Brazil-based drugstore operator, RaiaDrogasil, reports 15.3% revenue growth to BRL4.2bn (US$1.1bn) in the quarter from 1st January 2019 to March 31st 2019.
Boosted by new store openings
RaiaDrogasil reports 15.3% revenue growth to BRL4.2bn (US$1.1bn)in the quarter from 1st January 2019 to March 31st 2019. The retailer also achieved a LFL growth of 5.6% in Q1.
The strong result was boosted by 48 net store openings, taking the retailer’s store estate to 1,873 stores.
Online sales also contributed to the positive result, particularly driven by a 40% increase in sales through click & collect, a fulfilment options which was rolled out to its full store estate in 2018. Strong online performance is a reflection of the retailer's ongoing digital transformation programme.
The result marks another positive performance for the drugstore operator. In February, the retailer reported 12.0% growth in sales to BRL15.5bn (US$4.0bn) and a LFL result of 2.7% for FY2018.
The news follows RaiaDrogasil’s announcement in February that it is set to acquire Drogaria Onofre, formerly controlled by CVS Health Corp, for an undisclosed sum. In 2018, Drogaria Onofre, which operates 50 stores in Brazil, announced total sales of BRL479.4m (US$124m).
A positive outlook
RaiaDrogasil is set to expand its estate further, with a total of 240 new store openings planned in 2019. The store expansion is designed to boost its presence in the market, acquire new customers and drive growth for the business.
The retailer will also continue to leverage its extensive customer data to drive its digital strategy further, designed to boost financial results in the year ahead. In February the retailer reported an extensive database of 30.6mn active customers, which account for 94% total sales.
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