Raia Drogasil (RADL3) Q4 2025 earnings summary

Executive summary

• Revenue grew 13.9% year-over-year to R$47.6 billion, with strong acceleration in the second half and record market share gains, reaching 19.5% nationally (+1.7 pp).

• Adjusted EBITDA rose 12.8% to R$3.4 billion, with margin stable at 7.1%, and adjusted net income increased 4.3% to R$1.34 billion (margin 2.8%).

• Digital sales surged 59% to R$11.3 billion, representing 29.3% of retail revenue in 4Q25, with 82% of digital transactions via proprietary apps.

• 330 new pharmacies were opened, expanding the network to 3,547 units in 663 cities, with only 13 closures, reflecting disciplined expansion.

• Sale of 4Bio was signed in March 2026 for R$700 million over 5 years, expected to strengthen capital structure, improve margins and ROIC, and sharpen focus on core retail.

Financial highlights

• Gross profit reached R$12.96 billion (margin 27.2%), with a slight contraction of 0.5 pp due to higher GLP-1 mix and competitive investments.

• SG&A expenses were R$9.58 billion, with selling expenses at 17.5% of revenue and G&A at 2.6%, reflecting improved efficiency.

• Free cash flow was R$198 million, despite R$756 million total cash consumption due to working capital pressure.

• ROIC reached 17.1% (+0.4 pp), and leverage stood at 1.2x net debt/EBITDA.

• Basic EPS was R$0.78741 (vs. R$0.72753 in 2024).

Outlook and guidance

• Guidance for 2026 is 330–350 new store openings, maintaining disciplined expansion and focus on high-return locations.

• Strategic focus on omnichannel, digital growth, and category management, especially GLP-1 and private labels.

• Sale of 4Bio to bring R$700 million over 5 years, supporting further capital optimization.

• Continued investment in technology, AI, and logistics to drive future growth.

• Leadership in GLP-1, expansion in beauty and wellness, and disciplined capital allocation remain priorities.