Dermapharm Holding SE reported a 14% year-over-year increase in adjusted EBITDA to EUR 23 million for the first half of 2026, while revenue rose about 5% and earnings after tax climbed 11% to EUR 23 million. The company’s shares gained 1.8% to $40.50 following the results, which also showed a 2 percentage-point improvement in EBITDA margin.
Operating cash flow improved by EUR 35 million year-over-year, supported by a 65% cash conversion ratio—a 17 percentage-point increase—while recurring capital expenditure rose slightly to EUR 22 million. The leverage ratio stood at 3x adjusted EBITDA after a EUR 181 million share buyback that retired 4.3 million shares, or nearly 8% of outstanding capital. The equity ratio fell to approximately 24% following the buyback and cancellations.
Gross profit margin remained robust at 65%, while branded pharmaceuticals generated organic growth of 4% to 5%, evenly split between international and domestic markets. AllergoPharma led growth in Germany’s injection market, driven by a strong allergy season and momentum in China, while competitors struggled with regulatory hurdles. Arkopharma exceeded budget targets, with Spain and Italy outperforming plans and France posting three consecutive months of above-market growth.
Euromed benefited from rising demand in Europe and Asia for its Milk Thistle extract, offsetting weaker U.S. sales affected by tariffs. However, Anton Hübner faced pressure as consumers shifted from health-food stores to lower-priced drugstore chains, and medical cannabis products under Candoro ethics and Dronabinol encountered increasing price competition.
Management confirmed full-year 2026 guidance and noted that Wobenzym, relaunched after the acquisition of Mucos from Nestlé, achieved pharmacy distribution rates above 60% by the end of June, recovering from prior supply disruptions. Free cash flow yield stood at 12%, with annual free cash flow estimated between EUR 80 million and EUR 90 million, alongside annual debt repayments of about EUR 60 million under existing agreements.
A EUR 30 million impairment was recorded on a Dutch cannabis financial receivable tied to Futur, a Dutch grower, reflecting adjustments to a prior EUR 65 million valuation. The German Financial Supervisory Authority (BaFin) is reviewing the receivable’s valuation and related-party disclosures from December 2025 and prior years, though management stated it believes historical valuations and disclosures were appropriate.
