Galderma Group (GALD) Q4 2024 earnings summary

Executive summary

• Achieved record net sales of $4,410M in 2024, up 9.3% year-on-year at constant currency, driven by international volume growth and innovation across all product categories.

• Core EBITDA surpassed $1,031M for the first time, with a margin of 23.4%, reflecting strong operating leverage and lower-than-expected R&D spend.

• Completed IPO on SIX Swiss Exchange in March 2024, raising $2,133M in equity and enabling significant deleveraging.

• Major product launches included Nemluvio (biologic for prurigo nodularis and atopic dermatitis) and Relfydess (liquid neuromodulator), both tracking ahead of expectations.

• Net debt reduced to $2,356M and leverage improved to 2.3x, supported by strong cash generation, IPO proceeds, and early debt repayment.

Financial highlights

• Net sales reached $4,410M, up from $4,082M in 2023 (+8.0% reported, +9.3% constant currency).

• Core EBITDA increased from $942M to $1,031M, with margin improving from 23.1% to 23.4%.

• Core net income rose to $496M (Core EPS $2.09), up 138.8% year-over-year.

• Cash flow from operating activities was $488M, up from $165M year-over-year.

• E-commerce sales in dermatological skincare grew over 34% year-on-year, now representing 34% of category sales.

Outlook and guidance

• 2025 net sales growth expected at 10%-12% at constant currency, with Core EBITDA margin around 23%.

• Largest adverse P&L impact from Nemluvio investments expected in 2025, with margin acceleration in the second half.

• Midterm guidance reconfirmed: low to mid-teens CAGR for net sales and injectable aesthetics, high single-digit to low teens for skincare, and high teens for therapeutic dermatology.

• Nemluvio peak sales expected above $2B, breakeven anticipated in 2027.

• Board proposes a repayment of reserves from capital contributions of up to $49.5M (CHF 35.7M) at the 2025 AGM.