RADL3 RaiaDrogasil

RD Saúde – Raia Drogasil S.A., owner of the RaiaDrogasil brand and of the 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 centenary trajectories formed the largest drugstore chain in the country in terms of number of stores and revenue, with a presence in all Brazilian states. The company joined B3’s Novo Mercado segment through the share offerings of Drogasil in 2007 and Raia in 2010, consolidating a publicly traded capital structure and high standards of corporate governance even before the merger that created Raia Drogasil. In 2024, the company adopted the corporate brand RD Saúde, reinforcing its positioning as a complete integrated health ecosystem, maintaining its focus on health and well-being and on the nationwide expansion of its drugstore network.

RaiaDrogasil’s business model is predominantly pharmaceutical retail, focused on the sale of medicines and hygiene, fragrance, beauty, cosmetics and dermocosmetics products, as well as the provision of pharmaceutical and health services. The company operates with two main banners, Raia and Drogasil, both with strong consumer recognition. In 2024, the company posted gross revenue of R$ 41.8 billion, consolidating its leadership in the Brazilian market both in terms of revenue and in the number of stores, with 3,230 units. The operation is treated as a single operating segment, but management monitors, on a managerial basis, the contribution of each product and service line to revenue, which provides visibility into the relative weight of branded drugs, generics, OTCs, beauty products 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 products. 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 the 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 (fragrance, hygiene and beauty) reached 25.0% of revenue. Health and pharmaceutical services, such as blood pressure checks, rapid tests, injectable administration and vaccination, still have a small share of revenue, around 0.2%, but reinforce the positioning of drugstores as health establishments. In 2024, digital channels – websites, apps and telesales – accounted for 18.6% of retail business revenue, highlighting the growing relevance of digitalization in the commercial strategy.

RaiaDrogasil’s geographic footprint is one of the pillars of its strategy. As of December 31, 2024, the chain had 3,230 drugstores 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 considered essential to the business strategy, not only for walk-in sales but also as a physical base for digital channels, since a large portion of online orders is fulfilled from the drugstores or picked up by customers in-store. The selection of each store location takes into account customer profile, consumption habits, operating costs and competitive intensity, with performance monitored after opening; stores that do not reach growth parameters after the ramp-up period may be closed. The chain also has 14 distribution centers in 12 states, totaling more than 240,000 m², which enables fast and frequent replenishment of stores in all regions served.

Logistics and supply management are centralized and highly automated, integrating the chain from order generation to store delivery. The inventory management system uses statistical methods and product- and store-level demand data to seek low stockout levels. The distribution centers operate with semi-automated picking lines, scan-based checking systems and conveyor belts for box movement, ensuring real-time traceability of inventory movements. Purchasing is carried out centrally at headquarters in São Paulo, with policies aimed at obtaining competitive prices, appropriate payment terms and joint commercial initiatives with suppliers, especially in periods of seasonality. The company also develops private labels such as Needs, Caretech, Nutrigood, Raia, Drogasil and Natz, produced by selected suppliers under strict quality, compliance, code of conduct and ESG criteria.

Beyond traditional drugstore 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 medications, drug administration services and patient support, and in 2024 it completed the purchase of the remaining stake to hold 100% of the capital. In 2019, it incorporated Drogaria Onofre, a chain nationally recognized in pharmaceutical retail and a reference in e-commerce, in a transaction that sought 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 “Nova Farmácia” (“New Pharmacy”), with an emphasis on omnichannel experience, a health and wellness product marketplace, and a Health Platform that connects physical stores to clinical services provided in health hubs.

In innovation and digitalization, RD Saúde created RD Ventures in 2020, a Corporate Venture Capital platform focused on investing in startups that reinforce the company’s growth strategy and digital journey. The investees mentioned include 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 relationships 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 service interactions for more than 49.1 million people, demonstrating a large reach in Brazilian health retail.

RaiaDrogasil’s activities are heavily influenced by government regulation in health and medicines. Drugstores are considered health establishments and must comply with rules from the National Health Surveillance Agency (ANVISA) and with federal, state and municipal laws. ANVISA regulates the registration of medicines and, together with the Drug Market Regulation Chamber (CMED), sets price caps and annual readjustments. Operating drugstores requires specific authorizations, sanitary licenses and the full-time presence of a responsible pharmacist, with the risk of sanctions in case of non-compliance. In recent years, regulation has broadened the scope of services that can be offered in drugstores, such as human vaccination and screening clinical tests, which reinforces the role of these establishments in healthcare. On environmental and social fronts, the company highlights the management of healthcare waste, the need for Waste Management Plans (PGRSS) and the use of specialized companies for the final disposal of medicines and materials, as well as a conscious drug disposal program in all its units and ISO 14001 certification in its distribution centers.

In sustainability and governance, RD Saúde structured, in 2021, a 2030 Sustainability Strategy with 22 commitments distributed across three pillars – Healthier People, Business and Planet – focused on health promotion and disease prevention, employee development and reduction of environmental impacts. The company indicates that progress on this agenda is a key part of its ambition to be the group that contributes the most to a healthier society in Brazil by 2030. Additional information on goals, reports and sustainability ratings is made available on its institutional website, reinforcing the company’s alignment with investors’ growing demands for transparency on environmental, social and governance issues. For investors following RADL3 on B3, these elements make up a picture of a company positioned in pharmaceutical retail, with broad national scale, a regulated business model and increasing integration between physical stores, digital channels and health services.