Redcare Pharmacy, better known by its brand name Shop Apotheke, was able to announce a profit in the second quarter as a result of special items. The online pharmacy had a positive one-off effect of 14.2 million euros related to its convertible bond transaction carried out in April.

The company issued a new bond, and used part of the proceeds for the early buyback of outstanding convertible bonds. The transaction helped the company towards a net quarterly profit of 8.9 million euros for the second quarter.

Operations also ran smoothly. The most important key figure, the adjusted margin on operating earnings before depreciation and amortisation (Ebitda), reached 2.6% in the reporting quarter, up from 1.3% in the previous quarter, despite the fact that marketing efforts for e-prescriptions were stepped up once again.

This success is impressive, as the mail-order pharmacy has expanded its market share everywhere, according to its own figures – especially in Germany and Italy. In Germany, Redcare Pharmacy has a 0.87% share of the prescription drug (Rx) market. The total market is estimated at 55 billion euros.

For the year as a whole, Redcare Pharmacy is aiming for an adjusted Ebitda margin of between 2% and 2.5%. At the same time, sales are expected to grow by at least 25%. In addition, revenues from prescription drugs in Germany are expected to grow to more than 500 million euros, showing a positive trend after a figure of 222 million euros in the first half.

After an analyst comment in early June raised doubts about the viability of the electronic prescription business, CEO Olaf Heinrich addressed some of the concerns, noting that the regulatory environment is complicated and not always comprehensible at first glance. However, Heinrich reassured analysts and investors that they could confidently assume that the management have a clear strategy. Gematik recently extended the approval of the Cardlink solution for submitting e-prescriptions until January 2027.

The CEO was pleased with the recent ruling by the German Supreme Court (Bundesgerichtshof BGH), which confirmed the legality of bonus model price reductions on prescription drugs. It is not yet clear whether online pharmacies are only allowed to offer direct bonuses, or also indirect bonuses in the form of vouchers for future orders. But that is more of a marketing issue, said Heinrich. Redcare Pharmacy is prepared for all eventualities in this regard.