Redcare Pharmacy Experiences Strong Growth and E-Rx Advancement in Q1 2024

Redcare Pharmacy N.V. announced a notable increase in Q1 2024 earnings with a total group sales of EUR 560 million, marking a 50.6% increase from the previous year. The adjusted EBITDA was reported at EUR 11.7 million, a 33% increase year over year, maintaining an adjusted EBITDA margin of 2.1%. This significant growth stems from a 19.8% increase in non-prescription sales and a strategic boost in prescription sales in Germany. Additionally, Redcare noted the accelerated adoption of electronic prescriptions (e-Rx) in Germany, a crucial market development.

The e-Rx system, which is now the standard in Germany with over 70% of prescriptions being electronic, has been complemented by Redcare’s new eHealth-CardLink solution integrated into their app, set to launch in early May. This solution represents a strategic move aimed at tapping into the approximately EUR 50 billion German prescription medication market. Active customer numbers also reflect positive trends, growing by 1.5 million to reach 11.2 million, bolstered by a net promoter score of 70 in customer satisfaction.

Financially, the company's gross profit rose by 27% to EUR 131 million, with a gross profit margin of 23.4%. Adjusted selling, distribution, and administrative expenses witnessed a relative decline in costs as a percentage of sales, indicating improved operational efficiency. The group anticipates continued growth throughout 2024, with sales expected to reach between EUR 2.3 billion and EUR 2.5 billion, representing a 30-40% increase.