Jefferies raises RedCare Pharmacy outlook after strong Q2 update

Investing.com -- RedCare Pharmacy issued a positive trading update ahead of its second-quarter results scheduled for July 29, raising its fiscal 2026 guidance across multiple metrics including group revenue, non-prescription sales, German prescription revenue, and adjusted EBITDA margin, according to Jefferies.

The company's group revenue growth accelerated to 20% year-over-year in April and May from 18% in the first quarter. German prescription revenue grew 57% year-over-year during the first two months of the second quarter, reaching €118 million.

RedCare raised its fiscal 2026 German prescription revenue expectation to €680-720 million from previous guidance of above €670 million, implying 35-43% year-over-year growth.

German non-prescription sales showed improvement, accelerating to 14% year-over-year growth, with growth increasing from 12% in April to 16% in May. International sales remained at 16% year-over-year growth across nearly all markets.

The company now expects fiscal 2026 group revenue growth of 15-17% versus 13-15% previously and non-prescription growth of 10-12% versus 8-10% previously. Adjusted EBITDA margin guidance was raised to 2.5-3.0% from "above 2.5%" previously.

At the midpoint, the new implied adjusted EBITDA of €94 million sits 12% above consensus and the previous guidance. The increased fixum from July onward should contribute toward this new target, Jefferies noted.

RedCare will not publish the usual preliminary sales numbers in early July, the firm added.

You May Also Be Interested In

• Electra Therapeutics files for proposed IPO
• Agnico Eagle subsidiary adds to Canada Nickel stake via private placement
• Trilogy Metals signs $35.6M investment deal with U.S. Dept. of War