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Redcare Pharmacy Q2 2023: While fast sales growth continues unabated at 46%, adj. EBITDA margin improved 5.3pp year over year to 3.2%. Company raises full-year guidance.

Sevenum, the Netherlands, 1 August 2023. Redcare Pharmacy N.V. continued to successfully execute its strategy, delivering not only significant sales growth in all countries in Q2, but also a significantly higher adjusted EBITDA at the same time. Final figures show sales grew 46.2% year over year in Q2 to EUR 420 million (Q2 2022: EUR 287 million). Excluding MediService AG in Switzerland, sales growth was 25.4% (EUR 360 million). Non-Rx sales growth was confirmed at 27% in Q2 to EUR 323 million (Q2 2022: EUR 255 million). The Group reported an adjusted EBITDA margin of 3.2% for the quarter, 5.3 percentage points (pp) better than Q2 last year; in absolute terms an increase of EUR 19.4 million from EUR -6.1 million to EUR 13.3 million. Reporting segment DACH achieved sales growth of 51.7%, while improving the adjusted EBITDA margin by 4.8pp to 5.3%. International achieved sales growth of 28.2% (up from prior Q1’s 18.5%) while improving the adjusted EBITDA rapidly by 5.6pp year over year to -5.2%. Customer satisfaction was ever-high with a Net Promoter Score (NPS) of around 70 (71 in H1), continued expansion of the active customer base – which now stands at over 10 million – and an 84% share of repeat orders.

Redcare Pharmacy’s CFO Jasper Eenhorst comments: “We are very pleased with the achievement of another strong quarter and the continued great momentum. Our growth story advances consistently across all countries, with high customer satisfaction as a result of our propositions. At the same time, we fortified significantly all components of operating margins through effectiveness, efficiency and the benefits of loyalty and scale, in line with our strategy. We are therefore increasing our full-year guidance.”

By the end of June, Redcare Pharmacy had 10.1 million active customers, an increase of 0.8 million since the start of this year, and 1.5 million since June 2022. Customer satisfaction and loyalty are visible in the consistently high rate of repeat orders at around 80%. Year to date, as well as for Q2, the net promoter score is at 71.

The DACH segment – comprising Germany, Austria and Switzerland – recorded an increase of 36.9% in sales year to date, to EUR 623.6 million (H1 2022: EUR 455.4 million). For the first time, the segment includes the sales of MediService AG (Rx sales of EUR 60 million), the Swiss partnership with Galenica AG, which was approved by the competition authorities in mid-May and therefore consolidated into the Redcare Pharmacy numbers from this date. Excluding MediService, DACH segment sales increased by 23.8% in H1. Sales in the International segment (Belgium, the Netherlands, France and Italy) increased by 23.2% year to date, to EUR 168.4 million (H1 2022: EUR 136.6 million).

Combined, DACH and International sales increased 33.8% year to date, to EUR 792 million (H1 2022: EUR 592 million). Excluding MediService, total sales increased by 23.7% year to date, to EUR 732 million. Gross profit rose by EUR 49 million to EUR 210 million in H1 2023, while the gross profit margin was 26.5% (H1 2022: 27.2%). Excluding MediService, the gross profit margin was 28.1%, an improvement of 0.9pp year over year, following pricing, sourcing, and product mix changes. Sales in the second quarter increased by 46.2% to EUR 420 million (Q2 2022: EUR 287 million); excluding MediService 25.4%. This resulted in a gross profit margin of 25.4% in the quarter (excluding MediService, 28.5%) versus 27.8% in Q2 2022.

Year to date, adjusted selling and distribution expenses (S&D) were 20.8% of sales, following an increase of EUR 13 million to EUR 165 million (H1 2022: EUR 152 million). Excluding MediService, adjusted S&D expenses were 22.2% of sales in H1. The improvement over H1 2022’s 25.7% was the result of better efficiencies in marketing and operations, and also a higher average basket value. In Q2 2023, adjusted S&D expenses were 19.3% of sales, or EUR 81.1 million (Q2 2022: 26.3% of sales, or EUR 75.5 million). Excluding MediService, adjusted S&D expenses were 22% of sales in Q2, an improvement of 4.3pp year over year.   

Year to date, adjusted administrative expenses improved to 2.9% of sales (H1 2022: 3.3%), with an increase in absolute euros to EUR 22.9 million from last year’s EUR 19.3 million. Excluding MediService, the ratio was 3.0%. In Q2, adjusted administrative expenses were 2.9% of sales (Q2 2022: 3.6%) or excluding MediService, 3.2% of sales.

Redcare Pharmacy’s adjusted EBITDA for H1 2023 improved significantly year over year, up EUR 32.4 million from EUR -10.4 million in H1 2022 to EUR 22 million (excluding MediService, EUR 20.6 million). The margin increased by 4.6pp to 2.8% (also 2.8% excluding MediService). The year-over-year improvement in the adjusted EBITDA margin in Q2 2023 was as much as 5.3pp, to 3.2% (3.3% excluding MediService).

The DACH segment’s adjusted EBITDA increased year over year from EUR 3.5 million in H1 2022 to EUR 32.6 million – a margin improvement of 4.4pp to 5.2%. The improvement in the adjusted EBITDA margin in Q2 2023 was 4.8pp to 5.3% year over year. The DACH segment has consistently reported positive adjusted EBITDA margins over the years, but this Q2 marked the fourth consecutive quarter of year-over-year increase. In the International segment, adjusted EBITDA improved from EUR -14 million in H1 2022 to EUR -10.6 million in H1 2023. The adjusted EBITDA margin increased 3.9pp to -6.3%. The margin for Q2 was -5.2%, more than halving last year’s -10.8% margin. 

The Group’s EBIT improved year over year from EUR -41 million to EUR -9.8 million in H1 2023 (excluding MediService, EUR -11 million). Depreciation was EUR 25 million, higher than H1 2022’s EUR 17.9 million and reflective of the past years’ higher investment level, while net financing costs and tax shrank from EUR 6.8 million to EUR 4.5 million. Net loss reduced from EUR -47.8 million in H1 2022 to EUR -14.3 million. In Q2 net loss was EUR -4.1 million (Q2 2022: EUR -24.8 million), with a positive contribution of EUR 1.1 million from MediService.  

Overall, cash and cash equivalents increased by EUR 63.4 million during the reporting period and amounted to EUR 130.2 million as of the balance sheet date. This excludes EUR 113.6 million of securities and fixed term deposits presented as short-term other financial assets in the balance sheet; including these, cash balances were EUR 244 million at the end of H1 2023. This development was partially due to favourable seasonal working capital movements.

The strategic partnership with Galenica AG involving MediService AG was successfully completed in Q2. This paves the way for the expansion of the product and services offering in the Swiss market. As advised in the 6 July 2023 Press Release, the expected sales contribution of MediService from the transaction date to the end of the year (7.5 months) is around EUR 300 million. 

Redcare Pharmacy publicly transitioned to its new name (from SHOP APOTHEKE EUROPE) on 13 June, also changing the name on the German stock exchanges to the new ticker symbol “RDC”, the abbreviation of Redcare. The occasion was marked by the launch of its new corporate website and brand (

). On 19 June, Redcare Pharmacy was also upgraded from the SDAX to the MDAX.  

At the Annual General Meeting held on 26 April, Olaf Heinrich was appointed Redcare Pharmacy’s new CEO. Mr. Heinrich’s first day at the company is today, 1 August 2023.

Following the strong performance recorded in H1 2023, the Managing Board of Redcare Pharmacy has revised the guidance for the full year upwards. The revised guidance is as follows:

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

Monica Ambrosi (Associate Director, Investor Relations)

Sven Schirmer (Director, Corporate Communications)

Originally founded in 2001, Redcare Pharmacy (formerly known as Shop Apotheke Europe) 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 10 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.

Redcare Pharmacy N.V. continued to successfully execute its strategy, delivering not only significant sales growth in all countries in Q2, but also a significantly higher adjusted EBITDA at the same time.