Dimed (PNVL3) Q1 2025 earnings summary

Executive summary

• Gross retail revenue reached R$1.35 billion in Q1 2025, up 15.9% year-over-year, with strong growth in same-store and mature-store sales, and digital channels contributing significantly.

• Digital sales accounted for 22.5% of retail revenue, up 35.3% year-over-year, and private label products grew 25.1%, reaching 8.1% of retail sales.

• Market share in the Southern Region increased for the 20th consecutive quarter, reaching 12.8%, with gains across all states and notable performance in Santa Catarina.

• Nine new stores opened in Q1 2025, with 52 openings in the last 12 months, expanding the network to 639 stores.

• Free cash flow was positive at R$14.4 million, reversing the usual Q1 cash burn trend.

Financial highlights

• Retail gross margin held steady at 29.4%, supported by pricing discipline, private label and OTC penetration, and effective supplier negotiations.

• Adjusted EBITDA was R$64.6 million (4.8% margin), up 7.2% year-over-year, with margin expansion of 0.2 p.p.

• Adjusted net income reached R$27.8 million (2.1% margin), with positive tax impacts and lower financial expenses.

• Retail EBITDA grew 18.6% to R$132.9 million, with productivity gains in both mature and new stores.

• Administrative and selling expenses grew below retail sales, supporting margin expansion.

Outlook and guidance

• Continued focus on expanding store network, digital transformation, and private label growth to sustain productivity and profitability.

• Gross margin expected to remain healthy, supported by pricing policy and growth in generics, OTC, and hygiene & beauty.

• Administrative expenses expected to remain at healthy levels, with continued efficiency gains in logistics and store productivity.

• EBITDA margin expected to expand further due to productivity gains and the end of wholesale operations.

• Strategic investments in technology and omnichannel initiatives are expected to drive further operational efficiency and customer loyalty.