Raia Drogasil S.A.

RD Saude reported gross revenue of BRL 12 billion, up 12.7% year over year. Retail revenue grew 15.5%, mature-store sales rose 7.8%, EBITDA was BRL 909 million with a 7.5% margin, adjusted net income was BRL 402 million, and free cash flow was BRL 648 million. Gross profit was BRL 3.3 billion with a 27.4% margin, down 20 bps year over year, though management said it was stable excluding a prior-year tax benefit. Selling expenses were 17.3% and SG&A was BRL 310 million, versus BRL 323 million last year. Management also said net debt improved to 3.4 from 3.9 in the prior quarter, and leverage was 1.1x EBITDA over debt. No formal numerical guidance was given for next quarter or the full year, but management said Black Friday should be better than last year, fourth-quarter HPC should face easier comps, and 4Bio should recover as the Espirito Santo distribution center comes online.

Renato Raduan struck a confident, almost corrective tone, saying the company had turned the corner after weaker results in late 2024 and early 2025. He emphasized three themes: sales momentum has returned, costs were held under control, and the company achieved a structural 7.5% EBITDA margin despite GLP-1, HPC competition, and 4Bio disruption. He also framed the quarter as evidence that the company can adjust quickly without sacrificing service, digital execution, or expansion quality.

Flavio de Correia focused on the quality of earnings and balance-sheet improvement. He said gross profit was BRL 3.3 billion at a 27.4% margin, with the year-over-year change affected by a 20 bps tax-benefit comparison; selling expenses were 17.3% and SG&A was BRL 310 million, below BRL 323 million last year. He highlighted EBITDA of BRL 909 million, adjusted net income of BRL 402 million, free cash flow of BRL 558 million, a 3-day improvement in the cash cycle, and net debt falling to 3.4 from 3.9 in the second quarter.

Analysts focused on GLP-1 penetration, pricing, working capital, gross margin, Black Friday, and the 4Bio revenue decline. Management said GLP-1 penetration was high single digits in Q3, not yet double digits, and that a broader rollout and eventual generics should expand access even if prices fall; they also said installment payments are already offered in some cases and that inventory has been reduced materially, limiting cash-cycle pressure. On 4Bio, management attributed the revenue drop to a logistics/distribution issue tied to Sao Paulo supply and said the new Espirito Santo distribution center should quickly reduce the decline. On Black Friday, management said it was underprepared last year but is much better positioned this year, with more work done since August and a more aggressive commercial plan.