Raia Drogasil - Q1 2026 Earnings Analysis

Performance Highlights

Raia Drogasil reported Q1 2026 gross revenue of R$ 12.0 billion, up 20.4% year-over-year, well ahead of consensus expectations, driven by a potent mix of new store contributions and same-store sales strength. Adjusted EBITDA reached R$ 821 million, expanding 31.7% with margin improving 0.6 pp to 6.9%, while adjusted net income of R$ 300 million grew 69.2%, lifting net margin to 2.5%.

Branded Rx was the primary operating driver, growing 29.3% on robust GLP-1 medicine demand, with generics adding 17.7% as recent patent expirations broadened the category. Mature-store sales growth of 12.8% ran 9.7 percentage points above the 3.1% CMED price adjustment, while digital channels surged 66% to R$ 3.6 billion, reaching 30.2% of retail sales with 83% of digital orders transacted via proprietary apps.

Management Outlook and Forward Catalysts

Management reaffirmed 2026 guidance of 330–350 gross pharmacy openings, citing rising store IRRs and a low closure error rate of 0.3% of LTM openings as evidence of disciplined expansion quality. The completed R$ 792 million divestiture of 4Bio, structured as six annual instalments adjusted by the DI rate, is expected to reduce leverage, with management flagging ICMS-ST tax credit recoveries in São Paulo as an additional near-term cash catalyst.

The central investor debate heading into Q2 centres on whether GLP-1-driven Branded Rx growth is structurally durable or a fading tailwind, and whether the 28.3% gross margin can be defended as the high-Rx sales mix persists. Bulls will watch the leverage trajectory — currently 1.2x LTM EBITDA — for the expected 4Bio-proceeds-driven decline, while bears will monitor SELIC-driven financial expense pressure, which lifted interest costs 0.3 pp year-over-year in Q1.