The medicine distributor Redcare Pharmacy expects a lower profit in 2024 than before due to higher advertising expenditure for e-prescriptions. Management now expects the margin based on adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) to be between 1.2 and 2.2 percent in the current year, as the Dutch group announced on Thursday evening in Sevenum. The company had previously forecast a margin of 2 to 4 percent.
The board of directors decided to increase marketing investments for the E-Rx business in Germany in the fourth quarter due to “convincing key figures”, in particular the high repeat orders and the average shopping cart size, according to the press release. This decision is based on the belief that investments at this time will support further profitable growth and the expansion of Redcare Pharmacy’s market leadership, the company said.
Rx sales increase to 69 million euros in the 3rd quarter
Sea Redcare Pharmacy Rx sales in Germany increased by 81 percent in the third quarter, which corresponds to sales of 69 million euros (Q3 2023: 38 million euros). IIn September, Rx sales increased by 108 percent.
And the company is also on track for growth in other ways. Total sales increased by just over a fifth to 574 million euros in the three months to the end of September compared to the previous year. Revenue from non-prescription products grew by 20 percent to 383 million euros. The number of active customers was 11.9 million at the end of September, 400,000 more than at the end of June – 1.4 million more compared to the previous year.
