RaiaDrogasil reports strong Q2 2019

Date : 08 August 2019

RaiaDrogasil reports 17.1% growth in sales to BRL4.4bn (US$1.1bn) in the quarter to 30th June 2019.

Boosted by store expansion

RaiaDrogasil reports 17.1% growth in sales to BRL4.4bn (US$1.1bn) in the quarter to 30th June 2019.

The strong performance was boosted by net 44 store openings, meaning the retailer ended the quarter with an estate of 1,917 stores.

The result marks another positive performance for the drugstore operator. For Q1 2019, the retailer reported 15.3% growth to BRL4.2bn (US$1.1bn) in the quarter ending March 31st 2019.

On 1st July 2019, the retailer completed its acquisition of Drogaria Onofre, formerly controlled by CVS Health Corp. In 2018, Drogaria Onofre, which operates 50 stores in Brazil, announced total sales of BRL479.4m (US$124m). By August 1st, Raia Drogasil had converted 42 Drogaria Branches into Raia Drogasil stores, with existing staff joining the Raia Drogasil team.

Outlook: store transformation programme, Drogaria Onofre acqusition

The retailer is on track to open 240 new stores by the end of 2019, designed to enhance sales potential and increase market share.

Focus will also remain on converting existing stores to the new larger format, as part of the retailer's store optimisation programme.

The retailer expects that its acquisition of Drogaria Onofre will create significant value for the business. It plans to utlise Drogaria Onofre's strong store portfolio and ecommerce business to boost its own operations.

The deal will also enable Raia Drogasil to enhance its business capabilities in areas such as digital marketing and in-store health clinics.

 

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