DMVF3 Rede D1000

Rede d1000 is a Brazilian publicly traded company that operates in pharmaceutical retail, with common shares traded on B3 under the ticker DMVF3. The company is the retail arm of Grupo Profarma, which also controls one of the largest distributors of pharmaceutical and personal care products in the country. The trajectory of Rede d1000 began to take shape between 2013 and 2016, with the acquisition and consolidation of traditional drugstore chains such as Drogasmil, Farmalife, Drogarias Tamoio and Drogaria Rosário, all with decades of operations in their regional markets. In 2020, the company obtained category A registration with the CVM and carried out its initial public offering of shares, with its stock becoming listed on the Brazilian exchange.

The group’s origin is linked to Profarma Distribuidora de Produtos Farmacêuticos S.A., founded in Rio de Janeiro more than six decades ago and listed on B3’s Novo Mercado since 2006. Profarma developed a verticalized model combining wholesale distribution and pharmaceutical retail, of which Rede d1000 is the main vehicle in the store segment. Rede d1000’s corporate structure is organized as a holding company that directly controls operating companies, including Nice RJ Participações S.A. and Drogaria Cipriano, which in turn hold stakes in companies such as CSB Drogarias S.A., Drogarias Rosário S.A., Centro-Oeste Farma Distribuidora de Medicamentos and Casa Saba Brasil Holdings. The consolidation of these companies made it possible to create a single retail network with integrated management, standardized processes and capture of synergies with the parent company.

Rede d1000’s business model is focused on the retail sale of pharmaceutical and personal care products, constituting a single operating segment. The company does not have its own manufacturing processes, operating exclusively in the commercialization of medicines, hygiene and beauty items, convenience products and a growing portfolio of exclusive brands. As of December 31, 2024, the network consisted of 276 physical stores located mainly in the state of Rio de Janeiro, the Federal District and Mato Grosso, in addition to call centers and digital e-commerce platforms and apps for each banner. The company also operates delivery and click-and-collect channels and integrates partner marketplace services, which expands the reach of its consumer base.

Rede d1000’s product offering covers three major groups: medicines; personal hygiene, beauty and cosmetics items (HB); and convenience products. In medicines, the company sells branded drugs (reference and similar products subject to prescription), generics and OTCs/MIPs, intended for the treatment of acute conditions and those that are easy to self-diagnose, such as colds, pain and digestive problems. In hygiene and beauty, the network sells shampoos, conditioners, hair color, treatment creams, baby products, soaps, deodorants, oral care items, sunscreens, cosmetics, makeup and skin-care products. In the convenience category, it offers food items, blood pressure monitors, scales and related products. Since 2014, the company has been developing a portfolio of private label products, such as Bem Básico, Bonnevi, Dfresh, GOnutri, Mini Moon, Mise, Nº21, Polimix and Wissen, focused on medicines, vitamins, hygiene, beauty and food, a strategy that tends to reinforce margins and assortment differentiation.

Rede d1000’s operations are strongly based on its relationship with the parent company Profarma Distribuição, which accounts for almost all of its product supply. The network does not operate its own distribution centers, using Profarma’s logistics infrastructure for purchasing, inventory management and internal and external transportation. This arrangement allows for daily deliveries to stores, fewer stockouts, lower working capital requirements and lower investment needs in DCs, as well as greater bargaining power with the pharmaceutical industry due to the consolidated purchasing volume. Distribution to the end consumer takes place through physical stores with long opening hours — most units operate from 7 a.m. to 10 p.m., with some stores open 24 hours — complemented by call centers specific to each banner and proprietary digital channels, which offer home delivery and in-store pickup.

From a geographical standpoint, Rede d1000 concentrates its activities in the states of Rio de Janeiro, Mato Grosso, Goiás and in the Federal District, where the Drogarias Tamoio, Drogasmil, Farmalife and Rosário banners are located. The company reports a leading position in its main areas of operation, especially in Rio de Janeiro and the Federal District, and is among the largest regional chains in number of stores. The market in which it operates is highly fragmented, made up of large national chains, regional chains and independent pharmacies. Among the main competitors mentioned in its regions of operation are Raia Drogasil, Drogaria Pacheco, Drogaria Venâncio, Droga Fuji and Pague Menos. In 2024, the Brazilian pharmaceutical retail sector had more than 90,000 pharmacies and significant revenue, with annual growth above two digits, in line with the essential nature of the health and medicines sector.

Rede d1000’s activities take place in a strict regulatory environment with strong health surveillance. The pharmaceutical sector is regulated at the federal, state and municipal levels, with the main authority being the National Health Surveillance Agency (ANVISA), which is linked to the Ministry of Health. The operation of drugstores requires compliance with specific laws and decrees, such as Law No. 5,991/1973, Law No. 6,360/1976, Law No. 9,787/1999, Decree No. 8,077/2013 and several Resolutions of ANVISA’s Collegiate Board, in particular RDC No. 44/2009 and RDC No. 275/2019. Each of the company’s establishments must obtain an Operating Authorization (AFE) from ANVISA, a state or municipal sanitary license, a Certificate of Technical Compliance issued by the Regional Pharmacy Councils and compliance with the requirement to have a responsible pharmacist present throughout operating hours. The network states that it is substantially in compliance with these obligations and maintains ongoing processes for renewing the necessary licenses.

In terms of environmental, social and governance practices, Rede d1000 has intensified its initiatives in recent years. Since 2021, the company has prepared and published annual Sustainability Reports, initially at the group level and, more recently, with its own report based on the GRI framework and, in 2024, also on the SASB standard, aligning its strategy with the 2030 Agenda and the UN Sustainable Development Goals. On the social front, a key highlight is its long-term partnership with UNICEF, enabled by in-store micro-donations, which has already resulted in accumulated transfers of tens of millions of reais for child health and education projects, in addition to initiatives carried out together with Instituto Profarma in food security, basic hygiene and citizenship. The company also develops governance and integrity programs such as the Projeto DNA – Governança em Rede, training on human rights and combating child labor with the support of Fundação Abrinq, a whistleblower channel with greater independence and internal initiatives focused on diversity and the work environment, recognized by Great Place to Work certification. These actions indicate a growing integration of ESG criteria into corporate management and the operation of the drugstore network controlled by Rede d1000.

Rede d1000 has no operations abroad and, consequently, does not record revenue from other countries, maintaining full focus on the Brazilian market. In 2024, the company reported net revenue of more than R$ 2.1 billion and a positive bottom line, reinforcing the network’s regional relevance within Brazilian pharmaceutical retail. The combination of traditional banners, operational synergies with the parent company, expansion of digital channels and strengthening of the exclusive brands portfolio make up the company’s current business profile, with its DMVF3 shares remaining listed and traded on B3, reflecting direct exposure to the pharmacy and health, hygiene and beauty products distribution segment in the country.