Redcare Pharmacy Stock

Hello, and a very warm welcome also to everybody from my side. Before we start with the presentation, I would like to welcome our new CFO, Hendrik, to this round. We are happy to have Hendrik with us and the management team to further scale Redcare Pharmacy. Welcome, Hendrik.

Thank you. Happy to be here.

Okay. Let's look into the agenda of today. So first of all, we would like to start with the highlights of 2025, followed up by the financial performance, 25%, an update on strategy and in later an update on guidance.

So let's start with the highlights of 2025. The first 3 highlights are focused on Rx. 2025 has been a very successful year for Redcare are on Rx. We almost doubled our Rx revenues in Germany, reaching EUR 503 million. If we look into the relevant competition, our share of 67% demonstrates our clear market leadership position. From a group perspective, revenues are now exceeding EUR 1 billion, more than 33% of total sales. The large bonus for Enform policies was confirmed not only at the ECJ again, but for the first time in history, also at the highest German Federal Court. As a consequence, we introduced a new 1 scheme in Q4, which supported the strong growth in Q4 of last year.

In 2025, including the beginning of 2026, digital health care and Germany experienced a major step forward. Prospects for a new and more comprehensive identification technology, op have been released for local, but also for remote use cases. For online pharmacies, this will massively increase and improve the redemption options. Customers using EGK card will no longer need SMS verification as an additional step in the order process. And on top, the digital health ID can be used to redeem Rx at online pharmacies. Please also keep in mind that at the beginning of 2027, the EU ID wallet will be launched in Germany, expanding digital use cases, including the digital health ID to the entire population in Germany.

Let's go to the next slide. was not only very promising on Rx. We also delivered on our strategy to further increase customer satisfaction, scale, automation and cost leadership. Our logistics capacity expansion in Pilsen went live in Q4 of last year. Pills net 15 million parcels annual capacity to our overall capacity. We are mainly serving the entire Austrian market from Pilsen, but the setup also allow us to serve other markets on nonrec. For the Austrian market, we see Cisco Live faster delivery times higher customer satisfaction and higher NPS. Since majors are lower in bill compared to 7, we also reduced operational costs per parcel.

In Sevenum, we launched our logistics automation project in 2025. Revenue will always remain the heart of our pharmacy, including Rx. Therefore, the automation has a clear focus on Rx, including mixed baskets, but can also serve non-Rx orders only. The strategic rationale is comparable to Pilsen, double our capacity in Seven by early 2021. And here, good news. We are clearly on track to deliver on that. We reduced labor costs by 70% per order and higher speed, faster delivery will lose customer satisfaction and increase our competitive advantage. And then we also strengthened our balance sheet in 2025. The EUR 300 million convertible bond secures the cash we need to execute on our strategy.

Let's get to the next section, [indiscernible] financial performance. Our full year revenues are up 24% to EUR 2.9 billion as a double-digit growth in the DACH region as well as in the international region. Non-revenue up 15.5% to EUR 1.9 billion. Rx revenues up 43% to EUR 1.1 billion. now comprising 36% of the total revenues versus 32% previously. And the Rx Germany revenue, we talked about this already 98% up to EUR 503 million. Overall, a 72% increase on adjusted EBITDA, 0.6 percentage points year-over-year margin improvement, ending up on 2.0% adjusted EBITDA.

If we can go to the next slide. This is our typical breakdown into the different segments. Again, overall, Rx is the growth engine or has become the growth engine of the company. If we look into the different segments, you can see that 24.1% growth. Non-Rx 12.5%, Rx 42.6%. And on international, a strong 23.7% growth on non-Rx.

Looking into the orders, you can see there's a 19% increase in orders processed lapping a very strong 2024, and of course, also reflects somehow the higher average basket we have in our business right now compared to previous years.

Now I would like to go -- give some additional insights into the non-Rx growth situation. So what you can see is that our growth came down in mainly driven by the DACH segment. We have identified 4 main reasons. First of all, we did in 2025, not always find the sweet spot in the marketing mix. meaning the right combination of marketing, pricing, vouchers and also things like minimum order value. So finding the right mix was not always -- we did not always perform in the best way. Secondly, to some extent, we saw currently softer markets. And then number three, we see an increased platform competition, especially in the area of top sellers of. And number four, our overall push for more marketing efficiency, meaning at a certain threshold not to buy the next possible order. Overall, we increased the marketing budget, 2025 compared to 2024, but improved the marketing ratio as a percentage of sales and especially towards the second half of the last year.

In Q4 2025, we were working on top against a very strong Q4 '24, being pushed by you remember the Rx marketing boost campaign. The campaign, of course, had RX as a target, but as a result of our one-brand strategy also fueled non-rec growth in Q4 of 2024. Going forward, we will continue to optimize for growth and profitability using all elements of the marketing base. By doing so, we expect to stabilize the growth rate at 8% to 10% to 10% in 2026. And of course, we are intensively working on the details of the marketing mix to return to different growth rates. Non-Rx is the core competence of Redcare. We consider also going forward, non-gas a profitable, growing cash-generating business.

Having said this, I would like to hand this over to Hendrik.

Thank you, Olaf. Yes, warm welcome as well from my side. Let's jump right into the profitability analysis.

So you have seen we have improved our EBITDA significantly year-over-year. At the same time, we are at the lower end of our guidance. And this is mainly due to the higher share of Rx or the lower share of non-Rx as Olaf just explained in Q4. Whilst the gross profit margin for Rx is significantly lower than for non-Rx, please keep in mind that the unit economics are similar. This is due to the higher ASP for Rx. We have reduced our marketing spend in percentage of revenues year-over-year. And this is because we consider offering a cash bonus directly to customers using ag in some areas is more efficient than our marketing spend.

As we plan to continue to offer Rx cash bonuses throughout the year 26 versus only 4 months and '25. We will as well continue to reduce our marketing spend as percentage of revenues. Whilst increasing at the same time our ROI on marketing. Moving to gross profit. So our gross margin is mostly driven by Rx and non-X mix. You see here the impact of the increasing share, especially via Rx Germany. But we have as well margin pressure on the non-X especially as Olaf pointed out in the Putin Personal Care category. We have a tailwind from country mix. This is due to the lower share of our high ASP and hence, low-margin specialty IX business in Switzerland, many service. And you see as well a positive impact of our Marketplace business. Our Marketplace business has still a share of less than 5% of total revenues, and we are, therefore, not reporting in detail about this business yet, but we expect it to continue to lift our profitability going forward.

If we look at scale, we see core materializes in our selling and distribution and administrative costs. We have reduced our marketing expenses significantly compared to an extra investment in Q4 24 to boost Rx, and whilst we label this marketing Rx, it has as well a spillover effect to non-Rx. So you see a significant drop in Q4 SG&A rate versus Q4 '24. But this is not representative for what we plan for 26. However, we plan to continue to scale in marketing operations and administrative expenses. One example is our automation project in Seven where we plan to reduce labor cost per unit by 70%. This will be completed at the end of '26 and so become effective in 2. You see as well 0.7 percentage points headwind from our country mix and our marketplace business. This is due to the lower share of mid-service which has a low SG&A ratio and the higher share of the marketplace business, which has a higher SD&A ratio versus our core business because our revenues is not the GMV of sellers, but it's actually the seller fees.

Now if we look at EBITDA margin progression without mix effects, you see that it is mostly driven by selling and distribution expenses, mostly by marketing. And the improvement of about 0.5% or 0.6 percentage points in '25 is similar to what you can expect going forward in 26, and we'll talk about more of that in the guidance actually.

If we look at the different segments, so at the DACH segment, as you can see on the left hand, we have constantly increased the share of Rx and our mix. In '23, this was only our specialty business in Switzerland. And then in Q2 '24, we started to scale the IX business in Germany. And now in '25, we have, for the first time for the full year and Rx business in Germany and significantly increased tax share. Despite of that, we have been able to improve our profitability it's only slight improvement, but this is against the headwind of 0.7 percentage points on the gross profit. So we consider basically this as the turning point after the strong decreased 23 24% in adjusted EBITDA margin for DASH going forward, we will improve our EBITDA margin continuously.

Now looking at the international business, there as well. We see scale clearly materializing, coming from minus 6% in '23 to minus 4% in '24 and now minus 1% and 2% in and we expect to break even soon as the business continues to grow. On the cash side, we have increased our cash position by EUR 26 million with a EUR 50 million contribution from our operating results. We have actually improved some of our working capital but our inventory was about EUR 10 million higher than normal as we buffered a little bit of stock for the ramp up of the Pilsen side and as well for the introduction of a new ERP system at MediService, with cut over January 1, and but this will normalize throughout the year. The majority of our investments are related to fulfillment capacity expansion in person and Seven and we'll spend another EUR 30 million on the Seven home automation project in 26. After that, our investment in fulfillment capacity is basically done, meaning that for the next 5 years, we'll have enough capacity to serve our projected top line in the DACH region. And we expect '27 and beyond a CapEx below 2% of revenues.

With that, I'll hand it back to you.

Thank you very much. Okay. Now I would like to give an update on specialty. If you can go to the next slide. I would like to use the first slide in the strategy update section to briefly explain the competitive advantage of Red care as the leading European online pharmacy. The combination of non-Rx and marketplace offer gives us a unique value proposition towards our customers. We can use wherever possible from a leader perspective, the anchor to build trust as a pharmacy and to generate the necessary frequency, especially in the case of chronic yield patients. This trust hunker differentiates us clearly from the more non-Rx platform models, and it also shields us against generative commerce.

Non-Rx and marketplace are becoming the drivers of basket, gross margin and profitability. The combination of pharmacy trust, frequency assortment and higher customer satisfaction will lead to an increasing CLV over time. So the customer lifetime value will go up, and we will show initial results of this strategy later in the presentation. and increased use of automation and AI will lead to both higher customer satisfaction and efficiency gains throughout the entire P&L.

If we go to the next slide, you will see that we used this slide already in last year's earnings call to explain the unique value proposition of the one-stop pharmacy in more detail. Still a very good slide. That is the reason why we are using it again. First of all, it all starts with a highly trusted and top-rated pharmacy brand. One customer ID, on log in one-stop pharmacy on product. On our pharmacy platform, we offer the widest possible assortment.

In the case of Rx, is often translates into the best possible product availability. As you might know, up to 30% of our product is not really available at local pharmacies on the first trial. We claim we have the highest product availability in the market. Customers can check that in our app 24/7.

In the case of non-Rx, it is more about the breadth and the depth of the assortment we offer. In contrast to a lot of our competitors and platform models are focusing only on top sellers in the BPC area. The marketplace allows us to offer adjacent assortment to our customers which make our platform even more relevant and always a good reason to return. Our enhanced pharmacy services are a cornerstone of our offer, especially relevant to chronic legal patients. While complying with national pharmacy standards, we already introduced more than 20 years ago an electronic health record for our customers, including advanced pharmaceutical checks. This service is very well perceived by our Rx customers. Since the introduction of the East, we also launched additional services like to repeat prescription service towards doctors. The reliable delivery is 1 of the key NPS drivers for our pharmacy. Therefore, investments in automation, in logistics do not only improve our cost position, but are also building trust and customer satisfaction.

Looking into the development. Let's go to the next slide please. Looking into the development of our active customer base, we can see that this strategy is working out well in the German market. In total, we increased the number of active customers by EUR 1.4 million. On Rx, we increased the number of active customers by EUR 0.6 million in 2025. If we break this number down, we see that the additional active Rx customers are joining us in 2 ways: converted non-Rx customers, we like the Rx offer and are making use of this additional offer, a good effect of our assortment strategy. And secondly, first time completing new customers to Redcare liking the Rx value proposition, starting their journey with us on Rx. Additionally, they are buying nonrec at an increasing rate.

This slide should also look familiar to you. Let's talk about customer lifetime value. We are here comparing the Q1 25 cohorts of non-Rx customers with the Q1 25 cohorts of Rx customers, including all follow-up orders throughout 2025. Key takeaways, like also in the past, the accumulative for revenue and gross profit confirms that Ag customers have a superior customer lifetime value compared to non-Rx customers and also including the impact of an Rx bonus in Q4 of 25%. But also non-art cohorts are growing and are generating customer lifetime value. what the cohort analysis, of course, also shows is that from a customer lifetime perspective, it is best to have the combination of both cohorts, higher baskets, higher frequency, increased share of mixed orders and higher gross profit.

If we go to the next slide, you can see we would like to give you some of -- we would like to give you some more insights into the drivers of our RX business. Most important to see that the average eRx basket is improving significantly to EUR 130 in Q2. we have 2 main drivers for that. One is the mix order rate meaning additional non items in the basket. We see an improved mix order rate about 40% already in Q4, and as part of our platform strategy, you can imagine we would like to bring this number further up. And secondly, the other main driver is the increased NPS. Existing customers are trusting us as a pharmacy once they had an experience with us on Rx. And that means they are redeeming more expensive and more complex Rx products with us and also more scripts and units at the same time, also pushing the average basket value.

If we can go to the next slide, you can see as a result of the one-stop pharmacy strategy, we have an increasing gross profit per average active customer over time. currently at EUR 47, almost EUR 48. Please keep in mind that we have been only for less than 2 years in the eRx business in Germany. And the marketplace also still, as Hendrik pointed out, represents only a smaller part of our sales. Nevertheless, you can already clearly see that the CLD of our customer is improving, and this is just the beginning of it. Having said this, I think we should go to the next section, update on guidance.

I will hand this over to Hendrik.

Yes. So kind of building on what you just said, Olaf. So if we look at the key drivers of our EBITDA margin improvement, you will see a lot of this is things that we are already doing. We're not inventing a new strategy, but we're basically continuing on the path that we are. So going forward, we have sketched out a plan to consistently improve our profitability with the building blocks that you see here. So increasingly, we expect Rx to become the driver of organic new customer acquisition, reducing the cost of new customer acquisition. And then we will, with upselling and cross-selling, increase the customer lifetime value of all customers, and non-Rx. We will continue to see automation in all areas, not just in logistics, but as well there. And some of this automation will reduce costs. Some of it will as well improve the customer experience. We'll continue to see the scaling effects that we have on our overhead costs. We continue to drive marketing efficiency, to some extent by scaling, but as well as we make our marketing more sophisticated and differentiated. And then we expect over proportional growth and profit contribution from the marketplace and the Retail Media business who are structurally more profitable than our core business. So with these building blocks, we lead over to the guidance. Our 26 guidance is for total sales growth between 13% and 15% for Rx revenues in Germany in excess of EUR 670 million for non-X growth between 8% and 10% with an adjusted EBITDA margin of at least 2.5%.

Beyond '26, we have slightly adjusted the articulation of our outlook, but we stay committed to the above 8% in the long term. we will achieve a margin of 5% in the midterm and above 8% in the long term. At the same time, we want to announce that we are changing our forecasting practice here. So we will, going forward, no longer provide EBITDA guidance beyond the next financial year. as we become a profitable company will as well move to earnings per share. We will focus on the next financial year and not provide any outlook beyond that, aligning with the practice of most tax companies in Germany.

So with that, we conclude the presentation, and we move to Q&A.

[Operator Instructions] The first question comes from Jan Koch from Deutsche Bank.

I would like to take them 1 by 1. The first question is actually on your sales guidance, which implies a steep growth slowdown in OTC compared to the full year 2025. Could you try to unpack this and explain how much of the lower growth rate is driven by, a, the market weakness? B, your decision to spend less on our EC marketing; and three, on intensified competition. any remarks on the new entrants would also be helpful.

Yes. Happy to take that. So we consider the Q4 drop in non-Rx growth as an anomaly. And we see, to some extent, that this is proven by the current year trading where we see a rebound in non-ag especially in Germany. So why is it a one-off? The drop is mostly driven by -- and mostly, I mean, like in the order of 60%, 70% by the marketing spend reduced year-over-year. So as I laid out, we have spent in Q4 '24, significantly on Rx awareness. But every time we do this, there is a clear spillover effect on Monarch. So whilst internally, we label this Rx marketing, it's actually marketing for shopper take. And with our understanding of our marketing efficiency, we can clearly attribute 60% to 70% of this drop to our marketing. Now overall, the market has been soft if you look at the off-line pharmacy reporting. That is true to some extent that was true as well in Q3, yes. So there's a soft environment, but it's a lot smaller share of the explanation. And when it comes to new market entrants, I think we discussed this before. We take them, obviously, Sirius as a competitor, we have not seen any significant traction. It will probably take some time to build a larger business. But at this point, we don't see any impact of DM on our non-Rx business. Does that answer the question?

Yes. Just as a follow-up. So essentially, you mentioned that year Q1 was impacted by some one-offs in but you still put a 9% growth and essentially your guidance for 2026 at midpoint is also for 9%.

So I'm not sure I got you. So Q4 is impacted by one-offs. And then what we expect for 26 is that this one-off is not really a change in the trend. However, we acknowledge that there is a longer-term trend of decrease in growth I mean we have seen this basically since Q4 '24. And as we look at our current trading, and our understanding of the market, we assume that this will stabilize and balance out over the year and hence the 8% to 10% guidance that we're giving.

So we see a rebound versus Q4 and the stabilization overall.

Okay. Understood. And then on capital allocation, thanks for providing the comments on the planned spend for the automation project. But could you also share your assumptions for the overall CapEx and net working capital assumptions for 2026? And given the low share price and your strong balance sheet, would you be open for a share buyback program?

Yes. So we're not providing a cash flow forecast, our guidance is our guidance, as articulated here. As you can see, we are well funded. We have this EUR 30 million as kind of a one-off everything else is similar to the past in terms of IT capitalization. And this means that we're going to see a very much reduced CapEx in percentage of revenues to below 2%. So at this point, I think we are obviously not happy with our stock price, but we think that we will wait for any announcement on buybacks until we have reached profitability and this is the current plan. But obviously, this is a constant discussion that we have, but we have nothing to announce in this area at this point. There's nothing planned in terms of share buybacks.

Okay. Understood. And then finally, could you help us with the phasing of your sales and margin guidance for 2026. Lastly, you provided some comments on the Q4 call for Q1, especially given that Q1 is typically the quarter with the lowest margin in the year.

Yes. We expect the same seasonality, if you want to call it like this in '26. But overall, we obviously Think of this as a very balanced forecast. But yes, you should expect the same lower margin in Q1 as we have seen this in the past.

The next question comes from Sarah Roberts from Barclays.

I have 2, if that's okay, but we'll probably go through them 1 by one. So just firstly, on the EUR 670 million guidance for Rx, can you just walk us through beyond offering bonuses customers that seem to be having a positive impact. What are the levers do the business have in terms of driving that penetration of Rx online further. I think particularly given investing been education element around consumers today and you seem to have pulled back a little bit on kind of brand advertising and television advertising. So I just wanted to understand what you can do that's within your control to kind of drive that online penetration higher?

Well, I will try to give it -- so first of all, we need to apologize a little bit about technics. So sometimes you probably only see me or Hendrik, so I apologize for that. and also for some of the noise in the back. So I will try to answer that question. Yes, I mean, I mean, we see the change of behavior is not happening at the pace we would like it to be. So that is also the reason why our growth rate on Rx is coming down. and what is really in our hands to have a great product, great delivery. We have the bonus now out there. And of course, we need to continue to do the education additional things which could come in and might change this is the introduction of the digital health ID and maybe also a change more on the way how often cone patients have to see the doctors throughout the year. But when it comes down to 2026 is really we have to continue to do the education. And at the same time, need to want to have efficient marketing spend. So that's the reason why we ended up on this growth rate rather than on higher growth rates.

Got it. And then my second one, there's been a little bit of noise around proposed Section regulations around the pharmacy supply chain and reforms there. I think some concerns around the temperature control elements of those reforms as well. Just wanted to understand how materially you think these changes could impact the business? And should we expect any meaningful cost increases kind of going forward? Any thoughts there would be helpful.

Well, that's a good question. You know the about reform going on in Germany, having 2 parts. One is really a new law being introduced and the other, there's more regulation on the pharmacy operations. And in this section, there are new proposals how to introduce, let's say, new measures on temperature control. So the current version we think is not going to be the final one. So therefore, we are just -- we are currently working on this 1 and with all of our partners. So therefore, it's really too early to say something to this 1 at this point in time.

The next question comes from Christian Salis from Cantor Fitzgerald.

I've got a follow-up on the non-Rx growth topic. So you mentioned the increased competition in Germany. So from which channel is this really coming? Is it coming from multichannel retailers that are entering the market? Or is it from other online feel plays. Could you just please provide a little bit more color on that? And the second question would be regarding the fix, there have been positive comments by the German health minister. So could you confirm that this will have a positive impact on your profitability? And to which extent is this already reflected in your full year '26 guidance.

Okay. So I will give it a try on the competition. So there has always been competition in the market. Yes. So we the platform, the big ones like Amazon, they have been out there for 10 years, and we also always had other online pharmacies competing against us. So that is not really something new. So -- and we simply have to find a good way to deal with the competition. But if you're to be more explicit about it because of your question, we see more of the platform businesses out there currently who are offering, let's say, especially in the area of top sellers via lower price. That is more the competition than some of the new entrants new guys entering the market. So right now, we don't see any impact of those brick-and-mortar drug store chains entering our market. Of course, we are watching them closely. But so far, there's no impact is really more about the online platforms. But again, I mean, this has been out for many, many years, and we will find a way to deal with this also going forward.

The second question -- second of your question is on the fix. Yes, we also read that there are -- the discussion on the fixed room has been going on for quite a long time already. It's already part of the coalition agreement. And so now the question is when if and when there will be a fixable increase we don't know more than you know. So we also follow that discussion. But what is going to happen? Nobody knows at this point in time. The Ministry of Health also set up a special, let's say, committee to look into a reform overall on the health care system. So therefore, at this point in time, we cannot give you any additional information. for sure, we don't have any increase in our guidance for this year or in our long-term plan. So there is no assumption of an increase on the fixed minute.

The next question comes from Volker Bosse from Baader Bank.

Also 2 questions. First of all, on the CapEx in 2016, you said it will remain on an elevated level before it drops down then to 2% of sales. So where will be the in 206 is for fair to assume 3%, 4% and in that range. You mentioned the EUR 30 million for automation in even, but perhaps more details on that, please? And the second question would be on current trading. I mean, you said -- you reported non-Rx growth in Q4 and also said there was an unnormal slow growth. So can you confirm that you expect a return to above 9% means double-digit growth in nonrec in Germany? Or how do you see this momentum? It also linked to the question Mr. Koch from Deutsche Bank regarding the phasing of growth for the full year, you expect 8% to 10% on Rx growth and said 9% in Q4 was a normal low, perhaps a bit of details of the phasing.

So starting with the CapEx question. So we don't provide cash flow forecast. I will leave it as the CapEx in 206 plan is below the CapEx in '25. I will leave it there, but we don't provide more specific guidance. On the non-X question, so as I said, this is basically the fact that we are seeing a stabilization of a long-term trend. And we are trying to be prudent here in our forecast because yes, we have seen a drop in Q4. We now see a rebound, but it's only 2 months into the year. and it's hard to assess with sort of a dynamic environment, how this is going to evolve. But what we are saying is that we will optimize our marketing and our pricing to reinstate growth in the non-X area. And at this point, we assume that we are breaking the long-term trend across the road, and they were stabilizing that. but we are not predicting that we can really go back to 25% growth rates and turnaround completely the longer-term trend. Does that help?

[Operator Instructions] The next question comes from Olivier Calvet from UBS.

Yes. Can you hear me?

Yes?

Yes.

All right. Cool. Just first question on sort of non-Rx Germany. So you basically have touched on the fact that it was more driven by online than off-line competition. I just wanted to get a sense of specific categories that were under pressure. You mentioned PPC.

And then the second question on Rx, just curious why you're focusing on the point estimate as opposed to a range. Is there a specific reason to point towards a point estimate or any reason where you would try to go meaningfully above that level or just towards that level? And I guess also related to that, if you could touch a bit on the main drivers of the higher Net Promoter Score for eRx that you flagged?

Okay. So maybe we can split this a little bit. So my understanding was first question is on non-Rx Germany competition. Yes. So -- and also giving a little bit more of insight into this one. Yes, there is competition. So for example, we mentioned the categories earlier. We always talk about non-Rx but non-res actually 2 elements. The 1 is the OTC part, where you require where a pharmacy license is required and then there is the beauty and personal care. Those products are usually sold in a pharmacy, but you do not need to have a pharmacy license. And we see, especially on that area, let's say, on some of the top sellers in those areas, we see a little bit more competition also driven by a price. So that means what I was saying earlier in the presentation that we need to adjust our marketing mix, it also means that we will look going forward a little bit more into the pricing strategies in different channels, different product categories, et cetera. But of course, also working on the other elements of the marketing mix, vouchers, minimum order values, those kind of things. We do not want to give really a detailed insight into our strategy, but this is something we really have looking deeply into it, working on it and we're pretty sure we can, going forward, also develop a good strategy to get back to growth. I would like to reiterate again that competition has been out there for many years.

And to also answer the second part of your question, it is not so much about retail chains, drug store chains entering into the OTC market right now. The second question, I think, was on Rx guidance? Or is it -- Hendrik [indiscernible].

I'll take it. So the question was on why not a range for Rx but similar to 25 statement of what minimum will be achieved. So as Olaf pointed out, is Bob, this is a very new and nascent business, right? So we have really started this in 24. And it is not easy to predict this business. And therefore, we are saying we are giving a minimum target here instead of a range. But it's nuances, it's maybe a question of taste. I wouldn't read too much into this, frankly. What we are overall seeing and I think Olaf pointed this out as well as a constant steady increase in the penetration, but we're not reaching a tipping point where we have a step change.

Now at the current level where we are at 1.5% to 2% penetration of eRx. It's really very small. But at some point, you could expect that it really takes off because it becomes much more commonly known and used. And you asked about the impact or the drivers of the increased NPS, we think what really works is the cash discount. So giving the money to customers that use the product is supposed to create kind of word-of-mouth effect or at least the stickiness where people see not only to smooth experience and with pulp and everything going on as well on our side, we make an even other less rich experience in 26. But I have as well a very concrete cash advantage. And it's only A couple of months that we're doing this cash bonus. I don't think this is widely understood and perceived. So this adds as well uncertainty to our Rx upside. Again, those reference to current trading, we're happy with the performance of the Rx business year-to-date.

Maybe to add to the NPS because there has been a discussion for quite a long time, especially on Rx. When we started the Rx business, the NPS came down a little bit because we were not so experienced. I think some of you will recall this. And I think now over a period of 1 year, we really have we really better understand the entire journey. We understand the pain points, and that really starts already in our product in the app when we talking about availability and other things like this, interaction checks, all the way into the delivery service and the promise we make. So it is, of course, the bonus we are giving in Q4. But we already saw in Q3 an improvement. So we compete -- we better understand the customer journey, customer needs and then throughout the entire value chain, we optimize the product. And so I think that's that happened within 1 year, and that is actually a good achievement allowing us also to be #1 on the Rx and not only on the non-Rx.

Okay. super helpful. Maybe if I can squeeze in a tiny follow-up on the midterm or sort of fulfillment commentary. Is there a level of revenue or total orders that you are comfortable with once the fulfillment capacity expansion CapEx that you planned for in 26 is over like billion or a number of orders, yes.

So I didn't get -- happy with? I mean we are -- the message is that we don't need that in the past, you have seen significant investments obviously, the colon side as such, but as well the build-out of even. And going forward, we are good on capacity for the next 5 years. So obviously, we're now very eager leverage all that capacity and make good use of it. And obviously, the main driver is going to be the business trend.

Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Olaf Heinrich, CEO, for any closing remarks.

Yes, thank you very much.

I'm sorry to interrupt. We have a follow-up. Last minute follow up from Jan Koch, Deutsche Bank.

The first 1 is on your updated midterm and long-term targets on the margin. Could you define what midterm and long term mean? So do you expect to achieve that 5% adjusted EBITDA margin 2 for 2029. And then secondly, on the margin guidance of at least 2.5% in 2026. Should we view this as a floor and what needs to happen that you exceed this target.

Yes. So on the first one, we understand midterm as about 3 years. and long term, 5 years and beyond. So that's to your first question. To your second question, as discussed, the biggest contributor to our EBITDA margin is the mix of Rx and non-Rx. So if we have a bigger rebound of our non-Rx business, then obviously, we will do better. So that would be the main driver of exceeding the 2.5%.

Now we don't have any other questions from the phone that over to you for any closing remarks.

Yes. Okay. So many thanks. So again, sorry for some of the complications we had throughout the presentation from a technical perspective and also many things for all of you with questions. We understand that the 2026 guidance is below the expectation, but we are convinced that we have the right strategy in place, and we will deliver on our mid- and long-term outlook. Wish you a great day and looking forward to seeing you next time. Thanks.

Thank you.

A very warm welcome to everybody from my side. Before we get into our presentation today, I would like to give some initial statements. First of all, we announced on the 26th of September that Jasper has stepped down as CFO of Redcare, but will remain with the company until the end of the year for a smooth transition.

As part of this smooth transition, Jasper and myself will today make this on earnings call like we did also in the past. Secondly, we also announced on the 26th of September that there will be -- that we will present a successor rather soon. This statement still holds true. Please be aware that due to strict market regulations, we cannot give any additional information on this topic today. And number three, as you have seen the development of our share price this year, as you can imagine, we are not satisfied with this at all, and we take it very serious.

To us, it is an incentive to continue to deliver on our strategy and execution and to deliver results. We want to use this earnings call also to bring 3 key messages across. First of all, we are scaling Rx across the entire P&L from top line to full results. Secondly, we are strengthening our already positive operating cash flow and are fully funded to execute on our strategy. And number three, our capital-light business model is set up to scale and generate cash. Having said this, let's have a look into the agenda of today.

First of all, we would like to talk about financial performance. Then an update on Rx Germany and then number three, outlook and guidance 2025. If we start with the financial performance, let's look into the 9-month financial highlights. Our group sales are up 27% year-over-year. It's a continued strong growth. It's fully organic, and it happens both in non-Rx and in the Rx business areas.

Our non-Rx growth is up 18%, 15% in DACH and 26% in the International segment. Overall, and I think that's an important message, particularly in Germany with strong market share gains. Our year-over-year growth in Rx in Germany continues to be fast. It's 122% compared to the 9 months of the previous year. Our adjusted EBITDA is at 2.1% or EUR 44 million, already in line with the full year guidance range. And full year guidance, we confirm on all of these elements.

Let's look into the next slide. You're already familiar with those slides. It's a breakdown between DACH and International. And I think it's -- here, you can see we are growing in both areas, 26.7% in DACH, 25.8% in international. And in DACH, it's driven on the one hand by a 14.9% non-Rx growth, but even stronger by the 46.4% growth on Rx.

If we go to the next slide, you can see, first of all, our development of the active customers. We added another 0.2 million active customers in Q3 of 2025. And you know you need to keep in mind, Q3 is always the weakest quarter in terms of adding active customers to the file because of seasonal effects. And I think it's also fair to say that only because of ruling and rounding of rounding, we are almost talking about 0.3 million, but I think that that's not the most important message. It's really about the seasonal effects here.

If we look into the NPS, we are really happy to report that the NPS is back on track compared to previous quarters. And actually, it's the second best ever for Q3 reporting. And we had the discussion in the past, I mean, why did our NPS come down? And now we can say, especially on Rx, we learned what is relevant to the customer. We now better understand the patient journey. We understand the needs better. We communicate better. We optimize our product, including the app, but also the last mile. So we're really proud and happy to see that we brought this NPS up to a level above 70.

And then if we look into our basket size, also here, you can see the impact of Rx, a strong increase now to EUR 67. And as you all know, the higher the basket, the better it is for our business model. So overall, very good news on the customer side. And again, we're really proud of bringing the Net Promoter Score back to 72.

If we go to the next slide, you can see we are following the typical pattern of our business. So Q3 always being a little bit stronger, a little bit weaker than the other quarters. But overall, we're pretty much in line. It's 22% the orders are up. And you saw the sales are up a little bit higher. So this is also, of course, the impact of Rx. And also, I think important to point out, our customers are happy customers. You can see we have a share of repeat orders of 90% now. So that means customers are happy, NPS is up and happy customers are returning customers, and this is what we really want.

Having said this, I would like to hand this over to Jasper.

Yes. Thank you, Olaf. So where did all those orders lead to, and you had it already in the highlights, but here a little bit more granularity. So here, the customary table with the numbers of quarter 3 and year-to-date for the total group from sales up to and including the adjusted and regular EBITDA.

Sales in the third quarter ended at EUR 790 million, which was an increase of more than 25% versus last year's third quarter. And after 9 months, our sales increased from around EUR 1.7 billion to EUR 2.15 billion this year, which is an increase to be precise of EUR 451 million or almost EUR 0.5 billion of sales more than over the first 9 months of last year, a growth of close to 27%.

It's organic growth, same websites, same countries. And then this time later, you will see that we added more slides to point out a couple of relevant margin developments that we are seeing, and I will show these later. On this slide, the key messages are more if we go from the sales immediately to the adjusted EBITDA, where the margin of current quarter, as you can see, at 2.4% was 0.4 percentage points higher than last year.

And with the increased margin that we had 0.4% and the fast sales growth that we had, if you multiply that, you get to the adjusted EBIT. And the adjusted EBITDA in euros increased from EUR 11 million to EUR 17 million and EUR 6 million, albeit still small numbers, is an increase of 50% of our EBIT and with that of our cash generation.

And also year-to-date, you see a number that you pointed out already. After 9 months, the adjusted EBITDA stands at EUR 44 million and the regular EBIT at EUR 39 million. And later in the cash flow bridge, I will also get back to these numbers. And before we go to the next slide, one other thing because that is not including mix that's relevant from a total company perspective.

Underlying administrative cost margin, you see that we are achieving scale there. We are moving away from the around 3% of sales and are now going into the direction of 2.8% -- 2.7% of sales. And then the first more granular level of retail is, of course, the split in our 2 reporting segments, DACH and International. And I start with International because that story is easier. So the total of the Netherlands, Belgium, France and Italy did grow after 9 months 25.8%. So we were crossing after 9 months already the EUR 400 million of sales. And subsequently, at the same time, because profit margin improved, the selling and distribution did and the admin did.

And with that, we are 2.7 percentage points better there than we were last year. And important in International, if you look in the purple column, you see that the fully loaded adjusted EBITDA is minus 0.9% admin is 4.9%. So that makes clear that the contribution margin is not a little bit, but is very solidly into the positive now also in international.

And only in 2020, this number was still the adjusted EBITDA minus 10%, minus 9.8%, then it was minus 6%, but we are now here in positive territory. So improvements across the board in international from scale, market leadership and a couple of actions that we took. And then to DACH after 9 months, so the 26.7% increase, but there's also an asterisk on this page, if you look at the margins because if you compare the margins, it's relevant to realize again that the NFC carting solutions started mid-April last year.

So the numbers include last year 4.5 months of really a push after the NFC into growing RX and also in fast growth of RX and this year includes 9 months. In total, the adjusted EBITDA in DACH is 0.8 percentage points lower than last year. But still the title is saying that DACH grows strongly and scales in RX. And for that, it's important to combine this 9-month view with the current quarter, which is on the next slide.

And to go here then to Q3 immediately to DACH, you see that our growth was 25% and our adjusted EBITDA was roughly flat. It was 0.1% below last year at 3 percentage of sales. But with that and the fast sales growth, you see that our adjusted EBITDA -- adjusted EBIT increased by 4% or almost 30% compared to the year before. So in Q3, you really see the scale in DACH kicking in. International, the same story in quarter 3, even stronger than it was in 9 months with improvements across the board.

On the next slide, please. If we now again look from a total company perspective, first to the gross profit margin development as we used to do and then to the SG&A as a percentage of sales in the bridge graph, it's the 9-month view, and we achieved a better product margin. So that's check. We achieved country mix, that's a check and other, for example, from the benefits, particularly also from our platform model. A check and then you see that there is the mathematical impact of Rx in Germany.

But remember, it's a lower percentage of gross profit margin, but in euros, it is not lower. And to the left, you see Q3, which is giving the same picture, but a little bit more because it is including more of the Rx sales.

The next slide, please. SG&A. Also here, across Europe and also particularly in Rx. So in 2 of our business areas, we achieved efficiency and we benefited from our market leadership and scale. We already alluded to the fact that we improved admin as a percentage of sales. And this on total group level included some mix impact, and I can be precise there. Actually, this country and platform mix that you're seeing is only because of [indiscernible] service that actually grew very nicely and fast this quarter, but not as fast as our total company.

And here you see that the platform expenses are divided by the net sales and not by GMV. So after 9 months, a slight improvement of 0.1%. But what you see in Q3, that's to the left side, you actually see that we have been improving from 21.3% to below 20% of sales, to be precise, 19.7%. Now a new slide that we're having here. And the header is operating cash flow and operating cash flow straightforward defined as in the IFRS cash flow statements.

This even, for example, including the impact of income taxes and working capital. And the header is saying this operating cash flow on a rolling base rolling because we want to neutralize the seasonality of working capital is without Rx Germany already at EUR 100 million. There are 3 key messages on this slide, and they are to the right hand of the slide, but I would like to point them out.

Number one is we have fundamentally a strong operating cash conversion. I'll get back to that later. Number two, even with our significant Ex marketing at the moment, we have and we are on a rolling base continuously in a positive operating cash flow territory. So we do in Rx what we believe is the right level of Rx to push into the market leadership and into the market, and Olaf will later show you all the successes that we achieved there.

But with spending in the Rx opportunity, we actually see that in part also because we already get the contribution margin from those Rx sales. But you see that as a total company, that's the black line, we stayed in positive operating cash. Number three of the key messages is that our -- what [ Heather ] is saying driver and improving significantly is also the business excluding Rx Germany.

To make this a bit more clear, everything that I'm saying here, let's start with the upper graph. In the upper graph, the black line that you're seeing there is the operating cash flow as we reported in our cash flow. It's simply our operating cash. So the last number, EUR 32.8 million that you're seeing there is actually a little bit -- not the most favorable point to show here, but it is exactly what it is, but it still includes what you find at the bottom, the minus EUR 5 million of adjusted EBITDA that we achieved last year. And there was some timing -- negative timing impact in Q3 that will reverse in Q4. But having said that, this number is continuously in positive territory.

And why is that? And that is actually because our adjusted EBITDA, our EBITDA in total translates very strongly into operating cash, and that's what we name the operating cash conversion. It has been consistently over the past years above 90%. And actually, in the last 2 quarters, it was even 95%. So what you're seeing here is that we were able -- that's the red line, that's the EUR 2.5 billion of sales that we will do this year. We have been able to build there a strongly growing market leadership position, a cash-generating business. That's what you're seeing here.

And this is only the start of the line. This will continue to go up because the sales will increase and our margin will increase further. With that, we are funding the Rx opportunity. And that means that actually with the knowledge that we have with the business that we had already, applying that to also the Rx, that means that the black line, the total cash will go up extra fast because not only because of our ongoing business, but also of the improvement that we will achieve in Rx.

To the next, please. So after the rolling view, let's look at where we stand year-to-date. So this is the customary cash flow bridge. We started the year with EUR 178 million of cash, and we're standing at the end of September, we stood at the end of September at EUR 266 million. Start to the left. So the operating results translated into cash. If you remember, adjusted EBITDA, EUR 44 million, total EBITDA EUR 39 million and the operating cash impact of that is EUR 41 million. We indicated here that that's including the spending that we're doing in the very attractive Rx market and then still remaining at EUR 41 million positive.

But moreover, if you include working capital as well, we're standing year-to-date at EUR 50 million. And if you then include our regular investment level, which has been consistent in the past years of around EUR 40 million, we are still at a positive EUR 20 million year-to-date. This means that we are funding with our business, not only our growth that we are having, but also the working capital requirements and also our regular investments.

In regard to regular investments, we have targeted investments, a temporary peak, and we have a clear slide on that on the next page. And the increase of the financing I explained already last quarter. But just to repeat there, this is the result of our successful transactions that we did on April 8, where we basically rolled forward our debt that we have through -- in a concurrent transaction where we first placed successfully a new convertible bond and then bought back the far majority of our existing bonds.

Again, we are generating operating cash, as you can see, which is, of course, a driver of value creation, and we are very solidly financed with EUR 266 million of cash at the end of September. Then to address certain questions that we also sometimes got about the increase of our investments, but there's nothing new here. It's exactly the same as we disclosed to you earlier, for example, at the start of the year with our full year results of 2024.

The gray block that you're seeing here in the main graph is our investments as a percentage of sales. It was in 2023, around 2%. In '24, it was below 2%. And also this year, we will be clearly below the 2%. But on top of that, we are very happy that we have the opportunity, and we will talk about that later, that we actually have opened Pilsen to add capacity to our European infrastructure and also major step change in the automation of our logistics.

That is this year leading to a peak and to a smaller extent, also the coming year. But then for many years after that, we will have the capacity and a step change in our efficiency. And we can easily finance that with our balance sheet. We also have the option to potentially later decide to lease a large part of the logistics automation. But this to clarify that the increase of automation -- sorry, the increase of investments that you might have seen in Q2 and Q3 is here on the slide. It is only in 2025 and 2026 because to the best of our expectations, we believe that we will go back to below the 2% in the years after these investments.

Being at around 2% of sales, that means that we are, in my classification, a capital-light business model. You know that our longer-term mid- to longer-term adjusted EBITDA guidance stands. So it's 8% of sales or more. It's only requiring around 2% of sales even if you include those peaks, if you look at it from a couple of years average perspective. Olaf, that was a lot.

That was a lot, but thank you very much for giving this update, which clearly shows that our asset-light model is ready to scale, I would say. And 3 key messages again here. First of all, but I Jasper pointed this really nicely out with a strong operating cash conversion from EBITDA to cash. Secondly, already today in 2025, our operating cash flow that we generate is more than sufficient to finance our scaling and at the same time to fund the level of our regular investments.

In 2025 and 2026, we have a temporary and targeted investments in build logistics and logistics automation, and we will look into that in the 2 upcoming slides. But also for this, we are very well funded. So if I look at this picture, I think just it's fair to say we have everything we need in our hand.

So over the past years, we have achieved market leadership and cash-generating business in non-Rx through excellence and execution. And now we will do the same kind of thing and conquer the Rx market. So therefore, we are all on our way and the initial numbers clearly support that we are in that direction also of scaling the Rx business.

Let's have a look into the 2 investments, very good news on our new site in Pilsen. So our new site in Pilsen is now operational. Many thanks to our operations team for delivering this on time and on budget. It's a great job. Thank you very much. The first parcels have been dispatched. So now we are starting to scale the site. Please remember, the main targets for Pilsen are really to achieve shorter delivery times and hence, strengthening the customer satisfaction on the one hand and on the other hand, lower cost per order.

With Pilsen, we are adding EUR 15 million -- capacity of 15 million orders per year for our European non-Rx distribution. Please keep in mind from the Czech Republic, you are not allowed or we are not allowed to send Rx products. But for our non-Rx business, we are adding EUR 15 million -- 15 million orders per year for European distribution.

If we look into the next slide, you can see our automation project in Sevenum. This is our next generation of intralogistics, and it is fully on track. Just some highlights from our really major investments. With this investment, we will double our capacity. We will double our capacity at the beginning of 2027.

Special focus is on Rx, but this solution also works very well for non-Rx orders. And we will not only increase our capacity, but we will also increase our competitive advantage by reducing labor cost per order by 70%. And with this, we have a great breakeven calculation for this investment.

And on top, we will increase efficiency, more streamlined order fulfillment, more automation and of course, also more speed. So it looks very good, very promising. We are on track starting 2027, and we are really looking forward having then more updates from these nice visuals and then at the beginning of 2027 also to really show you the fully automized flow.

Having said this, I would like to go to the next chapter, which is really the update on Rx development. Let's start with the first slide, looks so easy, but just to remind all of us, the huge opportunity which is ahead of us. We have -- if we look into the German market, we have this EUR 11 billion non-Rx market. And this market has today online penetration of 23% to 25% and us owning a very good share of that one.

And then we look into the Rx market. It's a EUR 55 billion market hasn't changed, even increasing. And here, we see the online penetration, it's still at 1% to 2%. So it's a huge, huge opportunity out there. And I think it's always important to keep this in mind. This is something a new opportunity we can grab in the future. If we look into the next slide, also here, you are familiar with this slide, but we added some additional information.

But first, let's look into the -- what we usually report, and that is the market share here. Looking into the definition of the market, EUR 55 billion and then looking into our total Rx sales. We started last year Q1 at a market share of 0.27%, which was at that point in time, an annualized sale of EUR 150 million. And now if we look into this year, Q3, we are at a market share of 0.94%, which is actually an annualized sale of EUR 520 million. So it's a huge step-up and that only happened within less than 2 years.

So it's really great development already today annualized sales above EUR 500 million. And then we added a second line here, and that is the line what we call the market share e-scripts only. You know in Germany, we have not all of the market is an e-script market. But for the market which is e-script, we would like to give you some more details and insights. So we have here also the line of the market share. And of course, it has to correspond somehow with the overall market share.

But it's interesting to see that on the eRx business, which is the more dynamic business, we are now already at 1.19% market share, so 1.2% market share, and we keep on growing. So we think we added that information because a lot of you guys have asked for that one and to give some more transparency about the, let's say, the e-script business on its own, we added this number.

If we go to the next slide, you are also familiar with this one. Those are our -- this is our view into the cohorts and the Rx cohorts continue to perform stronger than the non-Rx cohorts. So the way it works, we look into a certain quarter. Here, you can see 3 quarters, the first quarter of last year, the second and the third quarter. And then we see the follow-up performance of those customers we acquired. And what you can see there, we see a 5x the sales we are making on an Rx cohort compared to a non-Rx cohort. And again, the non-Rx cohorts are already strong. We are generating more than EUR 100 million operating cash out of the non-Rx.

So it is a great business, but the Rx business is even greater if you look into the cohorts comparable look into sales and also on the right-hand side, if you look into the gross margin, gross margin is 3x higher than what we can see on the non-Rx cohort. So it's a confirmation that the Rx business is also very valuable and that the customers we are acquiring are good customers in terms of quality. And of course, it's driven by their chronic diseases, yes.

So that means they have a higher share of returning, more frequency, higher baskets, all of those things you are familiar with. But you can also clearly see in the numbers that even after 6 quarters, those cohorts continue to outperform the non-Rx cohorts.

Having said this, I would like to give this back to you, Jasper.

Yes. Okay. So to finalize it, indeed, let's look at the outlook and guidance that we said it already in the press release and also at the start. To date, we have been able to deliver upon the expectations that we have set at the start of the year.

Our guidance for the year was again to continue to grow fast, but at the same time, improve our margins -- we are well on track. And with that, we reiterate that we expect this year to grow our total sales on a full year base by more than 25%. In Germany, to cross the EUR 0.5 billion of total Rx sales over the calendar year on an annualized basis, we are already on the calendar year, that was our target there.

Non-Rx for the total company to grow in excess of 18% and adjusted EBITDA margin ending for the full year between 2% and 2.5%. So we reiterate this guidance, and we're very happy with that. And with that, I think we should go to the -- see if there are any Q&As -- any Qs. Yes, any question...

Any Qs and we will try to give some answers to that.

[Operator Instructions] The first question comes from the line of Jan Koch from Deutsche Bank.

I have a few on your German Rx business. So obviously, great to see that the growth in your Rx business has accelerated again sequentially in Q3. Have you made any changes to your strategy here? And in relation to this, could you provide initial feedback on your Rx bonus campaign?

Then my second question is on the operating cash flow. Thanks for providing that number, excluding Rx Germany. When do you expect the operating cash flow in the Rx business to achieve breakeven? And then finally, how many of your German Rx customers are using the Rx bonus solely for the copayment?

Okay. So I think I will give it a try on the question #1 and 3, Jasper. And you will give it a try on the #2. But maybe I will also try to answer the question 2, and then you can step in Andreas. So yes, thanks for the question. I mean the first question was on our growth strategy, Rx, if I recall it right, and the Rx bonus campaign.

So you know, I mean, in the past, we -- when we started with the Rx business, we introduced it more like, I would say, an Rx convenience model where we did not really give a lot of bonus. We gave a onetime incentive to use our app. But besides that, we've launched it as more as a convenience model. And now with all of the learnings we have from, let's say, May of last year, we switched this more into, let's say, bonus campaign. So that means -- and you can clearly see this on our web page that we are now offering a bonus for each script you're ordering with us.

So that means there is a little bit of a shift in the, I would say, go-to-market strategy from education on marketing more towards, let's say, direct financial incentives from a customer perspective. So there is a little bit of a shift. Nevertheless, we are still doing -- having a great product out there, which is not only about a bonus, but there is a little bit of a shift. And at the same time, of course, you will see that we will not spend so much then on the marketing any longer because there's only one P&L, and we have to balance the whole pieces.

So it's also a shift from, let's say, a marketing more towards a bonus kind of approach. I hope that answers the question a little bit. The second question was operating cash flow breakeven on Rx. So that would be a forward-looking kind of thing. So that is difficult for us to do. I mean on the non-Rx business, it took us quite a long time to get to where we are. I mean I think on the Rx, it will happen faster.

But this is completely in our hand, and that is what I was trying to say earlier. I mean we think we are growing at the right pace with the right investments in terms of marketing and bonus. So -- and therefore, it will continue until we are in a breakeven, but we do not give a certain period or day or something like this. But I mean, here we are flexible because, again, it is all in our hand. We can steer it. What you can already see today that we are improving -- we are scaling Rx. We are improving not only on the growth, but also in the individual lines like marketing, for example, but also for also overhead.

So the scale also happens on overhead. So it happens across all P&L lines, but we do not want to give any forward-looking statement on a concrete breakeven. I think, Jasper, that's probably fair to say. And then there was a little bit on the German Rx customers co-payment, I think, was the question.

So yes, you know, I mean, we have a reduction on the co-payment, but also our bonus we are offering can also be used for non-Rx, let's be more specific for BPC products. So customers who do not have a co-payment can use the bonus for orders on BPC. And so therefore, we think it's a very compelling value proposition.

The next question comes from the line of Sarah Roberts from Barclays.

So firstly, just a small clarification point. On the rolling operating cash flow of EUR 32.8 million, can you clarify the negative timing impact you mentioned between Q3 and Q4, which led to the temporary dip in cash flow in Q3?

And then secondly, we're now 9 months in EBITDA margin guidance for the full year remains at 2% to 2.5%, which is a fairly wide range. Can you walk us through the key drivers for hitting the upper versus lower end of that guidance range and which cost levers are within your control? And I suppose given that the year-to-date margins are at 2.1%, does this point to the low end for the full year? Or do you see scope for improvement into Q4?

And then finally, my last question, we've seen recent reports suggest new players are entering the German OTC space with some potentially fulfilling from the Netherlands. How do you see your positioning in OTC? And what level of investment into the customer proposition or marketing might be needed to defend against these new entrants as we move into next year?

So on the first 2 questions, you will give it a try, Jasper. On the third one, I did not completely get. I think it was...

I think it's about competition.

Competition, but I did not get the name of the competitor. But I think the third question was about competition. Can you maybe just clarify this a little bit?

Yes. Sorry, I didn't name any specific competitors, but we've seen a couple of press reports just suggesting that new entrants are moving into the German OTC space.

Yes. Thank you, Sarah. And let me start with your first one. Yes, the thing is that the rolling is, of course, the rolling of the last 12 months. So that's the last 12 months -- the last 4 quarters in this case. And the reality is that if you look at the bottom graph of this Slide 14, you see that last year, we were some EUR 20 million lower than you were used to see in a quarter, and that was our deliberate choice, and that brought us market leadership in Rx. And this minus EUR 20 million -- this minus EUR 5 million EBITDA, EUR 20 million lower is included in this EUR 32.8 million still.

So this means that this number will go up in next Q4 because then you have -- in next Q4 because you have a new Q4 instead of last year's Q4. So that's one of the 2 items I mentioned. And the other one, it is quite some millions, but it is structurally not that important. There was some unfavorable timing in the working capital balances in Q3 that will reverse in Q4. And those 2 together will -- everything else being equal, lead to this line going up, and you will see that in our cash flow statement of quarter 4. So that's number one.

Then number two, yes, to us, it's a rather narrow range, I have to say, 2% to 2.5% and better understand your question there. Now at the start of the year, and that's, I think, relevant, we said we ended Q4 last year with minus 0.7%. We said this year, it's going to be different. It's going to be a positive, and it's going to be between 2% and 2.5%. And the first quarter will -- because of our agenda and some seasonality, the first quarter will be lower. And that's exactly what happened.

Q2 was 2.6%. Q3 was 2.4% at the moment, yes. And we stick to this guidance range for the full year. And I think it's -- we are now on the level of Q2 and Q3 and now we enter Q4. So it is what it is, I have to say. We don't precise it any further. Competition, I think in general...

Competition, I will give it a try. Yes, I mean, yes, it's a good question. So there's a lot of information coming up that potentially competitors are entering our market. But I mean, those rumors, I mean, I started in this business 15 years ago or so -- 15 years ago, actually also one of that competitor, which now the rumor is on also try to enter the market.

So what I can say from our perspective, we are clearly positioned and it's what we also showed, I think, in the full year presentation, we are clearly positioned as an online pharmacy, not as a marketplace and not as a drugstore or something else. We are positioned as an online pharmacy, and we have the full assortment, OTC and Rx, and that is what we can play from the Netherlands.

So being positioned as a pharmacy, we have tons of happy customers. You look into our NPS into the repeat orders. So customers love to be with us while they have also today other options. If you look into, let's say, other marketplaces, which are around in Germany, where you can also buy online pharmacy products, I mean that has not really hindered us on growing over the last 15 years.

So there has been competition out there before. And we think we have a strong value proposition, trust, pharmacy brand, great product. And therefore, of course, we look into new -- potentially new competitors. Of course, we have to do that, but we feel really comfortable that we have a great position and that we can continue our growth despite also maybe potential other competitors potentially entering into the market.

Basically, there's nothing new.

Yes. There's no news we have to say. But of course, we look into what others are doing. But again, I think we are very strong positioned.

[Operator Instructions] We now have a question from the line of Olivier Calvet from UBS.

I hope you can hear me, all the best for your future. Two questions from me. Number one, of the upwards of EUR 100 million operating cash flow, which you generated in non-Rx over the last 12 months. Could you confirm if the international non-Rx business is a positive operating cash flow contributor? Or if not, another way to ask is what's the right ballpark to think about when we think about the German non-Rx operating cash flow contribution?

And then the second one would be a follow-up on competition. So Olaf, we've seen partnerships in the past and among others at one of your competitors. Are you open to partnerships with some of the retailers that have been mentioned? And what would be the key that would make you partner up or not? What's your position relative to this? Are you rather reluctant at this point or potentially open?

Jasper, do you want to give it a try on the first?

Yes, thinking about the answer there. There are several angles to answer that. I think you know what our EBIT is that the fully loaded is around 0. So that's basically also answering the question that you have there. But more important is that you see the rapidly improving track that we also have in International. It's very important that we actually in international do exactly the same that we did in Germany before.

And then in Austria, we did in Belgium, and we successfully do it in Italy and the other countries that we mentioned, where we also have traction there. So the business is exactly the same where we are gaining market shares. We're having market leadership. We achieve skills. We apply centrally efficiency measures that we have and how we conquer the market. So actually, there is -- normally, you would expect not any difference between international and between. You talked about Germany.

And the only difference is where you are in the life cycle because some of the countries in International, we are less fewer years than we are in Germany and Austria. So for the future, it's the same that you're saying there. And at this moment, yes, you see -- you know what our EBIT is there. So you also know how then the operating cash flow is there.

On the second question, this competition question, as I said earlier, I think we are very well positioned as the leading online pharmacy, have a clear value proposition. So that means we feel really comfortable and I would never rule out any kind of cooperations or so, but this is clearly not on our agenda, very well positioned. We feel comfortable with what we have. And therefore, that's really not on the agenda today.

[Operator Instructions] The next question comes from the line of Patrick Holstein from APOTHEKE ADHOC.

This is Carolin. I swap for Mr. Holstein. I have 2 questions. Could you tell us more about the new bonus model, which would come at the end of this year? And how does -- the second question is, how does the litigations burden the company?

So the first question, I understood. The second was about mitigation. Can you maybe please?

The second, if we are burdened, we have of ongoing litigations in general...

Well, I mean, I think the bonus model, we said everything to the bonus model. We have a current bonus model, which we are using and where we feel really comfortable with. So therefore, I don't see any additional or new bonus model coming up. The bonus is part of our commercial offering. So it might change over time, but this is just, I would really say, operational commercial piece.

But besides that, we are offering a bonus, and we feel comfortable the way we do it also from a legal perspective. And mitigation, so I don't see there are any major topics. So we feel really comfortable on where we are right now in our setup. And therefore, nothing to add on that topic.

[Operator Instructions] Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Olaf Heinrich and Jasper Eenhorst for any closing remarks.

Yes. Okay. So then I would like to use this slot actually, the final remarks to say thank you to Jasper. Jasper has been more than 5 years with the company. And during this time, the company has made a tremendous progress in terms of growth, but also in terms of profitability. So Jasper, thanks for all of the work and the dedication you have put into the journey of Redcare, yes, and all the best for the future.

Thank you so much. Thank you so much. It has been a great pleasure for me to at the end of the year then I've served the company almost 6 years. and it was magnificent. It was really great. And I can also assure everybody that the company is in excellent hands with Olaf and all the other great people at Redcare Pharmacy. Thanks a lot.

And to everybody else, many thanks for all of your questions and also your interest into Redcare. The next earnings call is only in March 2026. So now it's a long time to go. So looking forward to hopefully see you all next time, and wish you a great day. Thank you very much.