Latin America Retail: LatAm Headline Monitor: GMAT tax notice; Azzas weighs US IPO as Farm expands globally; Desenrola lacks bank appeal

Research evidence excerpt

Latin America Retail: LatAm Headline Monitor: GMAT tax notice; Azzas weighs US IPO as Farm expands globally; Desenrola lacks bank appeal

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30 Jun 2026 07:48:47 ET │ 12 pages

Latin America Retail

LatAm Headline Monitor: GMAT tax notice; Azzas weighs US IPO as Farm

expands globally ; Desenrola lacks bank appeal

CITI’S TAKE

In this note, we summarize headlines/news with implications for our

coverage. We hope you find this useful.

João Pedro SoaresACCompany Material Fact. (6/29/2026)

+55-11-4009-7562

joao.soares@citi.com

GMAT disclosed that its wholesale subsidiary, Armazém Mateus, received a new Felipe Husein

Notice of Infraction from the Brazilian Federal Revenue Service regarding the +55-11-4009-7137

exclusion of presumed ICMS tax credits from the IRPJ/CSLL tax base. The new notice felipe.husein@citi.com

covers fiscal years 2022-23 and totals R$1.28bn, comprising R$493mn in principal

and R$789mn in penalties and interest. According to the company, the notice

initiates an administrative proceeding, which could subsequently become subject to

judicial review. Based on its preliminary legal assessment, management continues to

believe there are solid legal grounds supporting its tax treatment and has therefore

classified the contingency as a possible loss, implying no accounting provision at this

stage.

Citi’s Take: While we do not expect any near-term P&L or cash flow impact, we cannot

discard that the larger disputed amount could weigh on investor sentiment. We will

continue to monitor developments (e.g. administrative proceedings) closely. See our

earlier note here.

Azzas Evaluates Potential US IPO for Farm. (6/29/2026, Estadão)

Azzas 2154 is assessing a potential US IPO for Farm Rio, with a separate sale of the

brand also under consideration.