Mayne Pharma Group (MYX) H2 2024 earnings summary

Executive summary

• Achieved 112% year-over-year revenue growth to $388.4m, marking a significant turnaround with all key operating goals met and positive direct contribution from all three business segments.

• Underlying EBITDA improved by $118.2m to $22.9m, with a return to positive operating cash flow and margin expansion driven by cost containment and business simplification.

• Net loss after tax reduced by 47% to $168.6m compared to the prior year.

• Significant operational improvements and expanded product portfolios in Women's Health and Dermatology, supported by refined US channel strategy.

• Focus remains on leveraging market positions in Women's Health and Dermatology for further growth and improved cost leverage in FY25.

Financial highlights

• Revenue increased 112% year-over-year to $388.4m, with gross profit up 162% to $218.8m and gross margin at 56.3%.

• Underlying EBITDA was $22.9m, a $118.2m improvement from FY23's loss; reported EBITDA loss narrowed to $92.5m.

• Direct contribution improved by $130.3m to $88.5m; net loss after tax reduced by $148.8m to $168.6m.

• Operating cash flow from continuing operations was $8.1m, reversing a prior year outflow; cash and marketable securities at June 30, 2024, were $149.3m.

• Direct opex as a percentage of revenue improved to 33.5% from 68.2% year-over-year.

Outlook and guidance

• Expects continued growth in underlying EBITDA and revenue in FY25, with all segments projected to deliver positive direct contribution.

• Women's Health to focus on maximizing profit potential and targeted marketing; Dermatology to expand channel strategy and pursue capital-efficient business arrangements.

• International segment to capitalize on operational improvements and investments.