Galderma Group Ag U/Adr

Welcome to the Gauderma half-year 2025 financial results call. As customary, the press release along with Gauderma's interim condensed financial statements were published at 7 a.m. Central European Standard Time today and can be consulted on our and for their commitment.

As we look ahead, I remain fully engaged on taking Gauderma to the next level from category leadership to a true powerhouse in German politics. 2025 is a year of opportunities for us, and I'd be happy to report that we've made progress across our five strategic areas. First, we made strong progress in the first of two years with significant launches across our portfolio. Our two biologics with blockbuster potential, Mluvio and Ralph Vides, have started ahead of expectations. We'll discuss this in more detail later. Second, we maintain our momentum pursuing global opportunities. In H1, we delivered double-digit growth in seven out of our 10 markets. We also achieved important market share gains in injectable aesthetics and dermatological skin care, while Nemluvio reached $131 million in net sales. We continue to strengthen our financial profile. This includes growth in core EBITDA and margin improvements when excluding the P&L impact of Nemolizumab. We also reduced net leverage to 2.1 terms. We repaid $110 million of debt, and we refinanced $1.04 billion of our terminal. Last, but maybe not least, we repurchased shares for 323 million U.S. dollars in the context of accelerated book bill offerings to be held in Treasury. Fourth, we increased our focus on long-term growth. Among the highlights, we recently announced two new clinical trials from Imolizumab, which we'll present later. We also published nine-month data of the first of its kind aesthetic study in medication-driven weight loss. These data confirm the efficacy of Restylane and of Sculptra in improving facial aesthetic appearance for these patients. This is an exciting tailwind to support the growth of our fillers and biostimulatories subcategory. Additionally, we signed a scientific partnership with L'Oreal for a new research project. plan to use our complementary technologies to develop a non-invasive ambulatory imaging approach for extracellular matrix remodeling in the skin. Current methods in this context are invasive or they are suboptimal. There's a need for a portable, cost-effective, and high-resolution imaging solution that enables dynamic and non-invasive evaluation. We're excited to work with L'Oreal on this project. Fifth, our dynamic approach to commercial investments is driving results. We continue to deliver strong growth momentum, navigating market volatility and pockets of softness by leveraging our full portfolio and global geographic reach. Looking at our financial highlights for the period, Galderma continued on a strong growth trajectory, setting us up confidently for 2025 and for the years ahead. On net sales, we delivered a record 2.45 billion U.S. dollars for the first half, representing 12.2% year-on-year growth at constant currency. This growth was predominantly volume-based, with strong performance across product categories and across geography. Core EBITDA growth was also strong for the period and higher than expected in a year of key launches, achieving 555 million US dollars. Our margin of 22.7% reflects the anticipated adverse PLM impact from Nemolizumab. Excluding this impact, our margin continued to improve. For the full year, our guidance reflects both our strong growth trajectory and the investments required to support key launches. As such, we are raising our guidance on net sales to 12% to 14% year-on-year growth at constant currency up from the previous range of 10% to 12%. We're also confirming full-year guidance on core EBITDA margin, expecting at approximately 23% at constant currency. Again, I'm proud of our teams for these strong results and their relentless focus on growth despite an uncertain external environment. Now, let's turn to our performance update, including key highlights by product category. For the first half of the year, Galderma achieved strong top-line growth achieving a record $2.45 billion in net sales, up 12.2% year-on-year at constant currency. For the second quarter, this represented an acceleration to 15.8% year-on-year growth at constant currency, marking a return to double-digit growth. Growth was widespread across product categories and across geographies, as we'll see on the next slides. These results were driven mainly by volume and complemented by favorable mix more than offsetting pricing pressures from the competitive environment. Moving to our product categories and starting with injectable aesthetics, we maintained our strong momentum in both international markets and in the US We continue to gain market share in our two subcategories, driven by focused execution and new product launches. Net sales for the first half of the year were 1.2 billion US dollars, up 9.8% year-on-year, a constant occurrence. For newer modulators, net sales were 707 million US dollars, with year-on-year growth of 14.7% at constant currents. Both geographies reported double-digit growth and continued to gain market share. Dysport continued to perform strongly in top markets globally. Ralph Fidesz, meanwhile, is off to a strong start, now available in 17 markets. Growth in the first half had some positive stocking benefits from its continued rollout. Reception for this innovative neuromodulator which has a truly unique and a differentiated profile, has been very positive. Lastly, neuromodulator growth for the second quarter was slightly subdued following a very strong first quarter with favorable phases. For fillers and biostimulatories, net sales were $534 million for the period, with year-on-year growth of 3.9% at constant curve, Both geographies continued to gain share, with growth mainly driven by strong momentum for Sculptor and the initial uptake of new launches. We continue to observe softness in fillers globally, impacted by lower consumer demand and by aggressive promotional activity from competitors, especially in the US. As a result, the segment has become more sensitive in terms of pricing especially for SKUs, which are perhaps more interchangeable around the mid-base. We continue to focus and to grow our differentiated offering, such as for the lips, for chin, for jawline, and for skin quality. At the same time, we're starting to see healthcare professionals actively advocate for the segment with their patients. That includes explaining the importance of fillers as an integral part of their aesthetic journey. More broadly, we remain focused on opportunities for growth for this segment with select markets and select SKUs continuing to perform well. Biostimulatory growth remains very strong with outstanding performance in international markets. This includes record monthly sales for sculpture in top international markets, as well as first sales from its launch in China and in South Korea. Overall, the growth rate for fillers and biostimulatory in the second quarter was high following a decline in the previous quarter due to a high comparative base in 2020. Overall, in injectable aesthetics, we remain on a strong growth trajectory for 2025 with further acceleration expected next year as we move toward our midterm guidance. Alongside this progress, we continue to demonstrate our commitment to healthcare professionals. This was reflected in another double-digit year-on-year increase in the reach of Gilderma's education and medical awareness initiatives. With the launch of RalphieDev, we're proud to be bringing to market the biggest, yes, the biggest innovation in the field of neuromodulation in the last 20 years. Let me remind you of Valphides' unique features. First, this product is based on a truly innovative and proprietary Rela Botulinum Toxin A-Spray. Second, it was discovered and fully developed in-house. Our internal teams developed a highly potent, complex-free formulation using our own revolutionary pearl technology. Third, It's a holistically differentiated profile offering unique results, which were investigated in over 1,900 patients on a very thorough basis. Fourth, it's also produced in-house in our dedicated state-of-the-art manufacturing facility in Uppsala in Sweden. Introducing a product with this profile is a highly complex process. and our teams have been doing a great job to support its global rollout. Beyond launch plans, we're also working on further global regulatory submissions. This includes refiling in the US, which we are working on towards the end of this year. Overall, we're excited to be pioneering the next generation of neuromodulation with Ralphie Des. We're encouraged to see that market shares this enthusiasm, as we'll see

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