Dimed SA Distribuidora De Medicamentos (PNVL3), operating under the Panvel brand, presented its Q3 2025 results on November 7, 2025, highlighting 14.3% revenue growth despite falling short of analyst expectations. The company's stock closed at 9.07 on November 25, 2025, up 0.66% for the day, but had previously dipped 1.34% following the earnings release when revenue of 1.43 billion USD missed forecasts by 3.38%.
The pharmaceutical retailer emphasized its continued expansion in Brazil's southern region, digital transformation initiatives, and private label growth as key performance drivers during the quarter. With a 52-week range of 7.83-10.52, the company's stock has shown resilience despite the revenue miss.
Quarterly Performance Highlights
Dimed reported gross retail revenue of R$1.5 billion for Q3 2025, representing a 14.3% increase compared to the same period in 2024. The company achieved an adjusted EBITDA of R$79.9 million with a 5.4% margin, up 11.3% year-over-year, and adjusted net profit of R$34.3 million (2.3% margin).
As shown in the following financial highlights slide, the company saw improvements across multiple metrics including gross retail margin of 29.9% (+13.5% vs Q3 2024) and market share gains of 0.3 percentage points:
Same-store sales grew by 9.1% and mature store sales by 6.7%, both outpacing inflation during the period. The company also generated R$16 million in free cash flow while reducing its cash cycle by 6 days, strengthening its capital structure and maintaining low leverage levels.
Dimed's consistent revenue growth trajectory is illustrated in the following chart, showing a compound annual growth rate (CAGR) of 14.5% from 2011 to 2024, with quarterly revenue reaching R$1.47 billion in Q3 2025:
Digital Transformation Success
Dimed's digital transformation strategy delivered impressive results, with digital channels accounting for 26.4% of retail sales in Q3 2025, an increase of 5.2 percentage points year-over-year. The company described itself as "the pharmacy with the best digital experience in Brazil" and the "absolute leader in the South region," with digital sales growing 42.4% compared to Q3 2024.
The digital performance metrics demonstrate strong customer engagement, as shown in this comprehensive overview:
The company reported 7.3 million app downloads (+30.7% vs Q3 2024), 46 million monthly active users, and 721,000 deliveries in Q3 2025. Notably, 61% of deliveries were completed within 60 minutes, and app sales increased by 54.1% compared to the previous year.
Dimed has also invested in AI-powered customer support through WhatsApp and its virtual assistant Sofia, enhancing the digital experience:
Private Label Growth Strategy
One of the quarter's standout performers was Dimed's private label business, with Panvel products growing 32.6% compared to Q3 2024. These products now represent 7.3% of retail sales, up from 6.3% a year earlier, and 18.2% of health and beauty sales, up from 15.9%.
The company's private label strategy is detailed in the following slide, highlighting its market position and product development:
Panvel products now represent 37.6% of the private label market in Brazil's South Region, with the company launching 66 new SKUs in Q3 2025 alone and 170 new products in the first nine months of 2025. The company maintains over 1,100 active private label SKUs across various categories.
Store Expansion and Market Share
Dimed continued its physical expansion strategy, opening 51 new stores over the past 12 months to reach 651 locations by the end of Q3 2025. This expansion has contributed to the company's 22nd consecutive quarter of market share gains in the South Region, where it now holds 12.8% of the market, up from 11.1% in Q3 2021.
The following chart illustrates the company's category growth and market share performance:
The medicines category grew 15.1% compared to Q3 2024, with branded medications increasing by 16.7% and generics by 14.6%. The company noted strong performance across all product categories, with health and beauty products growing 11.7% and over-the-counter medications increasing by 11.9%.
Financial Performance Analysis
Despite the overall positive growth, Dimed's Q3 2025 revenue of 1.43 billion USD fell short of analyst expectations of 1.48 billion USD by 3.38%, which led to a slight stock price decline following the earnings release. However, the company emphasized that its adjusted EBITDA reached R$79.9 million in Q3 2025, representing 5.4% of gross revenue and marking the best result of 2025.
The EBITDA performance is highlighted in the following chart:
The company maintained a gross retail margin of 29.9% despite pressure from GLP-1 medications (like Ozempic and Mounjaro), which CEO Julio Ricardo Mottin Neto described as "a huge phenomenon in the pharma industry." During the earnings call, executives addressed concerns about gross margin pressures and identified opportunities for improvement.
Forward-Looking Statements
Looking ahead, Dimed presented an optimistic outlook for Q4 2025 and beyond, focusing on continued digital transformation, private label expansion, and store growth. The company outlined several strategic pillars including expansion, digital initiatives, logistics, private label products, customer relationships, health ecosystem development, and ESG commitments.
The company's perspectives for future growth are illustrated in this forward-looking chart:
CFO Antonio Carlos Tocchetto Napp emphasized the company's focus on sustainability and cash generation during the earnings call, stating, "Generating cash, being sustainable, generating return, those are the main assumptions for this business."
While Dimed faces challenges including revenue shortfalls, competitive pressures, and potential macroeconomic headwinds, its consistent market share gains and strong digital performance position it well for continued growth in Brazil's pharmaceutical retail sector.
Full presentation:
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