By Helena Smolak
Redcare Pharmacy has experienced a significant boost in sales in the third quarter, thanks to its successful foray into the e-prescription business. The German online pharmacy, including its joint venture MediService in Switzerland, reported a year-on-year sales growth of 67%, reaching 476 million euros ($505.3 million).
Surge in Prescription Sales Drives Rapid Sales Growth
One of the key factors contributing to Redcare's rapid sales growth across all markets in the third quarter was a surge in prescription sales. The company witnessed a remarkable increase from 33 million euros to 156 million euros in prescription sales, marking a substantial growth of 373%. Additionally, nonprescription sales experienced a healthy rise of 27% to reach 319 million euros.
Impressive Financial Performance
Redcare also reported an impressive financial performance, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reaching 15.2 million euros, a significant improvement from the previous year's 1.3 million euros. This demonstrates strong growth and is indicative of the company's increased profitability. The EBITDA margin expanded from 0.4% to an impressive 3.2% compared to the prior year.
Improved Customer Loyalty
The increased customer loyalty is evident from the share of repeat orders, which soared to 86% during this period, up from 83% in the previous year. This indicates that customers are highly satisfied with Redcare's products and services and are more likely to make repeat purchases.
Redcare's Full-Year Guidance
Redcare remains optimistic about its performance for the rest of the year and reaffirms its full-year guidance. The company expects sales to range between 1.7 billion euros and 1.8 billion euros, while maintaining an adjusted EBITDA margin between 1.5% and 3%.