Redcare Pharmacy Shares Struggle Amid Ambitious Expansion Plans

Despite significant investments in its operational backbone, Redcare Pharmacy continues to face severe headwinds in the equity markets. The company’s stock price hovers near annual lows, even as it confirms growth targets and activates a major new distribution facility. This divergence between corporate strategy and market valuation raises questions about investor sentiment toward the online pharmacy group.

The third quarter of 2025 presented a dual narrative for Redcare. While the company reported sustained dynamic growth, particularly within its German prescription medication (Rx) segment, profitability metrics remained under pressure. Key figures from the period include an adjusted EBITDA margin of just 2.4%. Management has reaffirmed its full-year 2025 outlook, targeting revenue growth exceeding 25% and an EBITDA margin between 2% and 2.5%. This strategy prioritizes aggressive expansion while attempting to build sustainable profitability, though the thin margins offer little room for error should costs rise or growth falter.

New Czech Logistics Hub Goes Live

A cornerstone of Redcare's efficiency drive became operational on December 11, 2025, with the launch of its new fulfillment center in Plzeň, Czech Republic. This facility will handle orders for Austrian customers, which were previously dispatched from the company's central logistics site in Sevenum, Netherlands.

Chief Operating Officer Theresa Holler described the launch as a critical step in enhancing European service levels. The project's execution was notably swift, progressing from the groundbreaking in October 2024 to the first package shipments in early December 2025, encompassing all necessary permits and commissioning.

The anticipated benefits from the Plzeň site are multi-faceted:
* Increased Capacity: Supports up to 15 million additional over-the-counter (OTC) shipments annually.
* Faster Delivery: Shorter transport routes for customers based in Austria.
* Cost Reduction: More efficient processes and lower overall logistics expenses.
* Enhanced Customer Experience: Aims to boost the Net Promoter Score in the Austrian market.

This move underscores Redcare's focus on scaling logistics operations—a vital lever for margin improvement in online pharmacy models.

Leadership Shift with E-Commerce Pedigree

Coinciding with the logistics expansion, Redcare appointed a new Chief Financial Officer. Hendrik Krampe assumed the role on December 1, 2025, bringing relevant experience from major e-commerce platforms including Amazon and eBay. His predecessor, Jasper Eenhorst, departed the company to pursue other opportunities. The appointment of a finance chief with a strong online retail background signals a reinforced focus on financial discipline and operational efficiency, aligning with the ongoing logistics investments.

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

Persistent Stock Market Weakness

The market's reaction to these developments has been tepid. Shares saw only a marginal increase on the announcement Friday, closing at €62.90. This price level remains just above the 52-week low and approximately one-third below the 200-day moving average, indicating a sustained downward trend.

The decline throughout 2025 has been severe: the stock has lost roughly 60% of its value over the past twelve months, with a drop of over 50% since the start of the year. The current price stands in stark contrast to the 52-week high of €159.20, highlighting a significant recalibration of market expectations for the company.

Sharp Divide Among Market Analysts

A notable contrast exists between analyst recommendations and the prevailing share price. The average price target sits at €142.75—more than double the current market value—revealing a deep split in market opinion.
* Deutsche Bank maintains a "Buy" rating with a €214 target.
* Berenberg has set a €165 price objective.

In contrast, UBS adopts a more cautious stance. While upgrading its rating from "Sell" to "Neutral," the bank set a target of only €74. This wide dispersion in analyst views reflects the ongoing debate about the risks and opportunities embedded in Redcare's business model, ranging from turnaround optimism to sober caution.

Forthcoming Milestones for 2026

The coming months will be pivotal in assessing whether the new operational structures and management team can translate plans into tangible financial improvement. Three key dates will be critical:
* March 4, 2026: Publication of the 2025 Annual Report.
* April 15, 2026: Annual General Meeting.
* May 6, 2026: Q1 2026 Quarterly Statement.

These reports will provide the first concrete evidence of whether the Plzeň fulfillment center and the new CFO are delivering measurable benefits to cost structure, margins, and growth. Visible progress could furnish arguments for a stock re-rating, while a lack of efficiency gains would likely prolong the current weak price trajectory.