Raia Drogasil S.a. · BMFBOVESPA:RADL3
Raia Drogasil — Investor Presentation (2024)
16 slides from Raia Drogasil's investor presentation, 2024
Slide 1: Institutional Presentation 1Q24
Institutional Presentation 1Q24 v1
Slide 2: Disclaimer
Disclaimer The material that follows is a presentation of general background information about Raia Drogasil S.A. (the “Company”) as of the date of the presentation. It is information in summary form and does not purport to be complete. It is not intended to be relied upon as advice to potential inv
Slide 3: RD Saúde snapshot: Leading the pharma retailing industry in Brazil
RD Saúde snapshot: Leading the pharma retailing industry in Brazil. +200 years #1 pharmacy of combined history of Raia and chain in Brazil in both revenue Drogasil, merged in 2011 and pharmacy count Our Purpose: Together for a healthier 3,010 280-300 society. pharmacies across every Brazilian state
Slide 4: A decade of consistent high growth in pharmacy count, gross revenue and adj. EBITDA
A decade of consistent high growth in pharmacy count, gross revenue and adj. EBITDA. Pharmacies Gross Revenue Adjusted EBITDA (Store count, thousands) (R$ billions) (R$ billions) 10x 2.6 8x 2.3 36.3 30.9 1.8 4x 25.6 1.4 1.3 21.2 1.2 1.1 3.0 18.4 2.7 1.0 2.5 15.5 2.3 13.9 2.1 0.7 1.8 11.8 1.6 9.4 0.5
Slide 5: Demand growth due to the ageing of the population; fragmented market offers consolidation opportunity
Demand growth due to the ageing of the population. Fragmented market offers ample opportunity for consolidation. Pharma market maintains an accelerated long-term growth Fragmented market: opportunity for consolidation (Brazilian pharmaceutical market. R$ billions. Source: IQVIA.) (Market share. Sour
Slide 6: We continue to expand nationwide with unique pace and diversification
We continue to expand nationwide with unique pace and diversification while sustaining real IRRs above 20% net of cannibalization. RR: 4 1Q24 AP: 5 5 min coverage evolution Pop. coverage pharmacies PA: 51 Geographic MA: 41 (population % by social class) (Millions of people, % population) presence AM
Slide 7: Our Health and Wellness strategy is focused on the Customer journey
Our Health and Wellness strategy is focused on the Customer journey, offering a pharmacy connected to a service platform, positioned in primary care. Pharmaceutical Integral Retail Health New Pharmacy (Omnichannel + Marketplace + Health Hub) Healthcare Platform Together for a healthier Health promot
Slide 8: Our customers are our greatest asset
Our customers are our greatest asset. In-store experience has increased customer engagement while digitalization has driven more loyalty and frequency, resulting in an increased CLTV. Engagement is the result of Pharmacy NPS App NPS and Delivery/C&C NPS the entire customer journey 92 90 82 84 88 89
Slide 9: Health and digital bonds to enhance Customer Annual Value
Our digital and health strategy aims to build bonds with each customer to enhance Customer Annual Value (CAV) according to their profile. Frequent: 277 Average CAV = Customer Annual Value 100* CAV per Annual R$ Gross Margin per Customer Customer (Index) Casual: 27 CAV by Profile CAV by Bond (example
Slide 10: Digital sales of R$ 1.5 bi in the 1Q24, with 46.4% of growth
Digital sales of R$ 1.5 bi in the 1Q24, with 46.4% of growth and 17.3% of retail penetration. 70% via apps and 92% delivered or collected within 60 minutes. Digital sales and penetration Digital channel mix Delivery mix (R$ millions, % of retail gross revenue) (% of digital sales) (% of digital sale
Slide 11: Our Health Hubs are improving engagement and customer frequency
Our Health Hubs are improving engagement and customer frequency driving a higher CLTV. Vaccination in Tele-Inter Pharmacies Consultation Pharmaceutical Covid Test in Health Hubs in Services Legislation Pharmacies Pharmacies Portfolio: 1Q24 main achievements • 40 available services; • 22 types of vac
Slide 12: RD Ads is a benchmark in Consumer Health Media
RD Ads is a benchmark in Consumer Health Media, positively impacting costumers’ health, well being and purchasing power, boosting engagement and monetization and LTV. US ad Net Revenue 1st party data is the fuel for retail media growth Other (US$ billions) retailers Retail Media Trend #1 Trend #3 So
Slide 13: Our digital transformation is the result of a profound change in culture, governance, management
Our digital transformation is the result of a profound change in culture, governance, management, operations and in our IT infrastructure. DIGITALIZATION OF • 17.3% of retail penetration through digital channels; • 94% of digital sales done through modern and proprietary channels; THE CUSTOMER • +25
Slide 14: Our leading position allowed us to boost our IT investments by 8x in 5 years
Our leading position in the industry allowed us to boost our IT investments by 8x in 5 years to support our Digital Transformation. G&A expenses Technology CAPEX + OPEX (% gross revenue) (R$ millions) (R$ millions, % gross revenue) 3.5% 1,192 1,229 3.1% 3.3% 3.3% 1,097 2.8% 1.1% 400 2.4% 1.0% 1.1% 7
Slide 15: Digitalization delivered an increase in mature store growth and contribution margin
The digitalization of the company delivered an increase in our mature store growth and contribution margin, financing the required G&A investments. PHASE 1 PHASE 2 PHASE 3 PHASE 4 Merger, synergies and efficiency gains Gross mg. Digital transformation Monetization + gross mg., - G&A% investment + co
Slide 16: Business Strategy together with our Sustainability journey towards 2030 goals
Together with our Business Strategy comes our Sustainability journey towards the goals established for 2030. Improving recognition of our ESG efforts 0 52 67 76 83 100 D- D C B A- A CCC B BB BBB A AAA 2020 2021 2022 2023 Together for a healthier society • Part of ; • Ranked Top 3 out of 75 companies
Raia Drogasil S.A. (RD Saúde) — Investor Presentation (2024) on 6ix