Dermapharm (DMP) Q2 2024 earnings summary

Executive summary

• Revenue declined 0.6% year-over-year to €578.5m, mainly due to reduced vaccine business, but strong organic growth in branded pharmaceuticals offset declines in other segments.

• Adjusted EBITDA fell 8.9% to €153.0m, while unadjusted EBITDA rose 7.3% to €147.0m due to lower non-recurring expenses.

• Earnings after tax/net profit rose 51.3% to €59.9m, driven by portfolio growth, favorable swap valuation, and lower depreciation.

• Branded pharmaceuticals drove growth, while other healthcare products declined due to weak consumer demand and timing of launches.

• Full-year 2024 guidance confirmed: revenue €1,170m–1,210m, adjusted EBITDA €305m–315m.

Financial highlights

• Revenue: €578.5m (down 0.6% year-over-year); branded pharmaceuticals revenue up 5.0% to €277.1m.

• Adjusted EBITDA: €153.0m (down 8.9%); unadjusted EBITDA: €147.0m (up 7.3%).

• Net profit/earnings after tax: €59.9m (up from €39.6m); EBT: €90.7m (up 35.5%).

• Free cash flow: €40.5m in H1 2024 (from -€326.0m in H1 2023).

• Cash and cash equivalents: €165.8m as of 30 June 2024.

Outlook and guidance

• 2024 revenue guidance: €1,170m–1,210m; adjusted EBITDA: €305m–315m.

• Branded pharmaceuticals expected to offset reduced vaccine contributions; partial recovery in other healthcare products anticipated.

• Stable revenue expected in parallel import business due to favorable market conditions.