Dimed (PNVL3) Q3 2025 earnings summary

Executive summary

• Achieved 14.3% year-over-year retail revenue growth in Q3 2025, reaching R$1.5 billion, with strong digital and private label performance and record productivity.

• Opened 51 new stores in the last 12 months, totaling 651 units, and maintained market leadership in the South with 22 consecutive quarters of share gains.

• Digital sales surged 42.4% year-over-year, accounting for 26.4% of retail revenue, with the app representing 54.1% of digital sales.

• Private label sales grew 32.6% year-over-year, now representing 7.3% of retail sales and 37.6% share in the southern region.

• Achieved positive free cash flow for the third consecutive quarter, surpassing established targets.

Financial highlights

• Adjusted EBITDA reached R$79.9 million in Q3 2025, up 11.3% year-over-year, with a 5.4% margin.

• Adjusted net income was R$34.3 million, with a 2.3% margin, the highest nominal and percentage result of 2025.

• Free cash flow generation was R$16 million, with operating cash flow over R$73 million and a cash conversion cycle improved by 6 days year-over-year.

• Debt level is the lowest in the pharma industry, with net debt/EBITDA at 1.0x and average debt cost at CDI -1.3%.

• Retail gross margin stood at 29.9%, stable despite pressure from GLP-1 medications.

Outlook and guidance

• Optimistic for Q4, historically the strongest quarter, and for 2026, with continued focus on digital, private label, and generics.

• Management committed to sustainable growth, capital structure strengthening, and further market share gains, especially in the South.

• Plans to expand digital and private label initiatives and explore growth in interior markets.

• Anticipate improved returns as recent investments normalize and ROIC trends toward 11%.