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2017 sales of the Galenica Group

Thursday, 18 January 2018

Galenica 2017: pleasing sales growth – earnings guidance confirmed

In the first financial year following the IPO, the Galenica Group saw encouraging growth: it increased consolidated net sales by 6.8% to CHF 3,214.2 million, thus clearly outperforming the market.
The drivers of the sales growth were the expanded pharmacy network and the outstanding performance of the specialty pharmacy Mediservice, the launch and continued development of own and partner brands and products, the successful integration of Pharmapool, and the acquisition of new customers and partners.

Galenica confirms the forecasts for financial year 2017 announced in August with the half-year report 2017, i.e. growth in EBIT (excluding the effects of IAS 19) of between 7% and 12% compared with the previous year, including the one-off effects of CHF 7.0 million. Consequently, the outlook regarding dividends also remains unchanged, and Galenica aims to propose a dividend payment of CHF 80 million to the 2018 Annual General Meeting.

Net sales Galenica Group 2017

 
 

(in million CHF)

2017

20161)

Change1)

Health & Beauty segment

1,483.5

1,437.0

+3.2%

- Retail

1,390.1

1,348.6

+3.1%

- Products & Brands

94.7

89.3

+6.0%

Services segment

2,501.8

2,328.9

+7.4%

Corporate and eliminations

(771.1)

(757.0)


Galenica Group

3,214.2

3,008.9

+6.8%

1) In view of the IPO on 7 April 2017, the Business unit Galenica Santé of the former Galenica Group restated the financials as of 2014 as if the unit had been a standalone entity (combined financial statements 2014–2016). These combined financial statements form the basis for comparison with the figures for the previous year.

GALENICA GROUP

 
 

Pleasing sales growth in challenging market environment

Driven by increasing sales of high-priced medications, the Swiss pharmaceutical market grew by 4.5% in 2017 despite a slight fall in volumes (–0.7%, IQVIA, until November 2017). However, the market for beauty and care products declined over the same period.

The market environment was and remains challenging. Ongoing shopping tourism, growing online shopping and frequency decline in shopping centres are features of the Swiss retail market. Nevertheless, the Galenica Group managed to increase net sales by 6.8% to CHF 3,214.2 million, thus outperforming the market. The drivers of the sales growth were the expanded pharmacy network and the outstanding performance of the specialty pharmacy Mediservice, the launch and continued development of own and partner brands and products, the successful integration of Pharmapool, and the acquisition of new customers and partners.

Corporate Executive Committee strengthened

In December 2017, as has already been announced, Daniele Madonna, Head of Coop Vitality pharmacies, assumed responsibility for the Retail Business sector, taking over from Jean-Claude Clémençon who is now able to focus fully on his duties as CEO Galenica Group. As Head Retail, Daniele Madonna is a member of the Corporate Executive Committee.

Contact

Galenica Ltd.
Media
Untermattweg 8
3027 Bern

Tel. +41 58 852 85 17
Fax +41 58 852 85 58

Contact

Galenica Ltd.
Investors
Untermattweg 8
3027 Bern

Tel. +41 58 852 85 29
Fax +41 58 852 85 35