Dermapharm continues its profitable growth in 2018
- Group revenue of EUR 572 million in 2018 around 23% higher than the previous year
- Adjusted EBITDA increases by approx. 27% compared to last year to EUR 143 million
- Adjusted EBITDA margin improves even further to 25.0%
- Foundation laid for continued profitable growth in 2019 and beyond
Grünwald, April 3, 2019 – Dermapharm Holding SE (“Dermapharm”), a leading manufacturer of patent-free branded pharmaceuticals for selected markets in Germany with a growing international presence, published its unaudited preliminary IFRS group financial figures for fiscal year 2018 today. They show that Dermapharm continued on its profitable growth course. The highly profitable business segment Branded Pharmaceuticals and Other Healthcare Products made a significant contribution to revenue and earnings growth. At the same time, Dermapharm further strengthened the prerequisites for sustainable growth by successfully completing further M&A transactions.
Revenue rose by 23% on a preliminary basis to EUR 572 million in fiscal year 2018 (previous year: EUR 467 million). Dermapharm’s 2018 earnings before interest, taxes, depreciation and amortization (EBITDA) improved significantly compared to total revenue. The company increased its EBITDA adjusted for one-time costs of EUR 3.8 million for IPO preparations and the acquisitions of Strathmann and Trommsdorff by 27% to EUR 143 million (previous year: EUR 113 million). The company therefore improved its overall profitability again in 2018, achieving an adjusted EBITDA margin of 25.0% at Group level (previous year: 24.2%). Unadjusted EBITDA amounted to EUR 140 million, 27% higher than last year (EUR 110 million), with an unadjusted EBITDA margin of 24.5%.
“2018 was a very successful year for us. Not only did we go public in February 2018, we also further developed Dermapharm both operationally and strategically as planned. The revenue growth achieved with a further increase in profitability underscores the attractiveness of our unique business model. At the same time, we also forged ahead with the internationalization of our group, the introduction of new products, and strengthened our business activities through selective M&A measures in line with our growth strategy” commented Dr. Hans-Georg Feldmeier, CEO of Dermapharm Holding SE.
In 2018, Dermapharm increased sales volumes in its existing product portfolio and launched a number of new products, such as Myopridin®, Verrucutan® and Physiotop®, in selected therapy groups in Germany and abroad. Furthermore, Strathmann and Trommsdorff, two companies that strengthen its product portfolio and sales activities even further, were acquired. The expansion of the production facilities in Brehna and the construction of a new production facility in Neumarkt am Wallersee, Austria, are progressing as planned.
Dermapharm is also constantly striving to develop and launch new pharmaceuticals and other healthcare products on the market to expand the portfolio. Its current product pipeline comprises over 40 ongoing development projects.
Dermapharm completed new acquisitions at the beginning of 2019: the Spanish company EUROMED, a leading manufacturer of plant extracts and plant-based active ingredients for the production of pharmaceuticals, dietary supplements and cosmetics, was acquired in January. In March, Dermapharm also acquired a 20% stake in FYTA, a Dutch cannabis producer for pharmaceutical applications.
Concerning the international presence, initial product approvals were obtained in the newly established branches in Great Britain (2017) and Italy (2018), which contribute positively to the overall development in 2019. The clinically tested medical products bite away® and Herpotherm® were placed in 12 European markets using both own foreign subsidiaries as well as external distribution partners. At the same time, Dermapharm is preparing to enter new markets in Europe, the US and China.
Dermapharm will publish its final figures for fiscal year 2018 as well as a detailed forecast for the current fiscal year in its complete 2018 Annual Report on April 17, 2019.
IFRS financial figures compared to the previous year (preliminary)
|in EUR millions||2018||2017||Change|
|Adjusted Group EBITDA*||143||113||27%|
|Adjusted EBITDA margin* (in %)||25.0||24.2||+ 0.8 pp|
|Group EBITDA||140||110||+ 27%|
|EBITDA margin (in %)||24.5||23.6||+ 0.9 pp|
* EBITDA 2017 and 2018 adjusted for one-time costs of EUR 2.7 million and EUR 3.8 million, respectively, for IPO preparations or the IPO and the acquisitions of Strathmann and Trommsdorff. Trommsdorff GmbH & Co KG was consolidated for the first time on February 1, 2018, when Dermapharm acquired full control of the company. Accordingly, the sales and earnings contribution was not included in the consolidated result until February 2018.