Redcare Pharmacy stock faces a sharper profitability test after Q3 growth

Redcare Pharmacy reported strong third-quarter growth on Thursday, October 29, while leaving its upgraded 2026 targets unchanged. Investing.com, citing Reuters, reported that group revenue rose 18 percent year over year to 847 million euros, slightly above the company-compiled analyst average of 845.5 million euros.

Adjusted EBITDA increased 68 percent to 28.7 million euros, matching the 28.9 million euro forecast. The adjusted margin reached 3.4 percent, up from 2.4 percent a year earlier. Net income came to 1 million euros, marking a second consecutive quarterly profit, while free cash flow reached 15 million euros.

Prescription demand leads the expansion

Prescription revenue climbed 31 percent to 358 million euros and exceeded the 354.5 million euro forecast. Germany was the main driver, with prescription revenue advancing 56 percent to 197 million euros against a 193.7 million euro forecast. Prescription revenue in Switzerland rose 10 percent to 161 million euros.

The non-prescription business grew 9 percent to 489 million euros but fell slightly short of the 491.1 million euro forecast. International non-prescription revenue increased 13 percent, below the 14 percent expectation. Gross profit rose to 185 million euros from 159 million euros, although the gross margin eased to 21.8 percent from 22.1 percent.

Redcare said its active customer base reached 15.2 million at the end of the quarter, an increase of 0.5 million from the second quarter. Chief Executive Peter Schmid von Linstow said the company added 123,000 active customers during the period, nearly twice the 65,000 added in the previous quarter. He said management would optimize its marketing mix and increase operating leverage to turn scale into profitability across all segments.

Guidance leaves execution in focus

Management confirmed 2026 revenue growth of 16 to 18 percent, non-prescription growth of 10 to 12 percent, German prescription revenue of 730 million to 760 million euros and an adjusted EBITDA margin of 2.5 to 3.0 percent. For the first nine months, revenue rose 19 percent to 2.55 billion euros and adjusted EBITDA reached 73 million euros, equal to a 2.9 percent margin.

The figures strengthen the prescription-led growth case, but they also raise the bar for the rest of the business. Investors will be watching whether customer expansion and lower selling and distribution costs can offset slower non-prescription growth and sustain the improvement in profitability.

Redcare Pharmacy stock traded at 69.58 euros on Lang & Schwarz at 11:33 CET on Friday, November 13, 2026, 0.67 percent below the Xetra close of Thursday, November 12, 2026. The comparison uses the most recent completed Xetra session.

European equities provide the broader market backdrop through the Euro Stoxx 50.

The next scheduled investor appearances are the Jefferies Global Healthcare Conference in London on November 18 and the Bank of America EMEA Consumer Conference in Paris on November 19. These events could give management an opportunity to discuss prescription momentum, marketing efficiency and the path toward sustainably higher margins.

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