Raia Drogasil Sa Stock Earnings Reports

RD Saude delivered a strong Q3 2025 driven by retail recovery, tight cost control and fast-growing digital adoption. Key operational highlights: retail comparable sales/organic growth returned to a healthy trend (retail +15.5%), mature-store sales +7.8% and total store count ~3,453 with ~330 net openings over 12 months. Digital revenue reached BRL 3 billion in the quarter (app-driven; 80% of digital sales) with ~62% digital growth year-over-year and digital penetration ~27%; 6 million digital customers and 97% of deliveries within 60 minutes. Financials: consolidated gross revenue BRL 12.0 billion (+12.7% YoY), EBITDA BRL 909 million (7.5% margin) and adjusted net income BRL 402 million; free cash flow improved (~BRL 558–648 million reported in comments), net leverage falling (net debt/EBITDA ~1.1x). Cost discipline: SG&A and payroll well controlled vs. Q2; inventory coverage reduced materially and cash cycle improved (~3 days), helping liquidity. Headwinds and mitigants: 4Bio revenue fell ~17% mainly due to a distribution/contract routing change (contract with Espírito Santo DC to be signed this week to resolve supply routing); GLP-1 drugs are an accelerating category (high-single-digit penetration in Q3) that boosts ticket and digital uptake but can exert gross-margin mix pressure; management expects generics/licensed competition to expand access and overall category size. Management actions: focused store-level IRR, continued rollout of employee benefits and a 5.2 work model conversion, ongoing logistics/DC investment (new RD automated DC opening; 4Bio DC small, to be contracted), and targeted Black Friday preparation. Outlook: management is confident for Q4 and 2026, citing sustained operational improvements, market share gains (consolidated share ~16.8%) and structural digital advantages, while remaining cautious on GLP-1 mix and 4Bio channel fixes.