Raia Drogasil (RADL3) Q1 2026 earnings summary

Executive summary

• Gross revenue grew 20.4% year-over-year to R$12.0 billion, with net income up 69.2% to R$300 million, driven by strong digital and retail performance and the discontinuation of 4Bio operations.

• 68 new pharmacies opened (1 closed), totaling 3,614 units, serving over 52 million customers and maintaining a high NPS of 91%.

• Digital sales surged 66.4% to R$3.6 billion, representing 30.2% of retail sales, with 83% of digital sales via proprietary apps.

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

• Sale of 4Bio completed for R$792 million, classified as discontinued operation, strengthening capital structure.

Financial highlights

• Adjusted EBITDA rose 31.7% to R$821 million, with margin expanding to 6.9% (+0.6 pp YoY).

• Free cash flow was R$285 million, with total cash generation of R$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% of revenue (-0.1 pp YoY) and G&A at 2.5% (-0.5 pp YoY), supporting profitability.

• Adjusted net income margin reached 2.5% (+0.7 pp YoY), with effective tax rate at 14.9%.

Outlook and guidance

• Guidance reaffirmed for 330–350 gross pharmacy openings in 2026, maintaining IRR above 20%.

• Expect continued digital channel growth and further investments in technology and AI.

• Management expects leverage to decrease through 4Bio proceeds, ICMS recovery, and operational cash generation.

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

• Ongoing expansion opportunities identified in all regions, including São Paulo.