While Redcare Pharmacy continues to post record revenue figures, driven by a surge in prescription medication sales, a deeper structural issue is casting a shadow over the online pharmacy’s future profitability. The official filing of its 2025 annual report has brought the challenges of shrinking profit margins and a cooling core business into sharp focus for shareholders.
Shareholder Focus Shifts to Annual Meeting
The release of the final annual report to Dutch regulators has provided a detailed look at the company’s performance. Registered shareholders can now prepare for the upcoming Annual General Meeting on April 15 via a newly opened online portal. The meeting will formally address the management board’s performance and the future strategic direction in an evolving market.
This structural shift in the company’s sales mix is fueling ongoing skepticism in the financial markets. In early March, the company significantly revised its medium-term margin target downward from over 8% to over 5%. This strategic adjustment has had a pronounced impact: the stock closed yesterday at exactly its 52-week low of €34.98, representing a loss of nearly 48% since the start of the year.
Prescription Boom Comes at a Cost
A glance at the headline numbers shows impressive growth, with revenue climbing 24.1% to €2.94 billion. The global segment for prescription medications (Rx) surpassed the billion-euro mark for the first time, with revenue in Germany nearly doubling to €503 million.
Should investors sell immediately? Or is it worth buying Redcare Pharmacy?
However, this volume growth has a downside. Prescription drugs carry inherently lower profit margins, and their increasing share of total sales has shifted the overall product mix against the company. Consequently, the group’s gross margin contracted from 22.3% to 21.3%, even as the adjusted EBITDA saw a slight annual increase.
Cooling Momentum in Higher-Margin Business
Simultaneously, the traditionally higher-margin business with over-the-counter (OTC) products is losing steam. Growth in this segment slowed to 9.2% in the fourth quarter of 2025, down from 17% in the previous quarter. The increase was even more modest in the DACH region at year-end, coming in at just 6.1%.
This trend is directly reflected in the outlook for the current year. Management anticipates slowed growth of 8-10% in the OTC segment for 2026, while total revenue is projected to grow by 13-15%. The adjusted EBITDA margin for the current fiscal year is estimated to be at least 2.5%.
Ad
Redcare Pharmacy Stock: Buy or Sell?! New Redcare Pharmacy Analysis from March 20 delivers the answer:
The latest Redcare Pharmacy figures speak for themselves: Urgent action needed for Redcare Pharmacy investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from March 20.
Redcare Pharmacy: Buy or sell? Read more here...
