Mayne Pharma Group (MYX) H1 2025 earnings summary

Executive summary

• Revenue for the half-year ended 31 December 2024 rose 13% year-over-year to $213.1m, driven by strong Women's Health and Dermatology segment performance.

• Underlying EBITDA surged 288% to $31.0m, reflecting operational discipline and business simplification.

• Gross margin improved to 61.4% from 56.3% in 1H FY24, driven by higher-margin Women's Health products.

• Net loss after tax narrowed significantly to $20.0m from $70.5m in 1H FY24.

• Mayne Pharma signed a Scheme Implementation Deed for acquisition by Cosette Pharmaceuticals at $7.40/share, a 37–57% premium to recent VWAPs.

Financial highlights

• Segment contribution rose 60% to $65.0m; operating cash flow from continuing operations (excluding class action) was $25.9m, up from negative $19.2m.

• Cash and marketable securities at 31 Dec 2024 were $124.9m, down from $149.3m at FY24, mainly due to a class action settlement.

• Direct operating expenses increased just 1% despite 13% revenue growth; direct opex as % of revenue fell to 31% from 35%.

• Adjusted EBITDA: $31.0m (up from $23.0m); reported EBITDA: $26.1m.

• Net loss after tax from continuing operations: $20.0m (improved from $70.5m loss year-over-year).

Outlook and guidance

• Underlying EBITDA expected to grow in 2H FY25, with all segments contributing positive direct contribution.

• Board unanimously recommended acceptance of a $7.40 per share acquisition offer from Cosette Pharmaceuticals, with a shareholder vote pending.

• Commercial production from new Salisbury site installations expected from July 2025.

• Women's Health to focus on sales execution, marketing, and scientific advocacy; Dermatology to leverage channel strategy and pursue capital-efficient growth.

• International segment to complete Salisbury facility upgrade and drive specialty/generic product sales.