07-05-2025
Redcare Pharmacy NV (SHPPF) Q1 2025 Earnings Call Highlights: Strong e-Rx Growth Drives 28% ...
Revenue: EUR717 million in Q1 2025, up 28% year-over-year.
e-Rx Growth: Significant driver of growth, with RX in Germany increasing 191% year-over-year.
EBITDA: Positive at 1.3% in Q1 2025, a 2%-point improvement from the previous quarter.
Gross Profit Margin: Increased by 1%-point quarter-over-quarter.
Active Customers: Increased by 4.6 million, reaching 13.1 million active customers.
Net Promoter Score (NPS): 64, down from 70 in the previous year.
Order Volume: 11.5 million orders in Q1 2025, with 89% being repeat orders.
Cash Flow: Ended Q1 2025 with slightly above EUR180 million in cash.
Convertible Bond: New convertible bond issued with a 1.75% annual coupon and a conversion price of EUR174.
Guidance: Total sales growth expected to exceed 25% for 2025, with adjusted EBITDA between 2% and 2.5% for the full year.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Redcare Pharmacy NV (SHPPF) reported a 28% increase in group sales, reaching EUR717 million in Q1 2025, driven by strong e-Rx growth.
The company achieved a return to positive EBITDA, reaching 1.3% in Q1 2025, marking a 2%-point improvement from the previous quarter.
Redcare Pharmacy NV (SHPPF) added 4.6 million active customers in Q1 2025, primarily driven by e-Rx, bringing the total to 13.1 million active customers.
The company successfully executed two concurrent transactions, including the placement of a new convertible bond, securing financial stability for the coming years.
Redcare Pharmacy NV (SHPPF) confirmed its full-year guidance for 2025, expecting total sales growth in excess of 25% and adjusted EBITDA between 2% and 2.5%.
Negative Points
The Net Promoter Score (NPS) decreased from 70 to 64, attributed to the influx of new customers and challenges in the RX and marketplace segments.
Despite the positive growth, the gross profit margin remained stable year-over-year, indicating limited margin expansion.
Marketing efficiency concerns were raised, with incremental marketing spend per revenue dollar increasing since last year.
The company faces seasonality challenges, with market share fluctuations observed during holiday periods like Christmas and Easter.
There is uncertainty regarding the impact of potential regulatory changes in RX remuneration, which could affect future financial performance.
Q & A Highlights
Q: Can you provide insights on the potential impact of the coalition paper's proposed RX remuneration increase on your business? A: Olaf Heinrich, CEO: We shouldn't speculate too much on the coalition agreement's outcome. Our guidance does not include any potential impact from this proposal. If it goes through, it might affect us by the end of this year or early next year, but we can't provide more details at this time.
