Dermapharm (DMP) Q3 2024 earnings summary

Executive summary

• Revenue increased by 2.7% year-over-year to €890.1m for the nine-month period, driven by strong organic growth in branded pharmaceuticals and Montavit consolidation, offsetting declines in vaccines and other healthcare products.

• Adjusted EBITDA decreased by 1.4% to €240.3m due to wage and inflation pressures, while reported EBITDA rose 12.3% to €234.1m, reflecting gross margin improvements and lower non-recurring costs.

• Earnings after tax (EAT) rose to €92.7m, with EPS up to €1.73 from €1.21, mainly due to organic growth and Montavit's contribution.

• Strong branded pharmaceuticals performance offset underperformance in other healthcare products and the vaccine business.

Financial highlights

• Q3 2024 revenue up 9.5% year-over-year to €311.6m, with adjusted EBITDA up 15.1% to €87.4m.

• Equity ratio increased to 27.7% as of September 2024, up from 25.2% at year-end 2023.

• Free cash flow for 9M 2024 was €107.7m, a significant improvement from -€264.3m in 9M 2023.

• Net debt reduced to €918.8m, with a net debt/adjusted EBITDA ratio of 3.0.

• EBT increased by 35.2% year-over-year to €137.5m, with a margin of 15.4%.

Outlook and guidance

• 2024 revenue expected between €1,170m and €1,210m, up from €1,135.4m in 2023.

• Adjusted EBITDA guidance for 2024 is €305m–€315m, compared to €310.2m in 2023.

• Management confirms guidance based on strong branded pharmaceuticals performance.