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Brazil's RD's adjusted profit falls 6% with higher selling expenses, drug sales slowdown
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Brazil's RD's adjusted profit falls 6% with higher selling expenses, drug sales slowdown
Mar 5, 2024 5:23 PM

SAO PAULO, March 5 (Reuters) - Brazilian drugstore chain

RD posted on Tuesday a 5.9% decrease on its adjusted

net profit for the fourth quarter from a year earlier, amid

higher selling expenses and sales growth slowdown.

The firm posted 283.3 million reais ($57.14 million)

adjusted net profit for the quarter ended in December.

Its net revenue was at 9.6 billion reais in the quarter, up

14% year-on-year, with gross revenue increasing in all products

segments. Same stores sales rose 7.7% - a year earlier it had

risen 16%.

Meanwhile, the firm's sales expenses rose 19.8% in the

quarter.

It said lower level of sales growth "resulted in a momentary

loss of operating leverage", adding "with the normalization of

our sales growth, as observed in January and February, we expect

a return to the level of expenses posted recently."

RD, which is Brazil's largest drugstore chain by number of

stores, said preliminary numbers showed same stores sales rising

11.6% in January and February year-on-year.

The company's adjusted earnings before interest, taxes,

depreciation and amortization (EBITDA) was at 614.5 million

reais in the quarter, increasing 2.5%.

Its margin measured by the gross profit/gross revenue ratio

was at 28.1% from 28%.

($1 = 4.9581 reais)

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