Galderma Surges on Strong Sales and Upgraded Full Year Guidance

Switzerland-based skincare company Galderma announced a significant upgrade to its full-year guidance on Thursday, following robust third-quarter sales that surpassed market expectations. This positive news led to a notable approximately 7% surge in the company's shares. Despite the ongoing pressure from US tariffs, Galderma's performance underscored strong market demand for its products.

For the third quarter, Galderma reported net sales of $1.29 billion, exceeding the company-compiled consensus of $1.24 billion. Building on this momentum, the firm, which listed on the stock exchange in March 2024, now anticipates full-year net sales to increase by a substantial 17% to 17.7% year-on-year at constant currency. This represents a significant upward revision from its previous forecast of 12% to 14%. The company specifically highlighted the exceptional growth within its Nemluvio dermatology portfolio as a key contributor to this strong performance.

Galderma is strategically prioritizing the US market, committing over $650 million to expand its manufacturing capabilities in the United States through 2030. CEO Flemming Ornskov emphasized this focus, stating that a lot of attention has shifted to the US due to its incredibly strong growth. Indeed, the company's third-quarter net sales in the United States alone grew by an impressive 17.5% compared to the same period last year. Ornskov also acknowledged the challenges posed by US President Donald Trump's August imposition of 39% import duties on Switzerland, describing the tariff situation as a "moving target" that the firm is closely monitoring.

The company's robust performance extends beyond sales figures; Galderma is also increasing employment across its operations, not only in the US but also in Europe and Asia. Ornskov expressed confidence in continued growth, particularly in Europe, given the very strong expansion observed in the region. Furthermore, Galderma provided an updated forecast for its core EBITDA margin, now expecting it to be between 23.1% and 23.6% at constant currency, a slight improvement from the approximately 23% previously anticipated.