DERMAPHARM HOLDING SE INVESTORS' AND ANALYSTS' CONFERENCE CALL
Q1 2024
Grünwald, 15 May 2024
AGENDA
Q1 2024
- Financial figures 3M 2024
- Outlook 2024
- Q&A
2
Financial figures Q1 2024
Image: Günther Fotodesign
Strong growth of the existing product portfolio
excluding the expiring vaccine production
Excluding the vaccine business | |||
Revenue | +€12.1m1 | Significant revenue growth driven by | |
the branded products' segment … | |||
EBITDA | +€15.6m | … with an above average | |
(adjusted) | profitability … | ||
EBITDA margin | +4.4%pts. | … increasing the average | |
(adjusted) | profitability of the Group | ||
1 Montavit contributed €8.1m and €0.5m to revenue and EBITDA in Q1 2024. | |||
Dermapharm 3M 2024 | 4 |
Dermapharm Group
Strong organic growth in the high-margin existing business of the branded products' segment can largely compensate for the decline of the expiring vaccine business
Total Revenue | EBITDA1 | |||||
€m | €m, adjusted | |||||
-6.4% | EBITDA | |||||
YoY | Margin | |||||
319.1 | 33.2% | |||||
298.7 | 29.7% | |||||
-16.2% | ||||||
105.8 | YoY | |||||
88.7 |
EAT2
€m
-12.2%
49.1 YoY
Revenue decline of -6.4%to €298.7m, driven by
- reduced revenues from the vaccine production limited to the German pandemic preparedness programme
- Parallel import and Other healthcare products behind previous year due to poorer availability of products at the beginning of the year and a temporary consumer restraint, particularly in France
EBITDA decrease by -16.2%to €88.7m
43.1 (adjusted, comparing to -12.6% to €85.7m at reported level) driven by
3M 2023 | 3M 2024 | 3M 2023 | 3M 2024 | |||
Dermapharm Group | Branded pharmaceuticals | Other healthcare products | ||||
3M 2023 | 3M 2024 |
Parallel import business
- discontinuation of the vaccine business affected EBITDA
- elimination of the vaccine business results in a notable growth of EBITDA and margin, documenting the strength and profitability of the existing business
1 EBITDA 3M 2023 adjusted for non-recurring costs of €7.8m in connection with the acquisition of Arkopharma | Group EBITDA also includes EBITDA from reconciliation of -€1.4m
(Group Holding). | EBITDA 3M 2024 adjusted for non-recurring costs of €3.0m in connection with the reduction in shareholding in Wellster Healthtech Group GmbH and the | Dermapharm 3M 2024 | 5 |
relocation of Candoro ethics GmbH NM and THC Pharm GmbH to Friedrichsdorf | Group EBITDA also includes EBITDA from reconciliation of -€1.3m (Group Holding). | ||
2 EAT = Earnings after tax.
Adjusted EBITDA margin per segment
Strong profitability despite phasing out of vaccine production
Adjusted EBITDA margin
in %
Branded Branded3M 2024 pharmaceuticalspharmaceuticals3M 2023
Other healthcareOther healthcare3M 2024 products products3M 2023
Parallel import 3M 2024 | 0.4% | ||
Parallel import | |||
business buseiness3M 2023 | 2.4% | ||
3M 2024 3M 2023
29.7% 33.2%
18.7%
24.4%
Without vaccine production
EBITDA margin
increased by +4.4%pts.
49.8%
53.3%
Dermapharm Group
Dermapharm 3M 2024 | 6 |
Earnings after tax (EAT)
Decline impacted by the discontinuation of the vaccine production and a temporary, consumption driven weakness of Arkopharma
EAT
€m
49.1
The slight decline in results is due to the economic weakness observed in recent months and the associated decline in consumption especially in France, Arkopharma's largest sales market
-5.8 | ||||
+5.0 | ||||
-6.4 | +6.1 | |||
Financial result: -€1.8m
Strong organic growth of existing portfolio almost completely offset significant decline in results from the expiring vaccine production
-0.1-4.8
Increased depreciation charges
driven by Montavit (initial
consolidation from July 2023 onwards) and PPA effects of Arkopharma (initial consideration in 2023 H1 results)
43.1
60.5
3M 2023 | Phasing out of | Montavit | Swap | SynLoan interest cost | Income taxes | Depreciation | 3M 2024 |
vaccine production | + Arkopharma | ||||||
+ growing remaining business | EBITDA |
Dermapharm 3M 2024 | 7 |
Net debt reduction
by €70m since June 2023 proofs the underlying ability of the business to generate cash
Net debt | |
€m | 984 |
991 |
937
921
3001.Jun06.20232023 | 30 01Sep.092023.2023 | 31 Dec01.202312.2023 | 31 Mar 012024.03.2024 |
Equity ratio
▪ Continuous net debt reduction to |
continue in 2024 with |
▪ €50m repayment of term loan B (total |
outstanding amount of €200m) and |
▪ €38.5m repayment of promissory note in |
2024 |
▪ Net debt / adjusted EBITDA1: 3.1 |
▪ Successive increase in equity ratio, |
in %
25
27
2525
due to accumulated earnings |
3001.Jun06.20232023 | 30 01Sep.092023.2023 | 31 Dec01.202312.2023 | 31 Mar 012024.03.2024 |
1 rolling 12M adjusted EBITDA as of 31 Mar 2024. | Dermapharm 3M 2024 | 8 |
Strong cash flows and cash conversion
Declining cash conversion to 37.1% …
Cash flow and cash conversion1
€m and in % of Group EBITDA
Cash
conver sion
69.8%
37.1%
74 | 33 |
-7 |
-398
FCF | -324.2 | 26.1 |
3M 2023 | 3M 2024 |
CF from Operating activities
CF from Investing activities
- CF from operating activities in 3M 2024 mainly influenced by
- lower cash-ins from the vaccine business compared to Q1 2023 and
- tax payments for previous fiscal years
- CF from investing activities reflecting
- normal level of R&D activities and replacement investments
- Free cash flow: €26.1m in 3M 2024
(3M 2023: -€324.2m)
1 Cash conversion defined as operating cash flow / (adjusted) EBITDA. | Dermapharm 3M 2024 | 9 |
2 Outlook 2024
Image: Günther Fotodesign
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Dermapharm Holding SE published this content on 14 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 May 2024 14:01:04 UTC.
