Raia Drogasil sells more in the 3rd quarter, but expenses leave stable profit

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RD, owner of drugstore chains Raia and Drogasil, had practically stable earnings in the third quarter, as higher expenses linked to its digitalization strategy overshadowed the increase in revenue arising from its accelerated growth plan.

The company announced this Tuesday (9) that it had adjusted net income of BRL 173.6 million from July to September, practically stable on the BRL 172.9 million a year earlier.

Consolidated gross revenue totaled R$ 6.53 billion, up 21.2% over a year earlier. Same-store sales grew 14.9%. But sales were increased with the opening of nearly 200 new stores year-on-year.

With the opening of 52 units and the closing of 12 in the quarter, RD ended September with 2,414 units in operation.

RD’s operating result measured by earnings before taxes, interest, amortization and depreciation (Ebitda) adjusted totaled 446.2 million reais in the quarter, growth of 12%, but the Ebitda margin dropped 0.6 percentage point, to 6. 8%, due to investments to make the new strategy viable.

Selling expenses in the quarter totaled R$ 1.16 billion, equivalent to 17.8% of gross revenue, a 0.1 percentage point dilution compared to the same period of the previous year.

RD said it gained market share in the quarter in all six regions of the country.

Reference: CNN Brasil

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