Redcare Pharmacy (RDC) Q4 2024 earnings summary

Executive summary

• Achieved exceptional growth in 2024, driven by the nationwide adoption of e-prescriptions (e-Rx) in Germany, with Rx growth from 7% in Q1 to 142% in Q4, and successful expansion in Italy, now holding market leadership in both Rx and non-Rx segments across multiple countries.

• Launched a fully digital patient journey via CardLink and enhanced product offerings, resulting in high customer satisfaction and a Net Promoter Score (NPS) of 69.

• Significant increase in active customers, reaching 12.5 million by year-end, with 1.7 million added in 2024 and 0.6 million in Q4.

• Seamless leadership transition and successful first year of CSRD reporting.

Financial highlights

• Total sales grew 32% year-over-year to EUR 2.4 billion, with organic growth at 26%.

• Rx sales grew 64% to EUR 750 million; non-Rx sales up 21% to EUR 1.6 billion.

• Adjusted EBITDA for the year was EUR 33 million, with a 1.4% margin.

• Q4 sales reached EUR 675 million, up 27.1% year-over-year.

• Cash flow for the year was minus EUR 26 million, reflecting strategic investments and working capital improvements.

Outlook and guidance

• 2025 guidance targets sales growth in excess of 25%, with Rx sales in Germany expected to exceed EUR 0.5 billion and non-Rx growth above 18%.

• Adjusted EBITDA margin guidance set between 2% and 2.5% for 2025; mid- to long-term margin guidance remains above 8%.

• Continued focus on organic growth, with expectations to approach EUR 3 billion in sales.