Panvel retail revenue rises 15.3% to 1.7 billion reais in third quarter
Key Facts
Brazilian group Panvel reported gross retail revenue of 1.7 billion Brazilian reais in the third quarter of 2026, up 15.3% year over year, according to data reported by Reuters via InfoMoney. Adjusted net profit rose to 46.4 million reais, up 35.4% from the same period in 2025. Adjusted EBITDA increased 21.2% to 96.8 million reais, with a margin of 5.7%, 0.3 percentage points above its level a year earlier. Adjusted EBITDA and adjusted net profit exceeded XP Investimentos' estimates, but that assessment relates to the firm's estimates alone; XP said sales growth was broadly in line with its estimate. Panvel attributed the improvement in EBITDA to lower selling expenses, which offset a decline in the retail gross profit margin.
Sales at established stores grew broadly during the quarter, with same-store sales up 13.3% and mature-store sales rising 11.5% year over year. The company said both rates exceeded inflation during the period. Average monthly sales per store reached about 837 thousand Brazilian reais, up 10.9% from a year earlier. Meanwhile, the pharmacy count rose to 677 at the end of September, compared with 651 a year earlier. The revenue increase, according to InfoMoney's report citing the company, combined improved productivity at mature stores with the contribution from network expansion.
Digital channels were one of the quarter's standout growth drivers, with sales of 792.4 million Brazilian reais, up 104% year over year. They accounted for 46.6% of total retail revenue, or nearly half of the business's sales. Sales through the Panvel app rose 271%, accounting for 78.5% of digital sales. By product mix, drug sales increased 17.4%, while branded drugs rose 21%. Generic drug sales also climbed 19%, according to InfoMoney's report citing the company's results.
GLP-1 products grew 68.8% during the quarter, alongside a 12.4% increase in sales in the health and beauty category. The company said drugs were the main driver of quarterly growth, placing the category's expansion alongside growth in digital channels and established stores as components of performance. On profitability, the retail gross profit margin fell 0.2 percentage points year over year. Higher operating productivity eased the impact, however, with selling expenses as a share of sales declining by 70 basis points, according to an XP report. XP cited improvements in employee and rent costs, as well as inventory losses, among the factors behind the expense reduction.
The company reported free cash flow of 19.9 million Brazilian reais in the third quarter, up 24% year over year, according to data reported by Reuters via InfoMoney. On analyst estimates, XP said adjusted EBITDA came in 4% above its forecast and adjusted net profit was 46 million reais, up 35% year over year and 10% above its estimate. This comparison relates to XP's estimates, while available sources did not establish that the company's results beat market expectations overall. Panvel's management reiterated confidence in its plan through 2030, according to an XP report. Management also forecast a strong finish to 2026.
Regarding interest on equity distributions, Panvel approved three payments during the third quarter, each worth 6 million Brazilian reais. The first payment is due on 31/03/2028, the second on 28/04/2028 and the third on 31/05/2028. These dates were shown in the company's investor relations data. The three payments are part of decisions approved in September 2026. The announced payment dates thus extend across March, April and May of 2028.