Redcare Pharmacy Sets Ambitious Targets for 2026 Amid Mixed Annual Results

Redcare Pharmacy reports €2.9B revenue for 2025 but expects a €35M loss. 2026 forecast targets 13-15% growth and improved EBITDA margins, driven by booming e-prescriptions.

Redcare Pharmacy has released its first fully audited financial figures for 2025, coupled with an official forecast for the coming year. This dual announcement addresses a key market concern: balancing rapid growth in electronic prescriptions with improving profitability in the over-the-counter segment.

2025 Performance: Strong Revenue Growth Contrasts with Persistent Losses

The annual report reveals a now-familiar pattern for the company. Revenue expanded robustly to €2.9 billion, a significant increase from €2.4 billion the previous year. Fourth-quarter sales reached €794 million.

However, the final quarter's growth fell slightly short of analyst projections. Quarterly revenue came in approximately 3% below expectations, primarily due to softer performance in the high-margin Non-Rx/OTC business. Sales in that division grew by 9% to €483 million in Q4, but still missed the consensus estimate by about 9%. Despite the overall revenue surge, Redcare anticipates a net loss of roughly €35 million for the full year 2025.

Electronic Prescriptions Drive Growth and Offer Margin Potential

The standout performer is the German prescription business. Rx revenue skyrocketed by 98% in 2025 to €503 million, surpassing the company's own target of "more than €500 million." The positive trend continued into the fourth quarter, with a 60% increase to €155 million, slightly exceeding forecasts.

The company's customer base is widening, with 13.9 million active users representing an annual increase of 1.4 million. Customer satisfaction, as measured by the Net Promoter Score, improved to 74 in Q4 from 72 in the prior quarter.

A potential regulatory change could further boost this segment. Federal Health Minister Nina Warken has confirmed plans to raise the fixed reimbursement fee per electronic prescription, with an increase to €9.50 under discussion. Redcare highlights that any additional cents in the Rx business could act almost directly as a lever for its bottom line.

2026 Outlook: Sustained Growth with a Focus on Profitability

In an ad-hoc release on March 3, Redcare outlined concrete goals for 2026. The group forecasts revenue growth between 13% and 15%. Management is targeting more than €670 million in sales from its German prescription operations.

Growth of 8% to 10% is expected in the Non-Rx segment. From an investor perspective, a more critical metric is the adjusted EBITDA margin, which is projected to reach at least 2.5%. This represents a step up from the 2.0% to 2.5% corridor communicated previously for 2025.

The strategic direction is clear: Redcare aims to demonstrate that its powerful Rx growth will translate not only into higher sales but also into improving margins. This goal is set against a backdrop of continued heavy investment in logistics and automation through 2025 and 2026.

On the stock market, the shares remain under pressure following a significant decline over the past twelve months. Trading at €60.20 yesterday, the price hovered just above its 52-week low of €58.65.