Dimed (PNVL3) Q2 2025 earnings summary

Executive summary

• Retail gross revenue grew 19.6% year-over-year in Q2 2025 to R$1.41 billion, with strong digital, private label, and service performance, and adjusted EBITDA up 42.9% to R$70.1 million.

• Adjusted net income increased 39.5% year-over-year to R$28.0 million, with margin at 2.0%.

• Opened 14 new stores in Q2 2025, totaling 649 units, and achieved 21 consecutive quarters of market share gains in the Southern region.

• Digital sales reached 24.4% of retail revenue, with app sales up 51.3% and 6.9 million monthly active users.

• Achieved strong sales and earnings growth despite a challenging comparison base due to 2Q24 floods in Rio Grande do Sul.

Financial highlights

• Retail gross margin improved to 30.4% (+0.3 p.p. YoY), driven by higher OTC and private label penetration and pricing strategies.

• Free cash flow generation was R$33.8 million, with the cash conversion cycle improved by 8 days year-over-year.

• Net debt to adjusted LTM EBITDA improved to 1.1x, reflecting a solid capital structure and low leverage.

• Retail EBITDA margin reached 11.1%, up 0.5 p.p. year-over-year.

• Selling and administrative expenses grew below sales, supporting margin expansion.

Outlook and guidance

• Continued focus on digital transformation, private label growth, and service offerings as strategic pillars for growth.

• Ongoing store expansion and densification in the South, with emphasis on non-capital cities and digital channel capacity.

• GLP-1 category expected to expand with generics in 2026, improving sales and gross margins.

• Hygiene, beauty, and medication categories projected to maintain strong growth into 2025 and 2026.