Dermapharm confirms stable business development in H1 2025 and records EBITDA growth in Q2 versus prior-year quarter

Dermapharm confirms stable business development in H1 2025 and records EBITDA growth in Q2 versus prior-year quarter

• Stable first six months: consolidated revenue and adjusted EBITDA in line with expectations.
• Operational strength: EBITDA up 3.7% in Q2 2025 versus prior-year quarter.
• Branded pharmaceuticals remain growth driver with strong EBITDA.
• Structural measures to realign Arkopharma and optimise the parallel import are beginning to show positive results.
• Full-year guidance for 2025 confirmed: Board of Management continues to expect consolidated revenue of EUR 1,160–1,200 million and adjusted EBITDA of EUR 322–332 million.

Grünwald, 26 August 2025 – Dermapharm Holding SE ("Dermapharm"), a rapidly growing manufacturer of branded pharmaceuticals and other healthcare products, today published its report (reviewed by the auditor) for the first half of the current 2025 financial year and confirmed the preliminary consolidated figures (IFRS).

Based on the final consolidated figures (IFRS), consolidated revenue amounted to EUR 574.5 million in the first six months of the 2025 financial year, down 0.7% on the prior-year figure, as planned. The decline was primarily due to the optimisation of the parallel import portfolio. The above-average growth in the "Branded pharmaceuticals" segment continued to be the main driver of the company’s development. This growth not only offset the higher revenue contributions from the pandemic preparedness programme in the previous year but also compensated for the restructuring of the product portfolio to focus on contribution margins in the parallel import business and the realignment of Arkopharma. In terms of the bottom line, however, it was not possible to fully offset the higher contributions from the pandemic preparedness programme, and unadjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) fell slightly to EUR 144.9 million with a margin of 25.2% (prior-year period: EUR 147.0 million or 25.4%). The earnings adjustments related almost exclusively to restructuring expenses for the aforementioned optimisation and realignment. Overall, adjusted expenses declined by EUR 2.9 million as against the comparative period, to EUR 3.1 million. Adjusted EBITDA amounted to EUR 148.0 million, representing 25.8% of net income (prior-year period: EUR 153.0 million, or 26.4%). In Q2 2025, adjusted EBITDA rose by 3.7% compared with the prior-year quarter.

"Our stable business performance in the first half of 2025 once again confirms the resilience and flexibility of our business model. We solidified our market position in the long term through continuous growth in the "Branded pharmaceuticals" segment, despite the challenging conditions. The progress made with Arkopharma's realignment and product portfolio optimisations in the parallel import business underscore the effectiveness of our strategic measures. Q2 EBITDA growth as compared to the prior-year quarter confirms our operational strength and provides momentum as we move into the second half of the year. In light of this, we are confident that we will remain on our solid growth trajectory and confirm our guidance for the full year," said Dr Hans-Georg Feldmeier, CEO of Dermapharm Holding SE.

Branded pharmaceuticals

Revenue in the "Branded pharmaceuticals" segment rose by 4.0% to EUR 288.2 million (prior-year period: EUR 277.1 million) and made a key contribution to the performance in the first half of 2025. The segment's adjusted EBITDA amounted to EUR 126.4 million (prior-year period: EUR 126.0 million), translating to a margin of 43.9% (previous year: 45.5%). The key growth drivers were the allergology therapeutic area and the international companies. At the product level, demand for Allergovit^®, Dekristol^® OTC, Novo-Helisen^® Depot, Prednisolut^® and Myditin^®/Myopridin^® was particularly encouraging. Despite offsetting effects connected with the pandemic preparedness programme in the prior-year period, the segment remained an earnings driver with a stable margin. Unadjusted EBITDA increased by 3.5% to EUR 125.2 million (previous year: EUR 121.0 million), with the unadjusted EBITDA margin amounting to 43.4% (previous year: 43.7%).

Other healthcare products

Revenue in the "Other healthcare products" segment grew slightly by 0.2% to EUR 179.9 million (prior-year period: EUR 179.5 million), driven in large part by the B2B business at Euromed. Unadjusted EBITDA declined by 7.7% to EUR 25.3 million in H1 2025 (prior-year period: EUR 27.4 million), with the unadjusted EBITDA margin falling by 1.2 percentage points to 14.1% (prior-year period: 15.3%). Adjusted EBITDA amounted to EUR 26.0 million in H1 2025 (prior-year period: EUR 28.5 million), with the adjusted EBITDA margin at 14.4% (prior-year period: 15.9%).

Although revenue in US dollars accounts for less than 5% of consolidated revenue, the dollar's continuing depreciation against the euro nevertheless caused foreign exchange losses that weighed on earnings. Adjusted for foreign exchange losses, the segment reported a significant increase in adjusted EBITDA by 11.3% to EUR 30.6 million.

The food supplements business produced in Germany developed positively in the first half of 2025 with strong revenue and earnings growth. Despite the expected weakness in the first half of the transition year due to ongoing efforts to restructure its business model, Arkopharma was already experiencing positive effects from the realignment in Q2 2025: revenue was up year-on-year and its contribution to earnings had also improved by the end of the quarter.

Parallel import business

Contribution margin-oriented portfolio optimisation was consistently implemented in the "Parallel import business" segment. As expected, this strategic realignment towards high-margin products caused revenue to decline by 12.7% to EUR 106.5 million (prior-year period: EUR 122.0 million). Earnings are still being impacted by restructuring costs in connection with the adjustment to the headcount, meaning that the segment's unadjusted EBITDA amounted to EUR -2.9 million and the unadjusted EBITDA margin to -2.7% in the first half of 2025 (prior-year period: EUR 1.1 million and 0.9%, respectively). Adjusted EBITDA in the segment amounted to EUR -1.6 million in the reporting period (prior-year period: EUR 1.1 million), and the adjusted EBITDA margin amounted to -1.5% (prior-year period: 0.9%).

In the final months of H1 2025, changes in key operating figures such as unit contribution margin and the number of products confirmed the effectiveness of the action taken.
 

Board of Management confirms outlook for 2025 overall

Business development in the first half of 2025 was in line with projections and laid a solid foundation for the second half of the year. The Group is expected to grow as projected on the back of continuing high demand for compounds from the "Branded pharmaceuticals" segment, supported by above-average growth at the international companies and Allergopharma. Given this, the Board of Management confirms its full-year guidance for 2025, with consolidated revenue of EUR 1,160–1,200 million and adjusted EBITDA of EUR 322–332 million.

The full report on the first half of 2025 can now be downloaded from https://ir.dermapharm.de/.

IFRS figures for H1 2025 and the prior-year period
(excluding segment reconciliation/Group holding company)

*   H1 2025 EBITDA adjusted for non-recurring items totalling EUR 3.1 million, of which EUR 1.9 million was attributable to Q2 2025.
    H1 2024 EBITDA adjusted for non-recurring items totalling EUR 6.0 million, of which EUR 3.0 million was attributable to Q2 2024.

Company profile

Dermapharm – Pharmaceutical Excellence "Made in Europe"

Dermapharm is an innovative and rapidly growing manufacturer of branded pharmaceuticals and other healthcare products. Founded in 1991, the Company is based in Grünwald near Munich. In addition to its main location in Brehna near Leipzig, Dermapharm also operates other production, development and distribution locations, including in Germany, the rest of Europe and the United States.

In the "Branded pharmaceuticals" segment, Dermapharm has more than 1,300 marketing authorisations with more than 390 active pharmaceutical ingredients. Dermapharm's portfolio of pharmaceuticals is tailored to selected therapeutic areas in which the Company is a market leader, especially in Germany. The Company's integrated business model extends from in-house product development and production through quality management and logistics to the distribution of branded pharmaceuticals by a trained pharmaceutical sales force.

Dermapharm bundles food supplements, herbal pharmaceuticals, cosmetics, medical devices, herbal extracts and medicinal cannabis in its "Other healthcare products" segment. In this segment, Dermapharm can tap the expertise of Arkopharma, the market leader for phytotherapeutic food supplements in France, and the Spanish company Euromed S.A., a leading global manufacturer of herbal extracts and plant-based active ingredients for the pharmaceuticals, nutraceuticals, foodstuffs and cosmetics industries.

Dermapharm also operates the "Parallel import business" segment under the axicorp brand. axicorp imports originator pharmaceuticals from other EU Member States and resells them to pharmaceuticals wholesalers and pharmacies in Germany. This enables axicorp to benefit from the different pricing structures in the individual EU member states. Based on revenue, axicorp is currently the seventh largest parallel importer in Germany.

With a consistent R&D strategy and numerous successful product and company acquisitions and by stepping up its internationalisation efforts, the Group is continuously optimising its business activities and seeks external growth opportunities in addition to organic growth.

Contact

Investor Relations & Corporate Communications
Britta Hamberger
Tel.: +49 (0)89 64186-233
E-mail: ir@dermapharm.com