Redcare Q3 earnings in line, targets kept as German prescription sales surge

Redcare Pharmacy on Thursday reported third-quarter core earnings in line with analysts’ expectations and left its 2026 targets unchanged, as surging German prescription sales lifted revenue 18%.

Group revenue rose to €847 million from €719 million a year earlier, against the €845.5 million average forecast in eight submissions compiled by the company.

Adjusted EBITDA, a measure of core earnings, rose 68% to €28.7 million, versus a forecast of €28.9 million. The margin was 3.4%, matching forecasts, versus 2.4% a year earlier.

Prescription revenue rose 31% to €358 million, above the €354.5 million forecast, led by Germany, where it grew 56% to €197 million versus a forecast of €193.7 million. In Switzerland (MediService), prescription revenue grew 10% to €161 million.

Non-prescription revenue grew 9% to €489 million, slightly below the €491.1 million forecast. International non-prescription revenue grew 13% to €149 million, short of the 14% growth forecast.

Gross profit rose to €185 million from €159 million, but the gross margin slipped to 21.8% from 22.1%. Adjusted selling and distribution expenses fell to 16% of revenue from 17% on lower marketing spend and lower cost per order.

DACH adjusted EBITDA rose to €29 million from €18 million, a margin of 4.2% versus 3.0% a year earlier. International adjusted EBITDA was -€1 million, unchanged from a year earlier.

Net income was €1 million, a second consecutive quarterly profit, and free cash flow was €15 million.

The active customer base reached 15.2 million, up 0.5 million from the second quarter. Chief Executive Peter Schmid von Linstow said the company added 123,000 active customers in the third quarter, nearly double the 65,000 added in the second.

“We will continue to optimize our marketing mix and increase operational leverage to translate scale into profitability across all segments,” he said.

Redcare confirmed its upgraded 2026 guidance: revenue growth of 16% to 18%, non-prescription growth of 10% to 12%, German prescription revenue of €730 million to €760 million, and an adjusted EBITDA margin of 2.5% to 3.0%. The compiled forecasts average 17.6% revenue growth, 11.1% non-prescription growth, €748.1 million in German prescription revenue and a 2.8% margin.

For the first nine months, revenue rose 19% to €2.55 billion and adjusted EBITDA was €73 million, a margin of 2.9%.