EQS-News: Dermapharm Holding SE performs in line with projections in Q1 2025, confirms full-year guidance

Dermapharm Holding SE performs in line with projections in Q1 2025, confirms full-year guidance

• Strong organic growth in high-margin "Branded pharmaceuticals" and revenue growth in "Parallel import business" segment more than offset slight decline in revenue from "Other healthcare products" segment
• Consolidated revenue increases by 1.2% year on year to EUR 302.4 million
• Adjusted EBITDA falls by 8.3% to EUR 81.3 million due to non-recurring items in prior-year quarter
• Board of Management confirms outlook for 2025 overall, continues to expect consolidated revenue of EUR 1,160–1,200 million and increase in adjusted EBITDA to EUR 322–332 million

Grünwald, 15 May 2025 – Dermapharm Holding SE ("Dermapharm"), a rapidly growing manufacturer of branded pharmaceuticals and other healthcare products, today publishes its results for the first three months of 2025.

The main driver of revenue growth in Q1 2025 was once again the "Branded pharmaceuticals" segment, which increased by 6.2% compared to the same period of the previous year after adjustment for the vaccines business. The slight decline in revenue in the "Other healthcare products" segment was more than offset.

Consolidated revenue increased as a result, rising by 1.2% year on year to EUR 302.4 million (prior-year period: EUR 298.7 million). Adjusted EBITDA declined by 8.3% to EUR 81.3 million (prior-year period: EUR 88.7 million). This translates to a margin of 26.9% (prior-year period: 29.7%).

"We are very satisfied with the start to the year: The organic growth of our high-margin branded pharmaceuticals in Germany and internationally once again confirms the sustained strength of our core business and more than compensates for declining figures in other areas. The ongoing reorganisation of Arkopharma's business model and the efforts to streamline the portfolio in the parallel import business are targeted measures to strengthen our future sales and profitability. In light of this, we are confidently confirming our guidance for the full year 2025," said Dr Hans-Georg Feldmeier, CEO of Dermapharm Holding SE.

Branded pharmaceuticals

In the "Branded pharmaceuticals" segment, the strong organic growth of the existing portfolio more than offset the projected decline in revenue from vaccine production. International growth and allergy therapeutics in particular have proven to be a driving force. Revenue rose as a result, increasing by 1.9% to EUR 145.7 million (prior-year period: EUR 143.0 million); adjusted EBITDA amounted to EUR 66.0 million or 45.3% of revenue (prior-year period: EUR 71.2 million or 49.8%). Normalised non-recurring expenses decreased significantly from EUR 2.3 million to EUR 0.1 million.

Other healthcare products

The "Other healthcare products" segment generated EUR 96.2 million in revenue in the first three months of 2025 (prior-year period: EUR 99.1 million). The slight decline in revenue was due in particular to the ongoing reorganisation of Arkopharma's business model. Organic growth within the remaining existing portfolio in the "Other healthcare products" segment is developing in line with projections, but cannot fully offset this decline. The segment's adjusted EBITDA amounted to EUR 17.4 million in Q1 2025 (prior-year period: EUR 18.5 million). Accordingly, the adjusted EBITDA margin was 18.1%, slightly below the prior-year figure of 18.7%. There were no non-recurring expenses to be normalised in the reporting period.

Parallel import business

In the "Parallel import business" segment, revenue increased by 7.1% to EUR 60.6 million (prior-year period: EUR 56.6 million) due to the measures initiated to streamline the portfolio and the associated sell-off of certain products. Adjusted EBITDA amounted to EUR -0.9 million (prior-year period: EUR 0.2 million). Normalised restructuring costs of EUR 1.1 million were incurred in the first quarter. Unadjusted EBITDA amounted to EUR -2.0 million (prior-year period: EUR 0.2 million). The segment's unadjusted EBITDA margin amounted to -3.3% (prior-year period: 0.4%).

Overall, the performance in Q1 2025 was in line with our underlying projections. In light of this, the Board of Management confirms the guidance from the 2024 Annual Report and continues to expect consolidated revenue of between EUR 1,160–1,200 million in financial year 2025 and adjusted consolidated EBITDA of between EUR 322–332 million.

The full interim statement for Q1 2025 is available from today at https://ir.dermapharm.de/en.

IFRS figures for Q1 2025 and the prior-year period
(excluding segment reconciliation/Group holding company)

1 Q1 2025 EBITDA adjusted by EUR 1.2 million in non-recurring expenses relating to restructuring costs at axicorp as well as non-recurring expenses. Q1 2024 EBITDA adjusted by EUR 3.0 million in non-recurring expenses in connection with the reduced shareholding in Wellster Healthtech Group GmbH and the relocation of Candoro ethics GmbH NM and THC Pharm GmbH to Friedrichsdorf.
2 This change in the "Parallel import business" segment is due to the sell-off of low-margin product inventories in connection with the ongoing efforts to streamline the portfolio.

Company profile

Dermapharm – Pharmaceutical Excellence "Made in Europe"

Dermapharm is an innovative and rapidly growing manufacturer of branded pharmaceuticals and other healthcare products. Founded in 1991, the Company is based in Grünwald near Munich. In addition to its main location in Brehna near Leipzig, Dermapharm also operates other production, development and distribution locations in Germany, the rest of Europe and the United States.

In the "Branded pharmaceuticals" segment, Dermapharm has more than 1,300 marketing authorisations with roughly 400 active pharmaceutical ingredients. Dermapharm's portfolio of pharmaceuticals is tailored to selected therapeutic areas in which the Company is a market leader, especially in Germany. The Company's integrated business model extends from in-house product development and production through quality management and logistics to the distribution of branded pharmaceuticals by a trained pharmaceutical sales force.

Dermapharm bundles food supplements, herbal pharmaceuticals, cosmetics, medical devices, herbal extracts and medicinal cannabis in its "Other healthcare products" segment. In this segment, Dermapharm can tap the expertise of Arkopharma, the market leader for herbal food supplements in France, and the Spanish company Euromed S.A., a leading global manufacturer of herbal extracts and plant-based active ingredients for the pharmaceuticals, nutraceuticals, foodstuffs and cosmetics industries.

Dermapharm also operates the "Parallel import business" segment under the axicorp brand. axicorp imports originator pharmaceuticals from other EU Member States and resells them to pharmaceuticals wholesalers and pharmacies in Germany. This enables axicorp to benefit from the different pricing structures in the individual EU member states. Based on revenue, axicorp is currently the sixth largest parallel importer in Germany.

With a consistent R&D strategy and numerous successful product and company acquisitions and by stepping up its internationalisation efforts, the Group is continuously optimising its business activities and seeks external growth opportunities in addition to organic growth.

Contact

Investor Relations & Corporate Communications
Britta Hamberger
Tel.: +49 (0)89 64186-233
E-mail: ir@dermapharm.com