RD Saúde Posts 34.6% Profit Growth in Q4 2024

RD Saúde, formerly Raia Drogasil (RADL3), reported a 34.6% increase in adjusted net income for the fourth quarter of 2024, reaching R$ 381.4 million ($64 million) compared to the same period in 2023.

For the full year, adjusted net income rose by 16.6%, totaling R$ 1.288 billion ($215 million), according to company disclosures on February 25, 2025. These results highlight RD Saúde’s ability to maintain growth despite facing regulatory and operational challenges.

The company achieved an adjusted EBITDA of R$ 677.5 million ($113 million) in the fourth quarter, reflecting a year-over-year increase of 10.3%. For the entire year, adjusted EBITDA climbed by 14.9% to R$ 2.9 billion ($483 million).

However, the EBITDA margin for Q4 stood at 6.2%, slightly contracting by 0.2 percentage points, while the annual margin remained stable at 7.2%. Net revenue for Q4 reached R$ 10 billion ($1,667 million), marking a 13.3% growth compared to the same period in 2023.

Full-year net revenue increased by 14.5%, totaling R$ 38 billion ($6,333 million). Despite this strong topline growth, gross profit for the year was R$ 11.5 billion ($1,917 million), with a gross margin of 27.7%, down by 0.3 percentage points due to new PIS/COFINS taxation on government subsidies—a policy RD Saúde is contesting in court.

Operational efficiency played a critical role in offsetting these pressures. The company reduced selling and general administrative expenses (G&A), leveraging economies of scale as it expanded its footprint to over 3,010 pharmacies nationwide.

RD Saúde Ends Year with Strong Financials

RD Saúde closed the year with an adjusted net debt of R$ 3.418 billion ($570 million), representing a leverage ratio of 1.1x its last twelve months’ adjusted EBITDA.

The company maintained a cash position of R$ 528 million ($88 million) and highlighted its disciplined financial management despite increasing investments in technology and store openings.

The company’s strategic focus on digitalization and healthcare services continues to drive growth. Its marketplace platform now offers over 80,000 products, and digital sales accounted for a growing share of revenue in FY24.

While RD Saúde faces regulatory hurdles and margin pressures, its operational efficiencies and market expansion underscore its resilience in Brazil’s competitive pharmaceutical retail sector. These results position the company for continued growth as it strengthens its role as a healthcare hub across the country.

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