This article first appeared on GuruFocus .
Release Date: July 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Redcare Pharmacy NV ( SHPPF ) increased its 2026 revenue growth guidance to 15% to 17%, up from the previous 13% to 15%.
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The company reported a significant increase in RX active customers in Germany, reaching 1.7 million, a 4% growth quarter over quarter.
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Adjusted EBITDA margin improved to 3.5% in Q2, marking the highest level in 10 years.
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The company has successfully reduced marketing spending while maintaining high growth, indicating efficient cost management.
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Redcare Pharmacy NV ( SHPPF ) has achieved a decade of double-digit growth, with a significant expansion of its active customer base since its IPO.
Negative Points
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The German non-RX business experienced some deceleration in growth, partly attributed to a heatwave and competitive market conditions.
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The introduction of a personal signature requirement for prescription deliveries may slightly increase last-mile delivery costs.
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July trading was softer, with expected group growth below 20%, indicating potential challenges in maintaining high growth rates.
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The company faces challenges in accelerating new customer acquisition, particularly in changing customer behavior and adoption.
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Despite increased profitability, the company was not cash flow positive in Q2, highlighting ongoing challenges in cash cycle management.
Q & A Highlights
Q: The growth in the German non-RX business decelerated in June. Was this due to tougher comparisons or the heatwave in Germany? A: Olaf Heinrich, CEO: The heatwave likely contributed to the slowdown in growth. However, we are also testing different price levels and monitoring competition in the German market. It's a competitive environment, and we are continuously optimizing our strategies.
Q: How do you view the risk of Rossmann entering the online pharmacy market, given that DM has not taken market share from you? A: Olaf Heinrich, CEO: Entering our market is not easy, as evidenced by DM's limited impact. Rossmann's entry, especially into the RX segment, which is more complex, may face similar challenges. We are well-positioned as a pharmacy and continue to grow strongly.
Q: With the new regulation requiring prescription medicine delivery against a personal signature, will this increase last-mile delivery costs? A: Henrik, CFO: The personal signature requirement adds some cost, but it is not significant. It's included in our forecast and will cost less than a million annually. It doesn't fundamentally change the RX business economics.
Q: Can you provide more color on the current trends in RX customer acquisition? How much is from OTC conversion versus new RX customers? A: Olaf Heinrich, CEO: Active customers include both new and existing ones. We convert existing non-RX customers and acquire new RX customers. The challenge is accelerating this acquisition, as once customers use our system, they tend to stay due to high satisfaction.
Q: What are your thoughts on Switzerland potentially introducing electronic prescriptions and enabling OTC mail delivery? A: Olaf Heinrich, CEO: We have a strategic joint venture in Switzerland, positioning us well for potential regulatory changes. We are prepared to capture opportunities with our partner, although the regulatory framework still needs development.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
