By Brazil Stock Guide – RD Saúde (Raia Drogasil S.A., B3: RADL3) delivered another quarter of solid expansion in the third quarter of 2025, with net profit rising 19.3% to R$402 million and gross revenue climbing 12.7% to R$12.1 billion, fueled by the surge in online sales and demand for GLP-1 drugs used in weight-management treatments.
Strong topline and resilient margins
Retail sales jumped 15.5% year-on-year, offsetting a temporary 16.8% contraction at specialty-drug unit 4Bio. Adjusted EBITDA rose 12.2% to R$909 million, with a stable margin of 7.5%. Excluding one-off tax effects from 2024, the company expanded its normalized EBITDA margin by 0.6 percentage point. Gross margin held at 27.4%, slightly affected by the growing share of GLP-1 medications but helped by improved efficiency and a reduced 4Bio contribution.
Digital boom and network expansion
Digital channels reached R$3.0 billion in revenue, soaring 62% and accounting for 26.7% of retail sales. Mobile-app purchases represented 81% of online transactions, and 97% of deliveries were completed within one hour. The company now has 51 million active clients and a Net Promoter Score of 91, as RD strengthens its strategy to make its stores community-based “health hubs” offering vaccines and diagnostic exams.
The network reached 3,453 pharmacies, after 88 openings and six closures during the quarter. São Paulo accounted for 30% of new units, underscoring the company’s ability to grow even in mature markets. National market share climbed to 16.8%, with gains across all regions and a jump to 30.3% in São Paulo.
Cash generation and financial discipline
Free cash flow totaled R$648 million, and overall cash generation reached R$558 million. Adjusted net debt stood at R$3.38 billion, equal to 1.1× EBITDA, down from 1.3× in the previous quarter. RD invested R$367 million in capex, focusing on store expansion and technology, and provisioned R$141 million in interest on equity (JSCP) to shareholders.
Outlook
Despite pressure on margins from GLP-1 product sales, RD’s digital scale and operational leverage continue to sustain growth. The company reaffirmed its guidance of 330–350 store openings for 2025 and plans to open a new distribution center in Espírito Santo in 2026 to strengthen logistics coverage. Shares (RADL3) closed at R$19.83 on Nov 3, valuing the firm at R$34.1 billion, up 21.8% in the quarter versus a 5.3% gain for the Ibovespa
Leave a Reply