In This Article:
Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Raia Drogasil SA (RADLY) opened 300 new pharmacies in 2024, contributing to a total of 3,300 operational pharmacies by year-end.
-
The company achieved a 15.1% year-on-year increase in gross revenue, reaching BRL 41.8 billion.
-
Digital operations saw significant growth, with a 41.7% rise, contributing BRL 7.1 billion in sales.
-
Raia Drogasil SA (RADLY) maintained a high Net Promoter Score (NPS) of 91, indicating strong customer satisfaction.
-
The company plans to open between 230 and 250 new stores in 2025, indicating continued expansion and confidence in market growth.
Negative Points
-
There was a slowdown in the fourth quarter, with top-line performance falling short of expectations.
-
Cosmetics sales declined in the fourth quarter, impacted by weaker Black Friday sales and poor performance in sunscreen products.
-
The gross margin decreased by 30 basis points year-over-year, partly due to changes in tax regimen and category mix effects.
-
Raia Drogasil SA (RADLY) experienced increased selling expenses, particularly due to personnel adjustments and seasonal marketing costs.
-
The company's stock performance saw a 25% decline, underperforming the broader market index Bovespa, which decreased by 10%.
Q & A Highlights
Q: How do you see the migration of some categories to digital channels affecting your sales, and what is the impact of OTC competition on your digital channels? A: (CEO) Consumers are increasingly migrating to digital channels, particularly in the HPC category, where digital penetration is about 25%. We are well-positioned with our app to handle this trend. The recent sales dip was due to weather-related factors affecting sunblock sales, not channel migration. OTC sales are stabilizing post-COVID, and competition in HPC is a constant, not a new challenge.
Q: What are your plans for SGNA reduction, and when should we expect to see these changes? A: (CFO) We are focusing on more than just natural dilution; we are targeting specific areas for efficiency improvements without impacting future deliverables. While I can't provide specific guidance, we aim for a reduction beyond natural dilution, leveraging the legacy of past investments in digital transformation and healthcare solutions.
Q: Can you elaborate on the pressures on gross margin in Q4 and your expectations for 2025? A: (CFO) Maintaining gross margin is challenging due to market price adjustments and ForBio's pricing. However, we are working on offsetting these pressures through increased service revenues, operational efficiencies, and logistics improvements. We expect GNA reductions and a stable EBITDA margin, with a more challenging first half of the year.