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Galderma posts 2022 revenue growth ahead of planned IPO

By Emma-Victoria Farr

FRANKFURT (Reuters) - Swiss dermatology company Galderma posted $3.8 billion in net sales during 2022, up 13.9% on 2021 on a constant currency basis, driven by growth in its injectable aesthetics and dermatological skincare units.

The results come ahead of a possible initial public offering (IPO), Chief Executive Flemming Ornskov told Reuters.

The company started preparing for an IPO more than a year ago, but had to postpone its plans due to torrid equity markets in 2022.

"Galderma is run like a public company and we are prepared for the next step," Ornskov said, declining to give details on valuation or the timing of a sale.

If it goes ahead, the IPO could be one of the biggest in Europe in 2023, valuing the company at around 20 billion Swiss francs ($21.7 billion), sources said last year.

Companies are tentatively testing signs of recovering stock markets with pent-up demand for IPOs after a lack of activity following the war in Ukraine. Germany's United Internet revived Europe's IPO market in February with the flotation of its web hosting business IONOS in Frankfurt.

After the Easter break in April is seen as the next IPO window but there is no certainty it will be then, a source familiar with the company's plans said.


Galderma's owners including EQT will decide whether to go ahead with an IPO, Ornskov said. "My job is to continue to deliver results."

EQT declined to comment.

With a focus on profitability and cash generation, Galderma is paying down its debt, Ornskov said. The company has around $3.5 billion debt maturing in 2026, according to Fitch Ratings.

Galderma is expected to raise a significant amount of fresh capital in an IPO to help bring down leverage, sources familiar with the matter said.

In 2022, Galderma generated core earnings (EBITDA) up 14.5% to $791 million on a constant currency basis. In 2023, Galderma expects to deliver net sales growth of between 6% and 9%, while introducing two major new products in its pipeline, Ornskov said.

The firm, which sits in the EQT VIII fund, has different peers according to business segments. In injectables this includes Allergan, a subsidiary of AbbVie, for dermatological skincare L'Oreal and for atopic dermatitis (eczema) Sanofi among others, Ornskov said.

"We have engaged banks to look at options including an IPO but have not made a decision on timing," Ornskov said in 2021 in an interview with Reuters. There have been no changes made since, Ornskov said.

Galderma was carved out of Nestlé in 2019 and bought for 10.2 billion Swiss francs ($10.1 billion) by a consortium led by EQT, including Singapore's GIC and the Abu Dhabi Investment Authority.

($1 = 0.9212 Swiss francs)

(Reporting by Emma-Victoria Farr; Additional reporting by Pablo Mayo Cerqueiro; Editing by Elisa Martinuzzi and David Holmes)