Redcare Phamacy Unsp/Adr

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 in the management team to further scale Redcarpharmacy. 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 2025, an update on strategy, and then later, an update on guidance. So let's start with the highlights of 2025. The first three highlights are focused on Rx. 2025 has been a very successful year for RedCare on Rx. We almost doubled our Rx revenues in Germany, reaching 503 million euros. If we look into the relevant competition, our share of 67% demonstrates our clear market leadership position. From a group perspective, RX revenues are now exceeding €1 billion, more than 33% of total sales. The RX bonus for EE1 reformed pharmacies 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 RxBone scheme in Q4, which supported the strong growth in Q4 of last year. In 2025, including the beginning of 2026, digital healthcare in Germany experienced a major step forward. The specs for a new and more comprehensive identification technology, POP, 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. 2025 was not only very promising on Rx. We also delivered on our strategy to further increase customer satisfaction, scale, automation, and cost leadership. Our logistic capacity expansion in Pilsen went live in Q4 of last year. Pilsen adds 15 million passwords annual capacity to our overall capacity. We are mainly serving the entire Austrian market from Pilsen, but the setup also allows to serve other markets on non-RX. For the Austrian market, we see since go live faster delivery times, higher customer satisfaction and a higher NPS. Since wages are lower in Pilsen compared to Sevenum, we also reduced operational costs per parcel. In Sevenum, we launched our logistics automation project in 2025. Sevenum 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 7M by early 2027 and here good news, we are clearly on track to deliver on that. Reduce labor costs by 70% per order and higher speed, faster delivery will boost customer satisfaction and increase our competitive advantage. And then we also strengthen our balance sheet in 2025. The 300 million convertible bond secures the cash we need to execute on our spreadsheet. Let's get to the next section, Monika, financial performance. Our full year revenues are up 24% to 2.9%. Phamacy Unsp-Adr Phamacy Unsp-Adr 98% up to 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 DACH 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 process, 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-NAREX growth situation. So what you can see is that our growth came down in 2025, mainly driven by the DAF segment. We have identified four 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. 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 at number three, we see an increased platform competition, especially in the area of top sellers of PPC. And number four, our overall push for more marketing efficiency, meaning at a certain threshold, not to buy the next possible product. Overall, we increased the marketing budget 2025 compared to 2024, but improved the marketing ratio as 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-Rx growth in Q4 of 2024. Going forward, we will continue to optimize for growth and profitability using all elements of the marketing mix. By doing so, we expect to stabilize the growth rate at 8% 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 Radcare. We consider also going forward non-RX as a profitable, growing, cash generating business.

Having said this, I would like to hand this over to Henry. Thank you, Olaf. Yeah, warm welcome as well from my side. Let's jump right into the profitability 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 RX in some areas as more efficient than our marketing spend. As we plan to continue to offer RX cash bonuses throughout the year 26 versus only four months in 25, We will as well continue to reduce our marketing spend in percentage of revenues, while it's increasing at the same time our ROI on marketing. Moving to gross profit. So our gross margin is mostly driven by Rx and non-Rx mix. You see here the impact of the increasing share, especially via Rx Germany. But we have as well margin pressure on the non-Rx piece, especially as Olaf pointed out in the beauty and personal care category. We have a tailwind from CountryMix. This is due to the lower share of our high ASP and hence low margin specialty IX business in Switzerland, Mediservice. 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 how it materializes in our selling and distribution 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 SD&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 at administrative expenses. One example is our automation project in 7M, 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 27. 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 midi servers, which has a low SDNA ratio and the higher share of the marketplace business, which has a higher SDA ratio, whereas our core business, because our revenues is not the GMV of sellers, but is actually the seller fees. Now, if we look at EBITDA margin progression without mixed effects, you see that it is mostly driven by selling and distribution expenses, mostly by marketing. And the improvement of about 0.5 or exactly 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 section. 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 in our mix. In 23, this was only our specialty business in Switzerland. And then in Q2, 24, we started to scale the RX business in Germany. And now in 25, we have for the first time for the full year, an RX business in Germany and significantly increased the RX 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 decrease 23-24 in adjusted EBITDA margin for DAG 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% in 25. We expect to break even soon as the business continues to grow. On the cash side, We have increased our cash position by 26 million with a 50 million contribution from our operating results. We have actually improved some of our working capital KPIs, but our inventory was about 10 million higher than normal as we buffered a little bit of stock for the ramp of the Pilsen site and as well for the introduction of a new ERP system at Mediservice with cut over January 1st. But this will normalize throughout the year. The majority of our investments are related to fulfillment capacity expansion in Pilsen and Zevenum, and we'll spend another 30 million on the Zevenum automation project in 26. After that, our investment in fulfillment capacity is basically done, meaning that for the next five years, we'll have enough capacity to serve our projected top line in the Dachrigen 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 strategy. 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 Radcare as the leading European online pharmacy. The combination of Rx, non-Rx and marketplace offer gives us a unique value proposition towards our customers. We can use wherever possible from a legal perspective, Rx as the anchor to build trust as a pharmacy and to generate the necessary frequency, especially in the case of chronically ill patients. This trust anchor differentiates us clearly from the more non-RX driven 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. An increased use of automation and AI will lead to both higher customer satisfaction and efficiency gains throughout the entire D&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, one login, one stop pharmacy, one product. On our pharmacy platform, we offer the widest possible assortment. In the case of Rx, This often translates into the best possible product availability. As you might know, up to 30% of our X product is not really available at local pharmacies on the first try. We claim to have the highest product availability in the market. Customers can check that in our app 24-7. In the case of non-X, 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 chronically ill 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 eScript, we also launched additional services, like the repeat prescription service towards doctors. The reliable delivery is one 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 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 1.4 million. On Rx, we increased the number of active customers by 0.6 million in 2025. If we break this number down, we see that the additional active Rx customers are joining us in two ways. Converted non-Rx customers who like the Rx offer and are making use of this additional offer. Good effect of our assortment strategy. And secondly, first time completely new customers to RedCare liking the Rx value proposition, starting their journey with us on Rx. Additionally, they are buying non-Rx 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 cohort of non-RX customers with the Q1-25 cohort of RX customers, including all follow-up orders throughout 2025. Key takeaways, like also in the past, the cumulative revenue and gross profit confirms that RX 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-RX 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 more insights into the drivers of our RX business. Most important to see that the average ERX basket is improving significantly to €130 in Q4-25. We have two main drivers for that. One is the mixed order rate. meaning additional non-Rx items in the basket. We see an improved mixed order rate, about 40% already in Q4 25. 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 ERX NPS. Existing customers are trusting us as a Phamacy 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 Rx 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 Phamacy Unsp-Adr I think we should go to the next section, Update on Guidance. I will hand this over to Henry.

Yes, I'm going to build 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 on. 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, RX and non-RX, We will continue to see automation in all areas, not just in logistics, but as well there. 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 overall 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 overproportional 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 670 million euros. Non-IX 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 Year, so we will, going forward, no longer provide EBITDA guidance beyond the next financial year. As we become a profitable company, we'll as well move to earnings per share, but we'll 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.

We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use only handset while asking a question. Anyone who has a question may press star and one at this time. The first question comes from Jan Koch from Deutsche Bank. Please go ahead.

Hi, Olaf. Hi, Hendrik. Thanks for taking my questions. I would like to take them one by one. 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 OTC marketing, and three, on intensified competition? Any remarks on the new entrants would also be helpful.

Yeah, happy to take that. So we consider the Q4 drop in non-IX 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-IX, especially in Germany. So why is it a one-off? The drop is mostly driven Phamacy Unsp & Adr marketing efficiency, we can clearly attribute 60 to 70 percent of this drop to our marketing. Now, overall, the market has been soft. If you look at the offline pharmacy reporting, that is true. To some extent, that was true as well in Q3. Yes, so there is a soft environment, but it's a smaller share of the explanation. And when it comes to new market entrance, I think we discussed this before. We take the M obviously serious as a competitor, but we have not seen any significant traction. It will probably take them time to build a larger business. But at this point, we don't see any impact of the M on our non-IX business.

Great.

Does that answer the question?

Yeah, just as a follow up. So essentially, you mentioned that ERQ1 was impacted by some one offs. in LTC, 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 2026 is that this one-off is not really a change in the trend. However, we acknowledge that there's a longer term trend of Phamacy Unsp & Adr

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

Yeah, so we're not providing a cash flow forecast. Our guidance is our guidance as articulated here. As you can see, we're well funded. We have this 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 and 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 Phamacy Unsp & Adr

Last year, 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. OK. Thank you.

The next question comes from Sarah Roberts from Barclays. Please go ahead.

Hi. Thank you for taking my questions. I have two, if that's OK, but we'll probably go through them one by one. So just firstly, on the 670 million guidance for Rx, can you just walk us through, beyond offering bonuses to customers that seem to be having a positive impact, what other levers do the business have in terms of driving that Phamacy Unsp & Adr Phamacy Unsp

We need to apologize a little bit about techniques. 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. Yeah, I mean, you know, we see that the change of behavior is not happening at the pace you would like it to be. So that is also the reason Phamacy Unsp-Adr Phamacy Unsp-Adr But what it comes down to in 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 is the reason why we ended up on this growth rate rather than on higher growth rates.

Got it. Thank you. And then my second one, there's been a little bit of noise around proposed Section 35 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 that would be helpful?

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

As a reminder, in the interest of time, please limit yourself to two questions. The next question comes from Christian Salis from Cantor Fitzgerald. Please go ahead.

Hi, everyone. Thanks for taking my questions. I've got a follow-up on the non-Rx growth topic. So you mentioned the increased competition in Germany. So from which channels is this really coming? Is it coming from might be channel retailers that are entering the market or is it from other online pure place? Could you just please provide a little bit more color on that? And the second question would be regarding the Fixum, there have been positive comments by the German health minister. So could you confirm that this would have a positive impact on your profitability and To which extent is this already reflected in your full year 26 guidance? Thank you.

Okay, so I will give it a try on the competition. So, you know, there has always been competition in the market. Yes, so the platforms, the big ones like Amazon, they have been out there for 10 years and we also always had other online pharmacies competing against us. Not really something new. We simply have to find a good way to deal with the competition. But to be more explicit, 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 BPC, top sellers via lower price. That is more the competition than some of the new entrants Phamacy Unsp & Adr Yes, we also read that there are, you know, this discussion on the fixed room has been going on for quite a long time now already. It's already part of the coalition agreement. And so now the question is, when, if and when there will be a fixed room 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. Ministry of Health also set up a special, let's say, committee to look into a reform overall on the healthcare 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's no assumption of an increase on the fixed mandate.

Thank you very much.

The next question comes from Volker Bosse from Baader Bank. Please go ahead.

Thanks for taking my question. First of all, on the capex in 2026, you said it will remain on an elevated level before it drops down to 2% of sales. So where will be the capex in 2026? Phamacy Unsp & Adr Phamacy Unsp & Adr Yeah, above 9% means double-digit growth in non-ERICs in Germany, or how do you see the momentum? It's also linked to the question from Mr. Koch from Deutsche Bank regarding the phasing of growth as for the full year, you expect 8% to 10% non-ERICs growth, and said 9% in Q4 was a normal flow, perhaps a bit of details of the phasing. Thanks.

So starting with the CapEx question, so we don't provide Cashflow Forecast. I will leave it as, you know, the capex in 26 plan is below the capex in 25. I will leave it there, but we don't provide more specific guidance. On the non-IX 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 we have seen a drop in Q4. Now we see a rebound, but it's only two months into the year, and it's hard to assess with 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-IX area. At this point, we assume that we are breaking the long-term trend of gross erosion and they were stabilizing that. But we are not predicting that we can really go back to 25 gross rates and turn around completely the longer-term trend. Does that help?

Yep. Thank you very much. As a reminder, if you wish to register for a question, please press star and one on your telephone. The next question comes from Olivier Calvé from UBS. Please go ahead.

Yeah. Hi. Can you hear me?

Yes. Yes.

All right. Cool. Thanks. 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 offline competition. I just wanted to get a sense of, you know, specific categories that were under pressure. You mentioned BPC. 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 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. Yeah. 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. You know, we always talk about non-Rx, but non-Rx has actually two elements. The one is the OTC part, where a pharmacy license is required, and then there's the beauty and personal care part. Those products are usually sold in a pharmacy, but you do not need to have a pharmacy license. And we see, especially in that area, Phamacy Unsp & Adr Phamacy Unsp 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, drugstore chains entering into the OTC market right now.

The second question, I think, was on Rx guidance, or is that right, Henrik? So the question was on why not arrange for Rx, but similar to 25, a statement of what minimum will be achieved. So as Olof pointed out as well, 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, is 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 know, 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 a kind of word of mouth effect, or at least the stickiness where people see, you know, not only it's a smooth experience and with pop and everything going on as well on our side, we make it even smoother. Phamacy Unsp & Adr

Maybe to add to the NPS, because it 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 one year, we really better understand the entire journey. We understand the pain points. And that really starts already in our product, in the app, Phamacy Unsp& When we talk 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 better understand the customer journey, customer needs, and throughout the entire value chain, we optimize the product. And so I think that happened within one year and that is actually Phamacy Unsp&A good achievement, allowing us also to be number one 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 plan for in 26 is over? You know, like a billion euros or a number of orders. Yeah.

So I didn't get happy with, I mean, we are, the message is that we don't need that in the past. You've seen significant investment, you know, obviously the Pilsen side and such, but as well, the build out of seven and, Going forward, we're good on capacity for the next five years. So obviously, you know, we're now very eager to leverage all that capacity and make good use of it. And obviously, the main driver is going to be the RxBusiness trend.

Okay, thanks.

Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Olaf Heyrich, CEO, for any closing remarks. Yes, thank you very much. I'm sorry to interrupt. We have a follow-up, a last-minute follow-up from Jan Kor, Deutsche Bank. Please go ahead.

Thanks for taking my follow-up questions. The first one is on your updated mid-term and long-term targets on the margin. Could you define what mid-term and long-term means? So do you expect to achieve the 5% EBDA margin in 2028 or 2029? And then secondly, on the margin guidance of at least 2.5% in 2026. Should we view this as a flaw and what needs to happen that you exceed this target?

Yeah. So on the first one, we understand mid-term as about three years and long-term five years and beyond. So that's to the first question. And 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%. Understood. Thank you.

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

Yes, OK, so many things. So again, sorry for some of the complications we had throughout the presentation from a technical perspective and also many things for all of your 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.