Raia Drogasil: Valuation Burn Now, Healthy Gains Later

  • Raia Drogasil, Brazil's top pharmacy chain, has consistently delivered robust growth with an 18% CAGR in both revenue and profit over the last decade. Despite Brazil's macroeconomic challenges, the company remains financially strong, sustaining rapid store expansion with a Net Debt/EBITDA ratio consistently at 1.2x. The company plans to open 330-350 new stores in 2025, maintaining high ROIC and revenue growth driven by mature stores exceeding inflation.