Redcare’s fast double-digit growth continues in Q1, and at a 2.1% positive margin. Also in Q1, after many years, breakthrough in online e-Rx in Germany.

• Group sales of EUR 560M in Q1, up 51% from prior year.
• Non-Rx sales growth 20% to EUR 404M; Rx sales up 7% in Germany, following additional marketing and communication campaigns.
• Adj. EBITDA margin at 2.1% (full-year guidance 2-4%); at EUR 11.7M, up 33% year over year.
• Active customer base increased to 11.2M, up 1.5M year over year.
• E-Rx (electronic prescription) the new standard in Germany; nationwide more than 70% already electronic.
• eHealth-CardLink approval received on 23 April; will be launched in Shop Apotheke app by early May.

 Sevenum, the Netherlands, 25 April 2024. Redcare Pharmacy published earnings and final sales numbers for Q1 2024 today, confirming fast sales growth as well as balanced earnings performance for the quarter. Total Group sales grew 50.6% (preliminary estimate 50.5%) year over year to EUR 560 million (Q1 2023: EUR 372 million) and 18.6% excluding MediService in Switzerland. Non-Rx sales increased 19.8% to EUR 404 million. At EUR 11.7 million, adjusted EBITDA was EUR 2.9 million higher than the prior year, an increase of 33%, while the adj. EBITDA margin was 2.1%. After noticing the fast adoption of e-Rx in Germany in Q1, additional marketing and communication campaigns were started. 

Redcare Pharmacy’s CEO Olaf Heinrich comments: “We are happy with our performance to date, which continues to show the success of our strategy. In addition, having received approval from gematik, we will launch our eHealth-CardLink solution for e-Rx in early May. This will open up full access to the around EUR 50 billion prescription medication market in Germany.”

Overall, the active customer base increased 0.4 million from the previous quarter and 1.5 million year over year to reach 11.2 million by the end of Q1. Redcare Pharmacy continued to achieve a high rating for customer satisfaction in Q1 – a net promoter score of 70 - while processing a fast-growing number of orders.

Jasper Eenhorst, CFO of Redcare Pharmacy adds: “In Q1, steadfast performance provided the flexibility to invest in the unfolding e-Rx growth opportunity, while keeping margins on track and maintaining our solid balance sheet.”

Total sales in the DACH segment (Germany, Austria and Switzerland) increased by 56.7% (preliminary estimate 56.6%) to EUR 453 million (Q1 2023: EUR 289 million). Excluding MediService AG (consolidated since mid-May 2023), total sales were EUR 334 million or 15.6% higher, year over year. Prescription (Rx) sales in DACH grew by 348.7% in Q1 (preliminary estimate 348.3%) to EUR 156.2 million (Q1 2023: EUR 35 million); excluding MediService, Rx sales grew 6.8%. Non-Rx sales increased to EUR 297.2 million, a growth rate of 16.8% year over year. In the International segment (France, Italy, the Netherlands and Belgium), total sales increased by almost a third; 29.2% to EUR 106.8 million (Q1 2023: EUR 83 million). 

Update on financial developments.

The Group’s gross profit increased 27% to EUR 131 million (Q1 2023: EUR 103 million), while the gross profit margin was 23.4% compared to the prior year’s 27.7% due to the inclusion of MediService, which in Q1 2023 was not yet consolidated in the Group numbers. Excluding the effect of the inclusion of MediService, the gross profit margin improved by 0.3 pp to 28%. 

Adjusted selling, distribution and administrative expenses (SD&A), or total operating expenses, increased from EUR 94.3 million in Q1 last year to EUR 119.2 million in Q1 this year. As a percentage of sales, this equates to 21.3%, down from 25.4% last year. Excluding MediService, operating expenses as a percentage of sales increased by 0.4 pp to 25.8%. The increase is mainly the result of the Group’s higher marketing investment in the e-prescription opportunity in Germany. Inflation related cost increases were largely offset by broad efficiency gains in both marketing and operations.

The Group’s adjusted EBITDA increased by EUR 2.9 million to EUR 11.7 million, while the adjusted EBITDA margin was 2.1% compared to the prior year’s 2.4%. The Group’s EBITDA increased to EUR 10.6 million (Q1 2023: EUR 4.6 million). Adjustments for Q1 2024 amounted to EUR 1.1 million compared to EUR 4.2 million in Q1 2023.

After depreciation of EUR 16.3 million (Q1 2023: EUR 12.1 million), EBIT was EUR -5.7 million, an improvement versus last year’s EUR -7.6 million. Net finance costs improved moderately from EUR 2.6 million to EUR 2.5 million.  The Group recorded a net loss of EUR 8.2 million in Q1, which is lower than the prior year (Q1 2023: EUR -10.2 million). Excluding MediService, the net loss was EUR -9.8 million.

At the end of the reporting period, the balance of cash and short-term financial cash investments was EUR 219 million, up EUR 15 million from EUR 204 million at 31 December 2023.

eHealth-CardLink solution in Redcare’s Shop Apotheke app by early May.

The gematik published final specifications for the eHealth-CardLink solution on 19 March, enabling Redcare Pharmacy to apply for approval as provider of its own eHealth-CardLink solution soon thereafter. Simultaneously, Redcare’s product development partner, eHealth Experts applied for product approval. Both approvals were received on 23 April [link to Press Release]. The eHealth-CardLink solution is expected to be launched in the Shop Apotheke mobile app for customers in Germany by early May, following the implementation of necessary technical and process steps.

Guidance for full year 2024.

The full year guidance provided on 5 March:

• Total sales increase to EUR 2.3-2.5 billion, a growth of 30% to 40%.
• Non-Rx sales growth 15-25%.
• MediService growth mid-single digits.
• Total Redcare adjusted EBITDA margin 2% to 4%.

The mid- to longer-term guidance continues to be an adjusted EBITDA margin in excess of 8%.

Summary.

Consolidated in millions of euros	2023				2024
	Q1	Q2	Q3	Q4	Q1i	Q1ii
Net Sales	372	420	476	531	441	560
Growth (in percentage)	22.1	46.2	67.1	62.1	18.6	50.6
Non-Rx Sales	337	323	320	362	404	404
Growth (in percentage)	22.8	27.0	27.0	23.3	19.8	19.8
Rx Sales	35	97	156	169	37	156
Growth (in percentage)	15.5	195.6	374.2	397.0	6.8	348.7
EBITDA	4.6	10.6	11.7	13.1	8.7	10.6
Adj. EBITDA	8.8	13.3	15.2	16.2	9.8	11.7
Adj. EBITDA margin	2.4	3.2	3.2	3.1	2.2	2.1
iExcluding MediService AG; iiIncluding MediService AG

 

DACH in millions of euros	2023				2024
	Q1	Q2	Q3	Q4	Q1i	Q1ii
Net Sales	289	334	390	440	334	453
Growth (in percentage)	23.1	51.7	74.2	68.6	15.6	56.7
EBITDA	12.4	15.9	17.5	20.4	13.6	15.5
Adj. EBITDA	14.9	17.7	19.8	22.4	14.3	16.2
Adj. EBITDA margin	5.2	5.3	5.1	5.1	4.3	3.6
iExcluding MediService AG; iiIncluding MediService AG

 

International in millions of euros	2023				2024
	Q1	Q2	Q3	Q4	Q1
Net Sales	83	86	86	91	107
Growth (in percentage)	18.5	28.2	41.1	36.4	29.2
EBITDA	-7.8	-5.4	-5.8	-7.3	-4.9
Adj. EBITDA	-6.2	-4.5	-4.5	-6.1	-4.4
Adj. EBITDA margin	-7.5	-5.2	-5.3	-6.7	-4.2

 

Investor Relations Contact:

Monica Ambrosi (Associate Director, Investor Relations)

investors@redcare-pharmacy.com

 

Press Contact:

Sven Schirmer (Director, Corporate Communications)

press@redcare-pharmacy.com

 

About Redcare Pharmacy

Originally founded in 2001, Redcare Pharmacy N.V. (formerly known as Shop Apotheke Europe N.V.) today is the leading e-pharmacy in Europe, currently active in seven countries: Germany, Austria, France, Belgium, Italy, the Netherlands and Switzerland.

Headquartered in Sevenum, close to the Dutch city of Venlo and in the heart of Europe, the company has locations in Cologne, Berlin, Munich, Tongeren, Warsaw, Milan, Lille and Eindhoven.

As the one-stop pharmacy of the future, Redcare Pharmacy offers over 11 million active customers a wide range of more than 150,000 products at attractive and fair prices. Besides OTC, nutritional supplements, beauty and personal care products as well as an extensive assortment of health-related products in all markets, the company also provides prescription drugs for customers in Germany, Switzerland and the Netherlands.

Pharmaceutical safety is of top priority. Being a pharmacy at its core, Redcare stands for comprehensive pharmaceutical consultation service. Since care is at the heart of everything Redcare does, the company provides services for all stages of life and health. This ranges from its marketplaces to unique delivery options and medication management.

Redcare Pharmacy N.V. has been listed on the Regulated Market of the Frankfurt Stock Exchange (Prime Standard) since 2016. As of 19 June 2023, the company is a member of the MDAX selection index.