Dermapharm continued profitable growth in 2017
- Revenue in 2017 up 4.9% from last year to EUR 467 million
- Adjusted EBITDA up 9.7% from last year to EUR 113 million » Adjusted EBITDA margin of 24.2% kept positive trend » Basis laid for continued profitable growth in 2018 and beyond
Grünwald, April 9, 2018 – 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 financial figures for fiscal year 2017 today. They indicate that Dermapharm has continued its profitable growth course. The highly profitable business area branded pharmaceuticals and other healthcare products made a significant contribution to revenue and earnings growth. The year also saw important steps taken to continue the company’s success story.
Revenue rose on a preliminary basis by 4.9% to EUR 467 million in fiscal year 2017 (previous year: EUR 445 million). Dermapharm’s 2017 earnings before interest, taxes, depreciation and amortization (EBITDA) significantly improved, disproportionate to total revenue. Dermapharm increased its EBITDA by 9.7% to EUR 113 million (previous year: EUR 103 million), adjusted for one-time costs for IPO preparations of EUR 2.7 million. Dermapharm therefore once again improved its overall profitability in 2017, achieving an adjusted EBITDA margin of 24.2% at Group level (previous year: 23.1%). Unadjusted EBITDA amounted to EUR 110 million, 6.8% higher than last year, with an unadjusted EBITDA margin of 23.6%.
Dr. Hans-Georg Feldmeier, CEO of Dermapharm Holding SE, comments: “2017 was a successful year. Dermapharm continued to grow profitably as planned while consistently advancing the development of new products and acquiring with bite away® and Herpotherm® two very promising medical devices that we will use particularly for international marketing. We also acquired Trommsdorff and Strathmann, two attractive companies that will expand our product portfolio in a meaningful direction. Coupled with our IPO in February 2018, this development provides a very strong basis for continuing our success story into the future.” The acquisition of Strathmann, a producer of over-the-counter pharmaceuticals (OTC), took place in December 2017 while that of pharmaceutical producer Trommsdorff and its portfolio of 23 different prescription drugs and OTC products was completed in January 2018.
Dermapharm is also constantly striving to develop and launch new pharmaceuticals and other healthcare products on the market to expand its product portfolio. Dermapharm’s product pipeline currently comprises over 40 ongoing development projects with new products for all areas including vitamins/minerals/enzymes, dermatologicals, systemic corticoids, women’s healthcare and ophtalmologicals. The pipeline comprises 28 medications and other healthcare products which are expected to be marketable by 2023. In view of its international presence, Dermapharm plans to introduce select products such as bite away® and Herpotherm® in Italy, Spain, the UK and the Benelux countries. Subsidiaries in Italy and the UK have already been established and sales managers appointed. Preparations for the expansion of Dermapharm’s main site in Brehna and the construction of a new production facility in Neumark am Wallersee, Austria, are also proceeding according to plan.
Dermapharm will publish its final figures for fiscal year 2017 as well as a detailed forecast for the current fiscal year with its complete Annual Report 2017 on April 27, 2018.
Revenue and EBITDA 2017 with previous year comparison (IFRS, preliminary)
|in EUR millions||2017||2016||Change|
|Adjusted Group EBITDA*||113||103||+9.7%|
|Adjusted EBITDA margin* (in %)||24.2||23.1||+1.1pp|
|EBITDA margin (in %)||23.6||23.1||+0.5pp|
* Adjusted for one-off costs of EUR 2.7 million for IPO preparations
Dermapharm – Pharmaceutical Excellence “Made in Germany”
Dermapharm is a leading manufacturer of patent-free branded pharmaceuticals for selected markets in Germany. Founded in 1991, the company is based in Grünwald near Munich and has its main manufacturing facility in Brehna near Leipzig. The company’s integrated business model comprises inhouse development, in-house production and distribution of pharmaceuticals and other healthcare products for specifically targeted markets by a medical and pharmaceutical sales force. Dermapharm holds approximately 900 marketing authorizations (Arzneimittelzulassungen) for more than 200 active pharmaceutical ingredients, which are reflected in a broad assortment of products. This assortment makes the company unique. In addition to Germany, the company’s core markets also include Austria and Switzerland. The company plans to further expand its international presence. Dermapharm’s business model also includes a parallel import business, which operates under the “axicorp” brand. Based on revenues, Dermapharm was among the top four parallel import companies in Germany in 2016.
With a consistent development strategy and numerous successful product and company acquisitions over the past 25 years, Dermapharm has continuously optimized its business and provided external growth impulses in addition to organic growth. Dermapharm intends to continue this profitable growth course in the future. The company is focusing on three strategic growth drivers: in-house development of new products, increase of its international footprint and further acquisitions. These include the acquisition of the pharmaceuticals manufacturer and distributor Trommsdorff in January 2018, whose portfolio includes the well-known brands Keltican® forte and Tromcardin® complex.
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