By Brazil Stock Guide – RD Saúde (B3: RADL3), the parent company of the Raia and Drogasil pharmacy chains, reported adjusted net income of R$362 million in the fourth quarter of 2025, as strong demand for prescription drugs and rapid growth in digital channels accelerated the company’s sales momentum.
Gross revenue reached R$13.0 billion in the quarter, up 19.8% year over year, while adjusted EBITDA totaled R$936 million, rising 38.2%, with a margin of 7.2%. For the full year, the company posted R$47.6 billion in revenue, an increase of 13.9%, and adjusted net income of R$1.34 billion.
The results mark a rebound after a challenging start to 2025, when intensified competition and operational pressures weighed on margins. Management implemented a series of operational adjustments — including price repositioning, store-level staffing increases and tighter cost discipline — helping restore sales momentum during the second half of the year.
GLP-1 Drives Prescription Growth
A key driver of growth was the rapid expansion of GLP-1 medications, widely used for diabetes and increasingly prescribed for weight loss. The category reached double-digit participation in retail sales during the fourth quarter, boosting prescription drug revenue.
Executives expect the market to expand further as new therapies are launched and as patents for semaglutide-based drugs approach expiration in 2026, potentially allowing lower-priced alternatives to enter the market and broaden access.
RD Saúde believes its nationwide logistics network and store footprint position the company to capture an outsized share of that growth.
Digital Becomes Strategic Engine
Digital commerce continues to transform the company’s business model. Online sales reached R$11.3 billion in 2025, representing 59% growth year over year, while digital penetration climbed to 29.3% of retail sales in the fourth quarter.
Mobile apps have become the dominant channel, accounting for more than 80% of digital transactions, while rapid delivery and “buy-online-pick-up-in-store” services have strengthened customer engagement.
Management said the integration between physical stores and digital channels — with most online orders fulfilled directly from nearby pharmacies — has become a structural competitive advantage.
Expansion and Market Share Gains
RD Saúde ended the year with 3,547 pharmacies across Brazil, after opening 330 new stores in 2025. The company plans to maintain a similar expansion pace in 2026, targeting 330 to 350 new units.
The strategy has helped the retailer expand its national market share to 19.5%, a gain of 1.7 percentage points year over year, with growth across all regions.
Sales at mature stores — locations operating for more than three years — grew 14.5% in the fourth quarter, significantly outperforming Brazil’s official annual drug price adjustment.
Portfolio Shift After 4Bio Sale
Alongside its earnings release, RD Saúde announced the sale of its specialty-drug subsidiary 4Bio to a company linked to the Profarma group, reflecting a broader effort to focus capital allocation on the core pharmacy retail business.
The transaction has a base value of about R$600 million, with total proceeds potentially reaching around R$700 million over five years, including financial adjustments.
Management said the divestment should strengthen the company’s balance sheet and allow greater investment in store expansion, digital capabilities and high-growth health categories.
Looking ahead to 2026, RD Saúde plans to deepen its focus on recurring customer relationships, expand health services inside pharmacies and reinforce leadership in high-growth segments such as weight-loss treatments, beauty and wellness.
Leave a Reply