Gschäftsbericht 2018

Galenica financial statements 2018| 97 Finance Notes to the consolidated financial statements of the Galenica Group 5. Net sales Accounting principles Net sales represent revenue from contracts with customers from the sale of goods or rendering of services. Revenue is recognised in the amount that reflects the consideration to which Galenica expects to be entitled when the promised goods or services are transferred to customers. Revenue is stated net of any price, volume, cash or other types of dis- counts (e.g. slotting fees that do not represent a distinct performance obligation) and exclusive of VAT. Where invoices are issued, payment terms in Switzerland usually range between 10 and 30 days, for both goods and services. Sale of goods Revenue from sale of goods is recognised at the point in time the Group satisfies a performance obligation by transferring control over the products to its customers. For retail pharmacy sales, this is when the customer takes possession of the products at the point-of-sale and for wholesale transactions control transfers upon shipment of the products to the cus- tomer. Galenica has determined that its customer loyalty programs represent separate performance obligations to which reve- nue is allocated based on relative stand-alone selling prices, which considers historical redemption patterns. Revenue is deferred and recognised when the award credits are redeemed, which is typically 2 to 4 months after the sale of the initial products. At the end of each period, unredeemed credits are reflected as contract liabilities and included in trade and other payables in consolidated statement of financial positions. Refund liabilities from contracts with customers are estimated based on actual sales volumes for the financial year and refund percentages as agreed with customers. These liabilities are usually settled in the subsequent financial year. Rev- enue from gift cards purchased by customers is deferred as contract liabilities until goods or services are transferred, which is typically within 12 months after the sale of the gift card. Any amounts not expected to be redeemed are recog- nised based on historical redemption patterns. Customer returns are not material. Services Revenue from services includes logistics services, the processing and sale of information and IT services as well as other contractually agreed services. The performance obligations are either satisfied over time or at a point in time (i.e. when volumes are handled) depending on the type of services rendered. Revenue is recognised using a pattern of transfer that depicts Galenica’s performance. Net sales to third parties 2018 Health & Beauty Services Corporate Group in thousand CHF Products & Brands Retail Sale of goods 43,801 1,348,560 1,641,902 — 3,034,263 Sale of services 1,459 56,042 71,965 1,290 130,756 Net sales to third parties 45,260 1,404,602 1,713,867 1,290 3,165,019 Net sales to third parties 2017 Health & Beauty Services Corporate Group in thousand CHF Products & Brands Retail Sale of goods 44,949 1,312,050 1,658,952 — 3,015,951 Sale of services 1,705 51,971 70,254 1,290 125,220 Net sales to third parties 46,654 1,364,021 1,729,206 1,290 3,141,171