Galderma raises sales growth outlook to 22.5–23.5% after results beat analyst estimates
Key Facts
Galderma raised its full-year net sales growth outlook to 22.5–23.5% at constant currency after strong growth in the first nine months and quarterly results that exceeded analyst estimates. The company said in its earnings statement that net sales for the period reached 4,765 million dollars, compared with 3,737 million dollars in the corresponding period a year earlier. Year-on-year growth at constant currency was 25.1%, while reported growth, which includes the impact of exchange-rate movements, reached 27.5%. The company attributed the sales increase primarily to higher volumes, with a positive contribution from product mix. It described growth in its statement as "primarily volume-driven," with its main business segments posting double-digit growth.
In the third quarter alone, Galderma's sales reached 1,632 million dollars, according to the company's statement, exceeding analysts' expectations ahead of the results. Analyst consensus published on Galderma's investor relations website had pointed to quarterly sales of 1,552 million dollars. The company recorded year-on-year growth of 26.0% at constant currency in the quarter, compared with analysts' expectations of 19.9% on the same basis. Quarterly performance thus exceeded consensus estimates for both sales in dollars and growth excluding currency fluctuations. Third-quarter growth also exceeded the rate recorded for the first nine months as a whole, with sales continuing to rise from the corresponding period a year earlier.
Therapeutic Dermatology led the main business segments in the first nine months, with sales rising 64.4% at constant currency, according to the company's detailed results. Nemluvio sales reached 735 million dollars over the same period within Galderma's therapeutics business. Dermatological Skincare posted year-on-year growth of 16.2% at constant currency, ranking behind Therapeutic Dermatology by growth rate. Injectable Aesthetics grew 13.2% on the same basis, also recording a double-digit increase during the period. Within Injectable Aesthetics, sales of fillers and biostimulators rose 8.5% at constant currency, a slower pace than the segment overall. The results showed a clear divergence in growth across the company's businesses, with therapeutics outpacing skincare and injectable aesthetics.
The results follow Galderma's signing of an agreement to acquire ZO Skin Health, a deal announced before the release of its nine-month performance. Galderma said in its acquisition announcement that the agreement was for the purchase of the entire company, representing a 100% stake. The deal set an enterprise value of 1.5 billion dollars, according to the announced terms. The move coincides with growth in Galderma's existing Dermatological Skincare business, alongside its therapeutics and injectable aesthetics businesses. Completion of the acquisition remains subject to regulatory approvals and customary closing conditions, according to the company's announcement.
For the full year, the new sales growth range replaces a previous forecast of 19–21% at constant currency, according to Galderma's updated financial guidance. The revision raised both the lower and upper ends of the company's annual sales growth target range. Galderma maintained its outlook for a core earnings before interest, taxes, depreciation and amortisation margin of around 26% at constant currency. The higher sales target was thus accompanied by an unchanged full-year profitability forecast under the core measure used in the company's guidance. For the ZO Skin Health deal, Galderma expects to complete the acquisition in the fourth quarter of 2026 or early 2027, subject to the required approvals and closing requirements.