Raia Drogasil (RADL3) Q3 2025 earnings summary

Executive summary

• Achieved consolidated gross revenue of R$12.1 billion in Q3 2025, up 12.7% year-over-year, with retail revenue up 15.5% and digital revenue up 62%.

• Expanded to 3,453 pharmacies, adding 88 new stores and reaching 51 million active customers in the last 12 months, now present in 653 cities.

• Digital sales surged to R$3.0 billion, representing 26.7% of retail revenue, with 97% of orders delivered or collected in under 60 minutes and app orders comprising 81% of digital sales.

• Market share increased to 16.8% nationally, with notable gains in São Paulo (30.3%) and all other regions.

• Mature store sales grew 7.8%, with generics up nearly 20% and branded Rx up 21%, driven by GLP-1 and patent expirations.

Financial highlights

• Adjusted EBITDA reached R$909 million, up 12.2% year-over-year, with a stable margin of 7.5% (retail at 7.9%).

• Adjusted net income was R$402 million (3.3% margin), up 19.3%, and free cash flow was R$648 million, with total cash generation of R$558 million.

• Gross profit reached R$3,314 million, with a gross margin of 27.4%, slightly down 0.2 pp year-over-year due to one-off ICMS gains in 3Q24.

• Net debt decreased to R$3,380 million, with leverage at 1.1x LTM EBITDA.

• Cash cycle improved by 3 days, mainly from inventory reduction.

Outlook and guidance

• Management is optimistic for Q4 and 2026, maintaining guidance for 330-350 new store openings and expecting continued double-digit digital growth and further market expansion, especially with GLP-1 drugs and an aging population.

• Black Friday and omnichannel strategies are expected to drive further sales and margin improvements.

• Plans to recover 4Bio sales growth with a new distribution center in Espírito Santo in 2026.