Mayne Pharma Group's 1H FY24 Results Overview

Mayne Pharma Group Limited (ASX: $MYX) has reported a significant 43% increase in revenue to A$188 million and a noteworthy $8 million underlying EBITDA for the first half of the financial year 2024. The company achieved four out of five FY24 goals by midyear, including reaching the break-even run rate for NEXTSTELLIS®, positive group underlying EBITDA, and implementing a US$10 million cost reduction program.

Executive Commentary on 1H FY24 Results

Mayne Pharma's CEO, Mr Shawn Patrick O'Brien, expressed satisfaction with the company's progress during the first half of FY24, highlighting the achievement of positive direct contribution in all three segments, positive underlying EBITDA, and the successful execution of cost reductions. He emphasized the substantial growth in the US Women's Health and Dermatology businesses, as well as the operational improvement in the International business. Mr O'Brien also noted the commencement and effectiveness of the US$10 million cost reduction program, resulting in approximately US$5 million in cost reductions to date, primarily in the Women's Health business. Furthermore, he highlighted the company's efforts to simplify its business and enhance operating and financial discipline through the implementation of new systems to manage CO-pay and other channel liabilities, leading to increased transparency and reduced volatility in financial performance.

Summary of 1H FY24 Results and Outlook

Mayne Pharma Group Limited has reported a substantial 43% increase in revenue to A$188 million for the first half of FY24, achieving four out of five FY24 goals by midyear. The company's US Women's Health segment experienced a remarkable 45% sales growth, with NEXTSTELLIS® achieving a break-even run rate in December 2023. Additionally, the Dermatology segment saw a significant 70% increase in sales, driven by improved core portfolio performance and successful product launches. The International segment demonstrated operational improvement, with a 10% increase in direct contribution. Mayne Pharma's CEO highlighted the successful execution of a US$10 million cost reduction program and the company's efforts to simplify its business and enhance financial discipline. Looking ahead, Mayne Pharma anticipates continued revenue and earnings growth in the second half, driven by the Women's Health portfolio, additional new product launches in Dermatology, and a focus on delivering positive operating cash flow from continuing operations.