Dermapharm (DMP) Q3 2025 earnings summary

Executive summary

• High-margin branded pharmaceuticals and international segments drove growth, with international up 10% and Alargo Pharma up 17% year-over-year as of September 2025, nearly offsetting declines in vaccine and parallel import businesses.

• ARCO Pharma and Arkopharma are undergoing transformation, with a turnaround expected by H2 2026; new product launches, marketing strategies, and restructuring are underway.

• Revenue for the first nine months of 2025 decreased by 2.3% year-over-year to €869.4 million, mainly due to restructuring in the Parallel import business and Arkopharma, partially offset by strong growth in Branded pharmaceuticals.

• Adjusted EBITDA declined by 1.8% to €236.0 million, with the margin stable at 27.1%.

• Net profit for the period was €95.2 million, up from €92.7 million in the prior year, with EPS rising to €1.77.

Financial highlights

• Branded segment net sales grew 4% in Q3 2025 vs. Q3 2024, excluding vaccine business; branded pharmaceuticals revenue grew 4.2% to €449.8 million, with adjusted EBITDA up 1.2% to €199.6 million.

• Q3 2025 revenue declined by 5.4% year-over-year to €294.9 million, while adjusted EBITDA increased by 0.8% to €88.1 million; EAT rose by 25.3% due to favorable interest rate SWAP valuation.

• Gross margin improved by 4 percentage points year-over-year in Q3 2025, supported by cost-cutting measures and lower material costs.

• Personnel expenses rose due to restructuring provisions of €2.1 million in Q3 and €5 million year-to-date.

• Free cash flow for year-to-date September 2025 was €11 million lower than last year; cash conversion at 55%.

Outlook and guidance

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

• October performance was ahead of budget; November expected to be strong due to seasonality, especially in vitamin products.

• Current trading is in line with budget, and the positive outlook for Q4 2025 supports the guidance.