Redcare Aims to Double Prescription Revenues

Redcare Pharmacy, the Dutch online pharmacy, has announced ambitious growth targets for its prescription (Rx) sales. The company reported a significant revenue increase of nearly 32% for the fiscal year 2024, reaching a total of EUR2.37 billion. The growth in the non-prescription (Non-Rx) segment was notable, with a rise of 21% to EUR1.62 billion, but the Rx segment saw an even more impressive increase of 64%, amounting to approximately EUR750 million.

In the DACH region (Germany, Austria, and Switzerland), Redcare's revenue grew by 33.1% to EUR1.93 billion, up from EUR1.45 billion in 2023. Non-Rx sales in this area increased by 18.9%, reaching EUR1.18 billion, compared to EUR996 million the previous year. Excluding MediService in Switzerland, the Rx revenue for the entire year stood at nearly EUR254 million, up from EUR150 million in 2023.

Looking ahead, Redcare projects a continuation of this upward trend for 2025, forecasting a company-wide revenue growth of at least 25% and a positive adjusted EBITDA margin of between 2% and 2.5%. Specifically, the Rx revenue in Germany is expected to exceed EUR500 million, effectively doubling from last year, while Non-Rx revenue is anticipated to grow by at least 18%.

One of the key drivers of this growth has been the implementation of electronic prescriptions (e-prescriptions). Redcare has reported a remarkable increase in its active customer base, which grew by 1.7 million to a total of 12.5 million, marking the highest growth recorded to date. Notably, the number of active Rx customers doubled to over 1 million within just a few months, with a significant portion being individuals with chronic medication needs. The CEO of Redcare highlighted that last year was exceptional, attributing much of the growth to the introduction of e-prescriptions.

Utilizing its Card-Link solution, the company has tripled its market share in the Rx sector within a year, claiming that this innovation has positioned it as the market leader in Germany for prescription medications.

However, the company also reported a notable increase in losses, attributed to higher depreciation costs, which resulted in a net loss of approximately EUR46 million, compared to EUR11.6 million in 2023. The adjusted EBITDA fell to EUR33.3 million from EUR53.5 million in the prior year, with the adjusted EBITDA margin decreasing to 1.4% from 3%.

In the previous year, Shop Apotheke, a competitor, heavily invested in a marketing campaign aimed at promoting e-prescription solutions through Card Link.