Dermapharm (DMP) Q2 2025 earnings summary

Executive summary

• Stable business in H1 2025 with revenue of €574.5m, down 0.7% year-over-year, mainly due to portfolio streamlining and reorganisation in certain segments; strong organic growth in high-margin branded pharmaceuticals and international business nearly offset declines in vaccine and parallel import businesses.

• Adjusted EBITDA declined by 3.3% to €148.0m, with margin at 25.8% (down from 26.4%), mainly due to lower vaccine business.

• Net profit/EAT for H1 2025 was €54.1m, down from €59.9m in H1 2024, impacted by lower exceptional income and higher interest expenses.

• Portfolio optimization and restructuring, particularly at Arkopharma and axicorp, improved margins and operational efficiency.

• The company maintained a strong position in branded pharmaceuticals, with international growth and product launches supporting performance.

Financial highlights

• Total revenue for H1 2025 was €574.5m, down 0.7% year-over-year, as growth in branded pharmaceuticals and other healthcare nearly compensated for declines in vaccine and parallel import businesses.

• Adjusted EBITDA decreased by 3.3% to €148.0m; reported EBITDA was €144.9m (down 1.4% year-over-year), with margin at 25.2%.

• Earnings after tax (EAT) fell 9.7% to €54.1m; EBT margin at 14.3% for H1 2025, down from 15.7% in H1 2024.

• Free cash flow improved to €50.9m (from €40.5m), and net cash flow from operating activities rose to €70.1m.

• Total assets increased to €2,135.5m, while equity decreased slightly to €605.5m, with an equity ratio of 28.4%.

Outlook and guidance

• Management confirms full-year 2025 guidance: revenues of €1,160m–1,200m and adjusted EBITDA of €322m–332m.

• Branded pharmaceuticals expected to drive growth, with recovery anticipated in other healthcare products and parallel import business in H2 2025.

• H1 2025 performance is in line with budget and provides a solid foundation for the second half.

• Outlook subject to risks from regulatory changes, geopolitical tensions, and raw material price volatility.