Galderma Group (GALD) H1 2025 earnings summary

Executive summary

• Achieved record H1 2025 net sales of $2.45 billion, up 12.2% year-on-year at constant currency, driven by volume growth across all product categories and geographies.

• Major launches of Nemluvio and Relfydess exceeded expectations, contributing significantly to growth and market share gains.

• Core EBITDA reached $555 million, up 9.5% year-on-year at constant currency, with a margin of 22.7%, supported by strong Nemluvio ramp-up.

• Strengthened financial profile with net leverage reduced to 2.1x, early debt repayment, $323 million in share repurchases, and first annual dividend payment.

• Raised full-year net sales growth guidance to 12%-14% at constant currency, with core EBITDA margin guidance confirmed at approximately 23%.

Financial highlights

• Core EBITDA: $555 million (+9.5% constant currency), margin 22.7%.

• Core net income grew to $229 million, with core EPS up to $1.39 from $0.89 in H1 2024.

• Gross profit margin stable at 74.6% of net sales; gross margin pressured by U.S. pricing but offset by favorable product mix.

• CapEx was lower than planned due to project phasing and spend efficiencies; Core CAPEX: $50 million in H1 2025.

• Cash flow from operating activities surged to $551 million from $88 million year-over-year.

Outlook and guidance

• Net sales growth guidance for 2025 raised to 12%-14% at constant currency, up from 10%-12%.

• Core EBITDA margin guidance confirmed at approximately 23%.

• Neuromodulators expected to see 11%-13% net sales growth for the year, with Q3 impacted by high comparative base and Q4 re-acceleration.

• Fillers and biostimulators growth to accelerate in H2, especially Q4, driven by new launches and Sculptra momentum.

• Management expects continued growth, supported by recent product launches and expanded geographic reach.