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EQS-News: Dermapharm Holding SE / Key word(s): Annual Results/Annual Report
Dermapharm Holding SE fulfils all expectations despite multiple macroeconomic challenges
2024-03-28 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.
Dermapharm Holding SE fulfils all expectations despite multiple macroeconomic challenges

» Consolidated revenue up year on year by 10.8% to EUR 1,135.4 million
» Adjusted consolidated EBITDA declines 13.8% to EUR 310.2 million
» Adjusted consolidated EBITDA margin at 27.3%
» Earnings decline as boom from vaccine business fades
» Dividend proposal of EUR 0.88 per share for 2023
» Further revenue and EBITDA growth expected in 2024

Grünwald, 28 March 2024 - Dermapharm Holding SE ("Dermapharm"), a rapidly growing manufacturer of branded
pharmaceuticals, today published its full Annual Report 2023. Dermapharm confirms its preliminary consolidated figures
(IFRS) for financial year 2023. Despite a difficult macroeconomic environment, Dermapharm succeeded in maintaining its
growth trajectory and hitting the upper end of the guidance range in 2023.
"Vaccine production in the fight against the COVID-19 pandemic played a pivotal role over the past few years. We were
always acutely aware that these earnings would not last and that this business represented a boom phase in terms of
revenue and profitability. With this in mind, we reinvested significant portions of these cash inflows early on, in
particular to help finance the acquisition of the French Arkopharma Group, a market leader that gave us access to new
markets in western and southern Europe," said Dr Hans-Georg Feldmeier. "This strategy was an out-and-out success in the
past financial year. The increase in revenue, in particular from Arkopharma, more than offset the decline in vaccine
production. The simultaneous decrease in EBITDA is down to the fact that profitability levels returned to normal,
because as anticipated the extraordinary effects of the boom stemming from vaccine production cannot be sustained
indefinitely. Adjusted for vaccine production, we actually increased our EBITDA margin by upwards of 1 percentage
point," added Dr Hans-Georg Feldmeier.
On the basis of the final, audited consolidated figures (IFRS), consolidated revenue rose by 10.8% to EUR 1,135.4
million in 2023 (prior-year period: EUR 1,024.8 million). This was driven primarily by the acquisitions - first and
foremost Arkopharma - in the financial year, whose revenue contributions more than offset the decline in revenue from
vaccine production. However, adjusted for non-recurring items, earnings before interest, taxes, depreciation and
amortisation (EBITDA) declined by 13.8% to EUR 310.2 million (prior-year period: EUR 359.8 million), with the adjusted
EBITDA margin amounting to 27.3% (prior-year period: 35.1%). In contrast to revenue, the contributions from organic and
inorganic growth only partially offset the decrease in profitability. This translated to a decline in adjusted
consolidated EBITDA and the adjusted consolidated EBITDA margin. Unadjusted consolidated EBITDA amounted to EUR 280.3
million (prior-year period: EUR 331.3 million), and the consolidated EBITDA margin amounted to 24.7% (prior-year
period: 32.3%). The adjustments totalled EUR 29.9 million (prior-year period: EUR 28.4 million) and are explained in
greater detail in the segment reporting below. Adjusted for the revenue and earnings components from vaccine
production, revenue and consolidated EBITDA increased year on year by approximately 29% and 36%, respectively.
"In addition to the end of the boom phase associated with vaccine production, 2023 was also shaped by various other
macroeconomic and geopolitical challenges. The repercussions of Russia's war of aggression in Ukraine and the conflict
in the Middle East led to inflation, increases in the prices of energy and raw materials and supply chain disruptions.
Despite these crises, we exceeded our guidance for consolidated revenue and reached the upper end of the forecast range
for adjusted EBITDA. This was driven by Arkopharma as well as by organic growth in our existing portfolio, our
internally developed products and our international companies in Poland and Ukraine," said Dr Hans-Georg Feldmeier,
Chairman of the Board of Management of Dermapharm Holding SE.
Branded pharmaceuticals
Despite the strong performance of branded products, revenue in the "Branded pharmaceuticals" segment declined by 15.0%
to EUR 532.8 million (prior-year period: EUR 626.9 million). Adjusted EBITDA amounted to EUR 240.0 million in 2023
(prior-year period: EUR 336.4 million). This translates to an adjusted EBITDA margin of 45.0% (previous year: 53.7%).
The decline in revenue and EBITDA was due exclusively to the significant drop in vaccine production in 2023, which was
only partially offset by the strong organic growth in large portions of the existing portfolio. Unadjusted EBITDA
decreased by 27.3% to EUR 229.0 million in financial year 2023 (previous year: EUR 314.9 million), with the unadjusted
EBITDA margin declining to 43.0% (previous year: 50.2%). The adjustments allocated to this segment totalled EUR 11.0
million and were attributable primarily to M&A activities.
Other healthcare products
The "Other healthcare products" segment generated revenue of EUR 371.7 million in 2023 (prior-year period: EUR 154.2
million), representing an increase of 141.1%. The segment's adjusted EBITDA amounted to EUR 76.7 million in the
reporting period (prior-year period: EUR 25.0 million; +206.8% year on year). The adjusted EBITDA margin amounted to
20.6% (prior-year period: 16.2%). In each case, the increase was due to the revenue and EBITDA contributions from the
Arkopharma Group, which was consolidated for the first time in January 2023. The segment also benefited from a rebound
in global demand in the existing portfolio and Euromed's pronounced international growth. Unadjusted EBITDA increased
by 199.5% to EUR 57.8 million in financial year 2023 (previous year: EUR 19.3 million). The unadjusted EBITDA margin
increased to 15.6% (previous year: 12.5%). Adjustments of EUR 18.9 million related primarily to Arkopharma's PPA
effects and restructuring expenses in connection with the relocation of Candoro ethics.
Parallel import business
Revenue in the "Parallel import business" segment fell by 5.3% to EUR 230.8 million (prior-year period: EUR 243.7
million). The decline in revenue was due primarily to the higher manufacturers' rebates, which increased from 7% to
12%, and reduced product availability in the parallel import market. EBITDA amounted to EUR -0.8 million (prior-year
period: EUR 4.5 million), representing a drop of 117.8%. This was attributable primarily to a change in the product
mix.
Annual General Meeting 2024 - dividend of EUR 0.88 per share
The Annual General Meeting of Dermapharm Holding SE will take place on 27 June 2024. For financial year 2023, the Board
of Management and Supervisory Board are proposing a dividend of EUR 0.88 per share. "This marks a return to
Dermapharm's pre-pandemic dividend distribution policy," said Dr Hans-Georg Feldmeier. The proposed dividend
corresponds to a total distribution of EUR 47.4 million (previous year: EUR 56.5 million).

Outlook for financial year 2024
The Board of Management confirms the guidance published on 14 March 2024 and expects consolidated revenue to amount to
between EUR 1,170 million and EUR 1,210 million and adjusted consolidated EBITDA to amount to between EUR 305 million
and EUR 315 million in 2024.
The full Annual Report 2023 was published today at https://ir.dermapharm.de/.

IFRS figures for 2023 and the prior-year period[1]
(excluding segment reconciliation/Group holding company)
EUR million 2023 2022 Change

Consolidated revenue           1,135.4 1,024.8   10.8% 
Branded pharmaceuticals          532.8   626.9  -15.0% 
Other healthcare products        371.7   154.2  141.1% 
Parallel import business         230.8   243.7   -5.3% 

Adjusted consolidated EBITDA*    310.2   359.8  -13.8% 
Branded pharmaceuticals          240.0   336.4  -28.7% 
Other healthcare products         76.7    25.0  206.8% 
Parallel import business          -0.8     4.5 -117.8% 

Adjusted EBITDA margin* (%)       27.3    35.1 -7.8 pp 
Branded pharmaceuticals           45.0    53.7 -8.7 pp 
Other healthcare products         20.6    16.2  4.4 pp 
Parallel import business          -0.3     1.8 -2.1 pp 

Consolidated EBITDA              280.3   331.3  -15.4% 
Branded pharmaceuticals          229.0   314.9  -27.3% 
Other healthcare products         57.8    19.3  199.5% 
Parallel import business          -0.8     4.5 -117.8% 

EBITDA margin (%)                 24.7    32.3 -7.6 pp 
Branded pharmaceuticals           43.0    50.2 -7.2 pp 
Other healthcare products         15.6    12.5  3.1 pp 
Parallel import business          -0.3     1.8 -2.1 pp 

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*2023 EBITDA adjusted to eliminate non-recurring items amounting to EUR 29.9 million, incl. EBITDA of EUR -5.6 million at the Group holding company. *2022 EBITDA adjusted to eliminate non-recurring items amounting to EUR 28.4 million, incl. EBITDA of EUR -6.2 million at the Group holding company.

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 in Germany, the rest of Europe and the United States.

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