Raia Drogasil (RADL3) Q1 2026 earnings summary

Executive summary

• Gross revenue reached BRL 12.0 billion in Q1 2026, up 20.4% year-over-year, with strong growth in branded Rx, generics, and digital channels.

• Adjusted net income rose 69.2% to BRL 300 million, excluding discontinued 4Bio operations, with margin at 2.5%.

• Opened 68 new units, reaching 3,614 in operation, serving over 52 million customers and maintaining a high NPS of 91%.

• Digital sales surged 66.4% to BRL 3.6 billion, now over 30% of retail sales, with 83% via proprietary apps.

• Market share increased by 1.5 percentage points to 19.6% nationally, with gains in all regions.

Financial highlights

• Adjusted EBITDA reached BRL 821 million, up 31.7% year-over-year, with margin expanding to 6.9%.

• Free cash flow was BRL 285 million, with total cash generation of BRL 136 million.

• Gross profit margin stable at 28.3%, with nominal gross profit growth of 20% year-over-year.

• SG&A expenses diluted, with selling expenses at 19.0% and G&A at 2.5% of gross revenue.

• Financial leverage at 1.2x LTM EBITDA, with adjusted net debt at BRL 4,189.2 million.

Outlook and guidance

• Expansion plan targets 330-350 new openings, maintaining IRR above 20%.

• Digital and proprietary channels expected to further drive retail penetration and engagement.

• Continued growth in GLP-1 category anticipated as generics enter, with margin improvement expected.

• Guidance for sustained cash cycle improvements and stable or improving margins.

• Expect reduction in financial leverage through 4Bio proceeds, ICMS recovery, and operational cash generation.