By Brazil Stock Guide — RD Saúde (B3: RADL3), Brazil’s largest pharmacy chain and the operator of the Raia and Drogasil brands, reported adjusted net income of R$439.1 million ($82 million) in the third quarter of 2026, up 9.2% from a year earlier. Gross revenue rose 16% to R$13.16 billion, an increase of R$1.8 billion, driven by store expansion, growth at existing locations and strong demand for GLP-1 medications used to treat diabetes and obesity.
Adjusted EBITDA reached R$1.02 billion, an increase of 14.7%, while the EBITDA margin edged down to 7.8% from 7.9%. The adjusted net margin narrowed to 3.3% from 3.5%. Excluding the effects of 4Bio, a former subsidiary sold by the company, adjusted earnings would have increased 20.1%, with a 0.1 percentage point improvement in the net margin. Under IFRS 16 accounting standards, reported net income stood at R$408.2 million.
RD Saúde ended September with 3,770 pharmacies after opening 92 locations and closing nine during the quarter. The company opened 333 stores over the past 12 months and reaffirmed its full-year target of 330 to 350 gross openings in 2026. Sales at mature stores — those operating for at least three years — increased 8.4%, exceeding Brazil’s regulated annual pharmaceutical price adjustment of 2.8% by 5.6 percentage points.
The company’s share of Brazil’s pharmacy retail market reached 19.1%, up 1.1 percentage points year over year, with gains across every region. In São Paulo state, where RD Saúde operates 1,485 pharmacies, its market share climbed to 33%. GLP-1 medications accounted for approximately 12% of total sales, a proportion that has stabilized in recent quarters. According to the company, the introduction of new semaglutide-based medications has made these treatments more accessible, with higher sales volumes offsetting a sharp decline in average prices.
Digital sales totaled R$3.84 billion, up 27.2%, and accounted for 29.4% of retail revenue, compared with 26.7% a year earlier. However, digital penetration declined by 1.6 percentage points from the second quarter. RD Saúde attributed the sequential drop to a change in its pricing strategy, extending GLP-1 discounts previously available only online to its physical pharmacies. The company’s proprietary mobile apps generated 83% of digital sales.
Free cash flow remained positive at R$160.2 million, down from R$615.6 million a year earlier. Capital expenditures totaled R$418.3 million, primarily allocated to new store openings, renovations, technology and logistics. Adjusted net debt stood at R$2.94 billion, equivalent to 0.8 times trailing 12-month EBITDA, compared with 1.1 times in the third quarter of 2025.
RD Saúde also began consolidating the financial results of Stix, a multi-brand loyalty platform in which it acquired the remaining 67% stake in July. The business contributed 0.4 percentage points to quarterly gross revenue growth. The company ended September with 53.3 million active customers, up from 51 million a year earlier.
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