Earnings call transcript: Galderma’s Q1 2025 sees strong sales, stock surges

Galderma Group AG reported robust financial results for Q1 2025, with net sales reaching a record $1.129 billion, marking an 8.3% year-on-year growth at constant currency. The company’s stock price surged by 12.1%, reflecting investor confidence in Galderma’s performance and future prospects. According to InvestingPro data, Galderma maintains a "GOOD" overall financial health score of 3 out of 5, with particularly strong marks in profitability and growth metrics. The company appears overvalued at current levels based on InvestingPro’s Fair Value analysis. The increase in sales was driven by volume growth and a favorable product mix, with significant contributions from injectable aesthetics and neuromodulators. Galderma confirmed its full-year guidance of 10-12% net sales growth and a core EBITDA margin target of approximately 23%.

Key Takeaways

• Galderma’s Q1 2025 net sales reached a record $1.129 billion.
• Stock price increased by 12.1% following the earnings announcement.
• Injectable aesthetics and neuromodulators showed strong sales growth.
• Full-year guidance of 10-12% net sales growth was reaffirmed.
• New product launches and international expansion are key growth drivers.

Company Performance

Galderma’s performance in Q1 2025 was marked by a strong start to the year, with net sales growing by 8.3% compared to the previous year. The company benefited from its focused commercial execution and market share gains in injectable aesthetics. The launch of new products and the expansion into international markets, particularly in China and the Asia-Pacific region, further bolstered its growth.

Financial Highlights

• Revenue: $1.129 billion, an 8.3% increase YoY
• Injectable Aesthetics: $547 million, up 9.9% YoY
• Neuromodulators: $311 million, up 21.4% YoY
• Dermatological Skincare: $270 million, up 7.8% YoY
• Therapeutic Dermatology: $212 million, up 4.9% YoY

Outlook & Guidance

Galderma remains confident in its growth trajectory for 2025, with an expected acceleration in Q2. The company is focusing on the launch of new products, such as Nimluvio and Ralfidesse, and exploring external innovation opportunities. Analysts tracked by InvestingPro maintain a positive outlook, with EPS expected to reach $2.74 in FY2025. For detailed analysis and comprehensive insights, investors can access Galderma’s Pro Research Report, part of InvestingPro’s coverage of over 1,400 top stocks. Despite potential US tariffs, Galderma considers its exposure manageable and continues to anticipate a 10-12% increase in net sales for the full year.

Executive Commentary

• "We had a very strong start to the year, I think ahead of expectations." - Fleming Onskov, CEO
• "We are confident in our growth trajectory for ’25." - Fleming Onskov, CEO
• "Our integrated derm strategy works, and it delivers even in times like these." - Fleming Onskov, CEO

Risks and Challenges

• Potential impacts from US tariffs on manufacturing costs.
• Market softness and shifts in consumer demand.
• Intensifying competition in the dermatological and aesthetics markets.
• Supply chain disruptions affecting product availability.
• Regulatory changes in key international markets.

Galderma’s strategic focus on new product launches and international expansion appears to be paying off, as evidenced by its strong Q1 performance and optimistic outlook for the rest of the year.

Full transcript - Galderma Group AG (GALD) Q1 2025:

Conference Operator: Good day, and thank you for standing by. Welcome to the Caldermes Conference Call. At this time, all participants are in a listen only mode. After the speakers’ presentation, there will be a question and answer session with financial analysts. Will need to press 11 on your telephone.

You will then hear an automated message advising your hand is raised. To withdraw your question, please press 11 again. Please be advised that today’s conference is being recorded. I would now like to hand the conference over to Emil Ivanov, Head of Strategy, Investor Relations and ESG, to introduce the call. Emil, please go ahead.

Emil Ivanov, Head of Strategy, Investor Relations and ESG, Galderma: Warm welcome to Goderma’s twenty five first quarter trading update call. As customary, the press release was published at 7AM Central European Standard Time today and can be consulted on our corporate website at any time. Today’s presentation slides as well as recording of the webcast will be made available on our website after the call. Please be advised that today’s presentation contains forward looking statements, which should be treated with the appropriate level of caution as advised on this slide. Let me now introduce today’s trading update webcast.

Doctor. Fleming Onskov, CEO of Goderma, will provide a performance update for the first quarter, including key highlights by product category. Thomas Ditry, CFO, will then introduce the trading update and the financial outlook for the year. Both Fleming and Thomas will be available to answer questions from the financial analysts before Fleming provides his final remarks to close the webcast. With this, I would like to invite Fleming to start the GODERMA highlights for the first quarter of twenty twenty five.

Fleming, over to you.

Fleming Onskov, CEO, Galderma: Thank you, Emil. Good morning, good afternoon, and welcome to Galderma’s first quarter twenty twenty five trading update webcast. We are proud to report record performance ahead of expectations and a strong start to what we expect to be a year of opportunity for Geldurf. There are five key opportunity areas for GELDERMA in 2025. This is the first of two years with significant launches.

This includes the introduction of our two biologics with blockbuster potential, Memluvio and Ralphidesse, along with Sculptra in China and also in South Korea later this year, Restylane Shape in Brazil and continued innovation in dermatological skincare. For 2026, we have further launched as planned along the same trajectory. We’ll also continue expanding our fillers and biostimulators offering, including launches of multiple Resilane indications in The U. S. We’re confident that our continued focus on industry leading innovation, focused commercial execution and commitment to training and education will fuel growth acceleration of injectable aesthetics toward our midterm guidance.

Global market share gains remain a major opportunity. In international markets, our largest geography and growth driver, we continue to see strong momentum in underpenetrated high growth markets. As for The U. S, we maintain modest growth expectations, excluding, of course, Namluevil, given ongoing volatility and market uncertainty. We continue to strengthen our financial profile.

This includes ongoing progress on our rapid deleveraging trajectory and sustained robust cash flow, contributing to a stronger balance sheet. We’re now in a position to focus on long term growth. With more strategic optionality, we can invest in an additional pipeline opportunities. Organically, we have differentiated innovation across our product categories, including plans to explore additional indications for Nimolizumab. These will be announced later this year.

We also have the option to explore external opportunities where we see a strong strategic fit. Last, but of course not least, we maintain a dynamic approach to commercial investments to drive continued growth. Our broad portfolio and international exposure helps us navigate external challenges and market volatility. Galderma has a proven resilient business model as demonstrated since becoming an independent company in October 2019. Over the past years, we have set a strong foundation for our company.

With that in place, I’m excited about what we can achieve this year and beyond. Let’s look at our financial highlights for the period. GELDERMA achieved a record US1.1 billion dollars in net sales for the first quarter. These results are ahead of expectations, with net sales benefiting from focused execution, some favorable phasing in injectable aesthetics and a stronger than expected ramp up of Nimloo. For the period, growth was up 8.3% year on year at constant currency, with broad based growth across product categories and across geographies.

Growth was primarily driven by volume, complemented by favorable mix. Following the strong start, we are confident our full year guidance of net sales growth of percent and a core EBITDA margin of approximately 23%, both at constant currency. This reflects both our strong growth trajectory, where we still expect growth acceleration as of the second quarter, and our manageable exposure to current U. S. Tariffs, which we will discuss later.

Importantly, our over delivery in the first quarter increasingly derisk our guidance for the year. This gives us flexibility to absorb some further tariff impact and some consumer demand related pressures. With these achievements and despite ongoing economic and geopolitical volatility, we remain confident in our guidance and are firmly on track to meet our full year targets. Moving to our detailed performance update. GALDERMA started the year strong with broad based growth across product categories and across geographies.

Starting with our product categories. In injectable aesthetics, net sales grew 9.9% year on year at constant currency. Newer modulators grew by an impressive 21.4% with double digit growth across geographies. The majority of neuromodulator growth was driven by focused execution and continued market share gains, including the RalfiDes launch, while also benefiting from some favorable phasing. Fillers and biostimulators declined 2.3%, impacted by a very strong Q1 twenty twenty four comparative base in The US, despite double digit growth in international markets.

Overall, we gained market share in key markets across both neuromodulators as well as fillers and biostimulators. In dermatological skincare, growth for the period was 7.8%. Both of our flagship brands, Zetaphil and Elastin, continued their strong trajectory with strong performance in international markets. In therapeutic dermatology, growth was 4.9%, driven by a strong ramp up of Nimluvio sales. We reported $39,000,000 in the first quarter, ahead of expectations.

As expected, our mature therapeutic dermatology portfolio, excluding Nimnuveo, declined due to anticipated lower volumes and pressures from generics. Looking at growth by geography, international markets, Galderma’s larger geography and main growth contributor delivered continued double digit growth, up 10.4% for the period. Performance was strong in both injectable aesthetics and in dermatological skincare. And Europe reported its first Nimluvio sales. The U.

S. Returned to growth, up 5% for the period. This was driven by strong uptake of Nimluvio in atopic dermatitis and in perigula nodaris alongside growth in injectable aesthetics and in dermatological skin care. Over the next slides, I’ll cover key highlights by product category. Let’s start with injectable aesthetics.

We saw several innovation milestones in international markets, further broadening our science based portfolio. Ralphie Death, our next generation liquid neuromodulator, was featured at two major European aesthetics congresses. At the International Master Course on Aging Science World Congress, IMCAS, in Paris in January, we reinforced our leadership in education and in training. Two, Galderma’s symposium were among the five top rated sessions of the Congress. At the twenty third Aesthetic and Anti Aging Medicine World Congress, AMWC in Monaco in March, Galderma was recognized with two awards voted by healthcare professionals.

Ralfidesse was named best neuromodulator and Restylane Lift was awarded best injectable. Ralfidesse is off to a strong start in its first markets. Now approved in 18 international markets, it’s available in Southern Europe, Germany, Australia, The Nordics and Poland. We also accelerated the launch of Sculptra in China, marked by a major launch event just last week. Early signals are very positive, with first sales already coming in from our pre launch activities.

Additionally, Restylane Shape was recently launched in Brazil. In just one month, we reached over 2,500 healthcare professionals through early engagement. This included dedicated events and trainings, local congress execution, we’ve seen strong efforts and results across markets. To share some highlights, we launched a reenergized global campaign for Dysport, highlighting its efficacy and proven results. In The US, this was underpinned by strong sales representative engagement and activation through Aspire, our loyalty program for both consumers and healthcare professionals.

Together, these efforts helped us gain further market share for Dysport. We activated our Journey of Glow campaign in Asia, focused on empowering individuals on their skincare journey, while highlighting the strength of Gilderma’s injectable aesthetics portfolio. This campaign featured key products like Sculptra and Restylane Skin Booster to help consumers achieve healthier looking skin. In Thailand, an immersive in person event was held in February, attracting over 4,500 participants supported by an omni channel approach. Healthcare professionals and skinfluencers helped amplify the event on social meeting, generating over 1,700,000 engagements across platforms.

We also saw outstanding performance from Sculptra in Latin America with significant market share gains and record consumption across markets. This was driven by a robust commercial strategy and leading education. We also continued expanding our market leading education and services. A standout example again comes from Latin America, where Galderma remains the number one player in injectable aesthetics. At the Brazil International Congress of Dentistry, the leading dental congress in Latin America, and the largest in the world with 100,000 dentists attending, Galderma clearly stood out.

We hosted a five fifty square meter booth with multiple activations throughout the event. In Colombia, we significantly increased local consumption following a well executed local GAIN event that engaged nearly 500 healthcare professionals. And on the services side, we launched Aspire in Brazil, the first aesthetics loyalty program for healthcare professionals in that market. A key differentiator in The US, Aspire is off to a strong start in Brazil with over 1,500 healthcare professionals registering within just two months. As these examples show, our injectable aesthetics business has solid growth momentum for 2025 and is setting the stage for acceleration from 2026 and onwards.

Switching now to dermatological skincare. We’re continuing to drive differentiated innovation, bringing new products to market through both geographic and portfolio expansion. For Cetaphil, this includes the launch of Cetaphil Acne Fast Rescue pimple patches in The US, Canada and The UK, as well as Cetaphil SPF 40 everyday sunscreen tinted face lotion in The US. We also continue the global rollout of the Cetaphil portfolio. This includes a Cetaphil gentle exfoliating cream and line in Canada and The UK, and the bright healthy radiance line in Brazil.

For elastin, we’re just launching our newly enhanced restorative skin complex with next generation TriHex technology in The US. This formula includes two groundbreaking addition proven to help visibly restore facial radiance and plumbing by supporting the skin’s own regenerative abilities. As Elastin celebrates its tenth anniversary, we continue to advance our leadership in physician dispense skincare and to innovate further, including in our existing hero products. The image below on this slide shows volume change for a patient after using elastin restorative skin complex with next generation TRINX technology for twelve weeks. On the right side of the face, you will see it was used there only.

This represents a 1.08 cubic centimeter volume improvement. With demonstrated clinic effectiveness, this innovation targets key concerns, such as loss of collagen and of elastin. It also helps address the loss of volume as a result of medication driven weight loss or other factors. With this launch, we’re taking regenerative skincare to a total new level, while further strengthening the synergies between Elastin and our injectable aesthetics portfolio. We continue to support growth in dermatological skincare through focused execution and by leveraging our leading education and training platform.

Digital first activations remained key, especially as we rebrand Cetaphil for Gen Z consumers. Recent advocacy campaigns have featured healthcare professionals and skinfluencers, including Nara Smith, who joined a campaign for Cetaphil’s Restorative Eczema Pro line with over 10,000,000 followers and personal experience with eczema, NARA is bringing authenticity and strong reach to this campaign. We continue to take a holistic approach to our portfolio, including opportunities to co promote Cetaphil Restorederm with Nimluvio. We also maintain our focus on retail fundamental, both in store and online with e commerce remaining our fastest growing channel. Recent highlights include a strong resale presence for Cetaphil in India and continued benefits in The US from our improved Walmart shelving for Cetaphil’s face.

We’re also seeing growing penetration of elastin in healthcare professional offices and early tractions for Cetaphil on TikTok shop in Southeast Asia markets. Finally, we continue to leverage Galderma’s full portfolio to benefit dermatological skincare. In collaboration with Therapeutic Dermatology, this includes the global rollout of SKEM, which is skin knowledge and innovation network, with the first symposium in Korea. It also includes making our cleanse, treat, moisturize and protect skincare regimen a central showcase at major congresses. Combining dermatological skincare and therapeutic dermatology, it was a centerpiece at the recent India Dermacon annual congregation, which brought together over 5,500 dermatologists.

Now for therapeutic dermatology, focusing on Nimluvio highlights. In The US, Nimluvio continues to progress strongly with a sales ramp up ahead of expectations. Underpinned by growing underlying demand, we continue to see growth in new patient starts, new prescribers, and weekly pull through. In terms of weekly market share for paid new patient starts, for perigula nodularis, Nimluvia was trending at about 30% on a six week rolling average from mid February to March, and the PN market is expanding rapidly. For atopic dermatitis, although still in the earlier stages of the launch, NEMLUVIA was trending at 3.4 market share for the month of March.

We keep increasing our reach with healthcare professionals through ongoing sales force expansion and with consumers with the recent launch of our first direct to consumer campaign. This campaign here shown on the right emphasizes the science and the patient benefits. It highlights Nimlivia’s unique mechanism as the first and the only treatment that blocks interleukin-thirty one or IL-thirty one signaling a key driver of itch, of inflammation, and of skin barrier dysfunction. We also continue to expand commercial access. Reimbursement discussions are progressing very well with forthcoming enhancements to payer coverage.

Nimluvio has now also been launched internationally, starting with Germany and showing a positive experience similar to US across three areas. First, activation has been strong. A skin event brought together 100 dermatologists from eight countries, and we’re currently ahead of targets for healthcare professional reach, patient demand, and pharmacy reorder rates. Second, patient and healthcare professional feedback has been very positive, especially regarding the fast itch release. Engagement has focused on healthcare professionals during this early stage, with over 700 speaker events reaching 1,800 healthcare professionals in just six weeks.

Finally, we’re leveraging the breadth of our broader portfolio, as highlighted earlier with Cetaphil Restoraderm to help address rapid itch resolution. So as we covered, Galderma has achieved a strong start to 2025, both in terms of results, as

Thomas Ditry, CFO, Galderma: well as the progress made across our leading dermatology platform. I would now like to hand over to Thomas to share more details on our financials. Thank you, Fleming. It’s my pleasure to comment on Galderma’s Q1 twenty twenty five trading update and outlook, starting with an overview of net sales for the period. As mentioned by Fleming, Galderma had a strong start to the year.

Galderma achieved a record net sales of $1,129,000,000 for the first quarter, representing year on year growth of 8.3% at constant currency. Net sales growth was ahead of expectations benefiting from focused commercial execution, some favorable phasing in injectable aesthetics, as well as a stronger than anticipated ramp up of Nimnuvio. Growth in the first quarter was broad based across product categories and geographies. And it was primarily driven by strong volume complemented by favorable mix. Looking at injectable aesthetics, net sales were $547,000,000 9.9 percent year on year at constant currency.

This was ahead of expectations due mainly to focused commercial execution globally along with some favorable quarterly phasing for The US, as well as an earlier than expected Sculptra launch in China. Neuromodulators achieved double digit growth across geographies with global net sales of $311,000,000 up 21.4% at constant currency. Growth in neuromodulators was driven by three things. One, strong execution with continued market share gains in The US and across key markets. Two, the Ralfidaz launch with sales in first European markets and Australia, noting the launch also benefited the growth of fillers and bio simulators.

And three, favorable quarterly phasing, especially in The US, which is expected to be rebalanced in the second quarter. Fillers and bio simulators net sales were $236,000,000 down 2.3% at constant currency. This decrease is also not representative of growth expectations for the rest of the year as Q1 was against a high comparative base in filler and biostimulators. As a reminder, for the first quarter of twenty twenty four, this category grew 18.2% at constant currency, significantly ahead of the 2024 full year growth of 7%. The comparative base effect impacted US growth for this subcategory, while international markets continued on a strong double digit growth trajectory.

Overall, in fillers and biosimilars, we continue to gain share both in The US and across key international markets. Fillers specifically continued to be impacted by market softness in key countries along with some temporary impact in The US from the wildfires in Southern California. We continue to see strong performance in Asia Pacific and Latin America. Sculptra remains a key growth driver with continued double digit growth in international markets, including exceptionally strong demand in Latin America, Europe and first sales in China in anticipation of the launch. Overall, in Q1, our teams have continued to demonstrate our ability to deliver strong performance in injectable aesthetics globally.

As a result, we remain confident in our trajectory for 2025, as well as acceleration towards our midterm guidance. Next, moving to dermatological skincare. Net sales for the first quarter of twenty twenty five were $270,000,000 7 point 8 percent year on year at constant currency. Both C. Diff.

Elastin continued their strong trajectory globally. Despite some slower consumer demand, the dermatological skincare market remains attractive and continues to grow ahead of the broader skincare market. We had especially strong performance in international markets with notable growth in e commerce and in Asia. Growth for C. Diff.

Was particularly strong in China leveraging the Chinese New Year campaign and in India supported by continued investments to strengthen C. Leadership position. Meanwhile, C. Diff. Growth in Latin America was impacted by a high comparative base.

As for Alastin, we continue to progress on our international expansion, growing its base and nicely gaining market share. In The U. S, we successfully navigated an environment of constrained consumer spending, growing both our flagship brands. For Cetaphil, we performed broadly in line with the market, with e commerce remaining our fastest growing channel. For Alastin, we outperformed the market and continued on our growth trajectory as the only top five physician dispense brand in The US to gain share year on year consistently for the past six years.

We grew across channels with the core focus remaining on healthcare professionals engagement and education benefiting from our integrated dermatology platform. Overall, we see ourselves on a strong trajectory for continued growth in dermatological skincare. Now onto a therapeutic dermatology, net sales for the first quarter twenty twenty five were $212,000,000 4 point 9 percent year on year at constant currency. Growth was driven by the strong ramp up for Nimluvio more than offsetting the expected decline of our matured therapeutic derm portfolio. The decline in the mature portfolio excluding Nimluvio stems from anticipated lower volumes and generic pressure globally and especially from the analyzed effect of Oracea’s loss of exclusivity in The U.

S, which is expected to lapse in the second quarter. Was also our last quarter recording sales for Trineo and Epsilay with the expected termination a year early of the related agreement between Valderma and Solgel. This does not impact our outlook for the year as sales contributions from these brands are not material. Our strategy in therapeutic dermatology remains unchanged with a clear focus on Nimluvio along with lifecycle management of our mature portfolio. Nimnuveo tracking ahead of expectations achieved $39,000,000 in sales for the period.

This includes a strong initial uptake in both prurigo nodularis and atopic dermatitis in The US, as well as initial international sales from its launch in Germany. Nimluvio is on a strong launch trajectory and sets therapeutic dermatology up for significant growth going forward. Now looking at net sales geographically growth continues to be driven by Glyoderma’s larger reporting geography, international. Starting with international markets, we saw continued growth momentum with double digit performance. Growth was strong in injectable aesthetics with double digit growth across both neuromodulators as well as fillers and biostimulators.

Growth was also strong in dermatological skincare driven by Asia more than offsetting Latin America, which was impacted by a high comparative base. In therapeutic dermatology, Nimluvia recorded its first sales while the mature portfolio was impacted by anticipated competitive pressures. GyDerma’s overall performance was strong across international markets with double digit growth led by Canada, China, Germany, India, and The UK, which remain highly attractive and largely underpenetrated. Now onto The US. As anticipated, The US returned to growth driven by the strong uptake of Nimluvio in atopic dermatitis and prurigo nodularis, as well as growth in injectable aesthetics and in dermatological skincare.

In injectable aesthetics, Galderma continued to gain share in neuromodulators as well as in fillers and biostimulators. As mentioned earlier, growth was particularly strong in neuromodulators benefiting from favorable 2025 quarterly phasing, while fillers and biostimulators growth was impacted by a high comparative base last year and ongoing market softness in fillers. In dermatological skincare, Galderma grew both of its flagship brands and in therapeutic dermatology for the first time Namlivia sales more than offset the anticipated decline in its mature portfolio. As we look at the remainder of 2025, I would like to reiterate that Galderma’s exposure to currently announced US tariffs continues to be manageable and is fully factored into our guidance for the full year. As per the currently announced US tariffs, Galderma’s US portfolio is mostly exempt from tariffs with the only notable exception being The US fillers and biosimilars portfolio, which represents approximately 9% of total Galderma net sales.

These are imported from the European Union into The US using transfer pricing, thus exposing only a portion of the in market net sales prices to tariffs. In The US, injectable aesthetics markets overall, more than 90% of all products sold are being imported, whether from the European Union, the UK or South Korea. In that context and given its strong market position, Glyderma’s focus continues to be on gaining market share. Lastly, our sales over delivery in the first quarter allows us to increasingly de risk our full year guidance. This enhances our ability to absorb some further tariff impacts and some consumer demand related deterioration.

These could include, for example, some potential tariffs on products classified as pharmaceuticals. For reference, Dysport is produced in The UK compared to the majority of competing neuromodulators that are being imported from either the European Union or South Korea. Nimluvio’s final manufacturing step occurs in The US. The semi finished product produced in Germany is imported into The US at a small fraction of its list price using transfer pricing. Thirdly, the mature US Therapeutic Dermatology portfolio exposure would be very limited.

It represents approximately 3% of group sales, is also imported using transfer pricing, and includes difference with a USMCA compliant production in Canada. Overall, we remain confident in our ability to manage the impact of tariffs on our business. Following a strong start to the year, we are firmly confirming our guidance for 2025. We continue to expect net sales growth of 10% to 12% at constant currency and a core EBITDA margin of approximately 23% at constant currency. As just mentioned, the recently announced U.

S. Tariffs are fully factored into the guidance. In terms of our additional modeling metrics, they remain unchanged. As a note, our recently placed inaugural Eurobond and the new dual tranche Swiss franc bonds announced last month do not impact our expected net financial expenses for the year. Overall, we are confident in our trajectory for 2025.

I would now like to take a moment on this slide to show the expected phasing of net sales growth for the year. It now reflects that the first quarter came in higher than previously expected, especially in injectable aesthetics, which will have some impact on the growth rate we expect for Q2, especially in neuromodulators. Overall, let me highlight that we clearly expect further growth acceleration as of the second quarter. We remain confident in our three key growth drivers for 2025. Number one, new launches of disruptive innovation, in particular the ramp up of Nimluvio and Ralfidaz.

Number two, continued strong growth momentum in international, supported by further geographic and portfolio expansion in underpenetrated and fast growing markets. And number three, the U. S, where we have modest growth expectations, excluding Namlubio, factoring in a volatile market environment. This concludes the introductory remarks of Galderma’s trading update for the first quarter of twenty twenty five. Before we close the meeting with Semen’s final remarks, I would like to now hand back to the operator to open the call for questions.

In the interest of allowing sufficient time for all analysts to ask questions, I would kindly remind everyone to please limit yourself to one question each. Operator, can you please open the line?

Conference Operator: Thank you. We are now going to proceed with our first question. The question comes from the line of James Gordon from JPMorgan. Please ask your question.

James Gordon, Analyst, JPMorgan: Hello, James Gordon, JPMorgan. Thanks for taking the question. My question was about injectable aesthetics. So Q4, you flagged that Q1 will be a slower growth quarter for injectable aesthetics, LA wildfires, comps, market slowdown, but you still did 10% today that was very good, albeit with some phasing benefit. So how much should we extrapolate Q1?

How much should we assume was the phasing benefit that we need to be a bit cautious about taking out before we extrapolate? And can you talk about beyond the phasing benefit, was there any stocking for Relphedest or anything else that we need to be cautious on? And then just how did the growth break down within injectable aesthetics U. S. Versus ex U.

S? And what are you thinking or seeing in terms of the market for these two categories, please?

Fleming Onskov, CEO, Galderma: Thanks very much, James. I can take a first shot at it, and then I can pass over to Thomas. I think what we are seeing in the injectable aesthetics marker is a diversion. We see very strong continued growth of neuromodulators, both U. S.

And international, particularly international where we continue also in The U. S. To take market share. We see continued good growth of our biostimulatory portfolio with Sculptra. Fillers are still a bit subdued, but less subdued than we saw last year.

And I think what we’ve also seen that we’ve been able to drive growth, particularly outside The US with our many launches, Restylane Shape, other launches we’ve had, and now Sculptra for the neuroma for the biostimulatory products. So, I would say our overperformance against expectations has been better sales execution, both US and international. It’s been ability to drive further engagement with physicians through training. It’s been more launches, particularly internationally. So, I think whether we can extrapolate or not, or you know, that’s a bit early to say.

But we are very confident in the outlook for the injectable aesthetics, probably more on the neuromodulator side and on the Sculptra side than on the filler side. That probably will be a little bit subdued. We’re planning more on international growth than U. S. Growth, but we are very encouraged by what we see in The U.

S. Thomas, anything to add?

Thomas Ditry, CFO, Galderma: Yeah, know, Samim, you summarized it really well, James. You asked for the phasing benefit that was in there versus what was the execution. I mean, I’m pleased to say that the majority of the benefit we saw was actually execution. So then less than the majority, so to speak, was the phasing benefit in injectable aesthetic. And then you have, of course, Ralphie Dess on top, which is the ramping up brand that doesn’t have a comparable base from last year.

So of course, that contributes very nicely. It’s highlighted as a growth driver. And, yeah, from a growth standpoint, subcategories, I mean, you saw the 21.4% neuromodulators, minus 2.3 fillers in biostimulators. We hinted also that expect some reversal of those, so so to speak, extremes due to the high comparable base effect against last year to occur in q two. Yeah.

I think that should

Fleming Onskov, CEO, Galderma: But I think it’s very important, James, to realize the way we drive growth is through commercial execution. And what we’ve seen is that when we have new launches, be those on the filler side, new indications for Sculptra, or significant events like Ralphie Dess, We strengthened our overall market position. We invest more in the market. And as you know, in Europe, we now have three neuromodulators in multiple countries. And what we’re seeing is incredibly strong growth.

And as you know, in those markets, we’re taking ourselves to overall injectable aesthetic leadership. Leadership. So we basically use the launches, the new innovation, more training, more investment to drive growth, which is, you know, I think a pretty simple formula, but it’s worked so far.

Thomas Ditry, CFO, Galderma: So to Lemming’s point, the real metric to track and that we track here is market share gains. And we have gained in both neuromodulators and fillers and biosimilars, both in international and in The US. And that’s the key one. And yet sometimes, you and your growth rates with phasing or comparable base, the percentage can throw one off a little bit. But that underlying competitive market share grab happening, that’s the one we are tracking very carefully internally, and I wanna point out.

Fleming Onskov, CEO, Galderma: Thank you.

Conference Operator: We are now going to proceed with our next question. And the questions come from the line of Thibault Boucherrev from Morgan Stanley. Please ask your question.

Thibault Boucherrev, Analyst, Morgan Stanley: Yes, thank you. Just on tariff, you already have some tariff on fillers. Have you already reflected that in prices already? Or is it planned for a decision here? And just if at some point we see we may see tariffs in pharma, to what extent can you build inventory today in The US on aesthetics to sort of try to offset potential pharma tariff?

And what’s the constraint here? Is it just the ability to manufacture? Or is it the shelf life of the products that would prevent you from doing this at a scale large enough to sort of offset time?

Fleming Onskov, CEO, Galderma: Yeah. I think as Thomas mentioned, this would affect two products. It would affect Dysport, which is manufactured in The UK, and it would it would

Emil Ivanov, Head of Strategy, Investor Relations and ESG, Galderma: sorry. Western And South China.

Fleming Onskov, CEO, Galderma: Yes. Yes. Yes. So today, the the impact of the but you mean, you were your question was about if pharmaceuticals get impacted, wasn’t it?

Thibault Boucherrev, Analyst, Morgan Stanley: Yeah. Exactly. I mean, if there is tariff on pharmaceuticals and that impact and that should impact aesthetics, so yeah, that’s part basically.

Fleming Onskov, CEO, Galderma: So that would be Dysport, which is manufactured in The UK, and that which is deemed a pharmaceutical product, that of course would then, if there were the situation of pharmaceuticals, then that would be we would be there would be an applied tariff to that. But of course, it’s not to the end price. It’s to the transfer price out of The UK. As you know, it’s manufactured by Ipsen. So, there are things also to agree with Ipsen there.

And on Nimluvio, which has a multiple step, it has a step in Japan, has a step in Germany, but the final step is in Florida. And of course, when it gets imported into The US, it’s at a much lower price given it’s not the finished product. So, we have already considered that in the various scenario planning. And as Thomas said, with a strong performance in the first quarter, we’ve added to the buffer. I think you also

Conference Operator: We are now going to proceed with our next question. The next questions come from the line of Jo Walton from UBS. Please ask your question. Your line is opened.

Jo Walton, Analyst, UBS: Thank you. I don’t know whether it was just me, but I know that everybody here at UBS wasn’t able to hear the answer to the last question because it all went very robotic and it was as if there was a lot of interference on the line. So it might be worth just summarizing that in case it wasn’t just us at UBS that couldn’t hear it. We’re all on different lines, so I assume that’s fairly standard. I would have a couple of questions, please.

Fleming Onskov, CEO, Galderma: UPS has a top quality audio visual equipment, but maybe it could be on our side as well. So sorry?

Conference Operator: Repeat your answer.

Fleming Onskov, CEO, Galderma: Yes. I understand. So we will basically repeat the answer to the question. I think that would be the right thing. Sorry, someone got it the other way around.

So, the question, if I understood it correctly, because we also had some issues in fully understanding it. So, the question was, if there are pharmaceutical tariffs, what would that impact your portfolio? And there are two products that would fall under that category. There would be Dysport, which is produced in The UK by Ipsen and would then have to be imported. The tariff, whatever size, would be applied, of course, to what is the transfer price into The US, which would be, I imagine, significantly lower than the end sale price.

And then the other product is Nimluvio. Nimluvio has a complex manufacturing supply chain, starts off in Japan, then goes to Germany. From Germany, it’s exported to The U. K. To The U.

S, Florida, where the final step, of course, what is imported into The U. S. Is not the final product. So, this would basically be at a much lower cost or price than the fully sales price. So, I think we have considered that in our guidance and reconfirmed our guidance.

And we will see what happens. Then there was a question, I think implied, are there any pricing opportunities and all that? That’s a much more complex answer to say. We’re just rolling out Nimluvio. We’re just getting market access, which is of course involved both pricing and discounts.

Most of our sale, as you know, today is at full price because where we don’t have cover, we get full price. And for Dysport, it will be also, of course, a discussion. But we feel very confident that we have what it takes to mitigate this. And we have built, you could say, a buffer which has been increased by our strong first quarter results.

Jo Walton, Analyst, UBS: Thank you. That was helpful. My questions, please. Two related ones on the neuromodulators and a broader one on China. So you say that it’s important to look at your share gains.

Can I just ask you who you are gaining share from? Are people trading up from some of the cheaper, perhaps South Korean products towards more premium products? Or are you gaining more from your sleepy, large, AbbVie competitor? And related to that, do you see any risk now that they’re presumably going to be reinvigorated just having filed their new short acting product? So if you could give us some sense about that.

And my second question is on China. You’ve talked a lot about China. Perhaps you could tell us a little bit about where your infrastructure is and how quickly you can turn that into something profitable because I assume that you must put a heavy level of investment to build at the moment. And is it that you can actually capitalize on perhaps some anti US feeling and gain share, particularly in relation to AbbVie?

Fleming Onskov, CEO, Galderma: So I think the first question thanks for the two questions the first question was centered around the ability to gain share and who do we gain share from. Yeah, as you know, the injectable aesthetics market in particular is almost a duopoly. 60 some percent is hosted by Galderma and by AbbVie. So, course, if we take share, that probably will be the one we take most share from. But I don’t comment on them.

They are formidable competitor. They’re still the leader in The US. In multiple places outside The US, they are no longer the leader. We look forward to further competition with their short acting Botox. We also, you know, we have also Ralph Fidesz.

So, we look forward to increased competition. I think the market share gains is broad based. And if I look at all of the smaller players, they still have relatively low market shares. But of course, the one that typically would lose market share is the major player. So nothing about that.

I think your assumption about China is a little bit wrong. It is actually not only growing and profitable and very strong for us. We do invest a lot. We are based in Shanghai. We are focused on the large cities.

We’re not in the second tier cities yet. We are, of course, still small compared to AbbVie in this situation. But also remember, we just launched Solta, which we will be competing with local players, but we’ve seen phenomenal start to this. We got Dysport not too long ago approved. We get more and more, you know, fillers in there.

Restylane Shape is coming there as well. We are continuously building out. We’re number one with Cetaphil in the e commerce channel. We have the big white jar, which is almost synonymous with Cetaphil. So we grow, we expand, and of course, we also have an eye on profitability.

But we are minuscule, both in terms of our overall aspiration and in terms of how we compare, for instance, in the and we see I have not I’ve been there many times. We don’t harvest from any anti American thing. We harvest from the fact we have a great portfolio, top notch product, and a very strong execution.

Conference Operator: Thank you.

Thomas Ditry, CFO, Galderma: Joe, from a profitability standpoint, I mean, we entered China seriously only when we took the business over before that it was miniscule, which was a big opportunity because the way we entered it was from a premium position. So I don’t wanna boast or say what where our ANSP is in China for C. L compared to The US, but it’s way higher because it’s premium. And as soon as you do that and then with a focused execution and ecommerce and you don’t get lost in the weeds, then growth and profitability don’t become two anti dose that can go very nicely together. And that’s what is the case.

Fleming Onskov, CEO, Galderma: It’s also very important to understand that given we had a new start in China, given our product are seen to premium, if you look across our portfolio, including Sculptra that we just launched, it is at a significant premium to The US prices, because we are clearly perceived in China as premium. If you want to see advertising for Cetaphil, you can see that on some of the very high end streets in Shanghai. So we have a different position in China than we have in The US.

Jo Walton, Analyst, UBS: I look forward to that analyst trip.

Conference Operator: We are now going to proceed with our next question. The questions come from the line of Shyam Khataja from Goldman Sachs. Please ask your question.

Shyam Khataja, Analyst, Goldman Sachs: A question on Ralford S. So I recall mentioning that you’ve recorded some sales in Europe and Australia. So I be interested to hear what initial clinician feedback has been and whether you saw any reorders from the same clinics again in the quarter. And is the launch currently going above or below your expectations? And is it impacting your Disport sales at all?

Or is it more additive? So any quantification of the sales figure would be great. And then secondly, just touching on Ralf Adest, you mentioned that’s going to be a phased approach in your launch. I just wanted to get an understanding of when you might start accessing markets that are outside of your Ipsen partnership agreement, and therefore, when we may be able to see some sort of inflection in the top line from that perspective. Thank you.

Fleming Onskov, CEO, Galderma: Yeah, I think Ralphie, yes. We had what I would call a focused launch focusing on Germany and on Spain initially. Also, we have a complex manufacturing process. We’re new to the game of sophisticated neuromodulator manufacturing, but I’m very proud of what the team achieved. Have, but I’m the process of expanding a very high end manufacturing facility in Sweden.

The team has done really well. We have better and better batch consistency. We’re now rolling it out in more and more European countries. We have filed in many, many countries so that we also can get into countries where we today don’t have access to a neuromodulator, which we clearly will have, will see overall growth because to have the full portfolio in The Middle East and others will drive overall growth. What are we hearing back?

Well, we don’t hear it third hand. I went to Dusseldorf where they were first launched to spend a day in a clinic there with a doctor, one of the highest volume doctors in Dusseldorf. Most of her patients are on Ralfi Des. She likes the very fast onset. She likes it doesn’t need to have to reconstitute.

The patient feedback is very positive. We had looked at whether they would have the same experience as with Ellucian with some different feelings, some call it pain. We didn’t see she didn’t report that. And we’ve also seen that the duration now has been in the market for some time. People like the promise of a duration of six months.

So I think we also launched it with a 10 pack. I got so much positive feedback about the 10 pack, which would allow them to try it out on more patients. It’s too early to say what the sales data is. We have the same watchful eye that you are implying that this has to be additive to our overall portfolio and not take away from DISBORT, and we don’t see that. We want to underscore, we want to have a full portfolio, Aleutian, Assalure or Dysport and also with Ralfidesz.

All three products have a clear place. We want to drive all three products and that’s what

Thomas Ditry, CFO, Galderma: we see today. That’s what you’re really seeing that your premium pricing from premium position from Relphedest that’s coming through based on what Fleming shared with you on that one. And then also in the market where we have launched, we actually see that Relphedest and Dysport continue to grow. So one feeds off the other, which shows, first it was our aim, but now we see it in the data that this portfolio effect is really there and it just enforces the strength of our portfolio.

Fleming Onskov, CEO, Galderma: Other thing that’s of course very important in aesthetics, both in Europe, The US, Australia and others, is that there’s driven by private equity, there’s a significant corporatization of many clinics. So that also means that in many cases, they combine and having multiple products on the neuromodulator side, including Rifidessa as a premium, allows us of course to basically look at, you know, with having the opportunity to also offer certain products to certain clinics and not to others. But we anticipate that we also starting next year, we already will start seeing markets where we don’t have this for today, where we’ll be able to also come with a neuromodulator. And wherever we’ve seen an introduction of a neuromodulator, it strengthens our market position. It also drives the sales of our rest of our portfolio.

And we look forward to that.

Shyam Khataja, Analyst, Goldman Sachs: Thank you.

Conference Operator: We are now going to proceed with our next question. And the questions come from the line of Ben Jackson from Jefferies. Please ask your question.

Shyam Khataja, Analyst, Goldman Sachs: Great, thank you. Just two relatively related ones for me today. On the first, have you got any kind of evidence or backward looking records of when previously injectable aesthetics has gone through macroeconomic pressures or even recessionary environments, how the elasticity of both neuromodulators and also fillers and bio simulators has been on a relative level? Does one appear stickier than the other and to what extent does that occur? And then if I can really quickly squeeze the second in there, you mentioned at the start about thinking about external possibilities as part of the long term growth.

Would you be able to rank the three product categories that you have based on the interest or the opportunity that you see for, external innovation, for those? Thank you.

Fleming Onskov, CEO, Galderma: Yeah. I think that I worked with our owners of private equity, including EQT, when they were looking at acquiring together with Adia and then subsequently GIC, to acquire the Nestle business unit, which today is Telderma. So, they had done a nonsensitivity analysis. How does overall injectable aesthetics react in market downturns? There had been a few financial crisis.

We saw the same thing with COVID. So, it goes down. In COVID, it was driven by the access to the offices. It was transitory. I think the dispersion between fillers and neuromodulators is a more new phenomenon.

What we see is it looks like neuromodulator is now the new base therapy for anyone getting a static therapy, And that there is some substitution for biostimulatory product because it gives you not only volume and skin quality versus fillers, but fillers still plays an absolutely key part in the armature. And now you have all the medication driven weight loss. So I think that even in economic downturns, the impact is probably not that great. And there may be some shift behind the categories. There may be more demand for discounts.

But I really think the newer modulators, and I think the very strong growth we’ve shown in multiple markets, show that, you still can drive that very strong. And we also see that Sculptra continues to do very well, and we launched a new market. So I’m very confident in the outlook for the aesthetics market. But I think Tom has also said, you have to put more effort in, on the sales training and other sites, which is what we do and which is drive our market checking. And then, I think you had a second question, where it’s about external opportunities.

Do we rank all of them? You know, we get a lot of inbound calls. You can look at our portfolio as well as we can. We have a pretty full portfolio in aesthetics with multiple new launches. We’re tied on both hands currently with making sure that NEMLUVIO has a phenomenal start, which we think it has, and also the new indications.

It is clear, you know, that in dermatological skincare, if we had the opportunity maybe to add something that was supplementary, we would take a serious look at that. But we like talk ins. We’re not in the transformative business at this stage. So, that’s the way we would probably look at it. Great, thank you very much.

Conference Operator: We are now going to proceed with one final question. And the questions come from the line of Victor Flock from BNP Paribas Exane. Please ask your question.

Ben Jackson, Analyst, Jefferies: Hi. Thanks a for taking my question. Victor Flock from BNP Paribas. Just a quick follow-up on the last one. I mean, in the press release this morning, you’ve been alluding to the fact that over delivering in first quarter gives you room to potentially mitigate some consumer demand related deterioration moving forward.

So I was just wondering if you could comment on that point and whether you already see some deterioration in some of your KPIs? And the second one is on Namlivia. We’re just wondering if you could update us on your progress in terms of payer access. I think last time you updated the market, you reported 40% covered lives. I was just wondering if you could update us on that.

And finally, if you could give us a sense of where Namluevio gross to net is currently trending at? Thanks so much.

Fleming Onskov, CEO, Galderma: Yeah, I think I can start with Namluevio. I think we see very impressive coverage of Namluevio on the commercial side. I would imagine it’s higher than the percent we gave last time. I don’t have a specific percent. What is most impressive for me, even in the Medicare part, we have to ask for exemption, we have a very high success rate of exemption.

But I think the most impressive when I look at our access is it’s not with TIER. We have first line both in AD and PN. And I think that’s really important that we have a very strong, precision. And I think what we are seeing is that the strong uptake in PA is spilling over to AD, because in many cases, the same doctors. They see that the rapid itch relief basically helps them enormously in managing, and they also see, of course, excellent skin clearance.

So, overall, we’ve been very, very positive about that. I don’t think we give out any specific schwaltzmet data at this specific issue. And the other question was?

Thomas Ditry, CFO, Galderma: On the over delivery, yes, you got it right. I mean, we over delivered. We had a good start. Machine is doing really well. We’re on a good track.

Are we seeing deterioration? Do we have to know that can highlight that? But of course, we are cognizant of the fact that there may be an impact in the future, a secondary impact, and all we want to transmit is that we’re confident in our outlook and guidance and that through the over delivery and through the strong position we’re in, we were able to, compared to the beginning of the year, if anything further derisk our guidance, And we would leave it at that.

Fleming Onskov, CEO, Galderma: Thank you. You very much.

Emil Ivanov, Head of Strategy, Investor Relations and ESG, Galderma: Eric, and thank you for the questions. So before we close the call, Fleming would just wrap it up with a few final messages.

Fleming Onskov, CEO, Galderma: Yeah. So thank you very much for your thoughtful questions. They, of course, reflect that we are in volatile times and a lot of uncertainty. But I think you’ve seen that we basically hunkered down, focused on execution, and I think that’s created the results you’re seeing today. We had a very strong start to the year, I think ahead of expectations.

We’re benefiting from this focus, being distracted. We had some favorable phasing in injectable aesthetics, but we also had a very strong ramp up of Nimluvial, also driven by a very strong situation on the access side. We achieved record net sales of $1,100,000,000 record first quarter for us. We grew 8.3% in constant currency, volume driven, some mix. Growth was broad based, which I really like as well.

It was across categories, across geographies. And I think it proven that our integrated derm strategy works, and it delivers even in times like these. We also are absolutely confirming our full year guidance with net sales growth of 10% to 12% year on year and core EBITDA margin at approximately 23%, of course, all at constant currency. And we have also said today that the guidance factors in currently announced US tariffs exposure, which we deem manageable. Full year guidance is also increasingly derisked with the ability to absorb some additional tariff impact and some consumer demand related deterioration should that happen, following of course, the very strong over delivery in the first quarter of this year.

So we think we are well on track for our full year results. And we’re absolutely confident in our growth trajectory for ’25. And we would love to talk about ’26, but we didn’t have a time to do that today. So with that, I will thank you for your attention today.

Conference Operator: This concludes today’s conference call. Thank you all for participating. You may now disconnect your lines. Speakers, please stand by. Thank you.

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