Raia Drogasil (RADL3) Q4 2025 earnings summary

Executive summary

• Achieved record-breaking results in 2025, with gross revenue of R$47.6B, 23% retail growth in Q4, and a 170 bps market share gain year-over-year.

• Sale of 4Bio for R$700 million, aligning with strategic focus on core pharma retail and capital efficiency.

• Digital sales surged 59.3% to R$11.3B, representing 29.3% of retail sales in Q4, with 82% of digital sales via the app.

• Maintained high customer engagement, serving 51.7 million customers and achieving a record NPS of 91.

• New management cycle in 2025 focused on execution, efficiency, and core business, driving operational improvements.

Financial highlights

• Gross revenue reached R$47.6B in 2025, up 13.9% year-over-year; Q4 growth was 19.8%.

• Adjusted EBITDA was R$3.4B (+12.8% YoY), with a margin of 7.1% for 2025 and 7.2% in Q4.

• Adjusted net income was R$1.34B (2.8% margin) for 2025; Q4 net income was R$362M.

• Free cash flow was R$198M, despite R$756M total cash consumption due to accelerated sales.

• Financial leverage at 1.2x LTM EBITDA.

Outlook and guidance

• Focus on core pharma retail, digital expansion, and leveraging AI and technology for operational efficiency.

• Guidance for 330–350 new pharmacy openings in 2026, with selective growth and omnichannel integration.

• Strategic priorities include leadership in GLP-1, expansion in beauty and wellness, and disciplined capital allocation.

• No major new investments anticipated; continued discipline in capital allocation and efficiency.

• Favorable market context supports further consolidation and market share gains.