Galderma Group (GALD) H1 2024 earnings summary

Executive summary

• Achieved record net sales of $2.2 billion in H1 2024, up 10.8% year-over-year at constant currency, with broad-based growth across product categories and geographies, driven by volume and favorable mix.

• Strong momentum in injectable aesthetics, dermatological skincare, and international markets, particularly Asia, China, India, and Brazil.

• Significant improvement in underlying profitability, with Core EBITDA of $514 million and margin of 23.4%, up 17.7% year-over-year at constant currency.

• Leverage reduced to 2.6x by end of June 2024, supported by IPO proceeds, strong cash generation, and early $100 million debt repayment.

• Updated full-year net sales guidance to the upper end of the 7%-10% range at constant currency, confirming Core EBITDA margin guidance in line with 2023.

Financial highlights

• Net sales reached $2,202 million, up 10.8% year-over-year at constant currency and 9.9% on a reported basis.

• Core EBITDA was $514 million, with a margin of 23.4%, up 17.7% year-over-year at constant currency.

• Core net income grew 59.9% year-over-year to $210 million, driven by sales growth, margin expansion, and lower interest expense post-IPO.

• Operating profit was $313 million (H1 2024) vs. $278 million (H1 2023); net income $47 million (H1 2024) vs. $4 million (H1 2023).

• Leverage reduced to 2.6x by end of June, with net debt at $2,589 million.

Outlook and guidance

• Full-year net sales expected at the upper end of the 7%-10% growth range at constant currency.

• Core EBITDA margin guidance confirmed in line with 2023, considering Nemluvio/Nemolizumab pre-launch spend ramp-up.

• Leverage expected towards the lower end of the 2.25-2.5x range for year-end.

• Interest cash expense for H2 2024 expected at ~$120 million, with interest rate on gross debt down ~50 basis points.