Raia Drogasil’s Gross Revenue Jumps 16% in Third Quarter as Leverage Falls to 0.8 Times
Key Facts
Raia Drogasil reported third-quarter 2026 results on November 3, with gross revenue of 13.2 billion reais, up 16% year over year, while net revenue rose 7.8% to 11.4 billion reais. Adjusted EBITDA increased 14.7% to 1.024 billion reais, while adjusted net profit grew 9.2% to 439.1 million reais. The company said adjusted profit growth would have been 20.1% excluding the effects of the 4Bio sale. The quarter ended in September, with results coming amid growth in sales through stores and digital channels. Annualized leverage, measured as net debt to EBITDA, also fell to 0.8 times, according to XP Investimentos.
XP attributed gross revenue growth to the expansion of the store network and sales at existing branches. It said the increase included a negative calendar effect of 0.3 percentage points and a 0.4 percentage-point contribution from the consolidation of Stix in July. Same-store sales growth was 10.1%, while the market-share indicator for those stores slowed to 8.4%. Even so, the indicator remained 5.6 percentage points above the permitted adjustment to drug prices. XP estimated that the company gained market share in all regions of Brazil, with a year-over-year increase of 1.1 percentage points nationwide.
Digital channels were among the sales drivers, generating revenue of 3.8 billion reais, up 27.2% year over year, with online sales accounting for 29.4% of retail sales. XP said loyal customers who use digital channels spend 30% more than the average loyal customer. By category, sales of branded drugs grew 19.8%. The company said higher volumes of new semaglutida-based products offset a decline in average prices, while industrial supplies of those brands remained limited. XP also said GLP-1 drug penetration was stable quarter over quarter at about 12%.
Prescription growth remained a key driver, with sales rising 20% year over year, according to XP. Sales of generic drugs also grew 12%, personal and home care products 13%, and over-the-counter products 11%. Signaling that GLP-1 sales were extending to branches, physical stores accounted for 40% of purchases of these drugs in October, compared with 25% in the second quarter. XP said this followed the extension of the discount policy to stores. These indicators show broader sales channels and a range of categories recording growth during the quarter.
On margins, gross margin expanded 0.1 percentage points year over year to 28.8%, according to XP. EBITDA margin declined 0.1 percentage points to 7.8%. The company said the pressure included investments in wages and benefits that began in late 2025. Adjusted EBITDA growth therefore came alongside a slight margin decline compared with the same period.
Free cash flow was 160.2 million reais in the third quarter, compared with 615.6 million reais in the same period of 2025. XP attributed the decline to working-capital consumption, following a 3-day quarter-over-quarter reduction in supplier days, and to a 14% year-over-year increase in capital expenditures. By contrast, leverage fell 0.3 times year over year to 0.8 times. XP estimated that recurring cash generation accounted for 0.1 times of this decline, while the 4Bio sale accounted for 0.2 times. Management also expected additional cash generation from the recovery of ICMS-ST tax credits.
On expansion, the company recorded 333 gross store openings over the 12 months through the third quarter. XP said management reaffirmed guidance to open between 330 and 350 stores during 2026. The plan puts continued network expansion among the factors XP linked to gross sales growth. This is taking place alongside higher sales at existing stores and growth in digital channels. Management cited the recovery of ICMS-ST tax credits as an expected source of additional cash generation.