Raia Drogasil (RADL3) Q2 2025 earnings summary

Executive summary

• Gross revenue reached R$11.7 billion in 2Q25, up 12% year-over-year, with retail growth of 13.1% and strong digital and prescription medicine sales.

• Expanded to 3,371 stores, opening 70 new locations, and surpassed 50.3 million active customers in the last 12 months.

• Digital sales surged 52% to R$2.6 billion, reaching 24.1% retail penetration, with 96% of orders delivered or collected within 60 minutes.

• National market share increased by 70 bps to 16.4%, with gains in all regions and leadership in health services and vaccines.

• Customer satisfaction remained high with an NPS of 91.

Financial highlights

• Adjusted EBITDA was R$885 million (7.6% margin), a 0.3 pp contraction year-over-year but a sequential expansion of 1.6 pp.

• Adjusted net income was R$403 million (3.5% margin), up 0.1 pp year-over-year, aided by reversal of subsidy provisions and a low effective tax rate of 6.3%.

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

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

• Record net income of R$400 million, including R$45 million in non-recurring tax effects.

Outlook and guidance

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

• Expectation of continued sales growth, with normalized growth near 14% after adjusting for calendar effects.

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

• Anticipate further improvements in inventory losses and gross margin as new initiatives take effect in the third quarter.

• Continued investment in digital and staff to support growth and customer experience.