Dimed (PNVL3) Q4 2025 earnings summary

Executive summary

• Retail gross revenue grew 17.0% year-over-year to R$5.91 billion in 2025, with 18.2% growth in 4Q25 and strong same-store sales (+14.7%) and mature store sales (+11.6%) in the quarter.

• Digital sales surged 46.8% to R$1.5 billion, reaching 28.6% penetration in 4Q25, with app sales up 56.9% and strong loyalty initiatives.

• Adjusted EBITDA rose 21.4% to R$319.4 million (5.4% margin), and adjusted net income increased 15.3% to R$135.3 million (2.3% margin); 4Q25 adjusted net income up 35.0%.

• Market share in the Southern Region reached a record 13.9%, marking the 23rd consecutive quarter of regional share gains.

• Ended the year with 659 stores, completing the exit from wholesale and focusing fully on retail.

Financial highlights

• Retail gross revenue: R$5,912 million in 2025 (+17.0% YoY); 4Q25: R$1,678 million (+18.2% YoY).

• Adjusted EBITDA: R$319.4 million (+21.4% YoY), margin 5.4%; 4Q25: R$104.8 million (+27.9% YoY), margin 6.2%.

• Adjusted net income: R$135.3 million (+15.3% YoY), margin 2.3%; 4Q25: R$45.2 million (+35.0% YoY), margin 2.7%.

• Free cash flow was R$106.3 million in 2025, with positive cash generation every quarter and net debt/EBITDA reduced to 0.9x.

• Retail gross margin stable at 29.8% in 2025; ROIC for mature stores reached 25.2% in 2024.

Outlook and guidance

• 2030 guidance: gross revenue R$11.5–12.0 billion, adjusted EBITDA margin 6.7–7.0%, and 950–1,000 stores.

• Growth drivers include higher average sales per store, regional expansion, digitalization, generics, private label, and AI-driven pricing.

• Expense growth expected to remain below revenue growth, supported by productivity and automation.