Dermapharm Holding SE: accelerated EBITDA growth in Q1 2021

DGAP-News: Dermapharm Holding SE / Key word(s): Quarter Results
18.05.2021 / 07:30
The issuer is solely responsible for the content of this announcement.

Dermapharm Holding SE: accelerated EBITDA growth in Q1 2021

- Consolidated revenue up 10.2% to EUR 212.2 million

- Adjusted consolidated EBITDA rises 28.9% to EUR 63.7 million

- Sustained high demand for products to strengthen the immune system

- Vaccine production at Allergopharma GmbH & Co. KG off to a successful start

- Board of Management confirms outlook for 2021 overall

Grünwald, 18 May 2021 - Dermapharm Holding SE ("Dermapharm"), a rapidly growing manufacturer of branded pharmaceuticals, today publishes its results for the first three months of 2021. In the first quarter of financial year 2021, the Company lifted its consolidated revenue by 10.2% to EUR 212.2 million (Q1 2020: EUR 192.5 million). Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) also rose, climbing by 28.9% to EUR 63.7 million (Q1 2020: EUR 49.4 million). This translates into a year-on-year improvement in the adjusted EBITDA margin by 4.3 percentage points to 30.0%. Unadjusted EBITDA amounted to EUR 62.8 million and the unadjusted EBITDA margin was 29.6%.

Dermapharm successfully extended its growth trend in the first quarter of the new financial year. "We got off to a successful start in 2021 and, despite the ongoing lockdown, managed to top our performance in the exceptionally strong first quarter of the previous year, which had been caused by stockpiling at the beginning of the COVID-19 pandemic. This was driven primarily by the additional revenue and earnings contributions from Allergopharma GmbH & Co. KG, which had not been included in the first quarter of the previous year, as well as vaccine production at mibe GmbH Arzneimittel in Brehna in cooperation with BioNTech SE, and the sustained high demand for our products to bolster the immune system - especially for our Vitamin D compound Dekristol^(R)", said Dr Hans-Georg Feldmeier, Chairman of the Board of Management of Dermapharm Holding SE.

Revenue in the "Branded pharmaceuticals and other healthcare products" segment amounted to EUR 130.3 million in the first three months of 2021, representing a 22.7% increase (Q1 2020: EUR 106.2 million). Adjusted EBITDA also improved sharply during the same period, by 34.6% to EUR 58.8 million (Q1 2020: EUR 43.7 million). The adjusted EBITDA margin was 45.1% (Q1 2020: 41.1%). This increase was caused by the continued high demand for products to strengthen the immune system in the therapeutic area of vitamins/minerals/food supplements, the revenue and earnings contribution from Allergopharma, and vaccine production at mibe GmbH Arzneimittel's facilities.

In the "Herbal extracts" segment, revenue rose by 5.8% to EUR 20.0 million in the first quarter of 2021 (Q1 2020: EUR 18.9 million). As demand for herbal extracts continues to rise around the world, Euromed benefited from an increase in incoming orders from individual wholesalers and a rise in market prices. Taking into account the negative result (EUR -1.0 million; Q1 2020: EUR -0.9 million) from the investment in the FYTA Group, which was accounted for using the equity method, adjusted EBITDA rose by 41.0% to EUR 5.5 million (Q1 2020: EUR 3.9 million). Consequently, the adjusted EBITDA margin also improved by 6.9 percentage points to 27.5% (Q1 2020: 20.6%).

Revenue in the "Parallel import business" segment fell by 8.3% to EUR 61.9 million in the reporting period (Q1 2020: EUR 67.5 million). The revenue decline resulted from a general sustained drop in demand throughout the parallel imports market overall, which could not be offset by increasing revenue from re-imported narcotics and medicinal cannabis. EBITDA declined by an above-average 66.7% to EUR 1.0 million (Q1 2020: EUR 3.0 million). The EBITDA margin declined accordingly from 4.4% in the first quarter of the previous year to 1.6%. In particular, the increased participation in health insurance discount agreements following the entry into force of the German Act for More Safety in the Supply of Pharmaceuticals (Gesetz für mehr Sicherheit in der Arzneimittelversorgung, "GSAV") led to an immediate deterioration of the margin.

In light of the positive business development in the first quarter, Dermapharm is pleased to confirm its outlook for 2021. The Board of Management continues to expect organic growth in consolidated revenue by 24% to 26% and in adjusted consolidated EBITDA by 45% to 50%.

The full interim statement for Q1 2021 is available from today at https://ir.dermapharm.de.

Q1 2021 financials vs. prior year

(excluding division reconciliation/Group holding company)

* Q1 2021 EBITDA was adjusted for non-recurring expenses amounting to EUR 0.9 million.

  Q1 2020 EBITDA was adjusted for non-recurring expenses amounting to EUR 0.2 million.

Company profile:

Dermapharm - Pharmaceutical Excellence "Made in Germany"

Dermapharm is a rapidly growing manufacturer of branded pharmaceuticals. Founded in 1991, the Company is based in Grünwald near Munich. The Company's integrated business model comprises in-house development, production and the distribution of brand products by a trained pharmaceutical sales force. In addition to its main location in Brehna near Leipzig, Dermapharm also operates other production, development and distribution locations in Europe (primarily in Germany) and the United States.

In the "Branded pharmaceuticals and other healthcare products" segment, Dermapharm has more than 1,300 marketing authorisations with more than 380 active pharmaceutical ingredients. Dermapharm's portfolio of pharmaceuticals, medical devices and food supplements are tailored to selected therapeutic areas in which the Company is a market leader, especially in Germany.

In the "Herbal extracts" segment, Dermapharm can tap the expertise of 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's business model also includes the "Parallel import business" segment that operates under the "axicorp" brand. Based on revenue, Dermapharm was among the top five parallel import companies in Germany in 2020.

With a consistent R&D strategy and numerous successful product and company acquisitions and by stepping up its internationalisation efforts, Dermapharm has continuously optimised its business over the past 30 years and sought external growth opportunities in addition to organic growth. Dermapharm is firmly committed to continuing on this profitable growth course in the future.

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