Redcare Pharmacy (RDC) Q3 2024 earnings summary

Executive summary

• Group sales for the first nine months of 2024 rose 34% year-over-year to €1.7 billion, with organic growth at 23% excluding MediService, consolidated since May 2023.

• Non-Rx sales grew 20% to €1.2 billion, with DACH up 18% and International up 26%.

• Rx sales in Germany saw exceptional momentum, with Q3 Rx growth at 81% and October over 130%.

• Active customer base increased by 0.4 million in Q3, reaching nearly 12 million, with a repeat order rate of 88%.

• Average basket value increased to €61.9 in Q3 2024.

Financial highlights

• Q3 sales grew 20.8% organically; nine-month sales up €428 million (33.8%) to €1.7 billion.

• Adjusted EBITDA margin for Q3 was 2.0%; year-to-date margin at 2.3%, down from 2.9% last year, with total adjusted EBITDA at €38 million.

• Gross profit margin for Q3 was 23.2%, with group margin above 23%.

• Cash and short-term financial assets stood at €210 million as of 30 Sep 2024.

• Net loss for the first nine months was €20.1 million, compared to €5.2 million in the prior year.

Outlook and guidance

• Full-year 2024 sales guidance raised to €2.35–2.5 billion.

• Non-Rx organic growth guidance raised to 20–25% for the year.

• Adjusted EBITDA margin guidance for the year is 1.2–2.2%.

• Rx segment guidance remains too dynamic to forecast.

• Management confident in achieving all guidance elements for 2024.