Redcare Pharmacy (RDC) Q1 2025 earnings summary

Executive summary

• Group sales grew 28% year-over-year in Q1 2025, reaching EUR 717 million, driven by strong RX and ERX growth, especially in Germany, and solid non-RX performance.

• RX sales in Germany surged 191% year-over-year, with market share rising to 0.87% and double-digit sequential growth from Q4 2024.

• Active customer base increased to 13.1 million, up 1.9 million year-over-year, with 89% repeat order rate and average basket value rising to EUR 62.44.

• Orders reached 11.5 million, up 2.6 million year-over-year, and order volume and repeat order share climbed to 89%.

• Adjusted EBITDA was EUR 9.1 million (margin 1.3%), down from EUR 11.7 million (2.1%) in Q1 2024, but improved sequentially from Q4 2024.

Financial highlights

• Gross profit margin stable at 23.3% year-over-year, improved by one percentage point quarter-over-quarter.

• Adjusted selling and distribution expenses rose to EUR 139.3 million (19.4% of sales), reflecting RX business investment.

• Cash and short-term assets increased to EUR 185 million at quarter-end; operational cash flow improved to EUR 36.9 million.

• Equity ratio at 48.3%, down from 50.8% at year-end 2024.

• Net loss widened to EUR 11.6 million from EUR 8.2 million in Q1 2024.

Outlook and guidance

• Full-year 2025 guidance reiterated: sales growth above 25%, RX sales in Germany to exceed EUR 0.5 billion, non-RX growth above 18%, and adjusted EBITDA margin between 2% and 2.5%.

• Q1 margin below full-year guidance due to seasonality and higher marketing spend; profitability expected to improve in subsequent quarters.

• Mid- to long-term margin target remains above 8%.