The first choice for health, beauty and wellbeing
“We want to be a reliable, attractive partner and employer”
Ladies and Gentlemen,
Galenica Santé made a buoyant start to 2015 and was able to continue this momentum throughout the year. All Business sectors performed well. The sales growth of 3.9 % to CHF 2,891.3 million is a pleasing result in view of the market environment, with cosmetic products and non-prescription medicines in particular under heavy pressure from the euro exchange rate and consumer tourism. Earnings before interest and taxes (EBIT) increased by 21.7 % to CHF 125.2 million, which was also boosted by the founding of Vifor Consumer Health on 1 July 2015. On a comparable basis EBIT increased by 14.4 %. At the same time, the increase in volumes and profitability is all the more significant, given that sales in the reporting period were driven by high-priced medications with relatively low margins. This effect was more than offset by further progress in operational efficiency as well as the strong flu season during the first few months of the year.
EBIT increase on a comparable basis
Since July 2015, the newly formed Vifor Consumer Health has come under the management of Galenica Santé. With its strong brands such as Perskindol®, Anti-Brumm®, Algifor® and Triofan®, Vifor Consumer Health is an excellent addition to our portfolio. With the largest pharmacy network in Switzerland, Galenica Santé offers unique potential for the sale of these and other brands. Nearly 500 points of sale in the best locations and over 100,000 customers daily provide a unique and attractive distribution structure for third-party and exclusive brands.
Our aim of exploiting this potential consistently is reflected in our investments. In 2015, these amounted to CHF 43.8 million (previous year: CHF 40.7 million). The major part of operational investments was used for the expansion of the logistics centre in Niederbipp, which is proceeding as planned and will enable future volume increases to be handled with greater efficiency, while complying with ever stricter government regulations, such as storing and transporting medications at specific room or refrigerated temperatures.
In view of the Group’s vision to develop Galenica Santé into an independent listed company, we adapted our organisational structure in September 2015 to allow Galenica Santé to play an even more active and dynamic role in the Swiss healthcare market. Galenica Santé is now structured in two segments with a total of three Business sectors, and the management positions have been reorganised, too. The “Health & Beauty” segment comprises the “Products & Brands” Business sector led by Torvald de Coverly Veale and the “Retail” Business sector led by Jean-Claude Clémençon. The “Services” segment, comprising the former Business sectors Logistics and HealthCare Information, is headed by Christoph Amstutz.
Our focus is on continued growth, which we aim to achieve both organically and by means of targeted acquisitions and the expansion of our product and service offering. As in the past, we will concentrate on our core activities and build on partnerships.
We are fundamentally very well-positioned. In our day-to-day operations we will though continue to face developments that have a negative impact on the healthcare market, with further government-mandated price and margin reductions likely to impact on our results. Our unique market position, extensive know-how and our strong entrepreneurial culture form a solid foundation which we can build upon and which will help us to overcome these challenges. There are still potential synergies that we can exploit more effectively. We aim to actively shape the future of the healthcare market through innovation and turn our vision into reality. We want our customers, partners and employees to be able to feel, see and experience the reality of Galenica Santé as the first choice for health, beauty and wellbeing.
One of our core principles is: “We want to be a reliable, attractive partner and employer”. If we are to keep this promise on a daily basis, then our employees are key. I would like to thank them and all our partners for contributing to a successful 2015 and look forward to continued cooperation in the future.