Redcare Pharmacy (RDC) Q2 2024 earnings summary

Executive summary

• Achieved record H1 2024 sales of €1,121M, up 41.5–42% year-over-year, with organic growth excluding MediService at 21%.

• Active customers increased by 1.5M to 11.6M; 87% of over 17M H1 orders were from returning customers.

• Adjusted EBITDA margin reached 2.4% for H1 and 2.7% in Q2; net loss improved to €-13.0M from €-14.3M year-over-year.

• CardLink eHealth solution launched in Germany in May, accelerating Rx sales growth, especially in Q2.

• Non-Rx sales grew 20%, with DACH up 18% and International up 27%.

Financial highlights

• H1 2024 sales increased by €329M to €1.1B compared to H1 2023.

• Gross profit margin declined to 23.4% from 26.5% year-over-year, mainly due to MediService acquisition mix.

• Adjusted EBITDA rose to €27M in H1 2024 from €22M in H1 2023.

• Cash and short-term financial assets increased to €231M as of June 30, 2024.

• Net loss improved to €-13.0M from €-14.3M year-over-year; EPS at €-0.60.

Outlook and guidance

• Full-year 2024 sales expected at €2.3–2.5B, representing 30–40% growth.

• Non-Rx sales growth forecast at 15–25%; MediService to grow mid-single digits.

• Adjusted EBITDA margin guidance for 2024 is 2–4%; mid- to long-term target remains above 8%.

• Rx market in Germany described as too dynamic for specific guidance.