Slides
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Sevenum, 29 july 2025 Earnings call presentation: Q2 2025.
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2 Presenting live from Sevenum.
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3 Today’s presenters. Jasper Eenhorst, Chief Financial Officer. Olaf Heinrich, Chief Executive Officer.
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4 Today’s agenda. Update on Rx regulatory landscape. Outlook and guidance 2025. Financial performance.1 2 4 Update on Rx developments. 3
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5 Financial performance. 1
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H1 2025 financial highlights. 6 financial performance • Group sales +27% YoY to EUR 1.426bn. Continued strong growth, fully organic, both in non-Rx and Rx. • Non-Rx growth 18%. +16% in DACH and +26% in the International segment. Overall, and particularly in Germany, with strong market share gains. • Fast year-over-year growth of Rx sales in Germany. +155% compared to H1 2024. • Adj. EBITDA 1.9%. A doubling of the margin from Q1 (1.3%) to Q2 (2.6%). • Robust balance sheet. Successful placement of new EUR 300M 2025-2032 convertible bonds and early buy-back of 70% of existing 2021-2028 convertible bonds. • Full year guidance confirmed. In all its elements.
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Growth across all countries, and in both Rx and non-Rx. 7 Non-Rx: +18.3% Non-Rx: +15.5% RX: +49.1% key financials | sales €1,121M €1,426M H1 2024 H1 2025 +27.3% €907M €1,156M H1 2024 H1 2025 +27.5% Total DACH €214M €270M H1 2024 H1 2025 International Non-Rx: +26.1%
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8 Net Promoter Score H1 2025 (H1 2024: 69) Average shopping basket value H1 2025 (H1 2024: 59.33) € 63.92 (+7.8% yOY) More customers and larger baskets. Note: due to rounding, total may differ from sum of quarters. Number of customers in millions Definition: average gross value (incl. VAT) of orders received from end-customers and patients (B2C), predominantly via online shops for own-stock business, divided by total related number of orders placed in a given time period. Rx sales for Switzerland and the Netherlands are excluded, as are B2B orders. non-financial kpis 64 Jun 2024 Jun 2025 11.6M 13.5M +0.4M +1.9M +0.6M +0.6M +0.4M
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22 million orders in H1 2025, up 1.8 million or 25% vs. prior year. Orders: sales to end-customers / patients (B2C) both own-stock and platform business. Repeat orders exclude platform-only customers. 9 Share of repeat orders in percentage of total 2021 2022 2023 2024 Source: Redcare Pharmacy Number of orders in millions non-financial kpis 5.1 4.7 4.4 5.5 6.2 5.8 5.6 6.4 7.5 7.1 7.0 7.8 8.9 8.7 8.8 10.1 11.5 10.5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 81% 82% 83% 81% 81% 83% 85% 84% 84% 84% 86% 87% 87% 87% 88% 88% 89% 2025 89%
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Year over Year Year over Year in millions of euro, adjusted numbers Q2 2024 Q2 2025 Better or (worse) H1 2024 H1 2025 Better or (worse) Sales 561 709 26.5 % 1,121 1,426 27.3 % Gross profit margin 23.4 % 23.8 % 0.4 pp 23.4 % 23.6 % 0.2 pp Selling & distribution margin (17.8) % (18.4) % (0.6) pp (18.1) % (18.9) % (0.8) pp Administrative cost margin (2.9) % (2.9) % 0.0 pp (2.9)% (2.8) % 0.1 pp Adj. EBITDA margin 2.7 % 2.6 % (0.1) pp 2.4 % 1.9 % (0.5) pp Adj. EBITDA 15 18 3 27 27 0 EBITDA 14 17 3 25 24 (1) 10 Adj. EBITDA margin doubled from Q1 to Q2 while sales growth continued unabatedly. key financials | profit & loss
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Source: Redcare Pharmacy 11 Gross margin improved despite fast growth of Rx. 23.3% Adjusted gross profit margin in percentage of sales Adjusted gross profit margin in percentage of sales 27.5% 23.3% key financials | gross profit margin H1 2024 Product margin, including mix Country mix, excluding Rx Germany Rx Germany mix Other H1 2025 23.4% 23.4% 23.8% Q2 2024 Q2 2025 23.6%
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H1 2024 Efficiency & scale Admin Country & platform mix H1 2025 Source: Redcare Pharmacy 12 Before country-mix, company expenses showed improvements from efficiency and scale. Adjusted SD&A costs in percentage of sales Adjusted SD&A costs in percentage of sales 23.3% key financials | selling, distribution and admin ratio (21.7)% (21.0)% Q2 2024 Q2 2025 (20.7)% (21.3)%
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Operating result EUR +25 million. Operating result adjusted for depreciation, taxes and provisions Working capital movements Financing and foreign exchange Cash and short-term financial assets Cash and short-term financial assets Financing EUR +124 million. Early buy-back of 70% of existing convertible bonds, and successful placement of new 2032 convertible bond of EUR 300 million on 8 April. Cash and cash equivalent balances above EUR 300 million. Investments EUR -57 million. EUR 40 million increase vs. H1 2024, primarily due to e-Rx automation project and new facility in Pilsen. Cash flow in millions of euro 13 key financials | cash flow 178 25 45 (57) 124 315 31 Dec 2024 30 Jun 2025 Investments Working capital EUR +45 million. Mainly from seasonality and timing.
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14 Update on Rx regulatory landscape. 2
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15 cardlink status and popp outlook • Extension of CardLink license until 31 January 2027. Continued access to the German e-prescription market during infrastructure migration phase. • Planning of next generation PoPP (Proof of Patient Presence) technology in full swing. Phased roll-out from mid-2026. Remote use case (including eGK) available in Q4 2026 with specifications expected in Q3/Q4 2025. • PoPP continues to support the eGK redemption without PIN. Non-discriminatory access, freedom of choice for patients. • PoPP enables new functions for tomorrow. Supports digital ID and may allow future use of Face ID or fingerprint, enhancing convenience and security. Seamless transition to the next generation of e-Rx technology. Continuous progress in digitisation of the German healthcare system, improving the lives of patients.
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Gematik’s seamless migration plan for PoPP. 16 cardlink status and popp outlook PoPP module spec for remote care use case Phased roll-out of PoPP 23.04.2024 20.01.2025 Q3-Q4 2025 31.03.2026 30.06.2026 31.01.2027 CardLink license approved. End VSDM++ in accordance with the German law (SGB V §291b). Current extension of CardLink license expires. First PoPP spec draft PoPP eGK remote case CardLink license extended 15.07.2025 VSDM++ CardLink
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• The Supreme Court (BGH) confirms the ECJ ruling that there is no justification for the Rx fixed-price regime to be applied to EU online pharmacies. • The plaintiffs and the German government were unable to provide evidence that EU online pharmacies harm the nationwide supply of medicines. • With its demand for data-based evidence, the BGH follows the line taken by the ECJ. • It is our interpretation that also the current (§ 129 SGB V, Social Act V) bonus ban does, and will not meet the strict ECJ and BGH justification test, as it does not differ in any way. 17 rx BONUS ruling Rx bonus for EU online pharmacies confirmed by German Supreme Court ruling.
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18 Update on Rx developments. 3
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Market share upward trend continues. 19 Source: calculated by Redcare using ABDA / Insight Health market size data of €55 billion, adjusted for 2024 seasonality, and own data. Redcare’s market share of Rx sales in Germany per monthly average; numbers shown are for the last month of the quarter. rx market share Assuming a EUR 55 billion addressable market. 2024 Q1 Q2 Q3 Q4 Q1 Q2 2025 0.27% 0.48% 0.54% 0.66% 0.87% 0.87% EasterChristmas 0.82% Because we determine the monthly 2025 market sales by using the seasonality of 2024, reported March is artificially high and April is artificially low due to the year-over-year shift in Easter. Combining March and April, thus neutralising this Easter impact, the average market share of March and April was 0.82%.
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Q0 Q+1 Q+2 Q+3 Q+4 Q+5 200 400 600 800 1000 1200 Continuing to add strong Rx cohorts quarter after quarter. 20 Main drivers for better cohort performance: active rate (share of returning customers after first order), average order value, order frequency. Metrics driven by high share of patients with chronic conditions. rx strategy Indexed accumulated sales per new customer (total cohort) x 4.8 x 3.7 Indexed accumulated gross profit per new customer (total cohort) Rx Non-Rx Q0 Q+1 Q+2 Q+3 Q+4 Q+5 200 400 600 800 1000 1200 x 2.8 x 2.4 Non-Rx Rx Q1 2024 Q2 2024 Q3 2024 Q1 2024 Q2 2024 Q3 2024
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And it is all just the beginning. 21 e-Rx in germany • Adoption of digital pharmacy solutions rising fast. Besides the surge in online pharmacy use, pharmacy platforms and independent brick-and-mortar pharmacies are also embracing remote services, supporting the digital transformation. • However, unaided awareness of CardLink still low. Significant upside potential, with ~80% of Germans not yet having new online redemption methods top of mind. • Tail wind from both national and EU regulators. Focus on digitisation of health in Germany, introducing ePA, digital health ID, and the launch of a dedicated ministry for digitisation. And in Europe, digital initiatives like the European Health Data Space and EU Wallet.
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22 Outlook and guidance 2025. 4
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23 Guidance, full-year 2025. • Total sales growth in excess of 25%. • Rx in Germany in excess of EUR 0.5 billion. • Non-Rx total company growth in excess of 18%. • Adj. EBITDA margin positive 2% to 2.5%. The market and industry remain dynamic. As always, we will optimise growth and margins, and short and longer-term value creation, and will anticipate on results and developments. Mid- to longer-term guidance of adjusted EBITDA margin in excess of 8% unchanged. outlook and guidance 2025
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Time to ask questions.
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Thank you. Interim Report H1 2025 can be downloaded on our website: www.ir.redcare-pharmacy.com Sevenum, 29 JULY 2025