Redcare Pharmacy Strengthens Financial Position Through Debt Management

The online pharmacy specialist Redcare Pharmacy has taken a significant step in optimizing its balance sheet, addressing investor concerns about its financial resilience in an increasingly competitive market. The company's latest move involves the near-complete resolution of a legacy convertible bond, backed by substantially improved liquidity metrics.

A critical foundation for the company's recent financial maneuvers is its strengthened cash position. As of September 30, 2025, Redcare held cash, cash equivalents, and short-term financial investments (net of bank liabilities) totaling €265.6 million. This represents a substantial increase of €88 million from the €177.6 million reported at the end of 2024.

• Net Liquidity (30 Sept 2025): €265.6 million
• Net Liquidity (31 Dec 2024): €177.6 million
• Nine-Month Increase: +€88 million

This robust liquidity cushion provides the company with ample operational flexibility and directly supports its debt management strategy.

Legacy Convertible Bond Effectively Retired

Redcare announced that holders of its 2021/2028 convertible bond have exercised their right to redemption for an amount of €64.5 million. The payment to these creditors is scheduled for January 21, 2026, in accordance with the original bond terms.

This redemption represents the final major component of a comprehensive refinancing initiative undertaken in 2025. Earlier in April, the company repurchased €157.9 million of the convertible bonds through a tender offer. Concurrently, Redcare successfully placed a new €300 million convertible bond, which matures in 2032.

Following the January payment, the outstanding nominal amount of the original 2021/2028 bond will be reduced to just €2.6 million, effectively concluding this chapter of the company's debt structure.

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Operational Performance and Leadership Change

On the operational front, Redcare posted strong growth in 2025. Third-quarter revenue rose 25% year-over-year to €719 million. A particularly dynamic segment was the German market for prescription medications (Rx), where third-quarter revenue surged by 82%, primarily driven by the growing adoption of electronic prescriptions.

Alongside these financial developments, a leadership change occurred in the finance department. Hendrik Krampe assumed the role of Chief Financial Officer on December 1, 2025, succeeding Jasper Eenhorst. Krampe brings approximately two decades of financial management experience from fast-growing e-commerce companies, including an eight-year tenure as Finance Director for Amazon's European marketplace business.

Market Context and Share Price Movement

Despite the solidifying financial base, the equity market has yet to fully reflect this progress. Redcare's share price has declined approximately 50% since the start of the year. In Friday trading, shares were quoted at €65.60, remaining significantly below the 52-week high of €138.40 reached in March. However, recent weeks have seen some recovery from the late-November low.

The competitive landscape is intensifying, with drugstore chain dm entering the online pharmacy market, increasing pressure on Redcare's core business. Reflecting a mixed outlook, UBS reiterated its "Neutral" rating on December 17, acknowledging strong operational trends alongside emerging environmental risks.

Path Forward and Key Dates

With the restructuring of the 2021/2028 bond largely complete and the new 2032-maturity bond in place, Redcare has meaningfully smoothed the maturity profile of its financial obligations. The company now operates from a more solid financial foundation to pursue its growth strategy in the fiercely contested European online pharmacy sector.

Key upcoming milestones include the bond redemption payment on January 21, 2026, the anticipated Q4 results report on March 3, 2026, and the Annual General Meeting in April, where the appointment of the new CFO is expected to be formally confirmed.