RADL3

RD Saúde – Raia Drogasil S.A., owner of the RaiaDrogasil brand and of RADL3 shares traded on B3, is currently one of the main references in pharmaceutical retail in Brazil, the result of the 2011 merger between two traditional chains: Droga Raia, founded in 1905, and Drogasil, created in 1935. The combination of these two century-old trajectories formed the largest drugstore chain in the country in terms of number of stores and revenue, with a presence in all federative units. The company entered B3’s Novo Mercado segment through Drogasil’s share offerings in 2007 and Raia’s in 2010, consolidating a publicly traded capital structure and high corporate governance standards even before the merger that created Raia Drogasil. In 2024, the company began to adopt the corporate brand RD Saúde, reinforcing its positioning as a comprehensive, integrated health ecosystem, maintaining a focus on health and well-being and on the nationwide expansion of its pharmacy network.

RaiaDrogasil’s business model is predominantly pharmaceutical retail, focused on the sale of medicines and hygiene, perfumery, beauty, cosmetics and dermocosmetics products, in addition to providing pharmaceutical and health services. The company operates under two main banners, Raia and Drogasil, both with strong consumer recognition. In 2024, the company reported gross revenue of R$ 41.8 billion, consolidating its leadership in the Brazilian market both in revenue and in number of stores, with 3,230 units. The operation is treated as a single operating segment, but management monitors the contribution of each product and service line to revenue on a managerial basis, providing visibility into the relative weight of branded drugs, generics, OTC, perfumery items and services in revenue generation.

RaiaDrogasil’s portfolio is broad and diversified, with more than 20,000 items purchased from suppliers, ranging from high-complexity medicines to everyday-use items. In 2024, Branded Medicines, which include reference and similar drugs subject to medical prescription, accounted for 41.6% of gross revenue; generic medicines, identified by active ingredient and without a commercial brand, represented 11.6%; OTC products, which include over-the-counter medicines and freely sold health and wellness items, were responsible for 20.5%; and Non-Medicines (perfumery, hygiene and beauty) accounted for 25.0% of revenue. Health and pharmaceutical services, such as blood pressure measurement, rapid tests, injectable administration and vaccination, still have a small share of revenue, around 0.2%, but reinforce the positioning of pharmacies as healthcare facilities. In 2024, digital channels – websites, apps and telesales – represented 18.6% of retail business revenue, highlighting the growing relevance of digitalization in the company’s commercial strategy.

RaiaDrogasil’s geographic presence is one of the pillars of its strategy. As of December 31, 2024, the chain had 3,230 pharmacies distributed across all 26 states and the Federal District, with strong capillarity in regions such as São Paulo, Minas Gerais, Rio de Janeiro, the South, Northeast and North. Store expansion is treated as essential to the business strategy, not only for over-the-counter sales but also as a physical base for digital channels, since a large portion of online orders are fulfilled from pharmacies or picked up by customers in stores. The choice of each commercial site takes into account customer profile, consumption habits, operating costs and competitive intensity, with performance monitored after opening; stores that do not meet growth parameters after an adaptation period may be closed. The chain also has 14 distribution centers in 12 states, totaling more than 240 thousand m², which allows for agile and frequent replenishment of pharmacies in all regions served.

Logistics and supply management are centralized and highly automated, integrating the chain from order generation to delivery at the store. The inventory management system uses statistical methods and demand data by product and by pharmacy to seek low stockout levels. Distribution centers operate with semi-automatic picking lines, barcode scanning verification systems and conveyors for box movement, ensuring real-time traceability of inventory movements. Purchases are made centrally at the head office in São Paulo, with policies aimed at obtaining competitive prices, adequate payment terms and joint commercial actions with suppliers, especially in seasonal periods. The company also develops private-label brands such as Needs, Caretech, Nutrigood, Raia, Drogasil and Natz, produced by selected suppliers under strict quality, compliance, code of conduct and ESG criteria.

In addition to traditional pharmacy retail, RaiaDrogasil has been building a broader health ecosystem. In 2015, it acquired control of 4Bio Medicamentos S.A., a retailer specialized in high-tech specialty medicines, drug administration services and patient support, completing in 2024 the purchase of the final stake to hold 100% of the capital. In 2019, it incorporated Drogaria Onofre, a chain recognized nationwide in pharmaceutical retail and a reference in e-commerce, a transaction aimed at operational synergies and cost optimization. The company also launched, in 2016, Univers, its own Pharmacy Benefit Management (PBM) platform, allowing millions of members to purchase under specific conditions at any Raia or Drogasil branch. In 2020, it structured the “New Pharmacy”, with an emphasis on omnichannel experience, a marketplace for health and wellness products and a Health Platform that connects physical stores to clinical services provided in health hubs.

In the field of innovation and digitalization, RD Saúde created in 2020 RD Ventures, a Corporate Venture Capital platform focused on investing in startups that reinforce the company’s growth strategy and digital journey. Among the investees mentioned are Cuco, a digital platform focused on treatment adherence; Impulso, focused on retail media; Dose Certa, which operates in medication treatment management; and operations related to compounding, such as Raia Manipulação and Drogasil Manipulação. These initiatives complement customer relations and expand the offering of health solutions beyond drug dispensing. The company reports a highly diversified customer base, with no relevant concentration, and indicates that in 2024 it carried out around 400 million customer interactions for more than 49.1 million people, demonstrating its extensive reach in Brazilian health retail.

RaiaDrogasil’s activities are strongly influenced by government regulation in the health and pharmaceuticals field. Pharmacies are considered healthcare facilities and must comply with regulations from the National Health Surveillance Agency (ANVISA) and federal, state and municipal legislation. ANVISA regulates drug registration and, together with the Drug Market Regulation Chamber (CMED), defines price caps and annual readjustments. Operating a drugstore requires specific authorizations, sanitary licenses and the full-time presence of a responsible pharmacist, under penalty of sanctions in case of non-compliance. In recent years, regulation has broadened the scope of services that can be offered in pharmacies, such as human vaccination and clinical screening tests, which reinforces the role of these establishments in healthcare delivery. In the environmental and social field, the company highlights the management of waste from health services, the need for waste management plans (PGRSS) and the use of specialized companies for final disposal of medicines and materials, in addition to a program for the conscious disposal of medicines in all its units and ISO 14001 certification in its distribution centers.

In terms of sustainability and governance, RD Saúde structured in 2021 its 2030 Sustainability Strategy, with 22 commitments distributed across three pillars – Healthier People, Business and Planet – focusing on health promotion and disease prevention, employee development and reduction of environmental impacts. The company indicates that progress on this agenda is an important element for its ambition to be the group that contributes the most to a healthier society in Brazil by 2030. Additional information on targets, reports and sustainability ratings is available on its corporate website, reinforcing the company’s alignment with investors’ growing demand for transparency on environmental, social and governance issues. For investors following RADL3 on B3, these elements outline a company positioned in pharmaceutical retail, with large national scale, regulated operations and increasing integration between physical stores, digital channels and health services.