Redcare Pharmacy: A Growth Engine in Search of Profitability

While the operational performance of MDAX-listed online pharmacy Redcare Pharmacy continues to show progress, its share price has largely failed to reflect these developments. Investor skepticism persists, centered on a fundamental question: when will the compelling growth narrative finally translate into sustainable profitability?

A striking divergence of opinion characterizes the current situation. The broader market sentiment remains pessimistic, yet those with the deepest understanding of the company are sending a strong signal of confidence. Over the past twelve months, corporate insiders have been net buyers, purchasing shares worth approximately €1.7 million.

The price level of these transactions is particularly notable. The average purchase price was around €111 per share—nearly 80% above the current trading level. Supervisory board member Michael Köhler alone invested close to €400,000 at prices near €101. These moves suggest that leadership views the recent steep decline in the share price as an overreaction.

A Strategic Milestone Amidst Margin Concerns

This week marked a significant strategic advance for Redcare’s European operations with the official launch of its new logistics center in Pilsen, Czech Republic. The project was completed with notable speed, with just over a year elapsing between the groundbreaking and the dispatch of the first package.

The new facility immediately assumes responsibility for supplying the entire Austrian market, a task previously managed from the Netherlands. The anticipated benefits are clear: annual capacity increases by up to 15 million packages, delivery routes are shortened, and the overall cost structure is expected to become more efficient.

Should investors sell immediately? Or is it worth buying Redcare Pharmacy?

Despite this progress, the equity remains under pressure. Shares closed at €62.90, hovering just above the 52-week low of €60.35. Since the start of the year, the stock has lost more than half its value. The reason for this disconnect is a singular market focus: expansion updates are being overshadowed by concerns over thin profitability. In the third quarter, the adjusted EBITDA margin stood at just 2.4%. Investors are demanding concrete proof that robust revenue growth can be converted into durable profits.

New Leadership and Divergent Price Targets

The company’s recent executive appointment underscores its focus on operational improvement. Since December 1st, Hendrik Krampe has assumed the role of Chief Financial Officer. With two decades of experience from Amazon and eBay, analysts interpret his hiring as a clear signal of a heightened focus on operational efficiency.

The gap between the current share price and analyst expectations is substantial. The average price target sits at about €143, implying a potential doubling from current levels. However, consensus is elusive. UBS maintains a more cautious target of €74, while Deutsche Bank’s analysis points to a target of €214.

The Path Forward: Proof in Performance

The coming months are likely to be decisive in bridging the valuation gap. Key upcoming dates include:
* March 4, 2026: Publication of the 2025 Annual Report
* April 15, 2026: Annual General Meeting
* May 6, 2026: Q1 2026 Quarterly Statement

Until the annual figures are presented in March, Redcare Pharmacy remains in the position of having to deliver proof. The Pilsen logistics center must demonstrate that it does more than accelerate shipments; it must also contribute meaningfully to margin improvement through tangible cost savings. Only when efficiency gains are clearly reflected in the financial statements is broad market confidence likely to return.