Brazilian retailer Grupo Pão de Açúcar (GPA) reported a consolidated net loss of R$731 million in the third quarter of 2026, compared with a net profit of R$134 million in the same period a year earlier. The company said discontinued operations, including Extra hypermarkets and fuel stations, accounted for R$511 million of the loss. The results were published Wednesday, November 4.
Net revenue fell 6.5% year over year, from R$4.9 billion to R$4.6 billion. For January through September, net sales totaled R$12.7 billion, down from R$14 billion in the same period of 2025. Adjusted EBITDA, however, increased 16.9% to R$482 million from R$412 million, and was up 7% from the previous quarter.
CEO Alexandre Santoro said the results reflect progress in the company’s operations, despite the larger net loss. “The snapshot is this, but the film is different. We are already beginning to reap the benefits of what we set out to do in terms of efficiency gains,” he told Folha.
GPA is implementing what it calls its Efficiency Plan, which includes cutting about 20% of corporate staff, ending less efficient contracts, reducing advertising costs, optimizing freight and lowering operational losses. The company has also filed for an out-of-court debt restructuring, which was approved by a São Paulo court on October 7. More than R$4.3 billion in debt is being renegotiated.
Santoro described efficiency and addressing structural liabilities, including tax and labor debts and arbitration claims, as essential to the company’s recovery. A third priority is returning to sales growth. GPA said the revenue decline partly reflected its decision to prioritize profitability, including discontinuing its “Aliados” partnership format for small and midsize neighborhood businesses earlier this year.
Sales were also affected by calendar effects and weaker same-store sales. GPA said its restructuring announcement temporarily disrupted product availability in the second quarter. Stock shortages improved in the third quarter and are moving toward normal levels, though they remain above those seen before the restructuring announcement. Same-store sales declined 1.4% year over year after adjusting for a 0.4 percentage-point calendar effect. The company expects court approval of its restructuring plan to help normalize supply and support sales.
The retailer is also repositioning the Extra brand, which represents one-third of its revenue, Santoro said. The work includes a focus on pricing and product selection, as well as strengthening fresh food categories with technical teams and new suppliers. He said GPA has lost market share in recent years and needs to improve the quality of its service.
Santoro also pointed to Brazil’s economic conditions as a challenge for retailers, citing high household debt and the cost of credit. He said the company does not plan to open new stores beyond locations already covered by previous contracts.
Sources: Folha Mercado.