Redcare Pharmacy Stock (2025): Debt Under Control – What Investors Need to Know

• How Has Redcare Pharmacy Tackled Its Debt Load?
• Is Redcare’s Liquidity Position Strong Enough?
• Why Has the Stock Crashed 50% Despite Solid Fundamentals?
• What Does the New CFO Bring to the Table?
• How Strong Is Redcare’s Operational Growth?
• What’s Next for Investors?
• Redcare Pharmacy: Key Questions Answered

Redcare Pharmacy has made significant strides in strengthening its balance sheet, nearly clearing its 2021/2028 convertible bond while boosting liquidity. Despite a 50% stock plunge this year, operational growth remains robust, with Q3 2025 revenue up 25%. New CFO Hendrik Krampe brings Amazon experience, but competition is heating up as dm enters the online pharmacy space. Here’s a deep dive into the financial health and challenges facing this e-pharmacy player.

How Has Redcare Pharmacy Tackled Its Debt Load?

Redcare just crossed a major refinancing milestone. On Friday, the company announced holders of its 2021/2028 convertible bond exercised repayment rights for €64.5 million, due January 21, 2026. This follows April’s €157.9 million tender offer buyback. The outstanding amount now shrinks to just €2.6 million – effectively closing this chapter. To fund these moves, Redcare placed a new €300 million convertible bond maturing in 2032, buying crucial breathing room. Financial data from TradingView shows the strategic shift: extending maturities while maintaining cash reserves.

Is Redcare’s Liquidity Position Strong Enough?

The numbers tell a reassuring story. Net liquidity (cash minus bank liabilities) jumped from €177.6 million (December 2024) to €265.6 million by September 30, 2025 – an €88 million surge in nine months. This comfortably covers the upcoming bond repayment. As a BTCC market analyst noted, "The €300 million new bond was priced attractively, reflecting investor confidence despite sector headwinds." The improved liquidity runway supports Redcare’s expansion plans in Europe’s competitive online pharmacy market.

Why Has the Stock Crashed 50% Despite Solid Fundamentals?

Here’s the paradox: While Redcare’s financials improve, its shares traded at €65.60 on Friday – down sharply from March’s €138.40 peak. Three factors weigh on sentiment: 1) Sector-wide multiple compression as interest rates rose, 2) New competition from dm’s online pharmacy push, and 3) Leadership transition risks with CFO Eenhorst’s departure. However, the stock has rebounded 18% from November lows, suggesting some investors see value. "The selloff looks overdone given their Rx prescription growth," remarked a UBS trader who requested anonymity.

What Does the New CFO Bring to the Table?

Hendrik Krampe took the finance reins on December 1, bringing 20 years’ experience including eight as Amazon Europe’s Finance Director. His e-commerce scaling expertise aligns with Redcare’s growth phase. Market watchers will scrutinize his first earnings call on March 3, 2026 (Q4 reporting date) for capital allocation plans. Insiders suggest Krampe may prioritize tech investments to counter dm’s threat through automation advantages.

How Strong Is Redcare’s Operational Growth?

The Core business fires on all cylinders. Q3 2025 revenue hit €719 million (+25% YoY), driven by Germany’s 82% surge in prescription drug (Rx) sales. Electronic prescriptions now account for 61% of volume, up from 43% in 2024. This structural shift plays to Redcare’s logistics strengths. However, gross margins dipped 120bps due to mix effects – a trend management expects to stabilize in 2026.

What’s Next for Investors?

Key dates to watch: January 21, 2026 (bond repayment), March 3 (earnings), and April’s AGM (CFO confirmation). The company has navigated refinancing well, but execution risks remain in fending off dm and maintaining Rx growth. With the stock at 1.2x P/S versus peers at 1.8x, much bad news may be priced in. As always in volatile markets, diversification matters – this isn’t a set-and-forget stock.

Data sources: TradingView, company filings. Image sources: DepositPhotos.