Raia Drogasil (RADL3) Q1 2026 earnings summary

Executive summary

• Gross revenue reached BRL 12.0 billion in Q1 2026, up 20.4% year-over-year, driven by mature store growth, digital channel expansion, and strong branded Rx and generics performance due to patent expirations.

• Adjusted EBITDA rose 31.7% to BRL 821 million, with margin improving to 6.9%, and net income increased 69.2% to BRL 300 million, reflecting operational efficiency and market share gains.

• Market share expanded by 1.5 percentage points to 19.6% nationally, with notable gains in São Paulo and all regions.

• Digital sales surged 66.4% to BRL 3.6 billion, representing 30.2% of retail sales, with 83% of digital sales via proprietary apps.

• 4Bio business was divested for BRL 792 million, now treated as a discontinued operation, strengthening capital structure.

Financial highlights

• Gross profit reached BRL 3,392.6 million, with gross margin stable at 28.3%.

• Adjusted EBITDA was BRL 821 million, up 31.7% year-over-year, with margin at 6.9%.

• Adjusted net income was BRL 300 million, up 69.2%, with margin at 2.5%; free cash flow reached BRL 285 million.

• Cash cycle improved by 9.8 days, mainly due to inventory reduction and ICMS-ST tax effects in São Paulo.

• Financial leverage at 1.2x LTM EBITDA, with adjusted net debt at BRL 4,189.2 million.

Outlook and guidance

• Expansion plan targets 330-350 new pharmacy openings in 2026, maintaining IRR above 20%.

• Digital and proprietary channels expected to continue driving retail penetration and customer engagement.

• Expect continued growth in GLP-1 category as generics enter and parallel market migrates to formal channels.

• Guidance for sustained operational efficiency, further market share gains, and reduction in financial leverage through 4Bio proceeds and operational cash generation.