Redcare Raises Revenue 18% to €847 Million as German Prescriptions Grow 56%
Key Facts
Redcare Pharmacy raised third-quarter revenue 18% year over year to €847 million, compared with €719 million in the same period of 2025, and Reuters said the result slightly exceeded analysts’ estimates. Growth was driven by a 56% increase in German prescription revenue to €197 million, from €126 million a year earlier. German prescriptions therefore maintained a strong growth pace during the quarter, while group revenue rose at a slower rate. The company said in its statement that it stood by its fiscal 2026 guidance, after raising it in September on the back of momentum in German prescriptions. The company also recorded positive net income of €1 million and free cash flow of €15 million during the quarter.
In the first nine months of 2026, group revenue rose 19% to €2.55 billion, compared with €2.15 billion in the corresponding period a year earlier. The figures show that revenue continued to grow at a strong annual pace during the period, with third-quarter growth exceeding the nine-month rate. German prescription revenue totaled €544 million in the nine months, compared with €348 million a year earlier, according to the company’s published figures. Growth in this business accelerated from 55% in the first quarter to 57% over the nine months, while third-quarter growth was 56%. German prescriptions had risen 51% year over year in September, according to preliminary figures the company cited when it raised its guidance.
Adjusted operating profitability improved in the third quarter, with earnings before interest, taxes, depreciation and amortization rising 68% to €29 million. The margin on these earnings increased to 3.4% from 2.4% in the third quarter of 2025, according to the company’s statement. Redcare said the margin was stable quarter over quarter, benefiting from operating leverage. The improvement came alongside positive net income of €1 million, with net profit remaining a separate measure from adjusted operating earnings. Free cash flow was also €15 million in the quarter, adding a cash-flow indicator to the sales and profitability results.
On revenue outside prescription medicines, the company said non-pharmaceutical revenue in Germany recovered in August and September after a weaker July. This comes as Redcare set its full-year growth target for non-pharmaceutical revenue at between 10% and 12%. In the second quarter, the company said international revenue grew 16% in April and May, and the international segment posted its first positive earnings before interest, taxes, depreciation and amortization in that quarter. The company also said most countries contributed to the international segment’s growth during that period. These indicators place strong performance in German prescriptions alongside improving non-pharmaceutical activity and international growth in the broader revenue picture.
The active customer base expanded to 15.2 million at the end of September, an increase of 1.5 million, or 11%, compared with the end of September last year. The company also added 0.5 million customers compared with the second quarter. The larger customer base accompanied quarterly revenue growth and the positive free cash flow recorded during the quarter. The company’s annual guidance calls for group revenue growth of 16% to 18%, and German prescription revenue of between €730 million and €760 million. It also maintained its adjusted earnings margin range of 2.5% to 3.0% for fiscal 2026, below the third-quarter margin of 3.4%.
Redcare is scheduled to issue its fiscal 2026 trading update on 11 January 2027, followed by its annual financial results on 3 March 2027. The date for the annual results is later than 4 March 2027, which had appeared in an earlier company calendar. The January update will provide a view of the business trajectory after year-end, ahead of the full financial results in March. The company’s current guidance remains the reference point for expected performance until that announcement. Redcare reaffirmed the growth, revenue and profitability ranges it had set for the year in its third-quarter statement.