Raia Drogasil (RADL3) Q4 2025 earnings summary

Executive summary

• Achieved record-breaking results in 2025, with gross revenue of R$47.6 billion, 23% retail growth in Q4, and a 1.7pp market share gain to 19.5% nationwide.

• Sold 4Bio for R$700 million, reinforcing focus on core pharma retail and capital discipline.

• Opened 330 new stores, reaching 3,547 units and over 51.7 million customers.

• Digital revenue reached R$11.3 billion (+59.3% YoY), representing 29.3% of retail sales in Q4.

• New management cycle in 2025 prioritized execution, efficiency, and core business, driving operational improvements.

Financial highlights

• Adjusted EBITDA for 2025 was R$3.4 billion (+12.8% YoY), with a margin of 7.1%; Q4 margin was 7.2%.

• Adjusted net income reached R$1.34 billion (2.8% margin); Q4 net income was R$362 million.

• Free cash flow was R$198 million, with total cash consumption of R$756 million due to sales acceleration.

• Retail EBITDA grew 41.2% in Q4, nearing R$1 billion.

• Financial leverage at 1.2x LTM EBITDA; gross debt of R$3.87 billion, 87% long-term.

Outlook and guidance

• Focus on core pharma retail, digital expansion, and leveraging AI and technology for efficiency.

• Guidance for 330–350 new pharmacy openings in 2026, with selective growth and omnichannel integration.

• Strategic priorities include leadership in GLP-1, expansion in beauty and wellness, and disciplined capital allocation.

• Expect continued balanced growth across all categories and further market share gains.