Lojas Quero Quero S A : Dados Econômico-Financeiros

RESULTS 2Q23

August 8th, 2023

RESULTS WEBCAST

August 9th, 2023 (Wednesday)

Time: 9am (Brasília) | 8am (New York) | 1pm (London)

Webcast in Portuguese|Webcast in English(simultaneous translation)

Lojas Quero-Quero S.A.

B3: LJQQ3

EARNINGS RELEASE 2Q23

Cachoeirinha, August 8, 2023.

Maintenance of the pace of store openings, with performance in line with the first quarter of 2023

Gross Revenue, Net of Returns and Rebates (Gross Revenue) grew 3.3% in the quarter (+70.6% vs. 2Q19, equivalent to a CAGR of 14.3%), totaling R$644.5 million in 2Q23 and 5.0% in the semester (+76.1% vs. 1H19, equivalent to a CAGR of 15.2%), totaling R$1,288.4 million. When compared to the pre-pandemicperiod (2019), the Same Store Sales (SSS) indicator grew by 17.3% in SSS in the quarter (+65.7% in total Retail sales), but showed a 6.4% reduction in the quarter vs. 2Q22 (+0.6% in total Retail sales).

Gross Profit totaled R$188.4 million in 2Q23, growth of 0.8% in the quarter (+59.7% vs. 2Q19)

and R$377.9 million in 1H23 (+60.4% vs. 1H19). Comparable gross margin (% of Gross Revenue) was 29.2% in the quarter, similar to the 29.4% margin presented in 1Q23, still impacted by the higher cost of capital which puts pressure on the margin of financial services.

Operating Expenses totaled R$172.4 million in 2Q23 and R$363.0 million in 1H23, an increase

of 4.3% and 9.1%, respectively, against the same period of the previous year; Investments in expansion (9.3% increase in the store base vs. 2Q22) and inflation in the period were the main drivers of this increase.

EBITDA was R$47.8 million in 2Q23 and R$76.8 million in 1H23. Adjusted EBITDA for the expenses of Stock Option Plan (SOP), the effects of IFRS-16accounting and non-recurring

expenses totaled R$4.8 million in the quarter and R$8.9 million in the semester.

Adjusted Net Income totaled a loss of R$1.7 million excluding the impacts of SOP and the effects of IFRS-16.

in the quarter and R$28.2 million in the semester.

in 2Q23 and R$19.3 million in 1H23, The reported net loss was R$5.9 million

HIGHLIGHTS

			% 2Q23		% 2Q23			% 1H23		% 1H23
Consolidated Information (R$ million)	2Q23	2Q22	vs 2Q22	2Q19	vs 2Q19	1H23	1H22	vs 1H22	1H19	vs 1H19
Gross Revenue, Net of Returns and Rebates	644.5	624.2	3.3%	377.7	70.6%	1,288.4	1,227.3	5.0%	731.8	76.1%
Net Operating Revenue¹	560.3	556.2	0.7%	289.3	93.7%	1,121.9	1,096.4	2.3%	604.5	85.6%
Gross profit	188.4	186.9	0.8%	118.0	59.7%	377.9	372.2	1.5%	235.6	60.4%
Gross Margin (% Net Revenue)	33.6%	33.6%	0.0p.p.	40.8%	(7.2)p.p.	33.7%	34.0%	(0.3)p.p.	39.0%	(5.3)p.p.
Gross Margin (% Gross Revenue)	29.2%	29.9%	(0.7)p.p.	31.2%	(2.0)p.p.	29.3%	30.3%	(1.0)p.p.	32.2%	(2.9)p.p.
Operating expenses	(172.4)	(165.4)	(4.3%)	(99.9)	(72.7%)	(363.0)	(332.7)	(9.1%)	(194.1)	(87.0%)
EBITDA	47.8	47.5	0.6%	30.2	58.4%	76.8	89.5	(14.2%)	65.0	18.1%
EBITDA Margin (% Net Revenue)	8.5%	8.5%	(0.0)p.p.	10.4%	(1.9)p.p.	6.8%	8.2%	(1.3)p.p.	10.8%	(3.9)p.p.
EBITDA Margin (% Gross Revenue)	7.4%	7.6%	(0.2)p.p.	8.0%	(0.6)p.p.	6.0%	7.3%	(1.3)p.p.	8.9%	(2.9)p.p.
Adjusted EBITDA²	4.8	26.2	(81.6%)	18.7	(74.2%)	8.9	48.1	(81.5%)	42.7	(79.1%)
Adjusted EBITDA Margin (% Net Revenue)	0.9%	4.7%	(3.8)p.p.	6.5%	(5.6)p.p.	0.8%	4.4%	(3.6)p.p.	7.1%	(6.3)p.p.
Adjusted EBITDA Margin (% Gross Revenue)	0.7%	4.2%	(3.4)p.p.	4.9%	(4.2)p.p.	0.7%	3.9%	(3.2)p.p.	5.8%	(5.1)p.p.
Net Income	(5.9)	(4.4)	(34.4%)	1.4	N/A	(28.2)	(14.6)	(92.9%)	0.9	N/A
Net Margin (% Net Revenue)	(1.0%)	(0.8%)	(0.3)p.p.	0.5%	(1.5)p.p.	(2.5%)	(1.3%)	(1.2)p.p.	0.1%	(2.7)p.p.
Net Margin (% Gross Revenue)	(0.9%)	(0.7%)	(0.2)p.p.	0.4%	(1.3)p.p.	(2.2%)	(1.2%)	(1.0)p.p.	0.1%	(2.3)p.p.
Adjusted Net Income³	(1.7)	0.3	N/A	2.0	N/A	(19.3)	(5.9)	(227.9%)	2.0	N/A
Adjusted Net Margin (% Net Revenue)	(0.3%)	0.1%	(0.4)p.p.	0.7%	(1.0)p.p.	(1.7%)	(0.5%)	(1.2)p.p.	0.3%	(2.1)p.p.
Adjusted Net Margin (% Gross Revenue)	(0.3%)	0.0%	(0.3)p.p.	0.5%	(0.8)p.p.	(1.5%)	(0.5%)	(1.0)p.p.	0.3%	(1.8)p.p.
Same Store Sales Growth (SSS)	(6.4%)	(10.8%)		4.4%		(4.5%)	(6.5%)		6.1%

1. As of 2Q19, NOR (Net Operating Revenue) includes the effect of the change in the ICMS-ST/RS legislation (Decree No. 54,308/2018) and as of 1Q22 includes the effect of joining the optional taxation regime (ROT ST) of ICMS-ST/RS (Decree No. 56.150/2021).
2. Adjusted EBITDA is a non-accounting measure of the Company that corresponds to EBITDA plus non-recurring or non-operating items, less the impact of IFRS16/CPC06 (R2) as of 2019.
3. Adjusted Net Income is a non-accounting measure that corresponds to Net Income plus non-recurring or non-operating items, less the impact of IFRS16/CPC06 (R2) as of 2019.

2

2Q23

MESSAGE FROM MANAGEMENT

Throughout the second quarter of 2023, we maintained our long-term investment strategy, opening new stores and expanding our customer base. As a result, we ended the second quarter with a 3.3% growth in revenue compared to the second quarter of 2022, achieving a performance similar to that of the first quarter of this year. Despite this, it is important to emphasize that the retail sector continues to face a challenging scenario, with a weaker performance in this quarter. This trend was also reflected in our sales, although it was partially offset by the positive performance of Financial Services and Credit Card. In this context, we emphasize our commitment to profitability and financial strength, evidenced by delinquency indicators, which we continue to keep under control.

In the quarter, we expanded our operations in Rio Grande do Sul, Paraná and Mato Grosso do Sul with the opening of 6 new stores. We now have a total of 539 stores in 449 cities, spread across the states of the South, Mato Grosso do Sul and São Paulo. We will continue to focus on store renovations and openings in markets where our brand is already established and where we can generate more expressive short-term returns. Our objective remains to open stores that are profitable and, at the same time, contribute to the company's growth plan.

Total retail sales remained stable compared to the previous year, with an increase of 0.6%. This result is attributed to the positive impact of the new stores on sales, which are attracting new customers and expanding the company's consumer base. Same-store sales (SSS) maintained their downward trend, following the trend that started at the end of 2021. Ending the quarter with a 6.4% drop in SSS compared to the previous year, the performance being compared to the first quarter in line with the retail sector, as indicated by market data released to date. Furthermore, it is important to mention that we are still facing deflation in some product categories, which has negatively contributed to the performance of same-store sales.

We observed a growing adherence of our customers to Phygital sales, whether through digital channels or products included in the infinite store, which represented 21% of the company's total sales in 2Q23. We see this trend positively, as it allows us to be more present in our customers' lives and offer a broader mix of products.

On the other hand, when we look at the performance of Financial Services, we continue to notice demand for credit. The volume transacted on the Quero-Quero VerdeCard credit card grew by 14.7% in the volume transacted compared to the previous year, both within our stores (+4.1%) and in associated establishments (+23.1%). These numbers have been reflected in the growth

3

2Q23

of financial services and credit card revenue, as well as in the growth of the total net portfolio of the VerdeCard card, which grew 18.8% in the quarter vs. 1Q22. It is important to emphasize that, although there is an increase in the use of credit cards, the level of arrears above 90 days remained stable at 11.9%, in line with the same period of the previous year. This more normalized default scenario has allowed us to avoid the need to increase credit restrictions in the quarter compared to what we executed at the end of the year.

In addition, we remain steadfast in our social and environmental responsibility (ESG) initiatives. As mentioned in the first quarter, we published our 2022 sustainability report in April of this year, in which we highlighted the engagement of our employees and the new initiatives carried out over the past year. Furthermore, we are pleased to inform you that four photovoltaic energy production plants have started operating in Santa Cruz do Sul - RS, Venâncio Aires - RS and Alto Paraná - PR. Another two plants are scheduled to come on stream later this year. These combined facilities will total a capacity of 7.9 MWp, which will result in an emission reduction of more than 1,500 tons of CO2 over a year and will supply the energy needs of most of our current stores. We are committed to promoting sustainability and contributing to the mitigation of environmental impacts by seeking opportunities to implement renewable energy solutions in our operations.

In clockwise: (i) Bataguassu-MS branch façade; (ii) Branch facade of Cambira - PR; (iii) Photo of the photovoltaic plant in Santa Cruz do Sul - RS; and (iv) Photo of the photovoltaic plant in Alto Paraná - PR;

In July, we issued the 9th series of senior FIDC Verdecard shares, totaling R$300 million. It is important to point out that this operation was carried out successfully, maintaining the brAAA rating assigned by S&P Global Ratings. This additional funding strengthens our ability to provide financial support to customers and further drive the growth of our business.

Despite the result of operational deleveraging this quarter, we maintain our strategy focused on long-term investment, with an emphasis on operating cash generation in the short term. We believe that, at times like the current one, we are able to further demonstrate our competitive differentials and the quality of our teams, and consequently, continue to gain market share and expand, so that we will once again be very well-positioned for when there is a moment to improve our economy.

4

2Q23

We thank all shareholders, employees and their families, communities in which we operate, customers and suppliers for the trust they placed in Lojas Quero-Quero and its Management.

5