Galderma Group (GALD) Q3 2024 TU earnings summary

Executive summary

• Achieved record net sales of $3.259 billion for the first nine months of 2024, representing 9.2% year-on-year growth at constant currency, with broad-based volume-driven growth across product categories and geographies.

• International markets drove 59% of group sales, maintaining double-digit growth and gaining market share, while the U.S. grew single digits amid a softer market environment.

• Major product launches and regulatory milestones included Nemluvio's U.S. approval for prurigo nodularis, Relfydess approvals in Europe and Australia, and Sculptra's entry into China.

• Full-year net sales growth guidance narrowed to 8.8%-9.5% at constant currency, with Core EBITDA margin expected in line with 2023.

• Strengthened financial profile with index inclusions and a CHF 500 million bond issuance for refinancing.

Financial highlights

• Net sales reached $3.259 billion in the first nine months, with 9.2% year-on-year growth at constant currency and 8.3% reported growth, reflecting currency headwinds.

• Injectable aesthetics sales were $1.698 billion, up 10.6% year-on-year at constant currency; neuromodulators grew 10.4%, fillers and biostimulators 10.9%.

• Dermatological skincare net sales were $990 million, up 10.6% year-on-year at constant currency, driven by Cetaphil internationally and Alastin in the U.S.

• Therapeutic dermatology net sales were $571 million, up 2.9% year-on-year at constant currency, with growth mainly from international markets.

• International sales grew 14.5% to $1.914 billion, now 59% of group sales; U.S. sales up 2.5% to $1.345 billion.

Outlook and guidance

• Full-year net sales growth guidance narrowed to 8.8%-9.5% at constant currency, reflecting strong momentum and expected Q4 seasonal acceleration.

• Core EBITDA margin guidance confirmed to be in line with 2023 at constant currency, considering increased Nemluvio investment and underlying profitability improvements.

• Leverage expected at the lower end of the 2.25-2.5x range by year-end.