Dermapharm Holding SE Meets All Expectations in Challenging Economic Climate

Dermapharm Holding SE, a leading manufacturer of branded pharmaceuticals, has published its full Annual Report for 2023, showcasing its ability to hit the upper bounds of its guidance despite facing a tough macroeconomic landscape. The company recorded a 10.8% increase in consolidated revenue, reaching EUR 1,135.4 million, though it saw a 13.8% decline in adjusted consolidated EBITDA, amounting to EUR 310.2 million.

Notably, the decrease in earnings and EBITDA margin comes as the high returns from its vaccine production during the COVID-19 pandemic begin to subside. Despite these challenges, Dermapharm anticipates further growth in revenue and EBITDA for 2024, drawing confidence from strategic acquisitions such as the Arkopharma Group, which provided significant new market access in western and southern Europe.

The company faced declines in its "Branded pharmaceuticals" segment, attributed primarily to the reduced vaccine production, though this was partly offset by strong organic growth across its portfolio. Conversely, the "Other healthcare products" segment saw a substantial increase, largely due to the inclusion of Arkopharma's contributions since January 2023.

Amid other macroeconomic and geopolitical strains including the Ukraine conflict and Middle Eastern tensions, which fueled inflation and supply chain issues, Dermapharm succeeded in surpassing its revenue goals and reaching the high end of its EBITDA forecast. Additionally, the company proposes a dividend of EUR 0.88 per share for 2023, signaling a return to its pre-pandemic distribution policy.