Redcare Pharmacy NV (RDC) Earnings Call Transcript & Summary

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.