Galderma's net sales top $4 billion in 2023 ahead of potential IPO

By Emma-Victoria Farr

FRANKFURT (Reuters) - Swiss dermatology company Galderma on Thursday said it generated more than $4 billion in net sales during 2023, up 8.5% on 2022 on a constant currency basis, driven by momentum across its dermatological skincare and injectable aesthetics products.

The results come ahead of a possible initial public offering (IPO), as Galderma is among a handful of companies considering going public on Europe's stock exchanges in the first half of the year if market conditions allow, as reported by Reuters.

Galderma, backed by private equity firm EQT, is preparing to kick off an IPO as soon as next month, as reported.

The company started preparing for an IPO more than two years ago, but had to postpone plans due to challenging equity markets.

If it goes ahead, the IPO could be one of the biggest in Europe in 2024, valuing the company at around $20 billion, sources have said.

Rising momentum for deals comes as central banks have started signalling an end to interest rate rises in a boost for equity markets.

Galderma said it achieved core EBITDA (earnings before interest, taxes, depreciation, and amortisation) for 2023 of $942 million, with 21.4% year-on-year growth on a constant currency basis.

"This has been a landmark year for Galderma, underscoring the strong momentum and sustained growth we have seen over the past four years," Chief Executive Flemming Ornskov said.

"We expect this momentum to continue in 2024 and beyond," he added. In 2024, Galderma expects to deliver 7-10% net sales growth on a constant currency basis.

Founded in 1981, Galderma was carved out of Nestlé in 2019 and bought for 10.2 billion Swiss francs ($11.60 billion) by a consortium led by EQT, including Singapore's GIC and the Abu Dhabi Investment Authority.

"Galderma is run like a public company and we are prepared for the next step," Ornskov said in an interview with Reuters last year.

EQT earlier this week announced that it had raised 22 billion euros ($23.84 billion) for its latest buyout fund, its largest-ever fundraising, despite a challenging environment.

($1 = 0.8796 Swiss francs)

($1 = 0.9228 euros)

(Reporting by Emma-Victoria Farr, editing by Jane Merriman)