27.04.2018
Dermapharm Holding SE DE000A2GS5D8
DGAP-News: Dermapharm Holding SE: Dermapharm plans further profitable growth in 2018
DGAP-News: Dermapharm Holding SE / Key word(s): Final Results
Dermapharm Holding SE: Dermapharm plans further profitable growth in 2018
27.04.2018 / 07:31
The issuer is solely responsible for the content of this announcement.
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Dermapharm plans further profitable growth in 2018
* Sales and earnings growth in 2017 resulted from a successful strategy
with a focus on select therapy fields
* Both segments "Branded pharmaceuticals and other healthcare products"
and "Parallel import business" contributed to the growth achieved in
2017
* Ongoing product portfolio expansion, internationalization and
integration of acquired companies and products into the Group are all
proceeding according to plan
* Revenue is expected to grow between 20-25% year-on-year in 2018 with
adjusted EBITDA up 22-27%
Grünwald, Germany, April 27, 2018 - Dermapharm Holding SE ("Dermapharm"), a
leading producer of patent-free branded pharmaceuticals for select therapy
fields in Germany with a growing international presence, published its full
report for fiscal year 2017 today. The company confirmed its preliminary
IFRS financial figures published in early April with a positive development
in 2017, significant revenue growth and an improved EBITDA margin.
Dermapharm sees itself well positioned for 2018 as well and expects to
continue its profitable growth course.
On the basis of final, audited IFRS figures, Dermapharm was able to increase
revenue by 5.1% to EUR 467.1 million in fiscal year 2017 (previous year: EUR
444.5 million). Earnings before interest, taxes, depreciation and
amortization (EBITDA) amounted to EUR 112.9 million (previous year: EUR
102.7 million), adjusted for one-time costs for IPO preparations of EUR 2.7
million. The adjusted EBITDA margin increased to 24.2% (previous year:
23.1%). Unadjusted EBITDA amounted toEUR 110.2 million (previous year: EUR
102.7 million) while the unadjusted EBITDA margin increased slightly to
23.6% (previous year: 23.1%).
Dr. Hans-Georg Feldmeier, CEO of Dermapharm Holding SE, is satisfied: "The
positive business development in 2017 confirms our chosen strategy with its
concentration on select therapy fields. The primary growth drivers came from
preparations that have innovative unique selling propositions or were not
the focus of medication-related discount agreements with health insurance
companies. We were also able to further increase the sales share of
high-margin products paid for directly by end consumers. The share of
prescription medicines in the self-payer segment also increased." Sales of
the newly acquired Bio-Diät-Berlin GmbH were also consolidated for the first
time in fiscal year 2017 from the fourth quarter onwards (around EUR 2.6
million).
Both Dermapharm segments "Brand pharmaceuticals and other healthcare
products" and "Parallel import business" contributed to sales and earnings
growth in 2017. Sales of branded pharmaceuticals increased by 7.6% to EUR
225.6 million (previous year: EUR 209.6 million). Segment EBITDA rose by
8.3% to EUR 104.6 million (previous year: EUR 96.6 million). This increase
was largely due to the positive development of gross profit (+8.3%)
alongside reduced expenses for government rebates, discounts from direct
contracts with health insurance companies and material costs. At 46.4%
(previous year: 46.1%), the segment's EBITDA margin was slightly above the
previous year's level. The revenue of the Parallel import business increased
by 3.0% to EUR 243.0 million (previous year: EUR 235.9 million). The
increase was mainly due to a growing market capable of importing alongside
consistent, demand-oriented portfolio optimization. Axicorp, the subsidiary
responsible for the Parallel import business, was able to maintain and
further expand its position as one of the top four parallel import companies
in Germany. EBITDA in this segment rose by 16.4% to EUR 7.1 million
(previous year: EUR 6.1 million). Besides optimizing the product portfolio
and increasing the gross profit margin through demand-driven purchasing,
cost optimization through the in-house relocation of the reimported
anesthetics business contributed to EBITDA growth. The segment's EBITDA
margin increased slightly in 2017 to 2.9% (previous year: 2.6%).
In order to continue this success story in 2018 and beyond, numerous steps
were taken in the past fiscal year as part of the growth strategy, which is
based on three pillars: product portfolio expansion with in-house new
product development, increased international footprint and further
acquisitions.
Dermapharm is constantly striving to develop and launch further
pharmaceuticals and other healthcare products to expand its product
portfolio. In 2017, Dermapharm received 71 new market approvals, 16 in
Germany. Market approvals included the vitamin D preparation Dekristol(R)
for other European countries, VITA aktiv(R) B12, the skin preparation
Solacutan(R) and the hair growth agent Minoxicutan(R). The strong product
pipeline with more than 40 ongoing development projects for new products in
all product areas was also successfully developed. The pipeline comprises 28
pharmaceuticals and other healthcare products expected to be marketable by
2023. In view of its international presence and the introduction of select
products from the existing product portfolio as well as new product
developments in select markets, a subsidiary was founded in the UK in 2017
and a sales manager was appointed. In February 2018 another subsidiary was
founded in Italy. Furthermore, Dermapharm received EU approvals for several
newly developed pharmaceuticals in 2017. 2017 was also a successful year for
Dermapharm in terms of M&A activities. In September 2017, Dermapharm
acquired the Riemser division of hyperthermal medical products and
successfully established bite away(R) and Herpotherm(R) on the German
market. The acquisition of Bio-Diät-Berlin GmbH followed in October 2017.
Bio-Diät-Berlin develops, produces and markets non-prescription
pharmaceuticals and other healthcare products. In January 2018, Strathmann
GmbH was acquired by Dermapharm. Also in January 2018 Dermapharm
successfully completed the acquisition of Trommsdorff GmbH & Co. KG.
Strathmann distributes a wide range of OTC and prescription-only products.
Revenues from Strathmann products are mainly generated in the self-payer
segment, which is also important for Dermapharm. Trommsdorff produces and
distributes well-known branded products such as Keltican(R) and
Tromcardin(R). The products of both companies ideally complement
Dermapharm's competence in its key therapy fields. With all acquisitions
Dermapharm reduces its dependence on the reimbursement of costs by the
statutory health insurance companies.
For 2018, Dermapharm expects the planned introduction of additional
attractive RX and OTC products. New medications and healthcare products from
the successful acquisitions will also support the 2018 portfolio. Dermapharm
moreover will continue its regional expansion in 2018. Besides the UK and
Italy, the Spanish market is also set to be developed. Through a combined
approval process for several countries, Dermapharm plans to obtain market
approvals for several target markets as quickly as possible when introducing
new products. For bite away(R) and Herpotherm(R), Dermapharm is in
preparation for market launch in select international markets in Europe (the
Baltic states, Belgium, Italy, the UK, Croatia, Luxembourg, the Netherlands,
Austria, Poland, Switzerland, Scandinavia, Hungary) as well as in China and
Israel via its own foreign subsidiaries and also in cooperation with sales
partners in the current business year.
Dr. Hans-Georg Feldmeier believes that Dermapharm is very well prepared for
the future: "All signs point to continued profitable growth in 2018. We are
on track in all areas: our attractive product pipeline is well filled, the
integration of our acquired companies and products is proceeding according
to plan and we are also making the desired progress with regard to the
internationalization of our business. Against this backdrop, we expect sales
growth of between 20% and 25% in fiscal year 2018 compared to the previous
year. Adjusted EBITDA is expected to increase by 22% to 27% year-on-year in
2018."
The complete 2017 Annual Report is available online as of today at
ir.dermapharm.com.
Key financial figures 2017 in year-on-year comparison
in EUR million 2017 2016 Change
Group revenue 467.1 444.5 + 5.1%
Branded pharmaceuticals and other healthcare 225.6 209.6 + 7.6%
products
Parallel import business 243.0 235.9 + 3.0%
Adjusted Group EBITDA* 112.9 102.7 + 9.9%
Adjusted EBITDA margin* (in %) 24.2 23.1 +
1.1pp
Group EBITDA 110.2 102.7 + 7.3%
Branded pharmaceuticals and other healthcare 104.6 96.6 + 8.3%
products
Parallel import business 7.1 6.1 +
16.4%
EBITDA margin (in %) 23.6 23.1 +
0.5pp
Branded pharmaceuticals and other healthcare 46.4 46.1 +0.3pp
products
Parallel import business 2.9 2.6 +0.3pp
* Adjusted for one-off costs of EUR 2.7 million for IPO preparations.
Company profile:
Dermapharm - Pharmaceutical Excellence "Made in Germany"
Dermapharm is a leading manufacturer of patent-free branded pharmaceuticals
for selected markets in Germany. Founded in 1991, the company is based in
Grünwald near Munich and has its main manufacturing facility in Brehna near
Leipzig. The company's integrated business model comprises in-house
development, in-house production and distribution of pharmaceuticals and
other healthcare products for specifically targeted markets by a medical and
pharmaceutical sales force. Dermapharm holds approximately 900 marketing
authorizations (Arzneimittelzulassungen) for more than 200 active
pharmaceutical ingredients, which are reflected in a broad assortment of
products. This assortment makes the company unique. In addition to Germany,
the company's core markets also include Austria and Switzerland. The company
plans to further expand its international presence. Dermapharm's business
model also includes a parallel import business, which operates under the
"axicorp" brand. Based on revenues, Dermapharm was among the top four
parallel import companies in Germany in 2016.
With a consistent development strategy and numerous successful product and
company acquisitions over the past 25 years, Dermapharm has continuously
optimized its business and provided external growth impulses in addition to
organic growth. Dermapharm intends to continue this profitable growth course
in the future. The company is focusing on three strategic growth drivers:
in-house development of new products, increase of its international
footprint and further acquisitions. These include the acquisition of the
pharmaceuticals manufacturer and distributor Trommsdorff in January 2018,
whose portfolio includes the well-known brands Keltican(R) forte and
Tromcardin(R) complex.
Contact
cometis AG
Claudius Krause
Phone: +49 (0)611-20585528
Fax: +49 (0)611 - 205855-66
Email: [email protected]
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27.04.2018 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: Dermapharm Holding SE
Lil-Dagover-Ring 7
82031 Grünwald
Germany
Phone: +49 (0)89 64 86-0
E-mail: [email protected]
Internet: ir.dermapharm.de
ISIN: DE000A2GS5D8
WKN: A2GS5D
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Stuttgart,
Tradegate Exchange
End of News DGAP News Service
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