Pharmacy Results Prove to Be Stunning at Redcare
Redcare Pharmacy Shows Strong Q2 Performance, Maintains 2025 Guidance
Redcare Pharmacy, a leading European online pharmacy with a WKN of A2AR94, has reported impressive results for the second quarter of 2025. The company's performance, which includes a record-high adjusted EBITDA margin and significant sales growth, has been a source of satisfaction for CEO Olaf Heinrich.
In Q2 2025, Redcare Pharmacy achieved an adjusted EBITDA margin of 2.6%, the best in 12 months, and witnessed a 26.5% year-over-year sales surge, reaching €709 million. This strong performance continued into the first half of 2025, with total sales reaching €1.4 billion, a 27% increase from the previous year [1][2].
The growth was driven by both non-prescription (Non-Rx) and prescription (Rx) sales. Non-Rx sales increased 17% to €457 million in Q2, while prescription sales surged 48% to €252 million. The DACH region, which includes Germany, Austria, and Switzerland, saw its sales top €1 billion in H1, with prescription sales in Germany increasing by 155% to €222 million [1][2].
The company also reported an expansion in its customer base, with active customers growing by 1.9 million year-over-year to 13.5 million across all seven countries where Redcare operates [1][2].
Despite these strong results, Redcare Pharmacy has faced a recent legal challenge from the German Federal Court of Justice (BGH). While the details of the ruling are not yet clear, the company has confirmed that it is managing any implications effectively and has reaffirmed its 2025 guidance. The guidance targets total sales growth of over 25% and an adjusted EBITDA margin between 2% and 2.5% [1][2].
However, some market analysts have expressed caution. UBS, for instance, has kept a "Sell" rating on Redcare Pharmacy, reducing its price target from 94 EUR to 82 EUR. The analysts cited that while EBITDA outperformed, an accelerated business development is required to support the current valuation [3][4]. This reflects the market's expectations for faster growth, possibly due to competitive or regulatory factors like the BGH ruling.
In summary, Redcare Pharmacy is showing robust operational performance with strong sales and profitability gains. However, investor sentiment remains cautious, influenced by external factors such as legal rulings and expectations for faster growth.
[1] Redcare Pharmacy Press Release, Q2 2025 Results, July 1, 2025. [2] Redcare Pharmacy Financial Statements, Q2 2025, July 1, 2025. [3] UBS Research Report, Redcare Pharmacy Q2 2025 Results, July 1, 2025. [4] Reuters, UBS Downgrades Redcare Pharmacy on Valuation Concerns, July 1, 2025.
Redcare Pharmacy's strong Q2 performance, with a 26.5% sales increase in health-and-wellness products, has attracted interest from investors in the finance and business sectors. Despite this, some analysts, like UBS, have expressed caution due to expectations for accelerated business development in science and technology, possibly influenced by competitive or regulatory factors such as the BGH ruling.
