Redcare Pharmacy NV has reported a remarkable 21% increase in third-quarter revenue, reaching €574 million. This growth was primarily fueled by an impressive 81% surge in prescription medication sales in Germany, attributed to the successful implementation of electronic prescriptions. The company's active customer base expanded by 0.4 million to 11.9 million. In response to these positive developments, Redcare Pharmacy has raised its full-year revenue forecast to between €2.35 billion and €2.5 billion.
Strategic Shift Impacts Profitability Outlook
Despite the robust revenue growth, Redcare Pharmacy has adjusted its profitability expectations. The company now projects an adjusted EBITDA margin of 1.2% to 2.2%, down from the previous 2% to 4% forecast. This revision stems from a strategic decision to increase marketing expenditure, particularly in the fourth quarter, to capitalize on the e-prescription market's potential. While some analysts view this move as a prudent long-term strategy, others express concern about its short-term impact on profitability. The stock market has shown mixed reactions to these developments, reflecting the uncertainty surrounding the long-term effects of increased e-prescription-related costs on the company's financial performance.
Ad
Redcare Pharmacy NV Stock: Buy or Sell? New Redcare Pharmacy NV Analysis on 04 October Provides the Answer:The latest Redcare Pharmacy NV figures speak volumes: Urgent action required for Redcare Pharmacy NV shareholders. Is it worth investing, or should you sell? Find out what to do now in our current free analysis from 04 October.
Redcare Pharmacy NV: Buy or Sell? Continue reading here ...