Swiss skincare company Galderma reports record net sales exceeding $4 billion in 2023, marking an 8.5% year-on-year increase when adjusted for currency fluctuations. This growth falls within the company’s projected net sales growth range of 6-9% for 2023, and it signifies the first time Galderma has exceeded $4 billion in net sales.
There is a favorable trend observed across all product categories, surpassing the growth rates of rapidly expanding market segments. Year-on-year net sales growth, adjusted for currency fluctuations, stands at 6.5% in Injectable Aesthetics, 12.1% in Dermatological Skincare, and 8.7% in Therapeutic Dermatology.
The leading brands in Dermatological Skincare, namely Cetaphil and Alastin, significantly contributed to growth, outperforming the market. This was propelled by ongoing geographical and product portfolio expansion efforts, such as the introduction of Cetaphil Healthy Renew, Alastin ReSURFACE Skin Polish, and the C-RADICAL Defense Antioxidant Serum.
As for business segments, Injectable Aesthetics achieved a 6.5% year-on-year increase in net sales when adjusted for currency fluctuations, fueled by significant growth in neuromodulators, which experienced double-digit growth and gained market share in all major markets. Fillers and biostimulators also gained market share in international markets and contended for the top position in the U.S. despite a subdued filler market after the post-COVID rebound normalization, with notable growth observed particularly in Sculptra.
In 2023, Cetaphil achieved a remarkable milestone, surpassing $1 billion in net sales. With a rich history spanning over 75 years in sensitive skincare, Cetaphil continued to innovate its product range to cater to diverse sensitive skin needs. For instance, they introduced Cetaphil Healthy Renew, a pioneering healthy-aging skincare line available in Brazil and the U.S., offering a retinol alternative suitable for sensitive skin and enriched with purified peptides to combat visible signs of aging.
Furthermore, Cetaphil prioritized its omnichannel strategy, particularly in rapidly expanding markets, by enhancing its salesforce, expanding retailer partnerships, and strengthening its e-commerce and digital presence. Among the noteworthy digital initiatives launched in 2023 was the Cetaphil AI Skin Analysis tool. This advanced skin analyzer provides personalized skin assessments and recommends tailored skincare regimens. By simply uploading a selfie, users receive a comprehensive report based on a diverse database of 70,000 skin images, offering insights into their skin type, concerns, and susceptibility to various conditions.
Dermatological Skincare maintained its strong performance, achieving a 12.1% year-on-year increase in net sales when adjusted for currency fluctuations. This growth was primarily driven by the momentum of Cetaphil® and saw particularly robust performance in Asia and Latin America. Additionally, Alastin® sustained strong growth, benefiting from synergies with Injectable Aesthetics and bolstered by new product launches.
Therapeutic Dermatology experienced an 8.7% increase in net sales when adjusted for currency fluctuations, propelled by effective measures to enhance yield in the U.S., resulting in growth for Differin®, Soolantra®, and Aklief®, alongside expansion in international markets.
Galderma’s strong results precede a potential initial public offering (IPO), as the company, along with a few others, is contemplating going public on European stock exchanges in the first half of the year, contingent upon favorable market conditions, according to Reuters.
Galderma, supported by private equity firm EQT (EQTAB.ST), is gearing up to launch an initial public offering (IPO) as early as next month, according to reports. The company initiated preparations for an IPO over two years ago but had to delay due to unfavorable equity market conditions.
If the IPO proceeds as planned, it could be one of the largest in Europe in 2024, with sources estimating the company’s value to be around $20 billion. The increasing interest in deals coincides with central banks signaling a halt to interest rate hikes, which has boosted equity markets.
“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.
“Galderma is run like a public company and we are prepared for the next step,” Ornskov said in an interview with Reuters last year.
Last June, Galderma had secured approximately $1 billion through a private placement of shares. In a statement, the company announced that both management and existing shareholders have subscribed to a portion of the newly issued shares, while the rest have been allocated to undisclosed external investors. Galderma intends to utilize the proceeds from the transaction to strengthen its balance sheet and accelerate its growth initiatives.
Since the beginning of 2024, as the capital markets have rebounded, IPO transactions that were nearly halted due to high-interest rates and economic uncertainty have gradually picked up steam. Some significant beauty companies are seeking to go public in the first half of the year.
Spanish beauty conglomerate Puig began seeking an IPO as early as September last year. Puig is expected to go public before the summer.
In addition, German perfume retailer Douglas plans to announce its initial public offering (IPO) in the coming days, aiming to debut on the Frankfurt Stock Exchange as early as this week.
