Raia Drogasil (RADL3) investor relations material

Executive summary

• Gross revenue reached R$11.7 billion in Q2 2025, up 12% year-over-year, driven by retail and digital growth, with digital sales up 52% and retail sales up 13.1%.

• Opened 70 new stores, expanding the network to 3,371 units, with no closures, and served over 50 million active customers in the last twelve months.

• Digital channels now account for 24.1% of retail sales, with digital revenue annualizing over €10 billion and 40–52% growth quarter-on-quarter.

• National market share increased to 16.4%, with gains in all regions and leadership in health services and vaccines.

• Customer satisfaction remains high, with an NPS of 91 and significant market share gains across all regions.

Financial highlights

• Adjusted EBITDA was R$885 million (7.6% margin), down 0.3 pp year-over-year but up 1.6 pp sequentially; retail EBITDA margin at 8%.

• Adjusted net income was R$403 million (3.5% margin), up 12.9% year-over-year, aided by reversal of subsidy provisions and a low effective tax rate.

• Free cash flow was negative R$36.9 million; total cash consumption was R$357.2 million; net debt/EBITDA at 1.3x.

• Gross margin declined to 27.4% (down 0.8 pp), impacted by regulatory and product mix factors.

• Inventory days improved by 4.4 days, and supplier delivery times improved by one day, enhancing the cash cycle.

Outlook and guidance

• Guidance for 2025 gross pharmacy openings reiterated at 330–350 units, with focus on São Paulo and hybrid store formats.

• GLP-1 drugs and generics expected to drive further top-line growth as supply stabilizes and new generics enter the market.

• Ongoing action plan targets sales acceleration, inventory and cash cycle reduction, and leaner G&A.

• G&A expected to remain stable, with further efficiency gains possible but not at the same pace as recent quarters.

• Gross margin pressures from losses and competitive pricing expected to ease as loss reduction initiatives take effect in H2.