Redcare Pharmacy N.V.

Q2 revenue increased 20% year over year, versus 18% in Q1. Rx grew 34% overall, including 58% growth in Germany; non-Rx grew 13% for the group. Adjusted EBITDA margin was 3.5% in Q2, up 0.9 percentage points year over year and the highest in 10 years. Gross profit margin declined from 23.3% to 21.3% in Q2, and H1 revenue rose from EUR 1.4 billion to EUR 1.7 billion, up 19%; H1 EBITDA margin was 2.6% and EBIT was positive at EUR 9 million. For 2026, guidance is 15%-17% total revenue growth, Rx Germany revenue of EUR 680 million-EUR 720 million, non-Rx growth of 10%-12%, and adjusted EBITDA margin of 2.5%-3%. Management also said July group growth is expected to be below 20%, with single-digit growth in Germany non-Rx.

Olaf Heinrich framed the quarter as evidence that Redcare's growth is broad-based, not driven by a one-off or excessive advertising. He emphasized that Rx adoption is improving through higher baskets and stronger customer satisfaction, while non-Rx growth in Germany has returned to double digits as the broader market recovered. He also highlighted a more favorable German regulatory backdrop, saying it strengthens legal certainty for online pharmacies and supports the long-term model.

Hendrik Krampe said revenue accelerated across both DACH and international, while adjusted EBITDA margin expanded to 3.5% in Q2 and 2.6% in H1, in line with the company's goal of improving margin by 0.5 to 1 percentage points in 2026 versus 2025. He noted H1 revenue of EUR 1.7 billion, gross profit margin down 2.1%, marketing at 5.6% of revenue in H1, and positive H1 EBIT of EUR 9 million. On cash flow, he said Q2 was not cash flow positive, pointed to inventory and receivables as working-capital drivers for Rx, cited a EUR 7 million impact from the Sevenum automation project, and said roughly EUR 30 million remains to complete it in H2.

Analysts focused on slowing June non-Rx growth, the risk from potential new entrants such as Rossmann, the impact of a new personal-signature requirement for Rx delivery, and how to bridge the period between CardLink expiration and the next patient-presence rollout. Management said June softness in non-Rx was likely helped by a heat wave, that Rossmann and DM do not yet appear to be taking meaningful share, and that Rx entry is even more complex than non-Rx. On the signature requirement, Hendrik Krampe said the cost is included in forecast and is less than EUR 1 million annually, while Olaf Heinrich said CardLink extension should bridge the transition to the new framework.