Galderma Group (GALD) H1 2024 earnings summary

Executive summary

• Achieved record net sales of $2.2 billion in H1 2024, up 10.8% year-over-year at constant currency, with broad-based growth across product categories and geographies, especially in Asia and China.

• Core EBITDA reached $514 million, growing 17.7% year-over-year at constant currency, with margin expansion to 23.4%.

• Leverage reduced to 2.6x by end of June 2024, supported by IPO proceeds, strong cash generation, and early $100 million debt repayment.

• Progressed late-stage pipeline with first marketing authorization for RelabotulinumtoxinA in Australia and launch readiness for nemolizumab.

• Full-year net sales growth now expected at the upper end of the 7%-10% range at constant currency, with Core EBITDA margin guidance confirmed in line with 2023.

Financial highlights

• Net sales grew 10.8% year-over-year at constant currency to $2,202 million; reported growth was 9.9%.

• Core EBITDA increased 17.7% year-over-year to $514 million; margin improved to 23.4%.

• Core net income increased by 59.9% to $210 million.

• Operating profit was $313 million (H1 2024) vs. $278 million (H1 2023); net income $47 million (H1 2024) vs. $4 million (H1 2023).

• Cash generation enabled early debt repayment; net debt reduced to $2,589 million.

Outlook and guidance

• Full-year net sales growth now expected at the upper end of the 7%-10% range at constant currency.

• Core EBITDA margin guidance confirmed in line with 2023, including ~$250 million nemolizumab costs.

• Leverage expected towards the lower end of the 2.25-2.5x range.

• Interest cash expense for H2 2024 expected at ~$120 million, with interest rate on gross debt down ~50 basis points.

• Nemluvio launch preparations progressing; meaningful sales impact expected in 2025.