Mayne Pharma Group Ltd (MAYNF) 2025 Full Year Earnings Call: Key Takeaways on Women's Health Performance

Mayne Pharma Financial Performance Overview

• Revenue Growth: Mayne Pharma Group Ltd reported a 5% increase in revenue, reaching AUD 408.1 million, primarily driven by strong performance in the women's health segment.
• Gross Margin Improvement: The gross margin expanded to 60.6%, up from 56.3% in FY24, attributed to a higher contribution from women's health and an improved product mix in dermatology.

Women's Health Segment Highlights

• Revenue Increase: The women's health segment experienced a significant 23% revenue increase, totaling USD 115.5 million, with key products like Nextelis, Bajuba, and Vexi contributing to this growth.
• Gross Profit and Margins: Gross profit in this segment rose by 24% to USD 92.5 million, with gross margins improving to 80.1%, supported by enhanced sales execution and marketing investments.

Dermatology Segment Challenges

• Revenue Decline: The dermatology segment faced a 12% decline in revenues due to competitive pressures and a shift from branded to generic offerings.
• Margin Strategy: Despite the revenue drop, the gross margin improved to 53.8% through a favorable sales mix and a disintermediation strategy aimed at enhancing price transparency and customer relationships.

Operational and Strategic Developments

• Cash Flow and Financial Management: Operating cash flow from continuing operations surged by 460% to AUD 45.4 million, reflecting higher profitability and effective working capital management.
• Manufacturing Upgrades: A major modernization upgrade at the Salisbury manufacturing facility was completed, enhancing production capability and efficiency.

International Segment Performance

• Revenue Growth: The international segment's revenue increased by 7% to AUD 75.6 million, supported by an expanded distribution agreement in Canada.
• Operational Expenses: Direct contributions from the international segment declined by 17%, influenced by changes in product mix and rising operational expenses.

Future Outlook and Strategic Initiatives

• Supply Constraints: The company faced temporary supply constraints in the women's health segment, which impacted growth potential.
• Scheme of Arrangement Update: Ongoing proceedings with Cosette Pharmaceuticals have received strong shareholder support, with 99.06% of votes in favor, pending court approval and the absence of a superior proposal.