacement cost, knowing that the costs will go up.

André Poroger: To optimize the portfolio reducing the number of SKUs and still able to maintain and even grow revenue so that's goodness. And its also goodness on the gross margin side the main objective of optimizing the portfolio was to recover gross margin. I think this is one of the main highlight that we've been able to deliver. When we look at the comparison with last year we had more SKUs and we still grew almost 10% this point so that helps us. And now our position of recovery. [inaudible] Half year portfolio been able to maintain revenue and bringing good results.

André Poroger: Everyone, first of all thank you for attending another earnings conference call. Today is a very special day we are here from a hotel in [inaudible] where we are gathering our sales crew for our national sales conventions more than 350 people here from the commercial teams, sales people, reps. We are here gathered for two days. Its a very special day today we are happy to have all of you attending here. I will begin with the highlight and then I'll turn the floor to Edu and he will give you more details on the numbers and then i will come back to talk about different business unit results.

André Poroger: Next slide please, So here we have the indicators that we've been disclosing. We have net revenue getting close to BRL 960 million, a slight increase compared to same time period last year. Only in the year we are growing 8% to give you an idea so revenue grew 8% so its worth noting or remembering all the work we've done to review and optimize our portfolio. The group about a year ago about 4,000 SKUs different products on the company's porfolio and today our porfolio is actually 1,700 SKUs. So its a significant reduction on the number of SKUs. We cut more than half of the SKUs preserving revenue we increased revenue by 8% now we grew 3% compared to the same period last year so its a very positive number.

Operator: Destacamos que as informações contidas nesta apresentação e quaisquer declarações que possam ser feitas durante a videoconferência relativas às perspectivas comerciais, projeções e objetivos operacionais e financeiros do Grupo Multi constituem crenças e pressupostos da gestão da companhia, assim como as informações atualmente disponíveis. Considerações futuras ou declarações voltadas para o futuro não são uma garantia de desempenho. Elas envolvem riscos, incertezas e pressupostos, já que se referem a eventos futuros e, portanto, dependem de circunstâncias que podem ou não ocorrer. Os investidores devem entender que as condições econômicas gerais, as condições de mercado e outros fatores operacionais podem afetar o desempenho futuro do Grupo Multi e levar a resultados que diferem materialmente daqueles expressos em tais declarações voltadas para o futuro. Para o aviso legal completo, consulte o penúltimo slide desta apresentação. Hoje contamos com a presença dos executivos da companhia, André Poroger, CEO, e Eduardo Belelas, CFO.

Speaker #2: Investors should understand that general economic conditions, market conditions, and other operating factors may affect Grupo Multilaser's future performance and lead to results that differ materially from those expressed in such forward-looking statements.

Speaker #2: For the full disclaimer, see the second-to-last slide of this presentation. Today, we have the presence of the company's executives: André Porojer, CEO, and Eduardo Belelas, CFO.

Speaker #2: I turn the floor to Mr. André to continue with the presentation.

Speaker #3: Olá, bom dia. Bom dia a todos. Primeiramente, obrigado pela presença.

Speaker #2: First of all, thank you for attending another earnings conference call. Today is a very special day. We are here from a hotel in Campinas, where we are gathering our sales group for a national sales convention, more than 350 people here from the commercial team, salespeople, reps, we are here gathered for two days.

André Poroger: Concedo a palavra ao senhor André para continuar com a apresentação. Olá, bom dia a todos. Everyone. Primeiramente, obrigado por participarem de mais uma conferência de resultados. Hoje é um dia muito especial. Estamos aqui de um hotel em Campinas, onde estamos reunindo nosso grupo de vendas para a convenção nacional de vendas. Mais de 350 pessoas aqui da equipe comercial, vendedores, representantes. Estamos aqui reunidos por dois dias, então é um dia muito especial hoje. Estamos felizes por ter todos vocês participando aqui. Vou começar com os destaques e depois vou ceder a palavra ao Edu, e ele vai dar mais detalhes dos números, e depois volto para falar sobre os resultados das diferentes unidades de negócio. Próximo slide, por favor. Então aqui temos os indicadores que temos divulgado. Temos a receita líquida chegando perto de R$ 960 milhões, um leve aumento comparado ao mesmo período do ano passado.

Speaker #2: So it's a very special day today. We're happy to have all of you attending here. I will begin with the highlights. And then I'll turn the floor to Edu and he'll give you more details on the numbers.

Speaker #2: And then I'll come back to talk about the different business units' results. Next slide, please. So here we have the indicators that we've been disclosing.

Speaker #2: We have net revenue, getting close to 960 million BRLs, a slight increase compared to the same period last year. On the end of the year, we're growing 8%, to give you an idea, so revenue grew 8%.

Speaker #2: So it's worth noting or remembering all of the work we've done to review and optimize our portfolio. The group, about a year ago, had about 4,000 SKUs—different products in the company's portfolio—and today our portfolio is actually 1,700-some SKUs.

André Poroger: No ano, estamos crescendo 8%, para dar uma ideia. A receita cresceu 8%. Vale notar ou lembrar de todo o trabalho que fizemos para revisar e otimizar nosso portfólio. O grupo, há cerca de um ano, tinha cerca de 4 mil SKUs, diferentes produtos no portfólio da companhia. Hoje nosso portfólio tem cerca de 1.700 SKUs. É uma redução significativa no número de SKUs. Reduzimos mais da metade dos SKUs, preservando a receita. Aumentamos a receita em 8%. Agora crescemos 3% comparado ao mesmo período do ano passado. É um número muito positivo. Otimizar o portfólio, reduzindo o número de SKUs e ainda sendo capaz de manter e até aumentar a receita. Isso é boa notícia. Também é boa notícia no lado da margem bruta. O principal objetivo de otimizar o portfólio era recuperar a margem bruta.

Speaker #2: So, it's a significant reduction in the number of SKUs. We cut more than half of the SKUs. Preserving revenue, we increased revenue by 8%.

Speaker #2: Now, we grew 3% compared to the same period last year, so it's a very positive number. To optimize the portfolio, we're reducing the number of SKUs and are still able to maintain, and even grow, revenue.

Speaker #2: So that's good news. And it's also good news on the gross margin side, the main objective of optimizing the portfolio was to recover gross margin.

Speaker #2: I think this is one of the main highlights that we've been able to deliver. When we look at the comparison with last year, we had more SKUs and we still grew almost 10 percentage points.

Speaker #2: So that helps us. In our position of recovery. So adjusting and having a healthier portfolio, being able to maintain revenue, and bringing. Good results.

André Poroger: Acho que esse é um dos principais destaques que conseguimos entregar. Quando olhamos a comparação com o ano passado, tínhamos mais SKUs e ainda crescemos quase 10 pontos percentuais. Isso nos ajuda na nossa posição de recuperação. Nos ajustando e tendo um portfólio mais saudável, sendo capaz de manter a receita e trazendo bons resultados. Também é importante dizer que, como mencionamos na última call, parte desse efeito, há dois efeitos aqui. Um é parte devido à otimização do portfólio, como eu disse, e o outro efeito seria um avanço, uma antecipação de margem. Como vocês sabem, o custo de componentes eletrônicos este ano, do fim do ano passado para este ano, aumentou bastante. Temos reajustado nossos produtos. Há muito trabalho da nossa equipe de precificação Repricing it by the replacement cost, knowing that the costs will go up.

Speaker #2: It's also important to say that as we mentioned in the last call, part of this effect, there's two effects here. One is part due to the optimization of the portfolio, as I said, and the other effect would be an advance, an anticipation of margin.

Speaker #2: As you know, the cost of electronic components this year, at the end of last year to this year, increased steeply. We've been repricing our products so there's a lot of work from our pricing team, repricing it by the replacement cost, knowing that the costs will go up.

Speaker #2: So, what we also have here is a pricing repositioning, with an actual reflection of the accounting cost. I mean, before the new costs come in and the inventory, we also work ahead of time.

Speaker #2: And I would say that we're going to see this even more in the business units of this advance, and it's a very strong work to optimize the portfolio.

André Poroger: What we also have here is a pricing repositioning with an actual reflection of the accounting cost. Before the new costs come in and the inventory, we also worked ahead of time. I would say that we are going to see this even more in the business units of this advance. This is a very strong work to optimize the portfolio. This also has positive impacts in the EBITDA, as you can see, great growth. We got to 12%, actually 2.4% EBITDA. That is a very positive number. It has been a long time since we were having single-digit growth in EBITDA, and we are now double digits. That also counts with the effect of gross margin, which also impacts our net revenue of BRL 142 million. I think there are two indicators we work a lot with in the company.

Speaker #2: This also has positive impacts on EBITDA, as you can see—great growth. We got to 12%. Actually, 2.4% EBITDA. That's a very positive number.

Speaker #2: It's been a long time since we were having. Single-digit growth in EBITDA, and now double-digit. So that also counts with the effect of gross margin, which also impacts our net revenue.

Speaker #2: Of 142 million BRL. I think there are two indicators we work with a lot in the company. The first is gross margin, with the optimization of our portfolio.

Speaker #2: And the second is the cash. In a scenario of very high interest rates and where we've been trying to work very strongly in cash generation, and that is reflected here in this half year.

Speaker #2: So we have now 405 million BRLs net cash in the quarter. We also reduced the debt level. We went from 453 million to 371 million BRLs in gross debt of 14% reduction.

André Poroger: The first is gross margin with the optimization of portfolio, and the second is the cash. In a scenario of very high interest rates and where we have been trying to work very strongly in cash generation, that is reflected here in this H1. We have now BRL 405 million net cash in the quarter. We also reduced the debt level. We went from BRL 453 million to BRL 371 million in gross debt, a 14% reduction in this period. If we compare it to the previous year, the reduction in the debt, we went from BRL 656 million to BRL 371. There is a significant debt reduction which reflects in the net cash and obviously also help us achieve healthier results, reducing the payment of interest on debt as well.

André Poroger: The first is gross margin with the optimization of portfolio, and the second is the cash. In a scenario of very high interest rates and where we have been trying to work very strongly in cash generation, that is reflected here in this H1. We have now BRL 405 million net cash in the quarter. We also reduced the debt level. We went from BRL 453 to 371 million in gross debt, a 14% reduction in this period. If we compare it to the previous year, the reduction in the debt, we went from BRL 656 to 371 million. There is a significant debt reduction which reflects in the net cash and obviously also help us achieve healthier results, reducing the payment of interest on debt as well.

Speaker #2: In this period. And if you compare it to the previous year, the reduction in the debt, we went from 656 million BRLs to 371.

Speaker #2: So there's a significant debt reduction, which is reflected in the net cash. And obviously, it also helps us achieve healthier results, reducing the payment of interest on debt as well.

Speaker #2: So within our scenario, I can say that we are in a very positive position. Still very cautious due to this advance of the pricing.

Speaker #2: But obviously gross margin should and probably will be tighter despite all the work that's been doing, been done. We're continuing relentlessly working to reduce and achieve efficiency with our expenses.

Speaker #2: And we expect that this joint work may be offset by better efficiency and expenses. We understand a little bit better. I'll turn the floor to Edu, and he'll give you more details.

André Poroger: Within our scenario, I can say that we are in a very positive position, still very cautious due to this advance of the pricing, but obviously gross margin should and probably will be tighter. Despite all the work that has been done, we continue relentlessly working to reduce and achieve efficiency with our expenses, and we expect that this joint work may be offset by better efficiency and expenses. We will understand it a little bit better. I will turn the floor to Edu, and he will give you more details. Thank you, André. Good morning, everyone. Moving on to the next slide, please. Here on the slide, we see the increase of our revenue, especially comparing to the Q2 2025, which was already a recovery for the company. We are growing. We are changing the profile of the portfolio since, as André mentioned.

Speaker #2: Thank you, Andrea. Good morning, everyone. Moving on to the next slide, please. So here on the slide, we see the increase in our revenue, especially when comparing to the second half or second quarter of 2025, which was already a recovery for the company.

Eduardo Belelas: Thank you, André. Good morning, everyone. Moving on to the next slide, please. Here on the slide, we see the increase of our revenue, especially comparing to the Q2 2025, which was already a recovery for the company. We are growing. We are changing the profile of the portfolio since, as André mentioned. We have fewer SKUs taking 34% of gross margin and a much higher gross profit as well than on the other two quarters. Just one second, please. Going back here. I apologize for the technical problem here.

Speaker #2: We are growing. We're changing the profile of the portfolio, since, as Andrea mentioned, we have fewer SKUs taking 34% of gross margin, and a much higher gross profit as well.

Speaker #2: Then on the other two quarters—if we can go to the next slide. Just one second, please. So, going back here, I apologize for the technical problem.

Eduardo Belelas: We have fewer SKUs taking 34% of gross margin and a much higher gross profit as well than on the other two quarters. Just one second, please. Going back here. I apologize for the technical problem here. Going back, we delivered this quarter 12.4% of EBITDA based on the gross margin. But also when we go down and look at the reduction of expenses, we delivered significant expense reduction, especially administrative expenses and sales expenses, which has been at a percentage compared to net revenue. Although it increased, it is offset by the gross margin and the possibility of having more budget for retail due to a higher gross margin. That has a direct impact on net income, 142.2 of net income of 14.8.

Speaker #2: So going back, with delivered this quarter, 12.4% of EBITDA based on the gross margin, but also when we go down and look at the reduction of expenses, we delivered significant expense reduction, especially administrative expenses and sales expenses.

Speaker #2: This has been expressed as a percentage compared to net revenue. Although it increased, it's offset by the gross margin—and there is the possibility of having more budget for retail due to a higher gross margin.

Eduardo Belelas: Going back, we delivered this quarter 12.4% of EBITDA based on the gross margin. But also when we go down and look at the reduction of expenses, we delivered significant expense reduction, especially administrative expenses and sales expenses, which has been at a percentage compared to net revenue. Although it increased, it is offset by the gross margin and the possibility of having more budget for retail due to a higher gross margin. That has a direct impact on net income, 142.2 of net income of 14.8.

Speaker #2: And that has a direct impact on net income, 142.2 of net income of 14.8. There's an effect from FX variation, but there was also robust net income based on the EBITDA.

Speaker #2: Can we go to the next one? Here we brought an additional slide comparing with the EBITDA. We are delivering or we have been delivering since 2024.

Speaker #2: And this specific quarter, as well as net profit with the comparison of the same quarter of 2024 and 2025. So we see the evolution.

Eduardo Belelas: There is an effect of the up from FX variation, but there was also robust net income based on the EBITDA. Can we go to the next one? Here we brought an additional slide comparing with the EBITDA we are delivering, or we have been delivering since 2024 and this specific quarter, as well as net profit with the comparison of the same quarter of 2024 and 2025. We see the evolution. There is no impact of seasonality here. Actually, the company's performance, both in gross margin and expenses. In 2024, this quarter we delivered 3.4. 2025, that was the year of the recovery. It was twice as much as 2024, and now twice as much than we had in 2025. Reinforcing what André mentioned, there are some effects of that anticipation of the pricing pass-through and advance or anticipation of purchases by some customers.

Speaker #2: There's no impact of seasonality here. Actually, the company's performance, both in gross margin and expenses, so in 2024, this quarter, we delivered 3.4. 2025, that was the year of the recovery, it was twice as much as 2024.

Speaker #2: And now, that's twice as much as we had in 2025. And then, reinforcing what Andrea mentioned, there are some effects of that anticipation of the pricing pass-through.

Speaker #2: An advance or anticipation of purchases by some customers—this 12.4% is something we're going to fight to maintain. But we do expect gross margin to be tighter in the second half of the year.

Speaker #2: And then we won't double this percentage of EBITDA again, but we will work very hard to maintain it at this level. As for the net profit, it maintains the same trend.

Speaker #2: And as I mentioned, unlike what we saw in the second half, quarter of 2024 and the second quarter of 2025, where the effect of FX variation helped the results not be even worse in 2024 and in 2025, this specific quarter, irrespective of gross margin, we would deliver very robust net income. Next slide, please.

Eduardo Belelas: This 12.4 is something we are going to fight or to maintain it, but we do expect gross margin to be tighter in the H2 of the year. We will not double this percentage of EBITDA again, but we will work very hard to maintain it at this level. As for the net profit, it maintains the same trend. As I mentioned, unlike what we saw in the Q2 of 2024 and the Q2 of 2025 where the effect of FX variation helped the results not be even worse in 2024 and in 2025, this specific quarter, irrespective of gross margin, we would deliver very robust net income. Next slide, please. The cash flow. This quarter, we have delivered $235 million in operating cash based on the EBITDA and some inflow from government especially that we had this quarter.

Speaker #2: So the cash flow this quarter—we've delivered $235 million in operating cash, based on the EBITDA and some inflow from the government, especially that we had this quarter.

Speaker #2: It was expected to be to come into effect in the next quarter. So we've been able to pay off the debt. We have lowered debt levels.

Speaker #2: And we still were able to deliver a cash position higher than the beginning of the first quarter. Now talking about indebtedness, where we can give you more detail on the next slide.

Speaker #2: We closed the quarter at BRL 777 million in cash. Gross debt of BRL 371 million—that's already a level that's BRL 67 million lower than last quarter. We delivered net cash of BRL 405 million.

Eduardo Belelas: It was expected to come into effect in the next quarter. We have been able to pay off the debt. We have lower debt levels, and we still were able to deliver a cash position higher than the beginning of the Q1. Now talking about indebtedness where we can give you more detail on the next slide. We closed the quarter at BRL 777 million in cash. Gross debt of 371. That is already a level that is 67 million lower than the last quarter. We delivered net cash of BRL 405 million. This gross debt has a significant representativeness in the short term, in the next 12 months, and the company has been working to adjust the profile of the debt much more due to opportunities to increase the duration of the debt with a reduction of cost.

Speaker #2: This gross debt has a significant representativeness in the short term, in the next 12 months, and the company has been working to adjust the profile of the debt much more due to opportunities to increase the duration of the debt with a reduction of cost.

Speaker #2: But even if we didn't do that, we would still have cash more than sufficient to pay the short-term debt, the long-term debt, and we would still have 400 million left.

Speaker #2: So that's the move that the company is making now. Based on the opportunities, reducing the cost of debt. We delivered leverage of minus 1.19 versus 0.76, that was already excellent leverage in the first quarter.

Speaker #2: And when we compare it to the previous year, where we had a net debt position, we were at 2.10 times. So we reversed it and still have an additional point in leverage.

Eduardo Belelas: Even if we didn't do that, we would still have cash more than sufficient to pay the short-term debt, the long-term debt, and we would still have 400 million left. That's the move that the company is making now based on the opportunities, reducing the cost of debt. We delivered leverage of -1.19 versus 0.76. That was already excellent leverage in Q1. When we compare it to the previous year where we had a net debt position, we were at 2.10 times. We reversed it and still have an additional point in leverage. Next slide. Here we have our brands, and I will turn the floor back to André, and we'll be open to your questions after André concludes the presentation. André, I turn you the floor. Thank you, Edu. Let's talk a little bit about the different segments here.

Speaker #2: Next slide. So here we have our brands. I will turn the floor back to Andrea, and we'll be open to your questions after Andrea concludes the floor.

Speaker #2: Thank you, Edu. So let's talk a little bit about the different segments here. We have the corporate segment involving B2B business that we have in gym equipment and the machines in addition to our wellness brand.

Speaker #2: We also have telecommunications production and sale of optic fiber equipment to large providers and ESPs. We also have electric mobility operations in partnership with Royal Enfield and manufactured in Manaus.

André Poroger: Thank you, Edu. Let's talk a little bit about the different segments here.

André Poroger: We have the corporate segment involving B2B business that we have in gym equipment and the machines in addition to our wellness brand. We also have telecommunications, production, and sale of optic fiber equipment to large providers and ISPs. We also have electric mobility operations in partnership with Royal Enfield and manufactured in Manaus. We have the memory division with Brasil Componentes, manufacturing memory devices and manufacturing partnerships. Then we have our other two divisions. Tech consumer with all of our technology products of our brands that are listed there. We also have what we call a specialized consumer, which are basically our brands and products that are non-tech. We have toys, healthcare, and baby products. Let's talk a little bit if we can look at the next slide. The corporate segment remains an important driver of growth and maintenance of the company's revenue.

Speaker #2: We have the memory and division with Brazil Componentes, manufacturing memory devices and manufacturing partnerships. Then we have our other two divisions: tech consumer, with all of our technology products.

Speaker #2: Of our brands that are listed there. And we also have what we call specialized consumer, which are basically our brands and products that are non-tech.

Speaker #2: So we have toys, healthcare, and baby products. So let's talk a little bit if we can look at the next slide. So the corporate segment remains an important driver of growth and maintenance of the company's revenue.

Speaker #2: As I mentioned at the beginning, we're growing revenue. Here, the corporate's been playing a strong role in this and we also have an important recovery of gross margin noting that we have two important segments here.

Speaker #2: One is our government area, where we have significant growth of more than 50%. We also have our memory drives division, which has an important reflection on revenue and the ticket of the products, because the component price went up.

André Poroger: As I mentioned at the beginning, we're growing revenue. Here, the corporate's been playing a strong role in this, and we also have an important recovery of gross margin, noting that we have two important segments here. One is our government area, where we have significant growth of more than 50%, and we also have our memory drives division, which has an important reflection of the revenue, the ticket of the products, because the component price went up. This favors an increase of revenue, obviously. We also have, which contributes greatly along with government, is the anticipation of margin of the memory operation, as we mentioned. We have a very positive trend for margin evolution and revenue evolution as well. We also have an increase of our telecommunications area. As I said, we also started very well with the motorcycle operation as well.

Speaker #2: This favors an increase of revenue, obviously, and we also have which contribute greatly along with government is the anticipation of margin of the memory operation as we mentioned.

Speaker #2: So we have a very positive trend for margin evolution and revenue evolution as well. We also have an increase of our telecommunications area as I said, we also started very well with the motorcycle operation as well.

Speaker #2: So there's a combination of businesses here and the gym part as well, gym equipment's also grew a lot. And we have good deals that have been bringing this engine.

Speaker #2: The corporate engine remains. It's an area that we look at very closely. And we are maintaining strong work on that and the company. And that obviously helps us greatly.

Speaker #2: And I think this has been shown one of the objectives was to reduce costs and expenses at the company, maintaining revenue, optimizing our. And the operations we work with affixed margin.

André Poroger: There's a combination of businesses here and the gym part as well. Gym equipment also grew a lot. We have good deals that have been bringing this engine. The corporate engine remains. It's an area that we look at very closely, and we are maintaining strong work on that in the company. That obviously helps us greatly, and I think this has been shown. One of the objectives was to reduce costs and expenses at the company, maintaining revenue, optimizing our risk and the operations we work with a fixed margin. These are all things that protected and benefit the company. Now on consumer tech, on the next slide. Here we already see a drop in revenue.

Speaker #2: So these are all things that protect and benefit the company. Now, on consumer tech, on the next slide—here we already see a drop in revenue, as you can see.

Speaker #2: This drop in revenue comes along with a margin recovery that is very important, which is the result of what we’ve been doing: optimizing and reducing the portfolio.

Speaker #2: This is a very positive reflection. This drop in revenue when we talk about the different segments that we have in this them is the manufacturing of TV sets that we accumulate with the Toshiba brand in Brazil with the exclusive representation and the Muti brand.

Speaker #2: These are the two brands we have today in the portfolio. And this is a line where we've been we had issues in draftability last year and we decided deliberately to focus in on profitability.

André Poroger: As you can see, this drop in revenue comes along a margin recovery that is very important, which is the result of what we have been doing, optimizing and reducing the portfolio. This is a very positive reflection. This drop in revenue, when we talk about the different segments that we have in this division, one of them is the manufacturing of TV sets that we accumulate with the Toshiba brand in Brazil, with the exclusive representation and the Multi brand. These are the two brands we have today in the portfolio, and this is a line where we had issues in profitability last year, and we decided deliberately to focus on profitability. These are lines where the cost has been also increasing, and we have been able to recover margins significantly, of course, letting go some of the revenue that was a very right-on strategy.

Speaker #2: And these are lines where the cost has also been increasing, and we've been able to recover margins significantly—of course, letting go of some of the revenue.

Speaker #2: That was a very right-on strategy. Even making or with a smaller revenue, we are getting a higher margin. Now, so I think that's a good step forward.

Speaker #2: And now we'll talk a little bit about our focus. The big challenge for management is to go back to recovering revenue. That's also very important.

Speaker #2: While maintaining a very healthy level of gross margin. Now, next slide, specialized consumer. Most of the lines here are growing, so we have an audio line growing, and the portable appliances are also growing.

André Poroger: Even making or with a smaller revenue, we are getting a higher margin now. I think that is a good step forward. Now we will talk a little bit about our focus. The big challenge for the management is to go back to recovering revenue. That is also very important while maintaining a very healthy level of gross margin. Now next slide, specialized consumer. Most of the lines here grow. We have an audio line growing, and the portable appliances are also growing. There is the drone line also increasing. PCs, audio. Different categories doing very well. TVs. The drop of TVs brought on this abrupt decrease, but these lines are something we are very optimistic about. They are already growing. Now specialized consumer, which are our non-tech brands.

Speaker #2: There's the drone line also increasing, PC's, audio—so different categories are doing very well. TVs—the drop of TVs brought on this abrupt decrease, but these lines are something we're very optimistic about.

Speaker #2: They are already growing. Now, specialized consumers, which are our known tech brands—we already see a recovery of revenues. Noting that when you compare it with the second quarter of '25, we see a decrease, but this decrease is explained because we sold our pet operation.

Speaker #2: The PET operation was on the base of the second quarter of 2025, and it's no longer part of our base now. And the first quarter as well.

Speaker #2: So we see this decrease, but the big news here is that in specialized consumer we already see a resumption of growth. So the work that I talked about that we've been doing and tech consumer had more of an impact on TVs, but here it's an increase in revenue with margin recovery.

Speaker #2: And this line does not have the effect of that margin anticipation or the cost provisioning. It's more focused on electronics or tech products.

André Poroger: We already see a recovery of revenues, noting that when you compare it with Q2 2025, we see a decrease. This decrease is explained because we sold our pet operation. The pet operation was on the base in Q2 2025, and it is no longer part of our base now in this Q1 as well. We see this decrease, but the big news here is that in specialized consumer we already see a resumption of growth. The work that I talked about that we have been doing, and then tech consumer had more of an impact on TVs, but here it is an increase in revenue with a margin recovery. This line does not have the effect of that margin anticipation of the cost provisioning. It is more focused for electronics on the tech product.

Speaker #2: So here, this effect is not in play regarding the margin anticipation. So we see a recovery of revenue, a recovery of gross margin, without even the effect of anticipation.

Speaker #2: So, this is very positive, and we will work to maintain this trajectory of margins and revenue growth. Next slide. Here, we recently announced a partnership we're very excited about.

Speaker #2: As you know, we also work with major partners and global brands and we just signed an exclusivity contract with Philips the Aqua Shield division.

André Poroger: Here this effect is not in play of the margin anticipation. We see a recovery of revenue, a recovery of gross margin without that effect of an anticipation event. This is very positive. We will work to maintain this trajectory of margins and revenue growth. Next slide. Here we recently announced a partnership we are very excited about. As you know, we also work with major partners and global brands, and we just signed an exclusivity contract with Philips, the AquaShield division. It is a division of water purifiers. It is a very interesting large market, and Philips globally has a position among the leaders of the segment, in the market of the segment. In Brazil, we will start running that operation as well. We will start local production soon. This is a division that is new for us. There is an increase in revenue, obviously, in the segment.

Speaker #2: It's a division of water purifiers. It's a very interesting, large market, and Philips globally has a position among the leaders of the segments in the market. In Brazil, we will start running that operation as well.

Speaker #2: We'll start local production soon, so this is a division that is new for us. There's an increase in revenue, obviously, in this segment. And then, initially, we'll hold the Philips brand for this segment, and we will seek to also have our Multi brand—our own brand—to be able to work on a global brand, being in a more premium segment.

Speaker #2: And the Multi brand is playing in a mid or entry-level segment, where we've been able to reach many consumers, being able to reach a larger market.

Speaker #2: So, we are very excited about this partnership. Now, on to the next slide, please. Here, I am sharing with all of you a little bit about the initiatives and what we are working on right now very strongly.

André Poroger: Initially we will hold the Philips brand for this segment, and we will seek to also have our Multi brand, our own brand, to be able to work on a global brand being in a more premium segment. The Multi brand plays in a mid or entry-level segment, where we have been able to reach many consumers, being able to reach a larger market. We are very excited about this partnership. Now on the next slide, please. Here, sharing with all of you a little bit of the initiatives and what we are right now working on very strongly. We have been working on this since the closing of Q2 and now the beginning of what we started. There is a whole part of cost and expense efficiency. This is very important that we have month by month achieving efficiency gains.

Speaker #2: We have been working on this since the closing of the second quarter and now the beginning of what we started. So there's a whole part of cost and expense efficiency.

Speaker #2: It is very important that we achieve efficiency gains month by month. Working capital management is also strongly based on the optimization of SKUs that we've been working on, as well as better commercial planning.

Speaker #2: We discussed a lot of this topics and the initiatives to improve our commercial plan. Sales expectations and so on. The third very strong initiative is the active pricing.

Speaker #2: So, all of the pricing, the cost increases, or even cost reductions—we have an active pricing team that we call our Margin Legion.

Speaker #2: They're very active. They're responsible for guaranteeing the margin of all of our segments and business units. That's a very important area. And the work that we've been doing now to recover or resume sales of our own brand.

André Poroger: Working capital management also strongly based on the optimization of SKUs that we have been working on and a better commercial planning as well. We discussed a lot of these topics and the initiatives to improve our commercial plan, sales expectations, and so on. The third very strong initiative is the active pricing. All of the pricing, the cost increases or even cost reductions, we have an active pricing team that we call our Margin Legion. They are very active. They are responsible to guarantee the margin of all of our segments and business units. That is a very important area. The work that we have been doing now to recover or resume sales of our own brand. We start work strengthening the brand and also working in depth with our clients.

Speaker #2: So we start work strengthening the brand and also working in depth with our clients. So there's also we hope to have good news soon.

Speaker #2: The resumption and the growth of our own brands as well. In the tech retail. Next slide please. Okay. So that's it. We would like to thank you all very much.

Speaker #2: For your attendance and the your trust. And we will open now to take your questions. Thank you. We will now begin the question and answer session.

Speaker #2: Remembering that to ask a question you must click on the Q&A icon at the bottom of your screen and write down your question to join the queue.

Speaker #2: When announced, you will see a request to enable your microphone. And then you should switch your microphone on in order to ask your questions.

André Poroger: There is also, we hope to have good news soon of the resumption and the growth of our own brands as well in the tech retail. Next slide, please. Okay, that is it. We would like to thank you all very much for your attendance and your trust, and we will open now to take your questions. Thank you. We will now begin the question and answer session. Remembering that to ask a question, you must click on the Q&A icon at the bottom of your screen and write down your question to join the queue. When announced, you will see a request to enable your microphone, and then you should switch your microphone on in order to ask your questions. We kindly ask you that your questions are asked all at the same time. Our first question in writing, João Paulo Ribeiro.

Speaker #2: We kindly ask that your questions be asked all at the same time. Our first question, in writing, is from João Paulo Ribeiro. So, about the approximately $2.65 billion in fiscal contingencies, including the $1.5 billion of Proenox and the other ICMS, customs processes, and IPI—considering there are alternatives that could reduce the effective due amount.

Operator: We will now begin the question and answer session. Remembering that to ask a question, you must click on the Q&A icon at the bottom of your screen and write down your question to join the queue. When announced, you will see a request to enable your microphone, and then you should switch your microphone on in order to ask your questions. We kindly ask you that your questions are asked all at the same time. Our first question in writing, João Paulo Ribeiro.

Speaker #2: Does the company understand that this this amount doesn't represent an integral outflow of cash? What would be the effective risk and what projects have the best conditions to Muti?

Speaker #2: Good morning, João. Good, thank you for your question. João, this amount of more than $2 billion in contingencies that are not provisioned relates to the prognosis. When we talk to our legal consultants, all of them have a prognosis of possible loss. However, when we look into each one of them, the company does not expect to have any cash disbursement. Specifically talking about that largest contingency that you mentioned, Proenox, we have very sound arguments to sustain our defense. Remembering that this proceeding had a tie in the fiscal initiatives committee, and if it wasn't for that, we would have already won this lawsuit. And this tie gives us a huge opportunity, following what we see in the law, to obtain the gain in the judiciary because it's 100% a fine process. In the case of a loss or quality vote, the fine is disregarded.

Eduardo Belelas: About the approximately BRL 2.65 billion in fiscal contingencies, including the BRL 1.5 billion of Proenox and the other ICMS customs processes, IPI. Considering there are alternatives that could reduce the effectively due amount, does the company understand that this amount does not represent an integral outflow of cash? What would be the effective risk, and what projects have the best conditions to Multi? Good morning, João. Thank you for your question. João, this amount of more than BRL 2 billion in contingencies that are not provisioned relating to the prognosis when we talk to our legal consultants, all of them have a prognostic of possible loss. However, when we look into each one of them, the company does not expect to have any cash disbursement. Specifically talking about that largest contingency that you mentioned, the Proenox.

Operator: About the approximately BRL 2.65 billion in fiscal contingencies, including the BRL 1.5 billion of Proenox and the other ICMS customs processes, IPI. Considering there are alternatives that could reduce the effectively due amount, does the company understand that this amount does not represent an integral outflow of cash? What would be the effective risk, and what projects have the best conditions to Multi?

André Poroger: Good morning, João. Thank you for your question. João, this amount of more than BRL 2 billion in contingencies that are not provisioned relating to the prognosis when we talk to our legal consultants, all of them have a prognostic of possible loss. However, when we look into each one of them, the company does not expect to have any cash disbursement. Specifically talking about that largest contingency that you mentioned, the Proenox.

Speaker #2: So the other proceedings have their specific issues but all of them based on what we've achieved with our lawyers we are discussing this because we believe on in the merit of this question.

Eduardo Belelas: We have very sound arguments to sustain our defense, remembering that this proceeding had a tie in the Fiscal Initiative Committee, and if it wasn't for that, we would have already won this lawsuit. This tie gives us a huge opportunity, following what we see in the law, to obtain the gain in the judiciary, because it's 100% a fine process, and in the case of a loss or equality votes, the fine is disregarded. The other proceedings have their specific issues, but all of them, based on what we've achieved with our lawyers, we are discussing this because we believe in the merit of this question. At Multi, we have few amounts provisioned with a probable prognosis, because once we understand that there is no possibility for discussion, we pay the installment and liquidate the issue.

André Poroger: We have very sound arguments to sustain our defense, remembering that this proceeding had a tie in the Fiscal Initiative Committee, and if it wasn't for that, we would have already won this lawsuit. This tie gives us a huge opportunity, following what we see in the law, to obtain the gain in the judiciary, because it's 100% a fine process, and in the case of a loss or equality votes, the fine is disregarded. The other proceedings have their specific issues, but all of them, based on what we've achieved with our lawyers, we are discussing this because we believe in the merit of this question. At Multi, we have few amounts provisioned with a probable prognosis, because once we understand that there is no possibility for discussion, we pay the installment and liquidate the issue.

Speaker #2: At Multi, we have few amounts provisioned with a probable prognosis, because once we understand that there is no possibility for discussion, we pay the installment and liquidate the issue.

Speaker #2: So being an objective answer the company does not expect at all to have any cash outflow on that fine due to the lawsuits that are with a possible loss prognosis.

Speaker #2: Our next question. Also. Writing. From Leonardo. From Itobi BA. Could you comment on the level of normalized gross margin you expect for 2027 after the accommodation of margins in the second half of 2026 and considering the progress in the optimization of portfolios?

Speaker #2: Could you also comment on the priorities on in capital allocation considering the positive cash generation trend for the company and how to think about the optimum capital structure that you desire looking forward?

André Poroger: Being an objective answer, the company does not expect at all to have any cash outflow on that fine due to the lawsuits that are with a possible loss prognosis. Our next question, also in writing from Leonardo Shimitobi, BA. Could you comment on the level of normalized gross margin you expect for 2027 after the accommodation of margins in the H2 2026 and considering the progress in the optimization of portfolios? Could you also comment on the priorities on capital allocation, considering the positive cash generation trend for the company, and how to think about the optimum capital structure that you desire looking forward? Good morning. Talking a little bit about gross margin, as we have already mentioned, gross margin, we had a gain of 9 percentage points or just above it. Part of it from the portfolio, part of it from that advance.

André Poroger: Being an objective answer, the company does not expect at all to have any cash outflow on that fine due to the lawsuits that are with a possible loss prognosis.

Speaker #2: Good morning. So, talking a little bit about gross margin, as we have already mentioned, gross margin had a gain of 9 percentage points, or just above it.

Operator: Our next question, also in writing from Leonardo Shimitobi, BA. Could you comment on the level of normalized gross margin you expect for 2027 after the accommodation of margins in the H2 2026 and considering the progress in the optimization of portfolios? Could you also comment on the priorities on capital allocation, considering the positive cash generation trend for the company, and how to think about the optimum capital structure that you desire looking forward?

Speaker #2: Part of it from the portfolio. Part of it from that advanced. So we expect of course internally we're working so that this margin continues to grow and be maintained but obviously we work with possibility of this tightening of the gross margin that will happen so we're talking about 32 maybe will be at high 20s 27 28 we understand to be excluding those effects of the anticipation obviously what happens is that electronic components continue to go up in price and cost so as the cost goes up we will pass through those price increases and the effect of that may also happen in the second half of the year but we can't bet on that.

André Poroger: Good morning. Talking a little bit about gross margin, as we have already mentioned, gross margin, we had a gain of 9 percentage points or just above it. Part of it from the portfolio, part of it from that advance.

André Poroger: We expect, of course, internally we're working so that this margin continues to grow and be maintained. But obviously we work with the possibility of this tightening of the gross margin that will happen. We're talking about 32%, maybe we'll be at high 20s, 27%, 28%. Excluding those effects of the anticipation, obviously what happens is that electronic components continue to go up in price and cost. As the cost goes up, we will pass through those price increases and the effect of that may also happen in the H2 of the year. But we can't bet on that. We're working with that scenario. But as I said, the margin, a more conservative scenario will be tighter.

Speaker #2: We're working with that scenario. But as I said the margin and more conservative scenario will be tighter and then the work we've been doing very strongly to try and maintain results to keep the company very healthy in the results on the second half of the years this work to optimize expenses the reduction of expenses and if we can bring percentage points of reduction in that line then the reward is to try to offset partially this margin reduction.

Speaker #2: So that's the work we've been doing to try and offset that loss of margin with this, trying to maintain the results. As for the cash generation, as I said, we want to have healthy growth levels in the tech lines, so we already understand that we'll experience growth, though probably have allocation to those lines with a good, healthy margin. Obviously, we're also working now with the server manufacturing project; it's a line where there will be data center creations in Brazil, so this is a category that we start to include in our portfolio.

André Poroger: The work we've been doing very strongly to try and maintain results, to keep the company very healthy and the results on the H2 of the year, this will work to optimize expenses, the reduction of expenses. If we can bring percentage points of reduction in that line, then the reward is to try to offset partially this margin reduction. That's the work we've been doing to try and offset that loss of margin with this trying to maintain the results. As for the cash generation, as I said, we want to have healthy growth levels in the tech lines. So that we already understand that we'll experience growth, they'll probably have allocation to those lines with a good, healthy margin, obviously. We're also working now with the server manufacturing project. It's a line that there'll be the data center creations in Brazil.

Speaker #2: It was already in the portfolio, especially for government, but now we are starting to work with it with data centers. And obviously, we also understand that it would be very interesting to have a dividend payout.

Speaker #2: So we're also working with those possibilities. It do do you want to add anything about the capital Yes. So we have in the second half of the year we have the presidential elections a potential change in government for next year but irrespective of that all of the market expects a first half or even a year of 2027 to be very tough.

André Poroger: This is a category that we start to include in our portfolio. It was already in the portfolio, especially for governments, but now we start to work with it with data centers. We also understand that it would be very interesting to have a dividend payout. We are also working with those possibilities. Edu, do you want to add anything about the capital structure? Yes. In the H2 of the year, we have the presidential elections, a potential change in government for next year. But irrespective of that, all of the market expects a H1 or even a year of 2027 to be very tough. We have a robust cash position. We have our dividend policy in our bylaws of 25%. With the profit we are generating, the trend is that we will pay out dividends.

Speaker #2: We have a robust cash position. We. Our dividend policy in our bylaws of 25% with the profit we're generating we will be able the trend is that we will pay out dividends however at this time the company will not make any major capital allocation different from what we already been doing due to safety so that we are in a safer position for next year thinking about this challenge that will be not only for Muti but for all companies will have to face.

Eduardo Belelas: Yes. In the H2 of the year, we have the presidential elections, a potential change in government for next year. But irrespective of that, all of the market expects a H1 or even a year of 2027 to be very tough. We have a robust cash position. We have our dividend policy in our bylaws of 25%. With the profit we are generating, the trend is that we will pay out dividends.

Speaker #2: Our next question. Also in writing. Sunny Miranda. First of all congratulations to the team for the results on the second quarter of 26. Considering the improvement in results and cash generation what will the capital allocation strategy be for the coming quarters?

Eduardo Belelas: However, at this time, the company will not make any major capital allocation different from what we have already been doing due to safety, so that we are in a safer position for next year, thinking about this challenge that will be not only for Multi, but for all companies will have to face. Our next question, also in writing, Sonny Miranda. First of all, congratulations to the team for the results on the Q2 of 2026. Considering the improvement in results and cash generation, what will the capital allocation strategy be for the coming quarters? We answered a little bit of that question as the same answer that we just discussed. Our questions and answers session is now closed. We would like to turn the floor to Mr. André for the company's final considerations. I would like to thank you all for your participation and your questions.

Speaker #2: We answered a little bit of that question with the same answer we just discussed. Our question and answer session is now closed. We would like to turn the floor over to Mr. André for the company's final considerations.

Operator: Our next question, also in writing, Sonny Miranda. First of all, congratulations to the team for the results on the Q2 of 2026. Considering the improvement in results and cash generation, what will the capital allocation strategy be for the coming quarters?

Speaker #2: So I would like to thank you all for your participation and your questions. We take you all for your trust in our work. As I do said the company is at a very healthy moment better prepared to go through more challenging moments in the future.

Speaker #2: So although the market is still somewhat convoluted we understand we've been able to capture good opportunities and the work now to maintain the company at a healthy level is our main focus.

André Poroger: We answered a little bit of that question as the same answer that we just discussed.

Speaker #2: So thank you very much and that's it. The conference pertaining to Grupo Multi Lasers earnings for the second quarter of 26 is closed. The.

Operator: Our questions and answers session is now closed. We would like to turn the floor to Mr. André for the company's final considerations.

André Poroger: I would like to thank you all for your participation and your questions.

André Poroger: We thank you all for your trust in our work. As Edu said, the company is at a very healthy moment, better prepared to go through more challenging moments in the future. Although the market is still somewhat convoluted, we understand we have been able to capture good opportunities, and the work now to maintain the company at a healthy level is our main focus. Thank you very much, and that is it. The conference pertaining to Multi S.A.'s earnings for the Q2 of 2026 is closed. The IR department remains available to answer any questions you may have. Thank you very much. Have a great day.

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Q2 2026 Grupo Multi SA Earnings Call

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