Dermapharm Holding SE reported first-quarter results that topped forecasts, delivering revenue of €306 million and adjusted EBITDA of €87.4 million. Both headline figures beat analyst expectations, with earnings coming in about 4% above consensus and sales roughly 2% ahead of forecasts.
On a year-over-year basis, group revenue rose 1% compared with the same quarter last year. The Branded Pharmaceuticals segment was the primary growth driver, expanding 12% to €163 million. Management attributed that segment's gains to a combination of organic growth and the contribution from recent acquisitions, including Mucos and F. Trenka.
The Other Healthcare Products division produced €95 million in revenue, a 1% decline from the prior-year period. That segment was affected by an ongoing reorganization at Arkopharma, according to the company. Parallel Import sales fell 21% to €48 million, reflecting the firm’s continued program to phase out unprofitable products - a decline the company said should normalize by the second quarter.
Profitability improved across the group. Adjusted EBITDA rose 8% year on year to €87.4 million, while the adjusted EBITDA margin widened to 28.6% from 26.9% a year earlier. Within the operating divisions, Branded Pharmaceuticals delivered €69.8 million of EBITDA with a margin of 42.8%. Other Healthcare Products reported €18.3 million in EBITDA at a 19.3% margin. The Parallel Import business returned to profitability with €0.7 million in EBITDA for the quarter.
Cash flow generation strengthened materially. Operating cash flow improved to €60 million versus €4.2 million in the first quarter of 2025. Free cash flow was reported at €51 million, compared with a negative €5.1 million in the prior-year quarter. Reported earnings per share were €0.84, up 35% from €0.62 in the first quarter of 2025.
Following the results, the company confirmed its full-year guidance. No further details on revisions or new targets were provided in the announcement.
Summary
Dermapharm exceeded consensus for both sales and earnings in the first quarter, driven mainly by a strong performance in Branded Pharmaceuticals and an expansion in margins. Cash flow improved substantially, and the company maintained its full-year guidance.
- Key points:
- Revenue of €306 million, up 1% year on year; sales beat forecasts by about 2%.
- Adjusted EBITDA €87.4 million, an 8% increase and margin expansion to 28.6%.
- Operating cash flow €60 million and free cash flow €51 million, improving sharply versus the prior year.
- Sectors impacted:
- Pharmaceuticals - performance driven by branded medicines.
- Healthcare products - affected by reorganization and product portfolio actions.
- Financial markets - investor reaction to earnings beats and cash flow improvement.
- Risks and uncertainties:
- Ongoing reorganization at Arkopharma has weighed on Other Healthcare Products sales and could continue to affect that division.
- The planned phase-out of unprofitable parallel import products has driven a 21% decline in that segment’s sales and may continue to impact near-term revenue until normalization is achieved by the second quarter.
- A portion of Branded Pharmaceuticals growth reflected recent acquisitions, including Mucos and F. Trenka, so future performance will depend in part on the contribution and integration of acquired assets.