Galderma Earnings: Strong Results and Initial Nemluvio Sales Bolster Positive Outlook

In the third quarter of 2024, narrow-moat Galderma recorded solid results, confidently approaching the end of its first trading year. The company narrowed its full-year net sales outlook to 8.8%-9.5% (down from 7%-10% previously) while confirming that core EBITDA will align with 2023 figures in constant currency. Net sales grew by 9.2% year over year in constant currency, largely driven by strong performance in international markets (even in China, despite a challenging market environment), which account for 59% of total net sales. Although the US market remains soft, it still experienced single-digit growth. The performance and updated outlook are consistent with our expectations, so we maintain our fair value estimate of CHF 83 per share.