Institutional Presentation
1Q24
v1
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 investors. This presentation is strictly confidential and may not be disclosed to any other person. No representation or warranty, express or implied, is made concerning, and no reliance should be placed on, the accuracy, fairness, or completeness of the information presented herein.
This presentation contains statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933 (the "Securities Act") and Section 21E of the Exchange Act of 1934. Such forward-looking statements are only predictions and are not guarantees of future performance. Investors are cautioned that any such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business environments of the Company that may cause the actual results of the companies to be materially different from any future results expressed or implied in such forward-looking statements.
Although the Company believes that the expectations and assumptions reflected in the forward-looking statements are reasonable based on information currently available to the Company's management, the Company cannot guarantee future results or events. The Company expressly disclaims a duty to update any of the forward looking-statements.
Our securities have not been and will not be registered under the Securities Act or under any state securities laws in the United States, and are being offered under exemptions from registration under the Securities Act. Securities may not be offered or sold in the United States unless they are registered or exempt from registration under the Securities Act. Any offering to be made in the United States will be made by means of an offering circular that may be obtained from the agents.
This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever.
2
RD Saúde snapshot: Leading the pharma retailing industry in Brazil.
Our Purpose:
Together for a healthier
society.
Our Ambition:
To become, by 2030, the group that contributes the most towards a
healthier society
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 | |
3,010 | 280-300 | |
pharmacies across every | new pharmacies per year | |
Brazilian state | in 2024-2025 (guidance) | |
48.2 million | NPS | 90 pharmacies |
unique active | net promoter | 68 apps |
customers (1Q24) | score | |
373 million | 132 million | |
tickets | digital sessions | |
(1Q24 LTM) | (1Q24) | |
R$ 37.6 billion | 16.2% | |
gross revenue (1Q24 LTM) | market share | |
+16% Y/Y growth | (1Q24) | |
R$ 2.7 billion | AAA(bra) | |
adj. EBITDA (1Q24 LTM) | rating by | |
+12% Y/Y growth | Fitch |
3
A decade of consistent high growth in pharmacy count, gross revenue and adj. EBITDA.
Pharmacies
(Store count, thousands)
Gross Revenue
(R$ billions)
8x
36.3
30.9
Adjusted EBITDA
(R$ billions)
10x
2.6
2.3
1.8
0.8 0.9 1.0 1.1 1.2 1.4 1.6 1.8
4x
3.0
2.1 2.3 2.5 2.7
4.7 5.6 6.5
25.6
21.2
18.4
13.915.5
11.8
7.8 9.4
1.3 1.4
1.1 1.2
1.0
0.7
0.5
0.3 0.3 0.4
'11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 | '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 | '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 |
4
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. Source: IQVIA.) | number of |
pharmacies |
171186 | 9.2% | 9.8% | 10.8% | 11.4% | 11.8% | 13.4% | 13.5% | 14.1% | 14.6% | 15.5% | 3.0k | 15.8k | |||||||||
145 | 18.6% 17.5% | 16.3% | 16.4% | 16.3% | 16.0% 15.2% | 15.2% | 16.1% | 16.5% | 5.0k | ||||||||||||
103113126 | (chains) | ||||||||||||||||||||
58 66 75 85 | 96 | 22.5% 24.7% | 24.9% | 23.9% | 23.3% | 22.3% 21.8% | 21.0% | 19.5% | 19.3% | 7.7k | |||||||||||
17 19 21 21 25 30 36 | 43 | 50 | 17.2% 15.9% | 16.7% | 17.6% | 18.4% | 19.1% 20.2% | 22.0% | 23.9% 26.1% | 25.8k | 79.1k | ||||||||||
(other | |||||||||||||||||||||
11 | 12 | 13 | 15 | 32.5% 32.1% | 31.3% | 30.7% | 30.3% | 29.1% 29.2% | 27.6% | 25.9% | 22.6% 53.3k | players) | |||||||||
2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
RD | Abrafarma #2 to 5 | Other Chains | Assoc./Franch. | Independents | ||||||||||||||||||||||||||||||
94.9k
(Total)
Brazilian population over 65 years of age | Average annual sale per POS in 2023 | |||||||
(Millions of people. Source: IBGE, 2018.) | (RD Saúde = 100 index. Source: IQVIA.) | |||||||
51 | ||||||||
40 | RD | 100 | ||||||
30 | Abrafarma #2 to 5 | 64 | ||||||
21 | ||||||||
14 | +11M elders | Other Chains | 49 | |||||
+10M elders | +10M elders | |||||||
+7M elders | Assoc./Franch. | 20 | ||||||
CAGR = 4% | CAGR = 3% | CAGR = 2% | ||||||
CAGR = 4% | Independents | 8 | ||||||
2010 | 2020 | 2030 | 2040 | 2050 | ||||
5
We continue to expand nationwide with unique pace and diversification while sustaining real IRRs above 20% net of cannibalization.
1Q24 | RR: 4 | AP: 5 | |||
PA: 51 | |||||
Geographic | |||||
MA: 41 | |||||
presence AM: 21 | |||||
PI: 20 | |||||
CE: 94 | |||||
RN: 27 | |||||
PB: 21 | |||||
TO: 21 | PE: 100 | ||||
AC: 6 | AL: 22 | ||||
RO: 14 | DF: 92 | SE: 28 | |||
BA: 103 | |||||
MT: 47 | GO: 123MG: 219 | ||||
Total: 3,010 pharmacies | |||||
MS: 56 | ES: 60 | ||||
Raia: 1,270 | RJ: 215 | ||||
Drogasil: 1,740 | PR: 169 | SP: 1,227 | |||
Distrib. centers: 14 | SC: 93 | ||||
Cities: 587 (+38 LTM) | RS: 131 |
5 min coverage evolution
(population % by social class)
86% | 92% | 60% | 76% | 24% | 41% | 8% | 17% | 2% | 5% | 2% | 3% | 20% | 31% |
A | B1 | B2 | C1 | C2 | D+E | Brazil |
2019 2023
Pop. coverage pharmacies
(Millions of people, % population)
123.1
99.5 59.4%
47.9% 64.0
43.5 30.9%
20.6%
2019 2023
5 min Isochronous coverage 5 km coverage
15.3% | 16.2% | 26.9% | 28.2% | 10.8% | Market share | 10.9% | 10.8% | 11.4% | 8.0% | 9.1% | ||||||
11.7% | 18.6% | 19.9% | 10.0% | |||||||||||||
(Source: IQVIA) | ||||||||||||||||
Brazil | SP | Southeast | Midwest | South | Northeast | North | ||||||||||
1Q23 | 1Q24 | |||||||||||||||
Sales and EBITDA* per mature store
(R$ thousands, 1Q24 LTM)
1,196 | 1,098 | EBITDA 4-wall | Gross revenue | ||||
1,091 | 1,089 | 1,079 | 1,012 | 987 | |||
174 | 178 | 135 | 158 | 131 | 116 | 130 | |
14.5% | 16.3% | 12.4% | 14.5% | 12.2% | 11.5% | 13.1% | |
Region 1 | Region 2 | Region 3 | Brazil | Region 4 | Region 5 | Region 6 |
- 4-wallEBITDA (stores), not including Distribution Centers and regional expenses.
6
Our Health and Wellness strategy is focused on the Customer journey, offering a pharmacy connected to a service platform, positioned in primary care.
Pharmaceutical
Retail
New Pharmacy
(Omnichannel + Marketplace + Health Hub)
Health promotion | Prevention |
Promote, educate and | Monitor and treat chronic |
maintain a healthy lifestyle | conditions |
Value Proposals | Nutrition | Adherence |
Participants
Healthcare Platform
Protection | Primary care |
Protect health through | Diagnose and treat acute, |
vaccination and | low-complexity conditions |
immunization | |
Vaccination and | Telehealth |
Immunization | |
Integral
Health
Together for a
healthier
society:
Healthier People
(Employees,
Customers,
Community);
Healthier
Businesses
(Diversity,
Education,
Shared Value);
Healthier Planet
(Emissions, Energy,
Waste).
7
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 | ||||||
the entire customer journey | 88 89 89 92 | 90 | |||||
77 | 82 84 | ||||||
67 | 73 | ||||||
60 62 | 65 | ||||||
CLTV
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 1Q24 |
App NPS and Delivery/C&C NPS
* | 66 | 77 | 81 | 77 | ||
* | ~55 | |||||
~50 | 68 | 68 | ||||
62 | ||||||
42 | ||||||
34 | 37 | |||||
2019 | 2020 | 2021 | 2022 | 2023 | 1Q24 | |
App NPS | Delivery and pick-up NPS |
- Estimated 2019 and 2020 criteria for current methodology.
Customer segmentation | Customer frequency | ||||
(Millions, % LTM retail gross revenue LTM) | (Purchases per year) | ||||
Frequent customer | Casual customer | Total customers | Digitalized customers | ||
48.2 | 100% | ||||
40% | 29 | ||||
40.7 | 23 | ||||
60% | 5 | 8 | 4 | 11 | 2.0 MM |
7.5 |
Customers | Retail gross | Casual | Overall | Frequent | Casual | Overall | Frequent |
revenue | customers | average | customers | customers | average | customers |
8
Our digital and health strategy aims to build bonds with each customer to enhance Customer Annual Value (CAV) according to their profile.
CAV = Customer Annual Value
Annual R$ Gross Margin per Customer
Average | Frequent: 277 | |
100* | ||
CAV per | ||
Customer | (Index) | Casual: 27 |
CAV by Profile
179
Chronic Use
296
Child Care | X |
254 | |
Beauty |
328
Healthy Lifestyle
DIGITAL BONDS
CAV by Bond (examples) | Profile and bond impact on loyalty | |||||||||
Cumulative % of frequent customers | ||||||||||
201 | 315 | |||||||||
Omnichannel | Injections | 92% | ||||||||
BONDS | ||||||||||
206 | 173 | = | 45% | 71% | ||||||
Private Label | ||||||||||
App | ||||||||||
38% | ||||||||||
HEALTH | ||||||||||
245 | 527 | 21% | ||||||||
Marketplace | Vaccination | 4% | ||||||||
213 | 318 | 0 profiles 1 profile | 1 profile + | 1 profile + | 2 profiles + 3 profiles + | |||||
0 bonds | 1 bond | 2 bonds | 2 bonds 3 bonds | |||||||
Stix | Other Services |
Loyalty progression
- Data for 1Q24.
9
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
(R$ millions, % of retail gross revenue)
16.6% | 17.3% | |
15.5% | +46.4% | |
13.6% | 14.2% | |
vs. 1Q23 | ||
1,550.0
1,451.0
1,325.7
1,179.5
Digital channel mix
(% of digital sales)
*
Super
apps
Desktop 6%
9%
Social 6%
Mobile site 9%
Delivery mix
(% of digital sales)
Super | |
D+N | apps |
6% | |
8% | |
Up to | |
60 min | |
25% | C&C |
61% |
1,058.6
61% 62%
66% 68%
70%
App 70%
94% | modern and |
proprietary channels | |
95% | fulfilled by |
pharmacies (incl. D+N) | |
1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 |
Revenue of digital channels | Retail penetration | |||
App participation in sales |
84% | modern, proprietary |
and mobile channels | |
* Call center represents < 1% of the mix.
92% | delivered in |
up to 60 minutes | |
10
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Raia Drogasil SA published this content on 14 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 May 2024 13:02:06 UTC.