|
9 |
|
(569) |
|
| |||||||
Gross profit |
1,549 |
|
- |
|
89 |
|
9 |
|
1,647 |
|
74.8% | |
Research and development |
(135) |
|
- |
|
- |
|
1 |
|
(134) |
|
6.1% | |
Sales and marketing |
(701) |
|
- |
|
- |
|
5 |
|
(695) |
|
31.6% | |
General and administrative |
(287) |
|
57 |
|
22 |
|
15 |
|
(194) |
|
8.8% | |
Medical and regulatory |
(45) |
|
- |
|
- |
|
- |
|
(45) |
|
2.0% | |
Distribution |
(65) |
|
- |
|
- |
|
1 |
|
(65) |
|
2.9% | |
Other income / (expenses) |
(2) |
|
2 |
|
- |
|
- |
|
- |
|
- | |
Operating profit as reported |
313 |
|
|
|
|
|
|
|
|
|
| |
Total adjustments |
|
|
59 |
|
112 |
|
30 |
|
|
|
| |
Core EBITDA |
|
|
|
|
|
|
|
|
514 |
|
23.4% |
Reconciliation of H1 2024 of Core EBITDA to IFRS Net Income
In million USD |
H1 2023 |
H1 2024 | ||
Core EBITDA |
450 |
|
514 | |
% margin |
22.5% |
|
23.4% | |
Exceptional and transformation related adjustments |
(23) |
|
(57) | |
Other income / (expenses) |
(18) |
|
(2) | |
Total EBITDA adjustments5 |
(40) |
|
(59) | |
EBITDA |
410 |
|
455 | |
% margin |
20.5% |
|
20.7% | |
Depreciation |
(25) |
|
(30) | |
Amortization |
(107) |
|
(112) | |
Operating profit |
278 |
|
313 | |
Net interest expenses incl. VCB revaluation |
(278) |
|
(206) | |
Foreign exchange loss on financing activities |
(18) |
|
(30) | |
Income / (loss) before tax |
(17) |
|
77 | |
Income taxes |
21 |
|
(30) | |
Net income |
4 |
|
47 |
Reconciliation of H1 2024 from IFRS Net Income to Core Net Income6
In million USD |
H1 2023 |
|
H1 2024 | |
Net income |
4 |
|
47 | |
Total EBITDA adjustments5 |
40 |
|
59 | |
VCB financing revaluation |
(19) |
|
(28) | |
Amortization |
107 |
|
112 | |
Foreign exchange loss on financing activities |
18 |
|
30 | |
Income taxes on above items |
(18) |
|
(10) | |
Core Net Income |
131 |
|
210 |
H1 2024 Total Net Indebtedness
In million USD |
Dec 31 2023 |
June 30 2024 | ||
Total Indebtedness7 |
5,001 |
|
2,974 | |
Cash and Cash Equivalents |
(368) |
|
(385) | |
Total Net Indebtedness |
4,633 |
|
2,589 |
Latest additional modeling metrics for full year 2024
Modelling metrics at IPO |
Latest modelling metrics | |
Transformation costs8 |
~30 million USD |
Slightly below 30 million USD |
Milestone and earnouts9 |
~175 million USD |
~175 million USD |
Core CAPEX10 |
3-4% of net sales |
3-4% of net sales |
Effective tax rate |
~27% |
~30%, with the 2024 tax rate impacted by one-off IPO items |
Leverage |
2.25 – 2.50x11 |
Towards the lower end of 2.25 – 2.50x11 |
Interest |
~8.5%12 average interest rate; |
~120 M USD in interest cash expenses in H2, |
Notes and references
- Constant currency year-on-year growth is defined as the annual growth rate of net sales excluding the impact of exchange rates movements and excluding hyperinflation economies. The impact of changes in foreign exchange rates are excluded by translating all reported revenues during the two periods at average exchange rates in effect during the previous year.
- Core EBITDA is defined as EBITDA excluding the following items that are deemed exceptional, including acquisition and disposal, integration and carve-out related income and expenses, onerous contracts, business disposal gains and losses, restructuring and reorganization related items, litigation related items, impairment of PPE and software, IPO related incentive plans as well as other income and expense items that management deems exceptional and that are expected to accumulate within the year to be over 1 M USD threshold. These include transformation, carve-out and build-up related project costs as well as post-acquisition related accounting impacts
- Leverage is defined as Total Net Indebtedness divided by Core EBITDA on a twelve-months rolling basis
- https://academic.oup.com/asj/advance-article/doi/10.1093/asj/sjae131/7697878?utm_source=advanceaccess&utm_campaign=asj&utm_medium=email&login=true
- 2023 EBITDA adjustments include 13 million USD for platform transformation costs, 10 million USD for VCB bonus, 11 million USD litigation and onerous items, 3 million USD for IPO, 1 million USD for operating FX, 3 million USD on Restructuring and Others. 2024 adjustments include 48 million USD for IPO related incentive plans, 5 million USD for platform transformation costs, 4 million USD for VCB bonus, 2 million USD for IPO
- Core Net Income is defined as net income / (loss) from continuing operations adjusted for the same items that are treated as exceptional for purposes of defining Core EBITDA, as well as amortization of intangible assets, foreign exchange gains and losses on financing activities. Taxes on the adjustments between IFRS net income and Core Net Income take into account, for each individual item included in the adjustment, the tax rate that will finally be applicable to the item based on the jurisdiction where the adjustment will finally have a tax impact
- Indebtedness includes financial debt and lease liabilities
- In addition, assuming ~20 M ''other income & expenses'', e.g., litigation and onerous items, excluding 48 M USD costs in relation to the ‘IPO Incentive Plans’ and the ‘IPO Cash Bonus’ described in the Offering prospectus, recognized at fair value, 38 M of which were settled non-cash, in restricted existing shares funded and delivered by the Selling Shareholders upon completion of the offering. The ‘IPO Incentive Plans’ were inversely related to the final offer price, i.e., the higher the final offer price, the lower the amount of the awards under the ‘IPO Incentive Plans’. The purpose of the ‘IPO Incentive Plans’ was to align the interests of the members of the Board of Directors and the Executive Committee, management and selected employees of the Group with the interests of the new shareholders at the time of the offering by limiting the impact of the final offer price on the amount of the awards payable to the Board of Directors and the Executive Committee, management and selected employees of the Group as a result of the completion of the offering
- Year-end metric, relates to nemolizumab, Alastin and other products
- Core CAPEX is defined as the capital expenditures (Property, plant and equipment as well as Intangible assets) excluding transformation related investments and acquisitions of IP and operating rights
- Based on 2024 expected Core EBITDA. Includes ~175 M USD milestones and earnouts
- Based on 3M SOFR + 2.75% subject to hedging strategy
- Based on 3M SOFR + 2.25% subject to hedging strategy
Forward-looking statements
Certain statements in this announcement are forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as "plans", "targets", "aims", " believes", "expects", "anticipates", "intends", "estimates", "will", "may", "continues", "should" and similar expressions. These forward-looking statements reflect, at the time, Galderma''s beliefs, intentions and current targets/ aims concerning, among other things, Galderma''s results of operations, financial condition, industry, liquidity, prospects, growth and strategies and are subject to change. The estimated financial information is based on management''s current expectations and is subject to change. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial consequences of the plans and events described herein. Actual results may differ from those set forth in the forward-looking statements as a result of various factors (including, but not limited to, future global economic conditions, changed market conditions, intense competition in the markets in which Galderma operates, costs of compliance with applicable laws, regulations and standards, diverse political, legal, economic and other conditions affecting Galderma’s markets, and other factors beyond the control of Galderma). Neither Galderma nor any of their respective shareholders (as applicable), directors, officers, employees, advisors, or any other person is under any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak of the date of this announcement. Statements contained in this announcement regarding past trends or events should not be taken as a representation that such trends or events will continue in the future. Some of the information presented herein is based on statements by third parties, and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, reasonableness, accuracy, completeness or correctness of this information or any other information or opinions contained herein, for any purpose whatsoever. Except as required by applicable law, Galderma has no intention or obligation to update, keep updated or revise this announcement or any parts thereof.
About Galderma
Galderma (SIX: GALD) is the pure-play dermatology category leader, present in approximately 90 countries. We deliver an innovative, science-based portfolio of premium brands and services that span the full spectrum of the fast-growing dermatology market through Injectable Aesthetics, Dermatological Skincare and Therapeutic Dermatology. Since our foundation in 1981, we have dedicated our focus and passion to the human body’s largest organ – the skin – meeting individual consumer and patient needs with superior outcomes in partnership with healthcare professionals. Because we understand that the skin we are in shapes our lives, we are advancing dermatology for every skin story. Galderma’s portfolio of flagship brands includes Restylane, Dysport, Azzalure, Alluzience and Sculptra in Injectable Aesthetics; Cetaphil and Alastin in Dermatological Skincare; and Soolantra, Epiduo, Differin, Aklief, Epsolay, Twyneo, Oracea, Metvix, Benzac and Loceryl in Therapeutic Dermatology. For more information: www.galderma.com.