Mayne Pharma Group (MYX) H1 2025 earnings summary

Executive summary

• Revenue for 1H FY25 rose 13% year-over-year to $213.1m, with strong growth in Women's Health and Dermatology segments and gross margin improving to 61.4% from 56.3%.

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

• Net loss after tax narrowed significantly to $20.0m from $70.5m in the prior period.

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

• No dividend was declared or paid for the period.

Financial highlights

• Segment direct contribution rose 60% to $65.0m; gross profit was $130.9m (up 24%), and direct operating expenses increased just 1% despite revenue growth.

• Operating cash flow from continuing operations (excluding class action) was $25.9m, up from negative $19.2m year-over-year.

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

• Basic EPS from continuing operations improved to (32.3) cents from (87.8) cents year-over-year.

• No asset impairments recorded in the current or prior period.

Outlook and guidance

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

• Focus on sales execution and targeted marketing in Women's Health; Dermatology to leverage channel strategy and pursue capital-efficient growth.

• International segment to complete Salisbury facility upgrade and drive specialty/generic product sales, with commercial production expected from July 2025.

• Ongoing focus on operating efficiency and leveraging existing assets for growth.