Gschäftsbericht 2018

Galenica financial statements 2018 | 107 Finance Notes to the consolidated financial statements of the Galenica Group 16. Investments in associates and joint ventures Accounting principles Investments in associates where Galenica holds between 20% and 50% of the voting rights and investments in joint ventures are initially recognised at cost and subsequently accounted for using the equity method. In the accounting periods following the acquisition, the carrying amount of the investment is increased by the share in profit or reduced by the share in loss from the associates and joint ventures. The corresponding amounts are recognised in profit or loss. Transactions that are recognised in comprehensive income from associates and joint ventures are recognised propor- tionately in comprehensive income. Coop Vitality is the only significant joint venture of Galenica. Coop Vitality is registered in Bern, Switzerland. Galenica owns 49% of the share capital and voting rights, Coop 51% of the share capital and voting rights. Associates in thousand CHF 2018 2017 Net carrying amount as at 1 January 23,041 22,503 Share of profit from associates 1,053 1,194 Remeasurement of previous investments held at equity 1) 3,099 — Change in scope of consolidation 1) (22,700) — Investments 608 — Dividends received (350) (656) Net carrying amount as at 31 December 4,751 23,041 1) Due to the acquisition of the remaining 51% in Bahnhof Apotheke Zürich AG (formerly Ingrid Barrage AG) as at 2 July 2018, the previously held equity interest has been remeasured to fair value. The resulting gain of CHF 3.1 million has been recognised in profit or loss in share of profit from associates and joint ventures Joint ventures in thousand CHF 2018 2017 Net carrying amount as at 1 January 23,436 20,586 Share of profit from joint ventures 2,847 3,254 Remeasurement of net defined benefit liability from joint ventures (2,023) 2,144 Investments 1,651 — Dividends received (3,381) (2,548) Net carrying amount as at 31 December 22,530 23,436 If Coop Vitality is overindebted, Galenica has an unlimited obligation, in proportion to its equity interest, to restructure the company. At the reporting date, this joint venture is not overindebted. Condensed financial information of Coop Vitality: in thousand CHF 2018 2017 Current assets 36,537 45,089 Non-current assets 53,238 48,304 Current liabilities 31,444 39,535 Non-current liabilities 12,353 6,029 Equity before appropriation of earnings 45,978 47,829 Operating income 1) 201,413 185,798 EBIT 7,626 8,646 Net profit 5,810 6,640 Remeasurement of net defined benefit liability recognised in other comprehensive income (4,129) 4,375 Cash flow from operating activities 14,140 10,429 1) Restatement of 2017 figures upon adoption of IFRS 15 (refer to page 90)