Redcare Pharmacy achieves rapid increase of Rx sales in Germany, continues its strong double-digit overall growth rate and closes Q2 with a solid 2.7% margin. 

• Total sales of over EUR 1.1 bn after six months, up 42%, with Q2 year-over-year growth of 34% to EUR 561M.
• H1 non-Rx sales of EUR 795M (+20%); EUR 391M in Q2 (+21%).
• Total Rx sales of EUR 326M in H1 and EUR 170M in Q2, up 147% and 76% respectively year over year, with Rx in Germany up 7% in Q1 and 37% in Q2.
• Adj. EBITDA of EUR 27M in H1 (H1 2023: EUR 22M) resulting in a margin of 2.4%; in Q2, EUR 15M (H1 2023: EUR 13M) or a margin of 2.7%.
• On track to meet all elements of full-year guidance.

 Sevenum, the Netherlands, 30 July 2024. The sales and earnings numbers for Q2 and H1 2024 published by Redcare Pharmacy today reflect solid performance and continued fast growth. The Group reported total sales of EUR 561 million for Q2 (Q2 2023: EUR 420 million), preliminary number was EUR 560 million, and EUR 1,121 million for H1 (H1 2023: EUR 792 million), preliminary number was EUR 1,120 million. Year to date, this represents 41.5% growth. Excluding MediService, prescription drug sales (Rx) increased to EUR 50 million in Q2 (Q2 2023: EUR 37 million) and EUR 87 million in H1 (H1 2023: EUR 72 million). This fast increase of Rx in Germany followed the launch of the fully digital NFC CardLink solution on 6 May. Adjusted EBITDA for the Group was EUR 27 million in H1, up from EUR 22 million the prior year. The adj. EBITDA margin of 2.7% in Q2 lifted the year-to-date margin to 2.4%.  

Redcare Pharmacy’s CEO Olaf Heinrich comments: “We are pleased that with the launch of CardLink we have realised better access to Germany’s significant Rx market.  We have become an integral part of the German healthcare system and can now offer a more patient-friendly digital option to redeem e-prescriptions, thus growing our share of the Rx market. Meanwhile, Germany is a step closer to fully digitalised and more efficient healthcare.”

By the end of H1, Redcare Pharmacy had 11.6 million active customers, an increase of 1.5 million year over year and 0.4 million in Q2 alone. The net promoter score (NPS), an indicator of customer satisfaction, was 68 in Q2 (Q2 2023: 71) and 69 in H1 (H1 2023: 71). 

CFO Jasper Eenhorst adds, “The solid numbers achieved in H1 show that we are on track to deliver high, double-digit growth once again, while scale, efficiency and focus on our end-to-end processes have resulted in a positive margin for the eighth consecutive quarter.”  

Sales, earnings and developments by segment.

Sales in the DACH segment comprising Germany, Austria and Switzerland were EUR 907 million in H1 (H1 2023: EUR 624 million). Excluding MediService, DACH sales totaled EUR 668 million (H1 2023: EUR 564 million). Non-Rx sales in the DACH segment grew 18% year to date, to EUR 581 million (H1 2023: EUR 492 million) and Rx sales by 147.4% to EUR 326 million (H1 2023: EUR 132 million). In July, the development of a logistics centre was started in the Czech Republic to serve the Austrian market and deliver orders faster in the future to customers in Austria. Adjusted EBITDA of EUR 35.2 million (H1 2023: EUR 32.6 million) and adjusted EBITDA margin of 3.9% (H1 2023: 5.2%) were reported for the DACH segment. This year, MediService was consolidated for the full H1 while last year only as of mid-May.

Sales in the International segment (Belgium, the Netherlands, France and Italy) grew 27.2% year to date to EUR 214 million (H1 2023: EUR 168 million). The segment reported adjusted EBITDA of EUR -8.4 million (H1 2023: EUR -10.6 million) with an improved adjusted EBITDA margin of -3.9%, compared to the prior year’s -6.3%.

Update on financial developments.

The Group’s gross profit increased from EUR 107 million in Q2 2023 to EUR 131 million in Q2 2024. In H1, gross profit grew by 25% year over year to EUR 262 million (H1 2023: EUR 210 million) while the gross profit margin was 23.4% (H1 2023: 26.5%). The lower gross margin is due to the full inclusion of MediService in H1 this year, while this company – jointly operated with Galenica AG – was consolidated last year as of mid-May. MediService operates at a lower average gross profit margin than Redcare, but at the same time at lower selling, distribution and administrative expenses as a percentage of sales, in both instances due to its higher average baskets. Excluding MediService, the gross profit margin for H1 was 28% (H1 2023: 28.1%).

Adjusted selling, distribution and administrative expenses (SD&A) increased from EUR 188 million in H1 last year to EUR 235 million in H1 this year. This equates to 21% of sales in H1, an improvement of 2.7pp versus last year’s 23.7%. Excluding MediService, operating expenses were 25.5% of sales in H1 (H1 2023: 25.3%). Increased marketing and average wage rates were largely offset by scale and efficiencies.

The Group’s adjusted EBITDA in H1 was EUR 26.8 million, up from EUR 22 million last year and the adjusted EBITDA margin 2.4% (H1 2023: 2.8%). Adjustments to EBITDA in H1 this year were EUR 2.1 million, significantly lower than the prior year’s EUR 6.9 million, which included the last non-recurring acquisition accounting effects related to the 2021 acquisitions. 

Year to date, depreciation increased to EUR 33.4 million from EUR 25 million in H1 2023, resulting in EBIT of EUR -8.7 million (H1 2023: EUR -9.8 million). The increase in depreciation was driven by higher investments in recent years and the acquisition of MediService. Net finance and tax costs were EUR 4.3 million in H1 (H1 2023: EUR 4.5 million). The Group’s net result for H1 was EUR -13 million (H1 2023: EUR -14.3 million).

Cash and short-term financial assets increased by EUR 27 million since the end of December 2023 to EUR 231 million (H1 2023: EUR 244 million).

Guidance for full year 2024.

The guidance provided on 5 March is unchanged:

• 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
	Q2	Q3	Q4	Q1	Q2i	Q2
Net Sales	420	476	531	560	441	561
Growth (in percentage)	46.2	67.1	62.1	50.6	22.5	33.5
Non-Rx Sales	323	320	362	404	391	391
Growth (in percentage)	27.0	27.0	23.3	19.8	20.9	20.9
Rx Sales	97	156	169	156	50	170
Growth (in percentage)	195.6	374.2	397.0	348.7	36.6	75.7
EBITDA	10.6	11.7	13.1	10.6	-	14.1
Adj. EBITDA	13.3	15.2	16.2	11.7	-	15.0
Adj. EBITDA margin	3.2	3.2	3.1	2.1	-	2.7
iTo understand the underlying sales development in Q2, we also provide the sales number excluding MediService AG, as the company was consolidated only as of mid-May last year.

 

DACH in millions of euros	2023			2024
	Q2	Q3	Q4	Q1	Q2i	Q2
Net Sales	334	390	440	453	334	453
Growth (in percentage)	51.7	74.2	68.6	56.7	21.6	35.6
EBITDA	15.9	17.5	20.4	15.5	-	18.4
Adj. EBITDA	17.7	19.8	22.4	16.2	-	19.0
Adj. EBITDA margin	5.3	5.1	5.1	3.6	-	4.2
iTo understand the underlying sales development in Q2, we also provide the sales number excluding MediService AG, as the company was consolidated only as of mid-May last year.

 

International in millions of euros	2023			2024
	Q2	Q3	Q4	Q1	Q2
Net Sales	86	86	91	107	107
Growth (in percentage)	28.2	41.1	36.4	29.2	25.3
EBITDA	-5.4	-5.8	-7.3	-4.9	-4.4
Adj. EBITDA	-4.5	-4.5	-6.1	-4.4	-4.0
Adj. EBITDA margin	-5.2	-5.3	-6.7	-4.2	-3.7

 

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.