Galenica achieves strong sales growth in the first half of 2023
In the first half of 2023, Galenica increased consolidated net sales by 5.5% compared to the first half of the previous year to CHF 1,851.2 million. The “Logistics & IT” segment in particular posted strong growth of 5.8%. The “Products & Care” segment also performed well with sales growth of 4.2%, supported by the strong performance of 19.8% in the “Products & Brands” sector.
Adjusted² EBIT decreased by 5.1% to CHF 90.2 million. The negative EBIT development was due to special factors totalling CHF 9.8 million. Firstly, an extraordinary expense of CHF 3.8 million had to be recognised at HCI Solutions in respect of a well-known ruling issued by the Swiss Competition Commission (COMCO) in 2017. In addition, extraordinary allowances on customer receivables of around CHF 6 million occurred in the first half of 2023, especially in the wholesale business with physicians. Adjusted for these special factors, adjusted² EBIT would have increased by 5.2% to CHF 100.0 million.
Completion of the strategic partnership and joint venture with Redcare Pharmacy (formerly Shop Apotheke Europe) resulted in a profit of CHF 112.8 million (profit from discontinued operations). Thanks to this extraordinary result, net profit increased to CHF 187.3 million (previous year: CHF 83.1 million).
Outlook for sales and EBIT 2023
Due to the development of earnings in the first half of 2023 and the special factors, Galenica is revising its EBIT guidance for 2023 and now expects adjusted² EBIT to be roughly at the prior-year level based on the restated1 prior-year figures (adjusted² EBIT 2022: CHF 190.6 million). Previously, Galenica expected EBIT growth of between 4% and 7%. On the other hand, Galenica confirms its 2023 outlook for consolidated net sales (growth between 3% and 6%) and dividends (at least at the same level as the previous year).
Highlights of the first half of 2023
- Together with Redcare Pharmacy, Galenica establishes Switzerland’s leading online pharmacy, adding an online-only pharmacy to its offering.
- Over 70,000 customers (+34%) made use of the services and advice offered by Galenica pharmacies in the first half of the year 2023.
- The acquisition of Padma further enhances Verfora’s complementary medicine offering.
- By investing in the “Benecura public” digital healthcare platform, Galenica is strengthening its digital offerings for chronically ill people.
- Galenica’s Home Care coordination service makes it easier for patients to access home care services.
- With the “Safety Stock” initiative Galexis is committed to greater security of supply in Switzerland.
- Based on their contribution to improving equal pay in Switzerland, Galenica companies receive the "We pay fair" award.
Key figures of the Galenica Group in the first half of 2023
| in million CHF | 1st half year 2023 | 1st half year 2022¹ | Change |
|---|---|---|---|
Net sales | |||
Products & Care segment | 804.4 | 771.7 | +4.2% |
Retail (B2C) | 679.1 | 665.2 | +2.1% |
Local Pharmacies | 640.2 | 627.9 | +1.9% |
Pharmacies at Home | 39.1 | 37.3 | +4.6% |
Professionals (B2B) | 128.6 | 109.3 | +17.6% |
Products & Brands | 90.0 | 75.1 | +19.8% |
Services for Professionals | 38.6 | 34.2 | +12.8% |
Logistics & IT segment | 1,518.5 | 1,434.6 | +5.8% |
Wholesale | 1'457.3 | 1'379.4 | +5.6% |
Logistics & IT Services | 70.4 | 63.8 | +10.4% |
Corporate and eliminations | -471.7 | -452.1 | |
Galenica Group | 1,851.2 | 1,754.2 | +5.5% |
EBIT adjusted² | |||
Products & Care segment | 73.1 | 70.8 | +3.2% |
Logistics & IT segment | 19.0 | 25.4 | -25.1% |
Corporate and eliminations | -1.9 | -1.2 | |
Galenica Group | 90.2 | 95.0 | -5.1% |
Net profit from ongoing business activities adjusted² | 73.7 | 77.2 | -4.5% |
¹ Adjusted prior-year figures due to joint venture with Redcare Pharmacy (formerly Shop Apotheke Europe)
² Excluding the effects of IFRS 16 and IAS 19 (details of the adjusted key figures in the half year report 2023)
Detailed information in the half year report 2023:
Other press releases
Galenica lowers EBIT guidance 2023 due to special factors – Sales and dividend outlook confirmed
Ad hoc announcement pursuant to Art. 53 LR, Tuesday, 25 July 2023
Expansion and early succession planning in the Executive Committee of the Galenica Group
Press release, Wednesday, 19 July 2023